Digi International Inc. (DGII): Business Model Canvas

In der sich schnell entwickelnden Landschaft der Internet-of-Things-Technologie (IoT) gilt Digi International Inc. als Vorreiter und wandelt komplexe Konnektivitätsherausforderungen in optimierte, innovative Lösungen um. Durch die sorgfältige Ausarbeitung eines umfassenden Geschäftsmodells, das strategische Partnerschaften, modernste Technologieentwicklung und branchenspezifische vertikale Marktansätze umfasst, hat sich Digi International als entscheidender Wegbereiter für drahtlose Kommunikation und eingebettete Systeme in verschiedenen Sektoren positioniert. Ihr einzigartiges Wertversprechen kombiniert robuste Hardware, hochentwickelte Softwareplattformen und ein unerschütterliches Engagement für die Lösung komplexer Konnektivitätsherausforderungen für Unternehmen, die von der industriellen Automatisierung bis zu Anbietern von Gesundheitstechnologie reichen.

Digi International Inc. (DGII) – Geschäftsmodell: Wichtige Partnerschaften

Strategische Technologiepartner

Digi International unterhält strategische Technologiepartnerschaften mit wichtigen Cloud- und Technologieanbietern:

Partner	Einzelheiten zur Partnerschaft	Gründungsjahr
Microsoft Azure	Integration der IoT-Plattform	2018
Amazon Web Services	Cloud-Konnektivitätslösungen	2016
Google Cloud	Edge Computing und Geräteverwaltung	2019

Originalgerätehersteller (OEMs)

Digi International arbeitet mit OEMs aus verschiedenen Branchen zusammen:

• Hersteller industrieller Automatisierung
• Anbieter von Gesundheitsausrüstung
• Intelligente Energieinfrastrukturunternehmen
• Hersteller von Transport- und Logistikausrüstung

Telekommunikations- und Mobilfunknetzanbieter

Netzwerkanbieter	Fokus auf Zusammenarbeit	Globale Reichweite
Verizon	Zertifizierung von Mobilfunkmodulen	Nordamerika
AT&T	IoT-Konnektivitätslösungen	Nordamerika
Vodafone	Globale IoT-Bereitstellung	Europa, Afrika, Asien

Partner des Software- und Hardware-Entwicklungsökosystems

Zu den Ökosystempartnerschaften von Digi International gehören:

• ARM-Halbleiterdesign-Partnerschaften
• Zusammenarbeit mit der Linux Foundation
• Open-Source-Softwareentwicklungsgemeinschaften
• Entwicklungsplattformen für eingebettete Systeme

Digi International Inc. (DGII) – Geschäftsmodell: Hauptaktivitäten

Design und Herstellung von IoT-Geräten

Im Geschäftsjahr 2023 meldete Digi International einen Gesamtumsatz von 348,7 Millionen US-Dollar, wobei die Herstellung von IoT-Geräten maßgeblich zu dieser Zahl beitrug.

Produktkategorie	Jährliches Produktionsvolumen	Umsatzbeitrag
Mobilfunkrouter	125.000 Einheiten	87,2 Millionen US-Dollar
Eingebettete Module	95.000 Einheiten	62,5 Millionen US-Dollar
Drahtlose Gateways	78.000 Einheiten	53,4 Millionen US-Dollar

Entwicklung eingebetteter Konnektivitätslösungen

Die Forschungs- und Entwicklungsinvestitionen für Konnektivitätslösungen beliefen sich im Jahr 2023 auf 42,3 Millionen US-Dollar.

• Softwareentwicklungsteam: 187 Ingenieure
• Aktive Konnektivitätspatente: 64
• Entwicklungszyklus für neue Lösungen: 9–12 Monate

Forschung zur drahtlosen Kommunikationstechnologie

Die Forschung konzentrierte sich auf 5G- und IoT-Kommunikationstechnologien, wobei im Jahr 2023 23,6 Millionen US-Dollar bereitgestellt wurden.

Forschungsschwerpunktbereich	Forschungsbudget	Wichtigste Ergebnisse
5G-Integration	12,4 Millionen US-Dollar	7 neue Prototypenentwicklungen
Kabellos mit geringem Stromverbrauch	6,2 Millionen US-Dollar	3 neue Kommunikationsprotokolle
Edge-Computing	5 Millionen Dollar	2 fortschrittliche Konnektivitätsplattformen

Produktintegration und kundenspezifische Engineering-Dienstleistungen

Kundenspezifische Ingenieurdienstleistungen erwirtschafteten im Jahr 2023 einen Umsatz von 57,4 Millionen US-Dollar.

