Digi Intl Stock Price, News & Analysis

Digi International Inc. (NASDAQ: DGII) is a Minnesota-based corporation that focuses on Internet of Things (IoT) connectivity products, services, and solutions. According to its public disclosures, Digi helps companies create next-generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security and reliability. The company has been in operation since 1985 and reports that it has helped customers connect more than 100 million devices.

Digi operates in the electronic computer manufacturing industry within the broader manufacturing sector, but its positioning is centered on IoT connectivity and networked systems. The company’s activities span embedded modules, infrastructure management, cloud-based platforms, and managed services that support business- and mission-critical applications.

Business Segments and Operating Model

Digi reports two primary segments in its financial results: IoT Products & Services and IoT Solutions.

• IoT Products & Services: This segment supports OEMs, enterprises, and government customers with secure IoT connectivity solutions. It includes hardware and related offerings that enable customers to build and manage connected systems. Digi states that this segment generates the majority of its revenue, with recurring revenue tied to remote management platforms and extended warranty offerings.
• IoT Solutions: This segment includes SmartSense and the Ventus managed connectivity business, and, following an acquisition, Jolt Software. It focuses on sensor-based solutions, managed network services, and subscription-based platforms that deliver recurring revenue. The segment provides monitoring, compliance, and workflow capabilities for distributed operations.

Across both segments, Digi emphasizes recurring revenue through subscription services and managed offerings, as reflected in its reported Annualized Recurring Revenue (ARR) and the growth of its software- and service-driven businesses.

IoT Connectivity Products and Embedded Solutions

Digi describes itself as a pioneer in wireless communication and IoT, having developed M2M and IoT devices, adapted to evolving network standards, and optimized data communications around advanced protocols and emerging technologies. Its public materials reference a range of connectivity products such as radio frequency modems, gateways, cellular routers, networking devices, embedded system-on-modules (SOM), and single-board computers (SBCs), which are used across many IoT applications.

The company highlights its Digi XBee family of embedded wireless modules, including the Digi XBee 3 Global LTE Cat 4 cellular modem. This product is described as supporting higher-bandwidth IoT applications and offering global carrier and regulatory pre-certifications, an integrated GNSS receiver, Bluetooth Low Energy connectivity, and an integrated MicroPython environment for edge intelligence. Digi positions these capabilities as a way for device manufacturers to integrate cellular connectivity more quickly and manage devices at scale through Digi Remote Manager and associated tools.

Infrastructure Management and Edge Connectivity

Digi also offers infrastructure management solutions that provide secure connectivity, centralized management, and real-time visibility across medical, industrial, and enterprise environments. Public materials describe products such as Digi Connect EZ, Digi Connect EZ WS, Digi Connect Sensor XRT-M, and Digi AnywhereUSB Plus, which are used for serial connectivity, remote monitoring, USB-over-IP connectivity, and other infrastructure use cases.

The company emphasizes that these solutions are designed to help organizations modernize infrastructure, reduce downtime, and operate with confidence by enabling remote access, automation, and centralized control. Demonstrations at industry events, such as robotics and smart city use cases, are used to illustrate how Digi’s technologies support edge-to-cloud communication and intelligent infrastructure.

Managed Services, eSIM, and Distributed Networking

Digi’s disclosures highlight an expanding focus on managed connectivity and distributed networking. The Digi Ventus Managed Connectivity Solutions program is presented as a channel-centric offering that combines enterprise-grade cellular hardware with managed services, including multi-carrier 5G connectivity, lifecycle management, and 24/7 monitoring and support. This program is aimed at managed service providers, resellers, and carriers that want to offer managed cellular connectivity without building their own monitoring platforms.

In addition, Digi has announced an SGP.32-compatible eSIM accessory and an alignment with Simetric to bring validated eSIM orchestration and lifecycle control to its connected-device portfolio. These initiatives are described as supporting zero-touch eSIM workflows, multi-carrier management, and unified orchestration for distributed IoT environments, with management through Digi Remote Manager. Digi positions eSIM as central to its distributed networking strategy, enabling carrier choice, remote provisioning, and improved governance at scale.

SmartSense by Digi and Jolt Integration

Within the IoT Solutions segment, SmartSense by Digi is described as a business unit that provides IoT Sensing as a Service solutions. SmartSense focuses on asset tracking, monitoring, process digitization, and digital decisioning across verticals such as grocery, convenience stores, restaurants, and healthcare organizations. The solutions are intended to support compliance, workforce productivity, loss prevention, and reduction of waste and energy consumption.

Digi reports that it acquired Jolt Software Inc., a company based in Utah that provides a software platform for digital food safety compliance, team accountability, and employee performance. SmartSense and Jolt capabilities have been combined in SmartSense ONE, a modular, scalable platform that unifies monitoring, operations, safety, and quality capabilities through a shared data model and common user experience.

SmartSense ONE is organized into seven modules—Monitor, Operate, Guard, Assure, Service, Label, and Schedule—each focused on specific operational needs such as asset monitoring, task management, food safety, audits, maintenance, labeling, and labor management. Digi presents this platform as a way for customers to deploy individual modules or a combined suite to improve compliance, reduce risk, and enhance operational efficiency.

Opengear and Network Resilience

Digi also owns Opengear, which is described as delivering secure, resilient access and automation to support critical IT infrastructure. Opengear’s Network Resilience Platform includes appliances and central management software (Lighthouse) that provide out-of-band management, provisioning, orchestration, and remote control of network devices.

