Digi International Inc. (DGII): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el panorama en rápida evolución de la tecnología de Internet de las cosas (IoT), Digi International Inc. se erige como una fuerza pionera, transformando los desafíos de conectividad complejos en soluciones simplificadas e innovadoras. Al crear meticulosamente un modelo de negocio integral que abarca asociaciones estratégicas, desarrollo de tecnología de vanguardia y enfoques de mercado vertical específicos de la industria, Digi International se ha posicionado como un facilitador crítico de la comunicación inalámbrica y los sistemas integrados en diversos sectores. Su propuesta de valor única combina hardware robusto, plataformas de software sofisticadas y un compromiso inquebrantable para resolver desafíos de conectividad intrincados para empresas que van desde la automatización industrial hasta los proveedores de tecnología de la salud.

Digi International Inc. (DGII) - Modelo de negocios: asociaciones clave

Socios de tecnología estratégica

Digi International mantiene asociaciones de tecnología estratégica con proveedores clave de nubes y tecnología:

Pareja	Detalles de la asociación	Año establecido
Microsoft Azure	Integración de plataforma IoT	2018
Servicios web de Amazon	Soluciones de conectividad en la nube	2016
Google Cloud	Computación de borde y administración de dispositivos	2019

Fabricantes de equipos originales (OEM)

Digi International colabora con OEM en múltiples industrias:

• Fabricantes de automatización industrial
• Proveedores de equipos de salud
• Compañías de infraestructura de energía inteligente
• Fabricantes de equipos de transporte y logística

Telecomunicaciones y proveedores de redes celulares

Proveedor de red	Enfoque de colaboración	Alcance global
Verizon	Certificación del módulo celular	América del norte
AT&T	Soluciones de conectividad IoT	América del norte
Vodafone	Despliegue global de IoT	Europa, África, Asia

Socios del ecosistema de desarrollo de software y hardware

Las asociaciones del ecosistema de Digi International incluyen:

• Asociaciones de diseño de semiconductores del brazo
• Colaboración de la Fundación Linux
• Comunidades de desarrollo de software de código abierto
• Plataformas de desarrollo de sistemas integrados

Digi International Inc. (DGII) - Modelo de negocio: actividades clave

Diseño y fabricación del dispositivo IoT

En el año fiscal 2023, Digi International reportó $ 348.7 millones en ingresos totales, con la fabricación de dispositivos IoT que contribuyen significativamente a esta cifra.

Categoría de productos	Volumen de producción anual	Contribución de ingresos
Enrutadores celulares	125,000 unidades	$ 87.2 millones
Módulos incrustados	95,000 unidades	$ 62.5 millones
Puertas inalámbricas	78,000 unidades	$ 53.4 millones

Desarrollo de soluciones de conectividad integrada

La inversión de I + D para soluciones de conectividad en 2023 alcanzó los $ 42.3 millones.

• Equipo de desarrollo de software: 187 ingenieros
• Patentes de conectividad activa: 64
• Nuevo ciclo de desarrollo de soluciones: 9-12 meses

Investigación de tecnología de comunicación inalámbrica

La investigación se centró en tecnologías de comunicación 5G e IoT con $ 23.6 millones asignados en 2023.

Área de enfoque de investigación	Presupuesto de investigación	Resultados clave
Integración 5G	$ 12.4 millones	7 nuevos desarrollos prototipos
Inalámbrico de baja potencia	$ 6.2 millones	3 nuevos protocolos de comunicación
Computación de borde	$ 5 millones	2 plataformas de conectividad avanzadas

Integración de productos y servicios de ingeniería personalizada

Los servicios de ingeniería personalizada generaron $ 57.4 millones en ingresos durante 2023.

• Proyectos totales de ingeniería personalizada: 124
• Duración promedio del proyecto: 6-8 meses
• Industrias atendidas: atención médica, industrial, transporte

Soporte técnico global e implementación del cliente

Las operaciones de soporte técnico abarcan 23 países con $ 18.7 millones invertidos en infraestructura de atención al cliente.