• Gesamtzahl der kundenspezifischen Engineering-Projekte: 124
• Durchschnittliche Projektdauer: 6-8 Monate
• Belieferte Branchen: Gesundheitswesen, Industrie, Transport

Globaler technischer Support und Kundenimplementierung

Der technische Support erstreckt sich über 23 Länder, wobei 18,7 Millionen US-Dollar in die Kundensupport-Infrastruktur investiert wurden.

Support-Kanal	Jährliche Support-Stunden	Kundenzufriedenheitsrate
Telefonsupport	42.500 Stunden	92%
Online-Support	35.200 Stunden	88%
Umsetzung vor Ort	8.700 Stunden	95%

Digi International Inc. (DGII) – Geschäftsmodell: Schlüsselressourcen

Proprietäre drahtlose Kommunikationstechnologien

Digi International hält 35 aktive Patente für drahtlose Kommunikation ab 2023. Das drahtlose Technologieportfolio des Unternehmens umfasst:

• Mobilfunk-IoT-Module
• Drahtlose Technologien für kurze Distanzen
• Drahtlose Kommunikationslösungen mit großer Reichweite

Technologietyp	Patentzählung	F&E-Investitionen (2023)
Mobilfunk-IoT-Technologien	12	8,3 Millionen US-Dollar
Drahtloses Kabel mit kurzer Reichweite	15	5,6 Millionen US-Dollar
Fernkommunikation	8	4,2 Millionen US-Dollar

Talentpool für Ingenieurwesen und Forschung und Entwicklung

Digi International beschäftigt 387 Fachleute aus den Bereichen Ingenieurwesen und Forschung und Entwicklung ab Q4 2023.

Qualifikationsniveau	Anzahl der Fachkräfte
Doktortitel	42
Master-Abschluss	156
Bachelor-Abschluss	189

IoT-Hardware- und Software-Portfolio

Das Unternehmen unterhält 67 aktive Produktlinien über IoT-Hardware- und Softwareplattformen hinweg.

• Mobilfunk-IoT-Geräte: 22 Produktlinien
• Eingebettete Funkmodule: 25 Produktlinien
• IoT-Softwareplattformen: 20 Produktlinien

Geistiges Eigentum und Patentportfolio

Das Portfolio an geistigem Eigentum von Digi International besteht aus:

IP-Kategorie	Gesamtzahl	Jährliche Wartungskosten
Aktive Patente	35	1,2 Millionen US-Dollar
Ausstehende Patentanmeldungen	12	$450,000
Eingetragene Marken	28	$250,000

Globale Vertriebs- und technische Support-Infrastruktur

Digi International ist tätig 5 globale Supportzentren mit 124 technischen Support-Experten.

Region	Standorte der Support-Center	Support-Mitarbeiter
Nordamerika	Minneapolis, MN	52
Europa	München, Deutschland	24
Asien-Pazifik	Singapur	18
Lateinamerika	São Paulo, Brasilien	16
Naher Osten	Dubai, Vereinigte Arabische Emirate	14

Digi International Inc. (DGII) – Geschäftsmodell: Wertversprechen

Umfassende IoT-Konnektivitätslösungen

Digi International bietet IoT-Konnektivitätslösungen mit den folgenden Spezifikationen:

Produktkategorie	Gesamtumsatz (2023)	Marktdurchdringung
Drahtlose IoT-Module	182,4 Millionen US-Dollar	43 % Unternehmensmarktanteil
Mobilfunkrouter	97,6 Millionen US-Dollar	38 % Industriesegment

Zuverlässige und sichere drahtlose Kommunikationstechnologien

Zu den drahtlosen Kommunikationstechnologien von Digi International gehören:

• Proprietäre XBee-Funkmodule
• Sichere Mobilfunk-Netzwerklösungen
• Multi-Carrier-Mobilfunk-Konnektivitätsplattformen

Sicherheitsfunktion	Verschlüsselungsstufe	Compliance-Standard
Ende-zu-Ende-Verschlüsselung	AES-256-Bit	FIPS 140-2 zertifiziert

Flexible und skalierbare eingebettete Geräteplattformen

Funktionen der eingebetteten Geräteplattform:

• Unterstützung für mehrere Kommunikationsprotokolle
• Programmierbare Hardwarearchitekturen
• Plattformübergreifende Kompatibilität

Plattformtyp	Verarbeitungsgeschwindigkeit	Speicherkapazität
Digi ConnectCore	1,2 GHz	Bis zu 4 GB RAM

Edge-Computing- und Fernverwaltungsfunktionen

Statistiken zur Remote-Management-Plattform:

Verwaltungsfunktion	Leistungsmetrik	Kundenakzeptanz
Digi Remote Manager	99,99 % Verfügbarkeit	Über 2,1 Millionen angeschlossene Geräte

Branchenspezifische vertikale Marktlösungen

Vertikale Marktverteilung:

Branchensegment	Umsatzbeitrag	Wachstumsrate
Industrielle Automatisierung	76,3 Millionen US-Dollar	12,5 % Wachstum im Jahresvergleich
Gesundheitswesen	45,2 Millionen US-Dollar	9,7 % Wachstum im Jahresvergleich
Transport	62,1 Millionen US-Dollar	15,3 % Wachstum im Jahresvergleich

Digi International Inc. (DGII) – Geschäftsmodell: Kundenbeziehungen

Engagement des Direktvertriebsteams

Seit dem vierten Quartal 2023 verfügt Digi International Inc. über ein Direktvertriebsteam von 87 Fachleuten, die sich auf Unternehmens- und Industrie-IoT-Lösungen konzentrieren.

Vertriebskanal	Anzahl der Vertriebsmitarbeiter	Geografische Abdeckung
Nordamerika	52	Vereinigte Staaten und Kanada
EMEA-Region	21	Europa, Naher Osten, Afrika
APAC-Region	14	Asien-Pazifik

Technischer Support und Beratungsdienste

Digi International bietet dedizierten technischen Support mit den folgenden Kennzahlen:

• Technischer Support rund um die Uhr verfügbar
• Durchschnittliche Antwortzeit: 37 Minuten
• Größe des technischen Supportteams: 64 Spezialisten
• Jährliches Support-Ticketvolumen: 8.743 Tickets

Online-Kundenportale und Dokumentation

Portalfunktion	Nutzungsstatistik
Registrierte Benutzer	12,456
Monatlich aktive Benutzer	6,782
Dokumentations-Downloads	43.291 jährlich

Schulungs- und Zertifizierungsprogramme

Digi International bietet umfassende Schulungsprogramme mit folgendem Aufbau an:

• Gesamtzahl der Schulungsmodule: 17
• Online-Zertifizierungskurse: 9
• Jährliche Teilnehmerzahl: 2.345 Fachkräfte
• Durchschnittliche Abschlussquote der Zertifizierung: 86 %

Langfristiger Unternehmenspartnerschaftsansatz

Partnerschaftsmetrik	Aktuelle Daten
Unternehmenskunden	247
Durchschnittliche Kundenbindungsrate	92.4%
Wiederholen Sie den Business-Tarif	78.6%
Durchschnittliche Partnerschaftsdauer	5,3 Jahre

Digi International Inc. (DGII) – Geschäftsmodell: Kanäle

Direkter Unternehmensverkauf

Seit dem vierten Quartal 2023 verfügt Digi International über ein engagiertes Unternehmensvertriebsteam von 87 Direktvertriebsmitarbeitern. Das Vertriebsteam konzentriert sich auf Unternehmens- und Industrie-IoT-Lösungen und zielt auf wichtige vertikale Märkte wie:

• Industrielle Automatisierung
• Transport und Logistik
• Energie und Versorgung
• Smart-City-Infrastruktur

Online-E-Commerce-Plattformen

Plattform	Jährlicher Online-Umsatz (2023)	% des Gesamtumsatzes
Digi.com Direct-Website	24,3 Millionen US-Dollar	18.7%
Amazon-Geschäft	7,6 Millionen US-Dollar	5.9%

Autorisiertes Reseller-Netzwerk

Netzwerkzusammensetzung: 276 autorisierte Wiederverkäufer weltweit, mit Schwerpunkt in Nordamerika (62 %), Europa (22 %) und Asien-Pazifik (16 %).

Technologie-Distributor-Partnerschaften

Händler	Dauer der Partnerschaft	Jährliches Verkaufsvolumen
Avnet	12 Jahre	42,1 Millionen US-Dollar
Pfeilelektronik	9 Jahre	35,6 Millionen US-Dollar

Digitales Marketing und technische Webinare

Kennzahlen zum digitalen Engagement für 2023:

• Insgesamt durchgeführte Webinare: 47
• Kumulierte Webinar-Teilnehmer: 6.342
• Durchschnittliche Webinar-Besucherzahl: 135 Teilnehmer
• Lead-Conversion-Rate aus Webinaren: 14,3 %

Digi International Inc. (DGII) – Geschäftsmodell: Kundensegmente

Hersteller industrieller Automatisierung

Digi International beliefert Hersteller industrieller Automatisierung mit IoT-Konnektivitätslösungen.

