Digi International Inc. (DGII) Stock Price & How to Invest

Digi International designs and sells cellular routers, gateways, embedded modules, and connectivity hardware, paired with software and managed services that keep IoT devices online and remotely managed. Its two reporting lines are IoT Products & Services (the embedded modules and networking hardware) and IoT Solutions (subscription offerings like SmartSense environmental monitoring, the Ventus managed network-as-a-service business, and the Jolt operations platform). Customers span industrial, retail, medical, transportation, and enterprise networking, where uptime and remote device management matter more than raw device cost.

The investment picture centers on a deliberate mix shift from lumpy hardware toward recurring revenue. As of July 2026 annualized recurring revenue had reached roughly ~$184M, growing far faster than total revenue, which lifts gross margins and makes results more predictable. The company is consistently profitable on an adjusted basis and generates solid operating cash flow, but it also carries acquisition-related debt from deals like Ventus, and hardware demand remains cyclical and exposed to inventory swings at its channel partners.

Hardware revenue is cyclical and sensitive to channel-partner inventory levels, which can cause quarterly revenue to swing in either direction. The IoT connectivity space is crowded and fragmented, with larger and better-capitalized rivals competing on price and scale. Digi carries debt from past acquisitions, so higher-for-longer interest rates weigh on net income and limit flexibility. Much of the growth narrative depends on continued ARR gains, and any slowdown in subscription adds would undercut the margin-expansion case. As a smaller-cap name, the stock can be volatile and thinly followed relative to large-cap tech.

5 analysts publish price targets on DGII, averaging $72.20 against a $69.72 price as of August 2026, or +3.6%. The published targets run from $63.00 to $78.00, a narrow spread, and the ratings split 4 buy, 1 hold, 0 sell. Over the last six months there have been 3 raises and 0 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full DGII forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Digi International Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Recurring-revenue mix shift. The core thesis is the move from one-time hardware toward subscriptions, with ARR around ~$184M as of July 2026 and management targeting ~$200M under its multi-year plan. The most optimistic published target, $78.00, assumes this works close to its best case.

The case against. Hardware revenue is cyclical and sensitive to channel-partner inventory levels, which can cause quarterly revenue to swing in either direction. The most pessimistic target, $63.00, is roughly what DGII is worth if this bites instead.

Read the full bull and bear case on DGII, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Digi International Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$475M
• Revenue (FY2025): ~$431M
• Annualized Recurring Revenue: ~$184M
• Adj. EBITDA (FY2026 guide): ~$135M
• Market cap: ~$2.8B
• Share price: ~$73

At roughly ~$2.8B in market cap against ~$475M in trailing revenue, DGII trades near a mid-single-digit price-to-sales multiple, richer than a pure hardware maker but consistent with a business shifting toward recurring revenue. The premium leans heavily on continued ARR growth and margin expansion delivering the guided EBITDA. If subscription momentum stalls, the multiple has room to compress toward its more hardware-like history.

Other names that sit close to DGII: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get DGII exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so DGII sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where DGII fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

DGII is a mid-cap IoT hardware-plus-software business whose story now hinges on recurring-revenue growth and margin expansion rather than device volume.

Whether DGII is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is DGII a buy or a sell?, and where the stock could go from here in the DGII stock forecast.

For income investors, whether DGII pays a dividend and how the payout looks is covered in does DGII pay a dividend? And to weigh DGII against a peer, read the full side-by-side comparisons: DGII vs SMTC and DGII vs AAOI.