Canal de soporte	Horas de apoyo anuales	Tasa de satisfacción del cliente
Soporte telefónico	42,500 horas	92%
Soporte en línea	35,200 horas	88%
Implementación en el sitio	8,700 horas	95%

Digi International Inc. (DGII) - Modelo de negocio: recursos clave

Tecnologías de comunicación inalámbrica patentada

Digi International posee 35 patentes de comunicación inalámbrica activa A partir de 2023. La cartera de tecnología inalámbrica de la compañía incluye:

• Módulos de IoT celulares
• Tecnologías inalámbricas de corto alcance
• Soluciones de comunicación inalámbrica de largo alcance

Tipo de tecnología	Conteo de patentes	Inversión de I + D (2023)
Tecnologías de IoT celulares	12	$ 8.3 millones
Inalámbrico de corto alcance	15	$ 5.6 millones
Comunicación de largo alcance	8	$ 4.2 millones

Ingeniería y grupo de talentos de I + D

Digi International emplea 387 Ingeniería y profesionales de I + D A partir del cuarto trimestre 2023.

Nivel de calificación	Número de profesionales
Doctor en Filosofía	42
Maestría	156
Licenciatura	189

Portafolio de hardware y software de IoT

La empresa mantiene 67 líneas de productos activos a través de plataformas de hardware y software IoT.

• Dispositivos de IoT celulares: 22 líneas de productos
• Módulos inalámbricos integrados: 25 líneas de productos
• Plataformas de software IoT: 20 líneas de productos

Propiedad intelectual y cartera de patentes

La cartera de propiedad intelectual de Digi International consiste en:

Categoría de IP	Recuento total	Costo de mantenimiento anual
Patentes activas	35	$ 1.2 millones
Aplicaciones de patentes pendientes	12	$450,000
Marcas registradas	28	$250,000

Infraestructura global de ventas y soporte técnico

Digi International opera 5 centros de apoyo global con 124 profesionales de soporte técnico.

Región	Ubicaciones del centro de apoyo	Personal de apoyo
América del norte	Minneapolis, MN	52
Europa	Munich, Alemania	24
Asia Pacífico	Singapur	18
América Latina	São Paulo, Brasil	16
Oriente Medio	Dubai, EAU	14

Digi International Inc. (DGII) - Modelo de negocio: propuestas de valor

Soluciones integrales de conectividad IoT

Digi International proporciona soluciones de conectividad IoT con las siguientes especificaciones:

Categoría de productos	Ingresos totales (2023)	Penetración del mercado
Módulos IoT inalámbricos	$ 182.4 millones	43% de participación de mercado empresarial
Enrutadores celulares	$ 97.6 millones	38% segmento industrial

Tecnologías de comunicación inalámbrica confiables y seguras

Las tecnologías de comunicación inalámbrica de Digi International incluyen:

• Módulos inalámbricos de XBee patentados
• Asegurar soluciones de redes celulares
• Plataformas de conectividad celular de varios carreras

Característica de seguridad	Nivel de cifrado	Estándar de cumplimiento
Cifrado de extremo a extremo	Bit aes-256	FIPS 140-2 certificado

Plataformas de dispositivos integrados flexibles y escalables

Capacidades de plataforma de dispositivos integrados:

• Soporte para múltiples protocolos de comunicación
• Arquitecturas de hardware programables
• Compatibilidad multiplataforma

Tipo de plataforma	Velocidad de procesamiento	Capacidad de memoria
Digi ConnectCore	1.2 GHz	Hasta 4 GB de RAM

Capacidades de informática y administración remota de borde

Estadísticas de la plataforma de gestión remota:

Característica de gestión	Métrico de rendimiento	Adopción del cliente
Digi Remote Manager	99.99% de tiempo de actividad	Más de 2.1 millones de dispositivos conectados

Soluciones de mercado vertical específicas de la industria

Distribución vertical del mercado:

Segmento de la industria	Contribución de ingresos	Índice de crecimiento
Automatización industrial	$ 76.3 millones	12.5% ​​de crecimiento interanual
Cuidado de la salud	$ 45.2 millones	9.7% de crecimiento interanual
Transporte	$ 62.1 millones	15.3% de crecimiento interanual

Digi International Inc. (DGII) - Modelo de negocios: relaciones con los clientes

Compromiso del equipo de ventas directo

A partir del cuarto trimestre de 2023, Digi International Inc. mantiene un equipo de ventas directo de 87 profesionales centrado en soluciones empresariales e industriales IoT.

