Digi International Inc. (DGII): Modelo de negócios Canvas [Jan-2025 Atualizado]

No cenário em rápida evolução da tecnologia da Internet das Coisas (IoT), a DiGi International Inc. se destaca como uma força pioneira, transformando desafios de conectividade complexos em soluções inovadoras e simplificadas. Ao criar meticulosamente um modelo de negócios abrangente que abrange parcerias estratégicas, desenvolvimento de tecnologia de ponta e abordagens de mercado vertical específicas do setor, a DIGI International se posicionou como um facilitador crítico de comunicação sem fio e sistemas incorporados em diversos setores. Sua proposta de valor exclusiva combina hardware robusto, plataformas sofisticadas de software e um compromisso inabalável em resolver intrincados desafios de conectividade para empresas que vão desde a automação industrial até os provedores de tecnologia da saúde.

DIGI International Inc. (DGII) - Modelo de negócios: Parcerias -chave

Parceiros de Tecnologia Estratégica

A DIGI International mantém parcerias de tecnologia estratégica com os principais provedores de nuvem e tecnologia:

Parceiro	Detalhes da parceria	Ano estabelecido
Microsoft Azure	Integração da plataforma IoT	2018
Amazon Web Services	Soluções de conectividade em nuvem	2016
Google Cloud	Computação de borda e gerenciamento de dispositivos	2019

Fabricantes de equipamentos originais (OEMs)

Digi International colabora com OEMs em vários setores:

• Fabricantes de automação industrial
• Provedores de equipamentos de saúde
• Empresas de infraestrutura de energia inteligente
• Fabricantes de equipamentos de transporte e logística

Provedores de telecomunicações e redes celulares

Provedor de rede	Foco de colaboração	Alcance global
Verizon	Certificação do módulo celular	América do Norte
AT&T	Soluções de conectividade da IoT	América do Norte
Vodafone	Implantação global da IoT	Europa, África, Ásia

Parceiros do ecossistema de desenvolvimento de software e hardware

As parcerias ecossistemas da Digi International incluem:

• ARM Semiconductor Design Partnerships
• Colaboração da Fundação Linux
• Comunidades de desenvolvimento de software de código aberto
• Plataformas de desenvolvimento de sistemas incorporados

Digi International Inc. (DGII) - Modelo de negócios: Atividades -chave

Design de dispositivos de IoT e fabricação

No ano fiscal de 2023, a DiGi International registrou US $ 348,7 milhões em receita total, com a fabricação de dispositivos de IoT contribuindo significativamente para esse número.

Categoria de produto	Volume anual de produção	Contribuição da receita
Roteadores celulares	125.000 unidades	US $ 87,2 milhões
Módulos incorporados	95.000 unidades	US $ 62,5 milhões
Gateways sem fio	78.000 unidades	US $ 53,4 milhões

Desenvolvimento de soluções de conectividade incorporada

O investimento em P&D para soluções de conectividade em 2023 atingiu US $ 42,3 milhões.

• Equipe de desenvolvimento de software: 187 engenheiros
• Patentes de conectividade ativa: 64
• Novo ciclo de desenvolvimento de soluções: 9-12 meses

Pesquisa de tecnologia de comunicação sem fio

A pesquisa se concentrou nas tecnologias de comunicação 5G e da IoT, com US $ 23,6 milhões alocados em 2023.

Área de foco de pesquisa	Orçamento de pesquisa	Principais resultados
Integração 5G	US $ 12,4 milhões	7 novos desenvolvimentos de protótipo
Wireless de baixa potência	US $ 6,2 milhões	3 novos protocolos de comunicação
Computação de borda	US $ 5 milhões	2 plataformas de conectividade avançada

Integração de produtos e serviços de engenharia personalizados

Os serviços de engenharia personalizados geraram US $ 57,4 milhões em receita durante 2023.

• Projetos totais de engenharia personalizada: 124
• Duração média do projeto: 6-8 meses
• Indústrias servidas: saúde, industrial, transporte

Suporte técnico global e implementação do cliente

As operações de suporte técnico abrangem 23 países com US $ 18,7 milhões investidos em infraestrutura de suporte ao cliente.