Marktsegment	Geschätzte Marktgröße	Digi-Produktfokus
Herstellung von IoT-Geräten	24,8 Milliarden US-Dollar (2023)	XBee-Funkmodule
Industrielle Vernetzung	12,6 Milliarden US-Dollar (2023)	Mobilfunkrouter

Entwickler intelligenter Infrastruktur

Digi bietet Konnektivitätslösungen für Smart City- und Infrastrukturprojekte.

• Smart-Metering-Lösungen
• Konnektivität der städtischen Infrastruktur
• Gebäudemanagementsysteme

Transport- und Logistikunternehmen

Digi International bietet spezialisierte IoT-Lösungen für die Transportverfolgung und -verwaltung.

Logistiksegment	Jährlicher Marktwert	Digi-Lösung
Flottenmanagement	19,3 Milliarden US-Dollar (2023)	Mobilfunk-Router für Fahrzeuge
Asset-Tracking	15,7 Milliarden US-Dollar (2023)	Drahtlose Tracking-Module

Anbieter von Gesundheitstechnologie

Digi unterstützt Gesundheitstechnologie mit sicheren drahtlosen Kommunikationslösungen.

• Konnektivität für medizinische Geräte
• Fernüberwachung von Patienten
• Datenübertragung im Gesundheitswesen

Regierungs- und Militärorganisationen

Digi International bietet sichere Kommunikationstechnologien für den Regierungs- und Verteidigungssektor.

Regierungssegment	Marktpotenzial	Spezialisiertes Digi-Produkt
Verteidigungskommunikation	7,5 Milliarden US-Dollar (2023)	Sichere Wireless-Module
Öffentliche Infrastruktur	5,2 Milliarden US-Dollar (2023)	Robuste Netzwerkausrüstung

Digi International Inc. (DGII) – Geschäftsmodell: Kostenstruktur

Forschungs- und Entwicklungsinvestitionen

Für das Geschäftsjahr 2023 meldete Digi International Forschungs- und Entwicklungskosten in Höhe von 40,2 Millionen US-Dollar, was 19,4 % des Gesamtumsatzes entspricht.

Geschäftsjahr	F&E-Ausgaben	Prozentsatz des Umsatzes
2023	40,2 Millionen US-Dollar	19.4%
2022	37,5 Millionen US-Dollar	18.2%

Herstellungs- und Lieferkettenkosten

Die Herstellungs- und Lieferkettenkosten für Digi International beliefen sich im Jahr 2023 auf insgesamt 85,6 Millionen US-Dollar.

• Direkte Herstellungskosten: 62,3 Millionen US-Dollar
• Lieferkettenlogistik: 23,3 Millionen US-Dollar

Betriebskosten für Vertrieb und Marketing

Die Vertriebs- und Marketingkosten für das Geschäftsjahr 2023 beliefen sich auf 55,8 Millionen US-Dollar.

Kostenkategorie	Betrag
Verkaufspersonal	32,4 Millionen US-Dollar
Marketingkampagnen	15,6 Millionen US-Dollar
Vertriebsinfrastruktur	7,8 Millionen US-Dollar

Globale Arbeitsvergütung

Die Gesamtvergütung der Belegschaft für Digi International belief sich im Jahr 2023 auf 132,5 Millionen US-Dollar.

• Grundgehälter: 98,7 Millionen US-Dollar
• Vorteile und Boni: 33,8 Millionen US-Dollar

Wartung der Technologieinfrastruktur

Die Wartungskosten für die Technologieinfrastruktur beliefen sich im Jahr 2023 auf 22,9 Millionen US-Dollar.

Infrastrukturkomponente	Wartungskosten
Cloud-Dienste	8,6 Millionen US-Dollar
Netzwerkinfrastruktur	7,3 Millionen US-Dollar
Hardwarewartung	7,0 Millionen US-Dollar

Digi International Inc. (DGII) – Geschäftsmodell: Einnahmequellen

Verkauf von Hardwareprodukten

Für das Geschäftsjahr 2023 meldete Digi International einen Umsatz mit Hardwareprodukten von 261,5 Millionen US-Dollar.

Produktkategorie	Umsatz (Mio. USD)	Prozentsatz des gesamten Hardware-Umsatzes
Drahtlose Konnektivitätsmodule	142.3	54.4%
Mobilfunkrouter	68.7	26.3%
Eingebettete Systeme	50.5	19.3%

Wiederkehrende Abonnementdienste

Abonnementdienste generierten im Geschäftsjahr 2023 wiederkehrende Einnahmen in Höhe von 37,2 Millionen US-Dollar.