Canal de ventas	Número de representantes de ventas	Cobertura geográfica
América del norte	52	Estados Unidos y Canadá
Región de EMEA	21	Europa, Medio Oriente, África
Región APAC	14	Asia Pacífico

Soporte técnico y servicios de consulta

Digi International proporciona soporte técnico dedicado con las siguientes métricas:

• Disponibilidad de soporte técnico 24/7
• Tiempo de respuesta promedio: 37 minutos
• Tamaño del equipo de soporte técnico: 64 especialistas
• Volumen anual de boletos de soporte: 8,743 boletos

Portales y documentación de clientes en línea

Característica de portal	Estadísticas de uso
Usuarios registrados	12,456
Usuarios activos mensuales	6,782
Descargas de documentación	43,291 anualmente

Programas de capacitación y certificación

Digi International ofrece programas de capacitación integrales con la siguiente estructura:

• Módulos de entrenamiento totales: 17
• Cursos de certificación en línea: 9
• Conteo de participantes anuales: 2,345 profesionales
• Tasa de finalización de certificación promedio: 86%

Enfoque de asociación empresarial a largo plazo

Métrico de asociación	Datos actuales
Clientes empresariales	247
Tasa promedio de retención de clientes	92.4%
Repita la tarifa comercial	78.6%
Duración promedio de la asociación	5.3 años

Digi International Inc. (DGII) - Modelo de negocios: canales

Fuerza de ventas empresarial directa

A partir del cuarto trimestre de 2023, Digi International mantiene un equipo de ventas empresarial dedicado de 87 representantes de ventas directas. La fuerza de ventas se centra en soluciones de IoT empresariales e industriales, dirigidas a mercados verticales clave como:

• Automatización industrial
• Transporte y logística
• Energía y servicios públicos
• Infraestructura de la ciudad inteligente

Plataformas de comercio electrónico en línea

Plataforma	Ventas anuales en línea (2023)	% de ingresos totales
Sitio web directo de Digi.com	$ 24.3 millones	18.7%
Asuntos de amazón	$ 7.6 millones	5.9%

Red de revendedor autorizado

Composición de red: 276 revendedores autorizados a nivel mundial, con concentración en América del Norte (62%), Europa (22%) y Asia-Pacífico (16%).

Asociaciones de distribuidores de tecnología

Distribuidor	Duración de la asociación	Volumen de ventas anual
Avnet	12 años	$ 42.1 millones
Electrónica de flecha	9 años	$ 35.6 millones

Marketing digital y seminarios técnicos

Métricas de compromiso digital para 2023:

• Total de seminarios web realizados: 47
• Asistentes acumulativos de seminarios web: 6.342
• Asistencia promedio de seminarios web: 135 participantes
• Tasa de conversión de plomo de seminarios web: 14.3%

Digi International Inc. (DGII) - Modelo de negocio: segmentos de clientes

Fabricantes de automatización industrial

Digi International sirve a fabricantes de automatización industrial con soluciones de conectividad IoT.

Segmento de mercado	Tamaño estimado del mercado	Enfoque del producto digi
Manufactura de dispositivos IoT	$ 24.8 mil millones (2023)	Módulos inalámbricos XBEE
Redes industriales	$ 12.6 mil millones (2023)	Enrutadores celulares

Desarrolladores de infraestructura inteligente

DIGI proporciona soluciones de conectividad para proyectos de infraestructura de ciudades inteligentes.

• Soluciones de medición inteligentes
• Conectividad de infraestructura urbana
• Sistemas de gestión de edificios

Empresas de transporte y logística

Digi International ofrece soluciones IoT especializadas para el seguimiento y la gestión del transporte.