Canal de suporte	Horário de apoio anual	Taxa de satisfação do cliente
Suporte telefônico	42.500 horas	92%
Suporte online	35.200 horas	88%
Implementação no local	8.700 horas	95%

Digi International Inc. (DGII) - Modelo de Negócios: Recursos -Principais

Tecnologias de comunicação sem fio proprietárias

Digi International detém 35 patentes de comunicação sem fio ativos A partir de 2023. O portfólio de tecnologia sem fio da empresa inclui:

• Módulos de IoT celular
• Tecnologias sem fio de curto alcance
• Soluções de comunicação sem fio de longo alcance

Tipo de tecnologia	Contagem de patentes	Investimento em P&D (2023)
Tecnologias de IoT celular	12	US $ 8,3 milhões
Sem fio de curto alcance	15	US $ 5,6 milhões
Comunicação de longo alcance	8	US $ 4,2 milhões

Engenharia e Pool de talentos de P&D

Digi International emprega 387 Profissionais de engenharia e P&D A partir do quarto trimestre 2023.

Nível de qualificação	Número de profissionais
PhD	42
Mestrado	156
Diploma de bacharel	189

Portfólio de hardware e software da IoT

A empresa mantém 67 linhas de produtos ativos nas plataformas de hardware e software da IoT.

• Dispositivos IoT celulares: 22 linhas de produtos
• Módulos sem fio incorporados: 25 linhas de produtos
• Plataformas de software IoT: 20 linhas de produtos

Propriedade intelectual e portfólio de patentes

O portfólio de propriedade intelectual da Digi International consiste em:

Categoria IP	Contagem total	Custo de manutenção anual
Patentes ativas	35	US $ 1,2 milhão
Aplicações de patentes pendentes	12	$450,000
Marcas registradas	28	$250,000

Infraestrutura global de vendas e suporte técnico

Digi International opera 5 centros de suporte globais com 124 profissionais de suporte técnico.

Região	Locais do centro de suporte	Equipe de apoio
América do Norte	Minneapolis, Mn	52
Europa	Munique, Alemanha	24
Ásia -Pacífico	Cingapura	18
América latina	São Paulo, Brasil	16
Médio Oriente	Dubai, Emirados Árabes Unidos	14

Digi International Inc. (DGII) - Modelo de negócios: proposições de valor

Soluções abrangentes de conectividade da IoT

A DIGI International fornece soluções de conectividade de IoT com as seguintes especificações:

Categoria de produto	Receita total (2023)	Penetração de mercado
Módulos IoT sem fio	US $ 182,4 milhões	43% de participação no mercado corporativo
Roteadores celulares	US $ 97,6 milhões	38% de segmento industrial

Tecnologias de comunicação sem fio confiáveis ​​e seguras

As tecnologias de comunicação sem fio da Digi International incluem:

• Módulos sem fio Xbee proprietários
• Soluções de rede celular segura
• Plataformas de conectividade celular de múltiplas portadores

Recurso de segurança	Nível de criptografia	Padrão de conformidade
Criptografia de ponta a ponta	AES-256 bit	FIPS 140-2 certificado

Plataformas de dispositivo incorporadas flexíveis e escaláveis

Recursos de plataforma de dispositivo incorporado:

• Suporte para vários protocolos de comunicação
• Arquiteturas de hardware programáveis
• Compatibilidade entre plataformas

Tipo de plataforma	Velocidade de processamento	Capacidade de memória
Digi ConnectCore	1,2 GHz	Até 4 GB de RAM

Recursos de computação e gerenciamento de arestas

Estatísticas da plataforma de gerenciamento remoto:

Recurso de gerenciamento	Métrica de desempenho	Adoção do cliente
Digi Remote Manager	99,99% de tempo de atividade	Mais de 2,1 milhões de dispositivos conectados

Soluções de mercado verticais específicas da indústria

Distribuição vertical de mercado:

Segmento da indústria	Contribuição da receita	Taxa de crescimento
Automação industrial	US $ 76,3 milhões	12,5% de crescimento A / A.
Assistência médica	US $ 45,2 milhões	9,7% de crescimento A / A.
Transporte	US $ 62,1 milhões	15,3% de crescimento A / A.