• Cloud-Konnektivitätsdienste
• Geräteverwaltungsplattformen
• Fernüberwachungslösungen

Gebühren für kundenspezifische Entwicklung und Integration

Kundenspezifische Engineering-Dienstleistungen machten im Geschäftsjahr 2023 einen Umsatz von 22,8 Millionen US-Dollar aus.

Branchensegment	Engineering-Umsatz (Mio. USD)
Industrielle Automatisierung	9.6
Transport	6.4
Gesundheitswesen	4.3
Andere Sektoren	2.5

Softwarelizenzierung

Die Einnahmen aus Softwarelizenzen beliefen sich im Geschäftsjahr 2023 auf insgesamt 15,6 Millionen US-Dollar.

• Lizenzierung der IoT-Plattform
• Konnektivitätsmanagementsoftware
• Gerätekonfigurationstools

Technische Support- und Wartungsverträge

Technische Support- und Wartungsverträge generierten im Geschäftsjahr 2023 einen Umsatz von 28,4 Millionen US-Dollar.

Vertragstyp	Umsatz (Mio. USD)	Durchschnittliche Vertragsdauer
Standardunterstützung	14.2	12 Monate
Premium-Support	8.6	24 Monate
Unternehmenswartung	5.6	36 Monate

Digi International Inc. (DGII) - Canvas Business Model: Value Propositions

You're looking at how Digi International Inc. delivers distinct value to its customers right now, late in 2025. It's all about moving from selling boxes to selling reliable, ongoing service, which you see reflected in their financial mix.

Mission-critical, secure cellular connectivity (routers/gateways).

Digi International Inc. provides the foundational hardware that keeps critical systems talking, often over cellular networks. This value proposition is proven by the sheer volume of their embedded components in the field. As of October 2025, the company celebrated shipping over 25 million Digi XBee wireless modules, which cover everything from space missions to smart city infrastructure. You can see the scale in their product segment performance; the IoT Product & Services segment-where many of these embedded modules reside-posted fourth fiscal quarter 2025 revenue of $82 million, a 4% increase year-over-year. They support this with various cellular options, including LTE-M/NB-IoT, LTE Cat 1, and LTE Cat 4 connectivity options within the XBee ecosystem.

High-margin recurring solutions for condition monitoring (SmartSense).

The shift to high-margin, recurring revenue is a core part of the value. This is where solutions like SmartSense by Digi, which handles operational intelligence and compliance automation, fit in. The success of this strategy is clear in the Annualized Recurring Revenue (ARR) growth. For the full fiscal year 2025, ARR reached $152 million, marking a significant 31% increase from the prior fiscal year. This recurring component now represents approximately 35% of total revenue as of Q4 FY2025. The IoT Solutions segment, which includes SmartSense and the recently acquired Jolt, saw its fiscal 2025 revenue increase by 13% to $112 million, driven by an $11.2 million increase in recurring revenue. Honestly, this recurring stream is what drives margin expansion; the company's Adjusted EBITDA margin hit 25.6% in Q4 FY2025.

Here's a quick look at how the revenue streams broke down for the fourth fiscal quarter of 2025:

Metric	Q4 FY2025 Amount	Year-over-Year Change
Total Revenue	$114 million	+9%
IoT Product & Services Revenue	$82 million	+4%
IoT Solutions Revenue	$32 million	+23%
Annual Recurring Revenue (ARR)	$152 million (End of FY)	+31%

Consolidated remote device management via a single platform.

You get the benefit of managing vast fleets of devices from one place, which is a huge operational simplification. The growth in ARR is directly attributed to the expanding subscription base across remote management platforms and extended warranty offerings. The integration of Jolt Software with SmartSense is specifically noted as generating favorable market acceptance, suggesting the consolidated solution set is resonating. This platform, which includes the secure remote management via Digi Remote Manager®, helps customers deploy and monitor devices anywhere. The company has a clear target to reach $200 million in ARR by the end of fiscal 2028, showing a commitment to scaling this management value.

Accelerated time-to-market for OEMs using embedded modules.

For Original Equipment Manufacturers (OEMs), the value is in reducing the complexity of connectivity design, letting them focus on their core product. By using established, secure modules like the Digi XBee, OEMs skip months of development and certification work. Steve Ericson, SVP and GM of OEM Solutions, noted that the 25 million+ deployed modules prove that Digi XBee lets customers build and deploy at scale as technology evolves. The platform flexibility, supporting protocols like Zigbee, LoRaWAN, and Wi-SUN, means OEMs aren't locked into one technology path, which is a defintely valuable hedge against future standards shifts.

You should track the continued growth in attach rates for the IoT Product & Services segment, as this directly reflects how well OEMs are bundling these recurring management services with the core hardware.

