At a glance
Digi International Inc is worth $2.97B, about 73 times its fiscal 2025 earnings. Revenue grew 1.5% to $430.2M in fiscal 2025, with 9.5% kept as profit; over 5 years it has grown 9.0% a year. It pays no dividend; it spent $23.6M buying back its shares over FY2021–FY2025. The stock returned +102.4% over the past year with dividends reinvested and +29.7% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 57.4% in the 2020 crash (S&P 500: 33.7%) and 26.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 6 months and 1 month after the lows.
The business in plain English
Digi International sells hardware and software that connect machines and equipment to networks, a field known as the Internet of Things (IoT). Its customers are equipment makers, businesses and government agencies that need secure, reliable connections in demanding settings. In the fiscal year ended September 30, 2025, revenue was $430.2 million, and 79.5% came from North America, mainly the United States.
The larger segment, IoT Products & Services, brought in 73.9% of revenue. It sells wireless modules that original equipment manufacturers (OEMs) build into their own products. It also sells routers, console servers (devices for managing network gear remotely) and device-management software. Sales have mostly been one-time hardware purchases, often through distributors such as Arrow Electronics, Avnet and Ingram Micro. Digi is pushing subscriptions here. The segment's annualized recurring revenue (ARR, the yearly value of ongoing subscriptions) was $32 million as of September 30, 2025.
IoT Solutions, 26.1% of revenue, sells mostly subscriptions, which Digi describes as stable and higher-margin. SmartSense by Digi monitors temperature and other conditions for pharmacies, hospitals, food service businesses and supply chains. Jolt, acquired in the fourth quarter of fiscal 2025, adds task management and labeling. Ventus manages the cellular and wired networks that link a company's many sites, for banks, retailers, gaming and hospitality businesses. Segment ARR was $120 million as of September 30, 2025.
Price history
The interactive chart needs JavaScript.
DGII +102.4% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Product | $296.6M | 68.9% |
| Service | $133.6M | 31.1% |
By business segment
| IoT Products & Services | $317.9M | 73.9% |
| IoT Solutions | $112.3M | 26.1% |
By geography
| North America, primarily United States | $341.9M | 79.5% |
| Europe, Middle East & Africa | $62.9M | 14.6% |
| Rest of world | $25.4M | 5.9% |
Latest results
- In Q3 FY2026 (ended Jun 30, 2026), revenue was $138.7M, up 29% from a year earlier, and net income was $15.7M (+53.7%).
- For fiscal 2025, revenue was $430.2M (+1.5% year over year; +9.0% a year from FY2020 to FY2025) with a 9.5% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +9.0% good |
|---|---|
| Operating margin | 13.1% watch |
| Free cash flow margin | 24.5% good |
| Return on equity (FY2025) | 6.4% weak |
| Return on assets (FY2025) | 4.4% watch |
| Net cash (cash minus debt) | $-80.2M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $279.3M | $8.4M | $33.6M |
| FY2021 | $308.6M | $10.4M | $55.5M |
| FY2022 | $388.2M | $19.4M | $35.8M |
| FY2023 | $444.8M | $24.8M | $32.4M |
| FY2024 | $424.0M | $22.5M | $80.9M |
| FY2025 | $430.2M | $40.8M | $105.3M |
Valuation snapshot
| Market value | $2.97B |
|---|---|
| P/E ratio | 72.5 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Digi International’s market value went from $361.9M at the end of 2016 to $2.97B on Oct 28, 2026, about 8.2 times as much; since the end of 2025 it is up 84%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.97B | +84.3% |
| 2025 | $1.61B | +45.7% |
| 2024 | $1.11B | +17.8% |
| 2023 | $938.7M | -27.8% |
| 2022 | $1.30B | +53.7% |
| 2021 | $845.3M | +53.0% |
| 2020 | $552.7M | +10.2% |
| 2019 | $501.7M | +81.0% |
| 2018 | $277.2M | +8.8% |
| 2017 | $254.6M | -29.6% |
| 2016 | $361.9M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| DGII price data to Oct 28, 2026 | +80.8% | +102.4% | +45.8% | +29.7% | +23.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +80.8% |
| 2025 | +43.2% |
| 2024 | +16.3% |
| 2023 | -28.9% |
| 2022 | +48.8% |
| 2021 | +30.0% |
| 2020 | +6.7% |
| 2019 | +75.6% |
| 2018 | +5.7% |
| 2017 | -30.6% |
| 2016 | +20.8% |
| 2015 | +22.5% |
| 2014 | -23.4% |
| 2013 | +28.0% |
| 2012 | -15.1% |
| 2011 | +0.5% |
| 2010 | +21.7% |
| 2009 | +12.4% |
| 2008 | -42.9% |
| 2007 | +2.9% |
| 2006 | +31.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 56.8% over that stretch · deepest drop along the way 61.8%, back to its old high 128.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 42.8% over that stretch · deepest drop along the way 57.4%, back to its old high 6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 37.1% over that stretch · deepest drop along the way 26.8%, back to its old high 1.2 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 14 sales ($11.2M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 2, 2026 | James J. Loch SR VP, CFO AND TREASURER | sell | $6.8M |
| May 11, 2026 | Terrence G. Schneider VP, SUPPLY CHAIN | sell | $930K |
| Nov 17, 2025 | David H. Sampsell VP, CORP. DEV, GC & CORP. SEC. | sell | $853K |
| Nov 24, 2025 | Terrence G. Schneider VP, SUPPLY CHAIN | sell | $676K |
| May 13, 2026 | David H. Sampsell VP, CORP. DEV, GC & CORP. SEC. | sell | $415K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 15.2% | Dec 31, 2025 |
| Conestoga Capital Advisors | 8.5% | Dec 31, 2025 |
| FMR LLC | 6.4% | Jun 30, 2026 |
| Vanguard Capital Management | 4.99% | Sep 30, 2026 |
| Dimensional Fund Advisors LP | 4.9% | Mar 31, 2026 |
| EARNEST PARTNERS LLC | 4.9% | Dec 31, 2025 |
ETFs with the most weight in DGII
| CAFG Pacer US Small Cap Cash Cows Growth Leaders ETF | 0.92% |
| FYC First Trust Small Cap Growth AlphaDEX Fund | 0.25% |
| AFSM First Trust Active Factor Small Cap ETF | 0.25% |
| LST Leuthold Select Industries ETF | 0.24% |
| JPSE JPMorgan Diversified Return U.S. Small Cap Equity ETF | 0.23% |
| BFOR ALPS Barron's 400 ETF | 0.23% |
| ISMD Inspire Small/Mid Cap ETF | 0.2% |
| SFLO VictoryShares Small Cap Free Cash Flow ETF | 0.17% |
What could go wrong
- Heavy reliance on distributors. One distributor accounted for 13% of revenue in the fiscal year ended September 30, 2025. Distributors and resellers handled 60.2% of sales overall. Losing or weakening those partners could hurt results.