Digi International Inc. (DGII) - Modelo de negócios: Relacionamentos do cliente

Engajamento da equipe de vendas direta

A partir do quarto trimestre 2023, a DiGi International Inc. mantém uma equipe de vendas direta de 87 profissionais focados em soluções empresariais e industriais da IoT.

Canal de vendas	Número de representantes de vendas	Cobertura geográfica
América do Norte	52	Estados Unidos e Canadá
Região da EMEA	21	Europa, Oriente Médio, África
Região da APAC	14	Ásia -Pacífico

Serviços de suporte técnico e consulta

A DIGI International fornece suporte técnico dedicado com as seguintes métricas:

• Disponibilidade de suporte técnico 24/7
• Tempo médio de resposta: 37 minutos
• Tamanho da equipe de suporte técnico: 64 especialistas
• Volume anual de ingressos de suporte: 8.743 ingressos

Portais de clientes on -line e documentação

Recurso do portal	Estatísticas de uso
Usuários registrados	12,456
Usuários ativos mensais	6,782
Downloads de documentação	43.291 anualmente

Programas de treinamento e certificação

A DIGI International oferece programas de treinamento abrangentes com a seguinte estrutura:

• Módulos de treinamento total: 17
• Cursos de certificação online: 9
• Contagem anual de participantes: 2.345 profissionais
• Taxa média de conclusão da certificação: 86%

Abordagem de parceria corporativa de longo prazo

Métrica de Parceria	Dados atuais
Clientes corporativos	247
Taxa média de retenção de clientes	92.4%
Repita a taxa de negócios	78.6%
Duração média da parceria	5,3 anos

Digi International Inc. (DGII) - Modelo de Negócios: Canais

Força de vendas da empresa direta

A partir do quarto trimestre de 2023, a DiGi International mantém uma equipe de vendas empresarial dedicada de 87 representantes de vendas diretas. A força de vendas se concentra nas soluções da IoT empresarial e industrial, direcionando os principais mercados verticais, como:

• Automação industrial
• Transporte e logística
• Energia e serviços públicos
• Infraestrutura da cidade inteligente

Plataformas online de comércio eletrônico

Plataforma	Vendas on -line anuais (2023)	% da receita total
Digi.com Site direto	US $ 24,3 milhões	18.7%
Amazon Business	US $ 7,6 milhões	5.9%

Rede de revendedores autorizados

Composição de rede: 276 revendedores autorizados globalmente, com concentração na América do Norte (62%), Europa (22%) e Ásia-Pacífico (16%).

Parcerias de distribuidores de tecnologia

Distribuidor	Duração da parceria	Volume anual de vendas
Avnet	12 anos	US $ 42,1 milhões
Arrow Electronics	9 anos	US $ 35,6 milhões

Marketing digital e webinars técnicos

Métricas de engajamento digital para 2023:

• Total webinars realizado: 47
• Participantes do webinar cumulativos: 6.342
• Presença média de seminários on -line: 135 participantes
• Taxa de conversão de chumbo de webinars: 14,3%

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

Fabricantes de automação industrial

A DIGI International atende fabricantes de automação industrial com soluções de conectividade da IoT.

Segmento de mercado	Tamanho estimado do mercado	Digi Focus do produto
Manufatura de dispositivos IoT	US $ 24,8 bilhões (2023)	Módulos sem fio XBee
Rede industrial	US $ 12,6 bilhões (2023)	Roteadores celulares

Desenvolvedores de infraestrutura inteligente

Digi fornece soluções de conectividade para projetos de cidade e infraestrutura inteligentes.

• Soluções de medição inteligente
• Conectividade da infraestrutura urbana
• Sistemas de gerenciamento de construção

Empresas de transporte e logística

A DiGi International oferece soluções IoT especializadas para rastreamento e gerenciamento de transporte.

