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.

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.

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 basket, so DGII sits alongside other stocks that express the same thesis.

Walnut takes the basket 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.

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?, 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?