# Digi International Inc. (DGII)

> Source: Nexqual · https://nexqual.com/DGII · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Digi International Inc. (DGII), nexqual.com/DGII" · informational, not investment advice.

**Price:** USD 72.8 (-3.32% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 75.3 · day 70.74–73.88 · 52w 34.41–86.84 · market cap $2.76B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $506M, net income $48.7M (9.6% margin), free cash flow $136M (SEC filings).
- 2 of 80 tracked superinvestors hold DGII (13F, Q2 2026): 0 new, 1 added, 0 reduced, 1 unchanged.
- Insider open-market sales, last ~7 months: 4 Form 4 filings, $8.3M; 4 not under a Rule 10b5-1 plan ($8.3M); 2 by opportunistic insiders (2 outside 10b5-1 plans), 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 2.20 on a 1–5 scale) (5 analysts), mean target USD 85.4 (range 76–90).
- Total return with dividends: 1Y +86.0% vs S&P 500 +14.9%; 5Y +243.4% vs S&P 500 +80.3%.
- Next earnings: 2026-11-11, EPS estimate USD 0.76, revenue estimate $140M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $309M | $388M | $445M | $424M | $430M | $506M |
| Gross profit | $167M | $216M | $252M | $250M | $271M | — |
| Operating income | $10.5M | $38.2M | $50.1M | $48.1M | $56.3M | $70.6M |
| Net income | $10.4M | $19.4M | $24.8M | $22.5M | $40.8M | $48.7M |
| EPS (diluted) | $0.31 | $0.54 | $0.67 | $0.61 | $1.08 | — |
| Free cash flow | $55.5M | $35.8M | $32.4M | $80.9M | $105M | $136M |
| Gross margin | 54.0% | 55.7% | 56.7% | 58.9% | 62.9% | — |
| Operating margin | 3.4% | 9.8% | 11.3% | 11.3% | 13.1% | 13.9% |
| Net margin | 3.4% | 5.0% | 5.6% | 5.3% | 9.5% | 9.6% |
| Revenue growth | +10.5% | +25.8% | +14.6% | -4.7% | +1.5% | — |
| Cash + short-term investments | — | $34.9M | $31.7M | $27.5M | $21.9M | — |
| Total debt | $45.8M | $238M | $204M | $123M | $159M | — |
Fiscal years end Sep. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)

P/E at fiscal year-ends: Sep 2025 33.7x, Sep 2024 45.2x, Sep 2023 40.2x.

## Superinvestors (SEC 13F-HR, Q2 2026)
2 of 80 tracked investors hold DGII. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| First Eagle Investment | First Eagle Investment Management | 0.03% | $15.2M | Added +17.0% |
| Mairs & Power | Mairs & Power Funds | <0.01% | $525K | Unchanged |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 4 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-06-02 | Loch James J. | SR VP, CFO AND TREASURER | 100,000 | $6.9M | 37.4% | No | Too little history (no open-market trades in 2024 or 2025) |
| 2026-05-26 | Freeland James E. | VP, Chief Information Officer | 450 | $31K | 2.3% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-05-13 | Sampsell David H. | VP, CORP. DEV, GC & CORP. SEC. | 6,376 | $415K | 7.1% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-05-11 | Schneider Terrence G. | VP, SUPPLY CHAIN | 14,182 | $930K | 34.6% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 2.20 on a 1–5 scale), 5 analysts; mean target USD 85.4 (low 76, high 90).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-08-06 | Piper Sandler | Target raised | Neutral | $63 → $76 |
| 2026-08-06 | Stephens & Co. | Target raised | Overweight | $75 → $85 |
| 2026-08-06 | B. Riley Securities | Target raised | Buy | $78 → $86 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +86.0% | +243.4% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +86.3% | +27.9% |
| Volatility (annualized) | 39.9% | 41.0% |
| Max drawdown | -21.8% (Aug 2026→Sep 2026) | -47.5% (Nov 2022→Nov 2023) |

## Peers (Communication Equipment)
EXTR (Extreme Networks, Inc.) USD 22.04 -2.22% · ONDS (Ondas Inc) USD 6.02 -3.99% · TSAT (Telesat Corporation) USD 40.4 -4.33% · BDC (Belden Inc) USD 103.46 -4.01% · VISN (Vistance Networks, Inc.) USD 6.08 -0.49% · AAOI (Applied Optoelectronics, Inc.) USD 68.07 -11.96%

## More
Full page: https://nexqual.com/DGII · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| IoT Products & Services | $99.8M | 72.0% | +24.7% | $16.8M | 16.8% |
| IoT Solutions | $38.9M | 28.0% | +41.5% | $6.1M | 15.7% |
| Total revenue | $138.7M | 100% | — | $22.9M | 16.5% |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Product | $89.3M | 64.4% | +20.4% |
| Service | $49.4M | 35.6% | +47.9% |
| Total revenue | $138.7M | 100% | — |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| North America, primarily the United States | $117.2M | 84.5% | +30.6% |
| Europe, Middle East & Africa | $13.5M | 9.7% | +8.3% |
| Rest of world | $8.0M | 5.8% | +49.8% |
| Total revenue | $138.7M | 100% | — |

## Company outlook (8-K filed 2026-08-05)

- "For fiscal 2026, we now anticipate ARR growth of at least 27% versus fiscal 2025, up from our prior guidance of growth of 25%."
- "Revenue is estimated to be $529 million to $533 million for fiscal 2026, representing growth of 23-24% versus fiscal 2025, up from our prior guidance of growth of 20-22%."
- "Adjusted EBITDA is estimated to be $146.0 million to $147.5 million, representing growth of 35-36% versus fiscal 2025, up from our prior guidance of growth of 23-26%."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.76 | $0.63 | +20.8% | $140.3M | 5 |
| Next quarter (ends 2026-12-31) | $0.73 | $0.63 | +16.3% | $140.2M | 4 |
| Current fiscal year (ends 2026-09-30) | $2.69 | $2.48 | +8.7% | $532.1M | 5 |
| Next fiscal year (ends 2027-09-30) | $3.13 | $2.80 | +11.9% | $578.5M | 5 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-11-11): ±13.8%; last 8 reports averaged ±8.3%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 55.1% | ±13.8% |
| 2026-12-18 | 56 | 46.9% | ±15.1% |
| 2027-03-19 | 147 | 46.7% | ±23.9% |
| 2027-06-17 | 237 | 46.6% | ±30.1% |