Segmento de logística	Valor de mercado anual	Solução DIGI
Gerenciamento de frota	US $ 19,3 bilhões (2023)	Roteadores de veículos celulares
Rastreamento de ativos	US $ 15,7 bilhões (2023)	Módulos de rastreamento sem fio

Provedores de tecnologia de saúde

A DIGI suporta a tecnologia de saúde com soluções de comunicação sem fio seguras.

• Conectividade do dispositivo médico
• Monitoramento remoto de pacientes
• Transmissão de dados de assistência médica

Organizações governamentais e militares

A DIGI International fornece tecnologias de comunicação seguras para setores governamentais e de defesa.

Segmento do governo	Potencial de mercado	Digi Produto especializado
Comunicação de defesa	US $ 7,5 bilhões (2023)	Módulos sem fio seguros
Infraestrutura pública	US $ 5,2 bilhões (2023)	Equipamento de rede robusto

Digi International Inc. (DGII) - Modelo de negócios: estrutura de custos

Investimentos de pesquisa e desenvolvimento

Para o ano fiscal de 2023, a DIGI International registrou despesas de P&D de US $ 40,2 milhões, representando 19,4% da receita total.

Ano fiscal	Despesas de P&D	Porcentagem de receita
2023	US $ 40,2 milhões	19.4%
2022	US $ 37,5 milhões	18.2%

Despesas de fabricação e cadeia de suprimentos

Os custos de fabricação e cadeia de suprimentos da Digi International em 2023 totalizaram US $ 85,6 milhões.

• Custos de fabricação direta: US $ 62,3 milhões
• Logística da cadeia de suprimentos: US $ 23,3 milhões

Custos operacionais de vendas e marketing

As despesas de vendas e marketing para o ano fiscal de 2023 totalizaram US $ 55,8 milhões.

Categoria de custo	Quantia
Pessoal de vendas	US $ 32,4 milhões
Campanhas de marketing	US $ 15,6 milhões
Infraestrutura de vendas	US $ 7,8 milhões

Compensação global da força de trabalho

A compensação total da força de trabalho para a DIGI International em 2023 foi de US $ 132,5 milhões.

• Salários base: US $ 98,7 milhões
• Benefícios e bônus: US $ 33,8 milhões

Manutenção de infraestrutura de tecnologia

Os custos de manutenção de infraestrutura tecnológica para 2023 foram de US $ 22,9 milhões.

Componente de infraestrutura	Custo de manutenção
Serviços em nuvem	US $ 8,6 milhões
Infraestrutura de rede	US $ 7,3 milhões
Manutenção de hardware	US $ 7,0 milhões

Digi International Inc. (DGII) - Modelo de negócios: fluxos de receita

Vendas de produtos de hardware

Para o ano fiscal de 2023, a DIGI International registrou receita de vendas de produtos de hardware de US $ 261,5 milhões.

Categoria de produto	Receita ($ m)	Porcentagem de vendas totais de hardware
Módulos de conectividade sem fio	142.3	54.4%
Roteadores celulares	68.7	26.3%
Sistemas incorporados	50.5	19.3%

Serviços de assinatura recorrentes

Os serviços de assinatura geraram US $ 37,2 milhões em receita recorrente para o ano fiscal de 2023.

• Serviços de conectividade em nuvem
• Plataformas de gerenciamento de dispositivos
• Soluções de monitoramento remoto

Taxas de engenharia e integração personalizadas

Os serviços de engenharia personalizados representaram US $ 22,8 milhões em receita durante o ano fiscal de 2023.

Segmento da indústria	Receita de engenharia ($ M)
Automação industrial	9.6
Transporte	6.4
Assistência médica	4.3
Outros setores	2.5

Licenciamento de software

A receita de licenciamento de software totalizou US $ 15,6 milhões no ano fiscal de 2023.

• Licenciamento da plataforma IoT
• Software de gerenciamento de conectividade
• Ferramentas de configuração do dispositivo

Contratos de Suporte Técnico e Manutenção

Os contratos técnicos de suporte e manutenção geraram US $ 28,4 milhões em receita para o ano fiscal de 2023.

Tipo de contrato	Receita ($ m)	Duração média do contrato
Suporte padrão	14.2	12 meses
Suporte premium	8.6	24 meses
Manutenção da empresa	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.