Digi International Inc. (DGII): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage rapide de la technologie de l'Internet des objets (IoT), Digi International Inc. est une force pionnière, transformant des défis de connectivité complexes en solutions rationalisées et innovantes. En élaborant méticuleusement un modèle commercial complet qui couvre des partenariats stratégiques, un développement de technologies de pointe et des approches de marché vertical spécifiques à l'industrie, Digi International s'est positionné comme un facilitateur critique de la communication sans fil et des systèmes intégrés dans divers secteurs. Leur proposition de valeur unique combine un matériel robuste, des plates-formes logicielles sophistiquées et un engagement indéfectible à résoudre des défis de connectivité complexes pour les entreprises allant de l'automatisation industrielle aux fournisseurs de technologies de santé.

Digi International Inc. (DGII) - Modèle commercial: partenariats clés

Partenaires technologiques stratégiques

Digi International maintient des partenariats technologiques stratégiques avec les principaux fournisseurs de cloud et de technologie:

Partenaire	Détails du partenariat	Année établie
Microsoft Azure	Intégration de la plate-forme IoT	2018
Services Web Amazon	Solutions de connectivité cloud	2016
Google Cloud	Informatique de bord et gestion des appareils	2019

Fabricants d'équipements d'origine (OEM)

Digi International collabore avec les OEM dans plusieurs industries:

• Fabricants d'automatisation industrielle
• Fournisseurs d'équipements de soins de santé
• Smart Energy Infrastructure Companies
• Fabricants d'équipements de transport et de logistique

Télécommunications et fournisseurs de réseaux cellulaires

Fournisseur de réseau	Focus de la collaboration	Portée mondiale
Verizon	Certification des modules cellulaires	Amérique du Nord
AT&T	Solutions de connectivité IoT	Amérique du Nord
Vodafone	Déploiement mondial de l'IoT	Europe, Afrique, Asie

Partners écosystémiques de développement des logiciels et matériels

Les partenariats écosystémiques de Digi International comprennent:

• ARM Partnership de conception de semi-conducteurs
• Collaboration de la Fondation Linux
• Communautés de développement de logiciels open source
• Plates-formes de développement de systèmes intégrés

Digi International Inc. (DGII) - Modèle d'entreprise: activités clés

Conception et fabrication de l'appareil IoT

Au cours de l'exercice 2023, Digi International a déclaré 348,7 millions de dollars de revenus totaux, la fabrication de dispositifs IoT contribuant de manière significative à ce chiffre.

Catégorie de produits	Volume de production annuel	Contribution des revenus
Routeurs cellulaires	125 000 unités	87,2 millions de dollars
Modules intégrés	95 000 unités	62,5 millions de dollars
Passerelles sans fil	78 000 unités	53,4 millions de dollars

Développement de solutions de connectivité intégrées

L'investissement en R&D pour les solutions de connectivité en 2023 a atteint 42,3 millions de dollars.

• Équipe de développement de logiciels: 187 ingénieurs
• Brevets de connectivité active: 64
• Nouveau cycle de développement de solutions: 9-12 mois

Recherche de technologie de communication sans fil

La recherche s'est concentrée sur les technologies de communication 5G et IoT avec 23,6 millions de dollars alloués en 2023.

Domaine de mise au point de recherche	Budget de recherche	Résultats clés
Intégration 5G	12,4 millions de dollars	7 nouveaux développements prototypes
Sans fil à faible puissance	6,2 millions de dollars	3 nouveaux protocoles de communication
Informatique Edge	5 millions de dollars	2 plates-formes de connectivité avancées

Intégration des produits et services d'ingénierie personnalisés

Les services d'ingénierie personnalisés ont généré 57,4 millions de dollars de revenus en 2023.

• Projets totaux d'ingénierie personnalisés: 124
• Durée moyenne du projet: 6-8 mois
• Industries servies: soins de santé, industriels, transport

Assistance technique mondiale et mise en œuvre du client

Les opérations de soutien technique couvrent 23 pays avec 18,7 millions de dollars investis dans l'infrastructure de support client.