Opengear has introduced products such as the CM8000 Series and OM1300 Series, which are described as serial-first and edge-integrated platforms for out-of-band infrastructure. These products are intended to help IT teams maintain access and control during network outages and support distributed sites across sectors such as financial services, digital communications, retail, and manufacturing.

Cloud Platforms, Security, and Compliance

Digi operates cloud-based platforms including Digi Remote Manager and Digi Genesis for IoT and network management. These platforms provide centralized monitoring, configuration, firmware updates, and security controls for connected devices. Digi has announced that both Digi Remote Manager and Digi Genesis achieved SOC 2 Type 2 attestation under the AICPA Trust Services Criteria, covering security, availability, and confidentiality.

The SOC 2 Type 2 assessment is described as validating that Digi maintains controls over an extended period, reinforcing its positioning in secure, cloud-based IoT and device management. The company notes that this certification can reduce audit burdens for customers and support adoption in regulated industries such as healthcare and financial services.

Financial Profile and Capital Allocation

In its fiscal 2025 earnings release, Digi characterizes itself as a leading global provider of business- and mission-critical IoT products, services, and solutions. The company reports revenue across its two segments, with IoT Products & Services contributing the majority of total revenue and IoT Solutions showing notable growth in recurring revenue.

Digi discloses that Annualized Recurring Revenue (ARR) represents a significant and growing portion of total revenue, driven by subscription-based offerings in both segments. The company also reports on its capital allocation strategy, including the use of a revolving credit facility, debt repayment, and the prioritization of acquisitions that expand scale and ARR. The acquisition of Jolt Software is cited as an example of this approach.

Corporate Governance and Shareholder Information

Digi is incorporated in Delaware and trades on the NASDAQ under the ticker symbol DGII. Its principal executive office is located in Hopkins, Minnesota. The company holds annual meetings of stockholders, with matters such as director elections, advisory votes on executive compensation, and ratification of auditors presented for shareholder approval, as described in its definitive proxy statement.

The proxy materials outline Digi’s board structure, committee responsibilities, director independence, and governance practices, as well as policies on stockholder proposals, director nominations, and majority voting for directors. They also describe the board’s role in risk oversight and the use of advisory votes on executive compensation.

Geographic Presence and Customer Base

Digi’s disclosures indicate that it generates a majority of its revenue from the United States, with additional presence in Europe, the Middle East and Africa, and other regions. Its solutions are used by organizations across multiple sectors, including retail, healthcare, financial services, manufacturing, digital communications, and infrastructure-related markets, particularly where secure, reliable connectivity and compliance are critical.

FAQs about Digi International (DGII)

• What does Digi International do?
  Digi International provides IoT connectivity products, services, and solutions. It helps customers create connected products and deploy and manage critical communications infrastructure, with offerings that include embedded modules, networking devices, managed connectivity, and cloud-based management platforms.
• How is Digi International organized?
  Digi reports two segments: IoT Products & Services, which focuses on connectivity hardware and related offerings, and IoT Solutions, which includes SmartSense, Ventus, and Jolt-based platforms that deliver sensor-based monitoring, compliance, and managed network services.
• What is SmartSense by Digi?
  SmartSense by Digi is a business unit within the IoT Solutions segment that provides IoT Sensing as a Service. It offers asset tracking, monitoring, process digitization, and analytics to support compliance, loss prevention, and operational efficiency across sectors such as grocery, convenience, restaurants, and healthcare.
• What is SmartSense ONE?
  SmartSense ONE is a modular platform that unifies capabilities from SmartSense and Jolt. It is organized into seven modules—Monitor, Operate, Guard, Assure, Service, Label, and Schedule—designed to address monitoring, operations, food safety, audits, maintenance, labeling, and labor management through a shared data model and common user experience.
• Who is Opengear and how does it relate to Digi?
  Opengear is a Digi International company that focuses on secure, resilient access and automation for critical IT infrastructure. It provides out-of-band management appliances and central management software that allow organizations to provision, orchestrate, and remotely manage network devices.
• What is Digi Ventus Managed Connectivity Solutions?
  Digi Ventus Managed Connectivity Solutions is a managed cellular connectivity offering aimed at solution providers and carriers. It combines Digi hardware with managed services, including multi-carrier 5G connectivity, centralized visibility, lifecycle management, and 24/7 expert support.
• How does Digi use eSIM technology?
  Digi has introduced an SGP.32-compatible eSIM accessory and aligned with Simetric to provide validated eSIM orchestration and lifecycle control. This supports zero-touch provisioning, multi-carrier management, and unified orchestration for distributed IoT deployments, with management through Digi Remote Manager.
• What is Digi Remote Manager?
  Digi Remote Manager is a cloud-based platform that enables customers to monitor, configure, update, and manage Digi devices at scale. It supports remote diagnostics, firmware updates, automated tasks, and geolocation management for mission-critical IoT deployments.
• How does Digi address security and compliance?
  Digi reports that Digi Remote Manager and Digi Genesis achieved SOC 2 Type 2 attestation, confirming that they meet defined criteria for security, availability, and confidentiality. The company positions this as supporting customers in regulated industries and reducing their audit and compliance burdens.
• Where does Digi International generate its revenue?
  Digi states that it generates the majority of its revenue from the United States, with additional revenue from Europe, the Middle East and Africa, and other regions. Revenue is reported across its IoT Products & Services and IoT Solutions segments, with a growing portion from recurring, subscription-based offerings.
• Is Digi International still an active public company?
  Yes. Digi International files periodic reports and proxy statements with the U.S. Securities and Exchange Commission and trades on the NASDAQ under the symbol DGII, as reflected in recent earnings releases, Form 8-K filings, and its definitive proxy statement.