- Subscription units depend on a few industries. Ventus historically relied heavily on fewer than 20 customers, many in financial and gaming-terminal industries. SmartSense and Jolt serve large pharmacy, hospital and food retail customers. Trouble there could shrink recurring revenue.
- Outsourced factories and single-source parts. Contract manufacturers mainly in Thailand, Mexico, Taiwan and Cambodia build Digi's products, and some parts have only one supplier. Ventus relies almost entirely on a manufacturer in China. Disruptions could delay shipments.
- Big orders that can slip. Some products need long technical testing before customers commit, and large project-based orders can be delayed. A single slipped order can swing quarterly results. Digi warned that fiscal 2026 results could be uneven.
- Tariffs on overseas-made hardware. Most products are built abroad, and 79.5% of revenue comes from North America. New or higher tariffs could raise costs, squeeze margins or make products less competitive.
- Acquisition missteps and goodwill write-downs. Acquisitions have driven much of Digi's growth, and it is seeking larger deals. A purchase that underperforms could hurt profits and force a goodwill impairment, writing down an acquired business's value.
Recent events
- Major agreement signed; Major agreement ended; New debt or financial obligation; Investor presentation or announcement
- Quarterly results released
- Quarterly results released
- Executive or board change
- Quarterly results released
- Major agreement signed
- Quarterly results released
For income and retirement investors
Digi International paid no dividends in fiscal 2021 through 2025, so the stock provides no regular income. An investor who needs cash from it would have to rely on selling shares. The company spent $23.6 million on buybacks over those five years. Even so, the share count rose 11.2% between August 2021 and July 2026, so buybacks did not offset new shares issued. Free cash flow, the cash left after running the business and investing in equipment, reached $105.3 million in fiscal 2025.
The shares have swung sharply in downturns. They fell 61.8% in the 2008 financial crisis and took about 128 months, until November 2019, to recover. In the 2020 COVID crash they dropped 57.4% but recovered within six months. In the 2022 bear market they fell 26.8% and recovered in about a month. Across the market's January-to-October slide, they gained 37.1%. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Digi International make money?
Digi makes money selling hardware that connects equipment to networks, plus subscriptions to monitor and manage it. In the fiscal year ended September 30, 2025, revenue was $430.2 million. IoT Products & Services, which sells wireless modules, routers and console servers largely through distributors, brought in 73.9%. IoT Solutions brought in 26.1%, mostly from SmartSense condition monitoring and Ventus managed networks. Annualized recurring revenue, the yearly value of subscriptions, was $32 million and $120 million, respectively, as of that date.
Does Digi International pay a dividend?
No. Digi paid no dividends in fiscal 2021 through 2025, and the stock had no dividend yield as of October 28, 2026. The company spent $23.6 million on share buybacks over those five years, but shares outstanding still rose 11.2% from August 2021 to July 2026. Any return comes only from changes in the share price, so income would have to come from selling shares. It may suit growth-focused investors more than income seekers.
How has Digi International stock performed?
It has done very well over longer periods, with big swings along the way. As of October 28, 2026, the share price had risen 102.4% over one year. It averaged 29.7% a year over five years and 23.2% a year over ten years. It was up 80.8% for 2026 through that date, after a 43.2% gain in 2025 and a 28.9% drop in 2023. Its deepest fall from a peak in 21.3 years of price history was 65.7%.
What is Digi International's P/E ratio?
Digi's price-to-earnings (P/E) ratio was 72.5 as of October 28, 2026, based on fiscal 2025 diluted earnings of $1.08 per share. That is a high multiple: investors were paying about $72 for each dollar of last full-year profit, a sign the market expects growth. Profits have risen since. Net income in the quarter ended June 30, 2026 was $15.7 million, up 53.7% from a year earlier, on revenue up 29%. The market value was about $2.97 billion.
Does Digi International have a lot of debt?
It has some, but a modest amount compared with the cash it generates. As of June 30, 2026, Digi had $108.1 million of total debt and $28.0 million of cash and investments, or about $80.2 million of net debt. That is less than its fiscal 2025 free cash flow of $105.3 million. Its credit facility carries covenants, conditions set by lenders that it must meet. An August 31, 2026 filing reported a new debt or financial obligation, so these figures may have changed.