Digi International

DGII · Nasdaq · Information Technology · Financials, fiscal 2016 to 2025

DGII · Last close · November 6, 2026

$63.21

Digi International's revenue rose 1.5% to $430 million in fiscal 2025. Its operating margin was 13.1%, up from 11.3% a year earlier. Free cash flow was $105 million, up 30.2%. It paid out $7 million in dividends and buybacks, 7% of free cash flow. The diluted share count rose 2.0%.

DIGI INTERNATIONAL INC. Latest fiscal year ended September 30, 2025 10-K filed November 21, 2025 · 0000854775-25-000026 Updated November 5, 2026

Revenue

$430M

1.5%

Operating margin

13.1%

1.7 pts

Net income

$41M

81.3%

Free cash flow

$105M

30.2%

Return on capital

6.3%

0.5 pts

Market cap

$2.5B

Nov 6 close

P/E

50.2x

On $1.26 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Digi International does

Digi International provides products, services and solutions that connect machines and devices to networks, known as the Internet of Things (IoT). It helps customers set up, watch and manage communications systems that must work in demanding conditions and stay secure. It is based in Hopkins, Minnesota.

It reports two segments. IoT Products & Services, which made up most of its sales in fiscal 2025, sells embedded and wireless modules, console servers, and enterprise and industrial routers to equipment makers, businesses and governments, along with device management and professional services. These sales have mostly been one-time product sales, though Digi now stresses subscription-based offers.

IoT Solutions mostly sells by subscription. It includes SmartSense by Digi, which offers wireless temperature and condition monitoring for food service, healthcare and supply chain customers, and Ventus, which sells managed network services. Digi bought Ventus in November 2021 and Jolt Software, Inc. in the fourth quarter of fiscal 2025. It sells partly through distributors and resellers.

Its biggest risks, as it describes them

Relying on a few suppliers, some of them the only source of certain parts.
Long and variable sales cycles that make results hard to predict.
Having a large share of sales from a few customers, including at its Opengear business.
Acquisitions that disrupt the business or fail to pay off.
Counting on distributors and resellers to sell its products.

From Digi International's annual report on Form 10-K, filed November 21, 2025, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2016 to 2025, earnings per share grew 6.0% a year and net income 10.4% a year, as new shares raised the share count by 43% and diluted each share's earnings.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	152	35	32	28	22
Debt incl. finance leases	46	222	188	123	159
Net debt (negative means net cash)	−107	188	156	96	137
Net debt to EBITDA	−3.4x	2.6x	1.9x	1.2x	1.5x
Debt to equity	0.1x	0.4x	0.3x	0.2x	0.2x
Interest coverage	7.6x	1.9x	2.0x	3.1x	8.9x
Current ratio	4.2x	1.7x	1.9x	1.7x	1.2x
Quick ratio	3.4x	1.0x	1.1x	1.1x	0.8x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Digi International's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Digi International's projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, no insider bought Digi International shares on the open market, and 5 insiders sold $11.2 million.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Jun 2, 2026	James J. LochSr VP, CFO and Treasurer	Sold	100,000	$69.44	$6.9 million	Form 4
May 26, 2026	James E. FreelandVP, Chief Information Officer	Sold	450	$68.00	$30,600	Form 4
May 13, 2026	David H. SampsellVP, Corp. Dev, GC & Corp. Sec.	Sold	6,376	$65.11	$415,109	Form 4
May 11, 2026	Terrence G. SchneiderVP, Supply Chain	Sold	14,182	$65.61	$930,481	Form 4
Feb 10, 2026	Satbir KhanujaDirector	Sold	6,000	$46.00	$276,000	Form 4
Feb 10, 2026	David H. SampsellVP, Corp. Dev, GC & Corp. Sec.	Sold	5,000	$45.74	$228,700	Form 4
Feb 10, 2026	James E. FreelandVP, Chief Information Officer	Sold	1,355	$45.84	$62,106	Form 4
Feb 9, 2026	David H. SampsellVP, Corp. Dev, GC & Corp. Sec.	Sold	1,100	$45.04	$49,544	Form 4
Nov 25, 2025	David H. SampsellVP, Corp. Dev, GC & Corp. Sec.	Sold	8,748	$41.52	$363,217	Form 4
Nov 25, 2025	Terrence G. SchneiderVP, Supply Chain	Sold	4,208	$41.68	$175,389	Form 4
Nov 24, 2025	Terrence G. SchneiderVP, Supply Chain	Sold	16,667	$40.56	$676,014	Form 4
Nov 24, 2025	David H. SampsellVP, Corp. Dev, GC & Corp. Sec.	Sold	4,727	$40.00	$189,080	Form 4

