Stock Information
symbol line chart

DGIIDigi International, Inc.

Upcoming Earnings

We were not able to find an announced earnings date for this symbol yet. Check back again later

Company Info

CEO

Ronald E. Konezny

Location

Minnesota, USA

Exchange

Nasdaq

Website

https://digi.com

Summary

Digi International Inc.

Company Info

CEO

Ronald E. Konezny

Location

Minnesota, USA

Exchange

Nasdaq

Website

https://digi.com

Summary

Digi International Inc.

AI Insights for DGII
2 min read

Quick Summary

Digi International, Inc. is a technology company headquartered in Minnetonka, Minnesota, United States. It specializes in providing business and mission-critical Internet of Things (IoT) products, services, and solutions both domestically and internationally. The company is organized in two main segments: IoT Products & Services and IoT Solutions. Digi’s offerings focus on enabling secure, intelligent connectivity for devices and networks in areas such as industrial automation, smart cities, energy, transportation, and utility management. Its core customer base includes enterprises, industrial companies, service providers, municipalities, and organizations requiring highly reliable and scalable networking solutions.

The Bull Case

  • Digi International’s main strengths include its rapidly growing high-margin recurring revenue streams, a strong foothold in the expanding IoT and cloud networking sector, and a diversified product portfolio covering both hardware and software.
  • The company has demonstrated an ability to innovate with new edge-to-cloud solutions and differentiate itself with strong security features, such as achieving SOC 2 Type 2 compliance.
  • Digi’s financial discipline—evident in improved margins, recurring revenue growth, and prudent debt management—positions it favorably for long-term expansion.
  • Additionally, recent analyst upgrades and the adoption of advanced technologies like Wi-SUN and AI position the company well against competitors.

The Bear Case

  • Despite its strengths, Digi International faces weaknesses in terms of its relatively high price-to-earnings ratio compared to industry peers, which may signal overvaluation.
  • The company still relies on hardware sales, making it potentially vulnerable to supply chain disruptions, component shortages, and cyclical demand.
  • Digi’s size compared to large competitors limits its market power and bargaining leverage.
  • Past periods of slowed growth due to macroeconomic factors and chip shortages have highlighted some operational inflexibility.
  • The absence of a dividend and some GuruFocus warnings suggest limited appeal to income investors and the possibility of overlooked financial risks.

Key Risks

  • Key risks to Digi include the potential inability to maintain or accelerate ARR growth, which could negatively impact profitability if hardware sales decline.
  • The competitive landscape is intense, with large multinational firms and smaller innovators alike pressuring margins and market share.
  • Economic downturns, supply chain disruptions (e.g., chip shortages), and fluctuations in enterprise capital spending could materially harm financial results.
  • The high valuation compared to peers leaves the stock exposed to sharp corrections should growth moderate.

What to Watch

UpcomingDuring the most recent quarter, Digi International reported record annual recurring revenue, continued to reduce debt, improved gross margins, and raised its full-year profit outlook.
UpcomingThe company launched the Digi XBee for Wi-SUN, targeting secure IoT and smart city applications.
UpcomingIt also unveiled the Digi XBee Hive gateway and presented new edge-to-cloud solutions at CES 2026.
ExpectedLooking ahead to the next quarter, Digi International is expected to focus on sustaining high-margin, recurring revenue growth through the expansion of its cloud and subscription-based services.

Price Drivers

  • Digi International’s stock price is influenced by earnings growth, especially driven by recurring revenue and improvements in adjusted EBITDA.
  • Market sentiment is affected by the company’s performance relative to quarterly expectations, as well as its success in launching and marketing new IoT, cloud, and edge solutions.
  • Macroeconomic events, such as chip shortages, supply disruptions, and trends in enterprise IT and industrial automation spending, also impact the share price.
  • Furthermore, analyst upgrades or downward revisions, as well as major client deals and partnerships, strongly affect the company's valuation.

Recent News

  • Recent news highlights Digi International’s focus on high-margin, recurring revenue and innovation in IoT, cloud, and smart city solutions.
  • The company launched new products such as Digi XBee for Wi-SUN and Digi XBee Hive, showcased these at CES 2026, and achieved SOC 2 Type 2 compliance for its remote management and Genesis platforms.
  • Analyst sentiment has turned positive with B.
  • Riley and others raising price targets after solid quarterly performance.

Market Trends

  • The broader market for computer networking, IoT, and edge computing is experiencing robust growth, fueled by the proliferation of cloud computing, AI, 5G, and Wi-Fi 7 technologies.
  • Adoption of IoT solutions is accelerating across industries such as energy, transportation, manufacturing, and smart cities.
  • Demand for secure and high-performance networks is climbing with increased remote work, digital transformation, and deployment of AR/VR devices.
  • While the sector is outperforming the broader S&P 500, it also faces macroeconomic uncertainty, supply chain risk, and intense competitive pressures.

AI-generated summary. Not investment advice. DYOR.

Community Research

Research from investors like you

Be the first to share your analysis on DGII

Help fellow investors make informed decisions by sharing your research on fundamentals, catalysts, and outlook.

Topics: Company overview • Products • Competitors • Strengths & Risks

Symbol's posts

No more topics to show