Canal de support	Heures de soutien annuelles	Taux de satisfaction client
Support téléphonique	42 500 heures	92%
Assistance en ligne	35 200 heures	88%
Implémentation sur place	8 700 heures	95%

Digi International Inc. (DGII) - Modèle d'entreprise: Ressources clés

Technologies de communication sans fil propriétaires

Digi International détient 35 brevets de communication sans fil actifs En 2023. Le portefeuille de technologies sans fil de l'entreprise comprend:

• Modules IoT cellulaires
• Technologies sans fil à courte portée
• Solutions de communication sans fil à longue portée

Type de technologie	Dénombrement des brevets	Investissement en R&D (2023)
Technologies IoT cellulaires	12	8,3 millions de dollars
Sans fil à court terme	15	5,6 millions de dollars
Communication à longue portée	8	4,2 millions de dollars

Pool de talents d'ingénierie et de R&D

Digi International Emploie 387 professionnels de l'ingénierie et de la R&D au Q4 2023.

Niveau de qualification	Nombre de professionnels
Doctorat	42
Une maîtrise	156
Licence	189

Portfolio de matériel et de logiciel IoT

La société maintient 67 lignes de produits actives à travers les plates-formes matérielles et logicielles IoT.

• Appareils IoT cellulaires: 22 lignes de produits
• Modules sans fil intégrés: 25 lignes de produit
• Plateformes logicielles IoT: 20 gammes de produits

Propriété intellectuelle et portefeuille de brevets

Le portefeuille de propriété intellectuelle de Digi International se compose de:

Catégorie IP	Compte total	Coût de maintenance annuel
Brevets actifs	35	1,2 million de dollars
Demandes de brevet en instance	12	$450,000
Marques enregistrées	28	$250,000

Infrastructure mondiale de vente et de support technique

Digi International opère 5 centres de soutien mondiaux avec 124 professionnels du support technique.

Région	Emplacements du centre de support	Personnel de soutien
Amérique du Nord	Minneapolis, MN	52
Europe	Munich, Allemagne	24
Asie-Pacifique	Singapour	18
l'Amérique latine	São Paulo, Brésil	16
Moyen-Orient	Dubaï, EAU	14

Digi International Inc. (DGII) - Modèle d'entreprise: propositions de valeur

Solutions complètes de connectivité IoT

Digi International fournit des solutions de connectivité IoT avec les spécifications suivantes:

Catégorie de produits	Revenu total (2023)	Pénétration du marché
Modules IoT sans fil	182,4 millions de dollars	43% de part de marché d'entreprise
Routeurs cellulaires	97,6 millions de dollars	Segment industriel de 38%

Technologies de communication sans fil fiables et sécurisées

Les technologies de communication sans fil de Digi International comprennent:

• Modules sans fil propriétaires XBEE
• Sécurisation de solutions de réseautage cellulaire
• Plates-formes de connectivité cellulaire multi-porteurs

Caractéristique de sécurité	Niveau de chiffrement	Norme de conformité
Cryptage de bout en bout	Bit AES-256	FIPS 140-2 certifié

Plates-formes d'appareils intégrés flexibles et évolutives

Capacités de plate-forme de périphérique intégrées:

• Prise en charge de plusieurs protocoles de communication
• Architectures matérielles programmables
• Compatibilité multiplateforme

Type de plate-forme	Vitesse de traitement	Capacité de mémoire
Digi connectCore	1,2 GHz	Jusqu'à 4 Go de RAM

Capacités de l'informatique Edge et de la gestion à distance

Statistiques de la plate-forme de gestion à distance:

Fonction de gestion	Métrique de performance	Adoption des clients
Digi Remote Manager	99,99% de disponibilité	Plus de 2,1 millions d'appareils connectés

Solutions de marché vertical spécifiques à l'industrie

Distribution verticale du marché:

Segment de l'industrie	Contribution des revenus	Taux de croissance
Automatisation industrielle	76,3 millions de dollars	Croissance de 12,5% en glissement annuel
Soins de santé	45,2 millions de dollars	Croissance de 9,7% en glissement annuel
Transport	62,1 millions de dollars	Croissance de 15,3% en glissement annuel

Digi International Inc. (DGII) - Modèle d'entreprise: relations avec les clients

Engagement de l'équipe de vente directe

Depuis le quatrième trimestre 2023, Digi International Inc. maintient une équipe de vente directe de 87 professionnels axés sur les solutions IoT en entreprise et industrielle.