The latest 12 of 13 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	6 of 9	5 of 9	6 of 9
Rule of 40	21.9%	14.4%	25.9%
Altman Z''	3.83	4.52	3.92
Accruals ratio	−1.4%	−7.3%	−7.7%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Fail
Current ratio rose	Pass	Fail	Fail
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Pass	Pass	Pass
Revenue rose relative to assets	Fail	Fail	Pass
F-score	6 of 9	5 of 9	6 of 9

Companies that report no gross profit are scored on the other eight.

Compare

Put Digi International side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Digi International	FY25	1.5%	13.1%	24.5%	6.3%	1.5x	6
Aviat Networks	FY26	1.2%	4.4%	1.4%	3.3%	1.1x	5	Compare
Powerfleet	FY26	22.4%	4.4%	2.0%	2.2%	3.1x	—	Compare
Harmonic	FY25	−26.1%	3.9%	26.9%	1.6%	−0.5x	4	Compare
Arlo Technologies	FY25	3.6%	1.1%	—	—	—	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	203	181	227	254	279	309	388	445	424	430
Revenue growth	−0.4%	−10.7%	25.1%	12.0%	9.9%	10.5%	25.8%	14.6%	−4.7%	1.5%
Gross profit	100	87	109	119	144	167	216	252	250	271
Research and development	31	29	33	38	44	47	55	59	60	64
Operating income	17	9	3	10	11	10	38	50	48	56
Net income	17	9	2	10	8	10	19	25	22	41
Diluted EPS (US$)	0.64	0.35	0.06	0.35	0.28	0.31	0.54	0.67	0.61	1.08
Diluted shares (millions)	26	27	28	29	30	33	36	37	37	38
Cash flow
Cash from operations	27	2	−3	29	34	58	38	37	83	108
Capital expenditure	3	2	2	9	1	2	2	4	2	3
Free cash flow	24	1	−5	20	34	55	36	32	81	105
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	1	1	1	2	2	7	4	4	7
Acquisitions	3	30	56	0	136	19	348	0	0	146
Stock-based compensation	4	5	5	6	7	8	9	13	13	15
Balance sheet at fiscal year end
Cash and short-term investments	134	110	63	93	54	152	35	32	28	22
Debt incl. finance leases	—	—	—	0	59	46	222	188	123	159
Total assets	336	345	372	399	529	620	854	836	815	923
Total liabilities	36	26	42	50	157	147	352	295	234	287
Shareholders' equity	300	319	330	349	372	472	502	540	581	636
Margins and ratios
Gross margin	49.1%	48.1%	48.1%	46.8%	51.5%	54.0%	55.7%	56.7%	58.9%	62.9%
Operating margin	8.4%	4.9%	1.2%	4.0%	4.0%	3.4%	9.8%	11.3%	11.3%	13.1%
Net margin	8.2%	5.2%	0.7%	3.9%	3.0%	3.4%	5.0%	5.6%	5.3%	9.5%
Free cash flow margin	12.0%	0.4%	−2.0%	7.7%	12.0%	18.0%	9.2%	7.3%	19.1%	24.5%
Rule of 40 (growth + FCF margin)	11.6%	−10.3%	23.1%	19.8%	21.9%	28.5%	35.0%	21.9%	14.4%	25.9%
Return on capital	—	—	—	—	3.6%	2.8%	7.2%	7.2%	6.9%	6.3%
Return on equity	5.8%	3.0%	0.5%	2.9%	2.3%	2.5%	4.0%	4.8%	4.0%	6.7%
Return on assets	5.2%	2.8%	0.5%	2.6%	1.8%	1.8%	2.6%	2.9%	2.7%	4.7%
Net debt to EBITDA	—	—	—	−4.0x	0.2x	−3.4x	2.6x	1.9x	1.2x	1.5x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Digi International's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Digi International.