Segmento logístico	Valor de mercado anual	Solución digi
Gestión de la flota	$ 19.3 mil millones (2023)	Enrutadores de vehículos celulares
Seguimiento de activos	$ 15.7 mil millones (2023)	Módulos de seguimiento inalámbrico

Proveedores de tecnología de la salud

DIGI apoya la tecnología de salud con soluciones seguras de comunicación inalámbrica.

• Conectividad del dispositivo médico
• Monitoreo de pacientes remotos
• Transmisión de datos de atención médica

Organizaciones gubernamentales y militares

Digi International proporciona tecnologías de comunicación seguras para los sectores gubernamentales y de defensa.

Segmento gubernamental	Potencial de mercado	Producto especializado DIGI
Comunicación de defensa	$ 7.5 mil millones (2023)	Asegurar módulos inalámbricos
Infraestructura pública	$ 5.2 mil millones (2023)	Equipo de redes resistentes

Digi International Inc. (DGII) - Modelo de negocio: Estructura de costos

Inversiones de investigación y desarrollo

Para el año fiscal 2023, Digi International reportó gastos de I + D de $ 40.2 millones, lo que representa el 19.4% de los ingresos totales.

Año fiscal	Gastos de I + D	Porcentaje de ingresos
2023	$ 40.2 millones	19.4%
2022	$ 37.5 millones	18.2%

Gastos de fabricación y cadena de suministro

Los costos de fabricación y cadena de suministro para Digi International en 2023 totalizaron $ 85.6 millones.

• Costos de fabricación directa: $ 62.3 millones
• Logística de la cadena de suministro: $ 23.3 millones

Costos operativos de ventas y marketing

Los gastos de ventas y marketing para el año fiscal 2023 ascendieron a $ 55.8 millones.

Categoría de costos	Cantidad
Personal de ventas	$ 32.4 millones
Campañas de marketing	$ 15.6 millones
Infraestructura de ventas	$ 7.8 millones

Compensación global de la fuerza laboral

La compensación total de la fuerza laboral para Digi International en 2023 fue de $ 132.5 millones.

• Salarios base: $ 98.7 millones
• Beneficios y bonificaciones: $ 33.8 millones

Mantenimiento de la infraestructura tecnológica

Los costos de mantenimiento de la infraestructura tecnológica para 2023 fueron de $ 22.9 millones.

Componente de infraestructura	Costo de mantenimiento
Servicios en la nube	$ 8.6 millones
Infraestructura de red	$ 7.3 millones
Mantenimiento de hardware	$ 7.0 millones

Digi International Inc. (DGII) - Modelo de negocios: flujos de ingresos

Venta de productos de hardware

Para el año fiscal 2023, Digi International informó ingresos por ventas de productos de hardware de $ 261.5 millones.

Categoría de productos	Ingresos ($ M)	Porcentaje de ventas totales de hardware
Módulos de conectividad inalámbrica	142.3	54.4%
Enrutadores celulares	68.7	26.3%
Sistemas integrados	50.5	19.3%

Servicios de suscripción recurrentes

Los servicios de suscripción generaron $ 37.2 millones en ingresos recurrentes para el año fiscal 2023.

• Servicios de conectividad en la nube
• Plataformas de gestión de dispositivos
• Soluciones de monitoreo remoto

Tarifas de ingeniería e integración personalizadas

Los servicios de ingeniería personalizada representaron $ 22.8 millones en ingresos durante el año fiscal 2023.

Segmento de la industria	Ingresos de ingeniería ($ M)
Automatización industrial	9.6
Transporte	6.4
Cuidado de la salud	4.3
Otros sectores	2.5

Licencia de software

Los ingresos por licencia de software totalizaron $ 15.6 millones en el año fiscal 2023.

• Licencias de plataforma IoT
• Software de gestión de conectividad
• Herramientas de configuración del dispositivo

Contratos de soporte técnico y mantenimiento

Los contratos de soporte técnico y mantenimiento generaron $ 28.4 millones en ingresos para el año fiscal 2023.

Tipo de contrato	Ingresos ($ M)	Duración promedio del contrato
Soporte estándar	14.2	12 meses
Soporte premium	8.6	24 meses
Mantenimiento empresarial	5.6	36 meses

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.