Canal de vente	Nombre de représentants commerciaux	Couverture géographique
Amérique du Nord	52	États-Unis et Canada
Région EMEA	21	Europe, Moyen-Orient, Afrique
Région APAC	14	Asie-Pacifique

Services de support technique et de consultation

Digi International fournit un support technique dédié avec les mesures suivantes:

• Disponibilité du support technique 24/7
• Temps de réponse moyen: 37 minutes
• Support technique Taille de l'équipe: 64 spécialistes
• Volume annuel de billets de support: 8 743 billets

Portails et documentation des clients en ligne

Caractéristique du portail	Statistiques d'utilisation
Utilisateurs enregistrés	12,456
Utilisateurs actifs mensuels	6,782
Téléchargements de documentation	43 291 par an

Programmes de formation et de certification

Digi International propose des programmes de formation complets avec la structure suivante:

• Modules de formation totaux: 17
• Cours de certification en ligne: 9
• Compte annuel des participants: 2 345 professionnels
• Taux d'achèvement de la certification moyenne: 86%

Approche de partenariat à long terme

Métrique de partenariat	Données actuelles
Entreprenants	247
Taux de rétention de clientèle moyen	92.4%
Répéter le taux d'entreprise	78.6%
Durée du partenariat moyen	5,3 ans

Digi International Inc. (DGII) - Modèle d'entreprise: canaux

Force de vente directe de l'entreprise

Au quatrième trimestre 2023, Digi International maintient une équipe de vente d'entreprise dédiée de 87 représentants des ventes directes. La force de vente se concentre sur les solutions IoT de l'entreprise et industrielles, ciblant les principaux marchés verticaux tels que:

• Automatisation industrielle
• Transport et logistique
• Énergie et services publics
• Infrastructure de ville intelligente

Plateformes de commerce électronique en ligne

Plate-forme	Ventes en ligne annuelles (2023)	% des revenus totaux
Digi.com Site Web Direct	24,3 millions de dollars	18.7%
Amazon Business	7,6 millions de dollars	5.9%

Réseau de revendeur autorisé

Composition du réseau: 276 revendeurs autorisés dans le monde, avec une concentration en Amérique du Nord (62%), en Europe (22%) et en Asie-Pacifique (16%).

Partenariats de distributeurs technologiques

Distributeur	Durée du partenariat	Volume des ventes annuelles
Avnet	12 ans	42,1 millions de dollars
Électronique flèche	9 ans	35,6 millions de dollars

Marketing numérique et webinaires techniques

Métriques d'engagement numérique pour 2023:

• Total des webinaires réalisés: 47
• Cumulative webinaire Participants: 6 342
• Association moyenne du webinaire: 135 participants
• Taux de conversion de plomb des webinaires: 14,3%

Digi International Inc. (DGII) - Modèle d'entreprise: segments de clientèle

Fabricants d'automatisation industrielle

Digi International dessert les fabricants d'automatisation industrielle avec des solutions de connectivité IoT.

Segment de marché	Taille du marché estimé	Focus du produit Digi
Fabrication des appareils IoT	24,8 milliards de dollars (2023)	Modules sans fil XBEE
Réseautage industriel	12,6 milliards de dollars (2023)	Routeurs cellulaires

Développeurs d'infrastructure intelligente

Digi fournit des solutions de connectivité pour les projets de ville intelligente et d'infrastructure.

• Solutions de mesure intelligents
• Connectivité des infrastructures urbaines
• Systèmes de gestion des bâtiments

Sociétés de transport et de logistique

Digi International propose des solutions IoT spécialisées pour le suivi et la gestion des transports.

Segment logistique	Valeur marchande annuelle	Digi
Gestion de la flotte	19,3 milliards de dollars (2023)	Routeurs de véhicules cellulaires
Suivi des actifs	15,7 milliards de dollars (2023)	Modules de suivi sans fil

Fournisseurs de technologies de santé

Digi prend en charge la technologie des soins de santé avec des solutions de communication sans fil sécurisées.