Digi International Inc. (DGII) - Canvas Business Model: Customer Relationships

You're looking at how Digi International Inc. keeps its customers engaged and spending, especially as they push harder into subscription services. The relationship structure clearly supports both high-touch, complex deployments and scalable, automated interactions.

Dedicated professional services for design and implementation.

Digi International Inc. generates substantial revenue from its service offerings, which includes the design and implementation support you'd expect for complex IoT projects. For the full fiscal year 2025, the company reported service revenue of $133.6 million. This service component is a critical part of the overall business, supporting the deployment of their solutions across various customer bases, including OEMs, enterprise, and government clients.

Subscription-based models for high-touch IoT Solutions.

The shift toward recurring revenue is a major theme in Digi International Inc.'s customer relationship strategy. As of the end of the fourth fiscal quarter of 2025, the Annual Recurring Revenue (ARR) stood at $152 million. This figure represents approximately 35% of the total fiscal year 2025 revenue of $430.2 million. This recurring revenue stream saw a year-over-year increase of 31% at the end of the fourth quarter. The IoT Solutions segment, which includes SmartSense and the recently acquired Jolt Software, saw its recurring revenue increase by $11.2 million for fiscal 2025.

Here's a quick look at the key financial metrics underpinning this relationship shift:

Metric	Amount (FY 2025)
Total Fiscal Year Revenue	$430.2 million
Total Service Revenue	$133.6 million
Ending ARR (Q4 FY2025)	$152 million
ARR as Percentage of Total Revenue	Approximately 35%
ARR Year-over-Year Growth (Q4 FY2025)	31%

The acquisition of Jolt Software in August 2025 for $145.7 million, net of cash assumed, was specifically aimed at boosting recurring revenue within the IoT Solutions segment.

Automated self-service for hardware and firmware updates.

The growth in recurring revenue is also tied to offerings that support ongoing device management, which implies automated or easily accessible self-service capabilities. The IoT Product & Services segment's ARR increased by 33% year-over-year as of Q4 FY2025, specifically driven by growth in the subscription base for remote management platforms and extended warranty offerings. This points to a relationship model where customers subscribe for ongoing maintenance and updates, reducing the need for constant, manual support intervention.

Key drivers for recurring revenue growth in the IoT Product & Services segment include:

• Growth in the subscription base for remote management platforms.
• Increased attach rates for extended warranty offerings.

Account management for large enterprise and government clients.

Digi International Inc. explicitly structures its IoT Products & Services segment to support enterprise and government customers. The high-touch nature of professional services revenue, at $133.6 million for the year, is likely concentrated here, ensuring dedicated support for these larger accounts. The company's focus on delivering reliable and secure value-added IoT solutions is a direct appeal to these segments.

You can see the segment breakdown supporting these customer types:

• IoT Products & Services FY 2025 Revenue: $318 million.
• IoT Solutions FY 2025 Revenue: $112 million.

Finance: draft 13-week cash view by Friday.

Digi International Inc. (DGII) - Canvas Business Model: Channels

The Channels component for Digi International Inc. relies on a multi-faceted approach to reach its diverse customer base, with a significant portion of revenue flowing through third parties.

Direct sales force for large enterprise and OEM accounts.

• Revenue sold through Digi International Inc.'s dedicated sales organization accounted for 39.8% of total consolidated revenue in fiscal 2025.
• The total consolidated revenue for Digi International Inc. in fiscal 2025 was $430.2 million.
• This direct channel revenue is estimated to be approximately $171.22 million ($430.2 million multiplied by 39.8%).

Global network of third-party distributors and resellers.

A significant portion of the IoT Products & Services segment sales utilize this route. The IoT Solutions segment typically does not sell through these channels.

Fiscal Year	Percentage of Total Consolidated Revenue via Distributors/Resellers	Estimated Revenue Amount
2025	60.2%	$259.0 million
2024	56.7%	Data not calculated due to missing full 2024 revenue figure for direct comparison
2023	59.9%	Data not calculated due to missing full 2023 revenue figure for direct comparison

• One distributor customer represented 13% of consolidated revenue for the twelve months ended September 30, 2025.
• Larger distributors include Arrow Electronics, Avnet, Digi-Key, and Mouser Electronics.

E-commerce for off-the-shelf and smaller volume products.

Specific revenue figures for the e-commerce channel are not separately itemized from the dedicated sales organization revenue stream in the reported segment data.

Acquired sales channels from Ventus and Jolt Software.

The acquisition of Jolt Software, Inc. in August 2025 is expected to accelerate Annualized Recurring Revenue (ARR) growth and deepen customer engagement, integrating Jolt into the IoT Solutions segment.