• Connectivité des dispositifs médicaux
• Surveillance à distance des patients
• Transmission de données sur les soins de santé

Organisations gouvernementales et militaires

Digi International fournit des technologies de communication sécurisées pour les secteurs du gouvernement et de la défense.

Segment du gouvernement	Potentiel de marché	Produit spécialisé Digi
Communication de défense	7,5 milliards de dollars (2023)	Sécuriser les modules sans fil
Infrastructure publique	5,2 milliards de dollars (2023)	Équipement de réseautage robuste

Digi International Inc. (DGII) - Modèle d'entreprise: Structure des coûts

Investissements de recherche et développement

Pour l'exercice 2023, Digi International a déclaré des dépenses de R&D de 40,2 millions de dollars, ce qui représente 19,4% des revenus totaux.

Exercice fiscal	Dépenses de R&D	Pourcentage de revenus
2023	40,2 millions de dollars	19.4%
2022	37,5 millions de dollars	18.2%

Dépenses de fabrication et de chaîne d'approvisionnement

Les coûts de fabrication et de chaîne d'approvisionnement pour Digi International en 2023 ont totalisé 85,6 millions de dollars.

• Coûts de fabrication directes: 62,3 millions de dollars
• Logistique de la chaîne d'approvisionnement: 23,3 millions de dollars

Coûts opérationnels des ventes et du marketing

Les frais de vente et de marketing pour l'exercice 2023 s'élevaient à 55,8 millions de dollars.

Catégorie de coûts	Montant
Personnel de vente	32,4 millions de dollars
Campagnes marketing	15,6 millions de dollars
Infrastructure de vente	7,8 millions de dollars

Compensation mondiale de la main-d'œuvre

L'indemnisation totale de la main-d'œuvre pour Digi International en 2023 était de 132,5 millions de dollars.

• Salaires de base: 98,7 millions de dollars
• Avantages et bonus: 33,8 millions de dollars

Maintenance des infrastructures technologiques

Les coûts de maintenance des infrastructures technologiques pour 2023 étaient de 22,9 millions de dollars.

Composant d'infrastructure	Coût de maintenance
Services cloud	8,6 millions de dollars
Infrastructure réseau	7,3 millions de dollars
Maintenance matérielle	7,0 millions de dollars

Digi International Inc. (DGII) - Modèle d'entreprise: Strots de revenus

Ventes de produits matériels

Pour l'exercice 2023, Digi International a rapporté un chiffre d'affaires de produits matériels de 261,5 millions de dollars.

Catégorie de produits	Revenus ($ m)	Pourcentage de ventes de matériel total
Modules de connectivité sans fil	142.3	54.4%
Routeurs cellulaires	68.7	26.3%
Systèmes embarqués	50.5	19.3%

Services d'abonnement récurrents

Les services d'abonnement ont généré 37,2 millions de dollars de revenus récurrents pour l'exercice 2023.

• Services de connectivité cloud
• Plates-formes de gestion des appareils
• Solutions de surveillance à distance

Frais d'ingénierie et d'intégration personnalisés

Les services d'ingénierie personnalisés ont représenté 22,8 millions de dollars de revenus au cours de l'exercice 2023.

Segment de l'industrie	Revenus d'ingénierie ($ m)
Automatisation industrielle	9.6
Transport	6.4
Soins de santé	4.3
Autres secteurs	2.5

Licence de logiciel

Les revenus de licences logicielles ont totalisé 15,6 millions de dollars au cours de l'exercice 2023.

• Licence de plate-forme IoT
• Logiciel de gestion de la connectivité
• Outils de configuration de l'appareil

Contrats de support technique et de maintenance

Les contrats de soutien technique et de maintenance ont généré 28,4 millions de dollars de revenus pour l'exercice 2023.

Type de contrat	Revenus ($ m)	Durée du contrat moyen
Support standard	14.2	12 mois
Support premium	8.6	24 mois
Entretien d'entreprise	5.6	36 mois

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.