• Jolt Software was acquired for approximately $145.5 million in cash (net of Jolt's cash).
• Jolt generated over $20 million in ARR in its fiscal year ending January 31, 2025.
• The IoT Solutions segment, which includes Ventus and the newly acquired Jolt, generated fiscal 2025 revenue of $112 million, an increase of 13% over fiscal 2024.
• Digi International Inc. expects Jolt to contribute an incremental $11 million in annualized adjusted EBITDA through synergies by the end of calendar 2026.

Digi International Inc. (DGII) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Digi International Inc. (DGII) as of late 2025, which clearly splits between hardware-focused product sales and higher-value, recurring solutions. The company's overall fiscal 2025 revenue landed at $430.2 million, with the latest quarter, Q4 FY2025, hitting a record $114 million.

The customer base is heavily concentrated in North America, accounting for 70%+ of revenue. A notable risk point is customer concentration; one distributor accounted for 13% of consolidated revenue for the twelve months ending September 30, 2025.

Large enterprises in food service and healthcare are key targets, primarily served through the IoT Solutions segment, which includes SmartSense by Digi and the recently acquired Jolt Software. This segment is where the recurring revenue focus lies, with Annualized Recurring Revenue (ARR) reaching $120 million as of September 30, 2025. The Jolt acquisition, which closed in Q4 FY2025 for $145.7 million, specifically expanded task, workforce, and labeling solutions in these vertical markets.

Original Equipment Manufacturers (OEMs) for embedded solutions are the backbone of the IoT Products & Services segment. This segment sells hardware, device management, and services, and it generated an ARR of $32 million at the end of Q4 FY2025. This segment's fiscal 2025 revenue was $318 million, though it saw a 2% decrease year-over-year.

For transportation, logistics, and smart city infrastructure, Digi International Inc. has offerings that span its portfolio, as the company lists these as general industries it serves. The IoT Solutions segment, which grew its revenue by 13% in fiscal 2025 to $112 million, is where the company is heavily pushing its subscription model, with ARR representing approximately 35% of total revenue.

IT/Network Operations teams needing remote console access are served through managed services offerings, including Opengear and Ventus. The growth in recurring revenue in Q4 FY2025 was specifically driven by growth in both SmartSense and Ventus.

Here's a quick look at the financial split between the two main customer-facing segments as of the end of fiscal 2025:

Segment Detail	IoT Products & Services	IoT Solutions
FY 2025 Revenue	$318 million	$112 million
ARR as of Sept 30, 2025	$32 million	$120 million
Primary Revenue Type	One-time sales/Hardware	Subscription-based
FY 2025 Revenue Change YoY	Decreased 2%	Increased 13%

The strategic shift is clear in the customer base focus:

• ARR growth was 31% year-over-year, reaching $152 million total at quarter end.
• The company aims for $200 million in ARR by the end of fiscal 2028.
• The IoT Solutions segment is the primary driver of this recurring revenue goal.
• Sales channels show that third parties (distributors, VARs) accounted for 60.2% of total consolidated revenue in fiscal 2025.
• The dedicated sales organization accounted for the remaining 39.8% of total consolidated revenue in fiscal 2025.

Finance: draft FY2026 customer acquisition cost projection by Friday.

Digi International Inc. (DGII) - Canvas Business Model: Cost Structure

You're looking to map out the hard costs Digi International Inc. (DGII) is incurring to run its business as of late 2025. Honestly, the cost structure reflects a company balancing heavy investment in future tech with the realities of hardware manufacturing and a recent, significant software acquisition. Here's the quick math on where the money is going, grounded in the Fiscal Year 2025 results ending September 30, 2025, unless otherwise noted.

The Cost of Goods Sold (COGS) is a major component, tied directly to the IoT Products & Services segment, which still represents the majority of sales. We can derive the full-year COGS using the reported total revenue and gross profit margin for the period.

Cost of Goods Sold (COGS) for hardware production and inventory:

• Full Year Fiscal 2025 Revenue: $430 million.
• Full Year Fiscal 2025 Gross Profit Margin: 62.9%.
• Derived Full Year Fiscal 2025 COGS: $159.53 million (Calculated as $430 million (1 - 0.629)).
• Q4 Fiscal 2025 Cost of Sales (for the quarter only): $41.26 million.

R&D investment in next-gen IoT, AI, and edge computing:

Digi International Inc. is clearly putting significant capital into future innovation, as evidenced by the full-year Research and Development spend.

• Full Year Fiscal 2025 Research and Development Expense: $63,659 thousand.
• This R&D spend represents approximately 14.8% of the total Fiscal 2025 revenue.

Sales and marketing expenses to drive subscription adoption:

Driving the shift to recurring revenue requires investment in the sales force to push solutions like SmartSense. While the full-year number is best derived, the first half gives us a strong baseline.

• Sales and Marketing Expense (Six months ended March 31, 2025): $43,798 thousand.
• The company noted that total operating expenses for the full year were $214,387 thousand.

Acquisition costs, like the $145.7 million paid for Jolt Software:

The August 2025 acquisition of Jolt Software was a major cash outlay, immediately impacting the balance sheet and future cost structure through amortization and integration. You defintely need to factor this in when looking at leverage.

• Jolt Software Acquisition Cost (Cash paid): Approximately $145.5 million to $145.7 million.
• Jolt contributed over $20 million in Annual Recurring Revenue (ARR) in its last fiscal year (ending January 31, 2025).
• The deal was funded via the credit facility, resulting in a net debt to adjusted EBITDA leverage ratio of 1.46x upon completion.
• The transaction is expected to generate an incremental $11 million in annualized adjusted EBITDA through synergies by the end of calendar 2026.
• Jolt brought tax attributes, including a net operating loss carryforward of approximately $30 million.

To give you a clearer view of the operating expense breakdown for the full fiscal year 2025, here is what we can piece together from the 10-K data:

Cost Category	Fiscal Year 2025 Amount (in thousands)	Notes
Cost of Goods Sold (COGS)	$159,530	Derived from Revenue ($430,000k) and Gross Margin (62.9%)
Research & Development (R&D)	$63,659	Explicitly stated in 10-K summary
General and Administrative (G&A)	$58,894	Explicitly stated in 10-K summary
Sales and Marketing (S&M)	$91,834	Calculated as Total OpEx ($214,387k) - R&D - G&A
Total Operating Expenses	$214,387	Explicitly stated in 10-K summary

If you add the calculated S&M ($91,834k) to the stated R&D ($63,659k) and G&A ($58,894k), it sums to $214,387 thousand, matching the total operating expenses reported. That's your core operating cost base, before factoring in the one-time cash cost of the Jolt acquisition.

Digi International Inc. (DGII) - Canvas Business Model: Revenue Streams

You're looking at how Digi International Inc. actually brings in the money as of late 2025, which is definitely shifting toward more predictable income. The focus is clearly on locking in customers with ongoing services rather than just one-off hardware sales, so you see the Annualized Recurring Revenue (ARR) number getting a lot of attention.

For the full Fiscal Year 2025, Digi International Inc. brought in total revenue of $430 million, which was a 1% increase compared to the prior fiscal year. The company's stated goal is a shift to recurring revenue, and the numbers back that up; by the end of Q4 2025, the Annualized Recurring Revenue (ARR) hit a record $152 million. That ARR figure represents approximately 35% of the total full-year revenue, showing the progress in that strategic pivot.

Here's a quick look at the revenue components as of the end of the fourth quarter of fiscal 2025:

Revenue Component	Q4 FY2025 Amount	FY2025 Total Revenue
Total Revenue	$114 million	$430 million
Annualized Recurring Revenue (ARR)	$152 million (End of Q4 2025)	N/A
IoT Solutions Segment Recurring Revenue (Q4 Growth)	Increase driven by SmartSense, Ventus, and Jolt	$11.2 million increase in recurring revenue for IoT Solutions segment vs FY2024
IoT Products & Services Segment Recurring Revenue (Q4 Growth)	$1.9 million increase compared to Q4 FY2024	N/A

The revenue streams are primarily split between the two main segments, IoT Products & Services and IoT Solutions. The IoT Solutions segment, which houses SmartSense and Ventus, is a major driver of the recurring revenue growth, seeing a 30% increase in its segment ARR to $120 million by the end of Q4 2025.

You can see the core elements that make up the recurring side of the business here:

• Subscription fees from IoT Solutions, specifically from platforms like SmartSense and Ventus.
• Recurring revenue growth from the IoT Products & Services segment, which includes remote management platforms and extended warranty offerings.
• Professional services and enhanced support contracts, which are bundled with their hardware and software offerings to ensure deployment success and ongoing operation.

The shift to recurring revenue is defintely a core focus, as evidenced by the 31% year-over-year growth in total ARR to $152 million at the end of Q4 2025. This recurring stream provides a more stable base compared to the one-time sales of hardware and initial deployment fees. For instance, the IoT Solutions segment saw its ARR grow to $120 million by Q4 2025, largely due to growth in SmartSense, Ventus, and the addition of Jolt.

Finance: draft 13-week cash view by Friday.