Digi International Inc. · NASDAQ:DGII
Digi International — Investor Presentation (September 2026)
15 slides from Digi International's investor presentation, September 2026
Slide 1: Investor Presentation
Investor Presentation September 2026
Slide 2: Safe Harbor
Safe Harbor This presentation includes forward looking statements. These statements reflect our expectations about future operating and financial performance and speak only as of the date of this presentation. Actual results, performance, or developments could differ materially from those expressed
Slide 3: DGII is a Global Industrial IoT (IIoT) Leader
DGII is a Global Industrial IoT (IIoT) Leader • We provide IIoT solutions that deliver remote presence enabling customers to operate more effectively and efficiently • Addressable market for $0.3T, growing double-digits long-term • Digi’s evolution to a solution provider measured by ARR which is now
Slide 4: Industrial IoT Market is Large and Growing
IIoT Tech Stack Market Size/Growth Rates Industrial IoT Market is Large and Growing $0.3T → $0.8T Global IIoT Market 2024 → 2034 | 10.3% CAGR • Massive but fragmented market with Connectivity Hardware double-digit growth opportunity Share of IIoT Market Share of IIoT Market • Historically, hardware
Slide 5: Digi Transforms How Businesses Work by Enabling Remote Presence and Control
Digi Transforms How Businesses Work by Enabling Remote Presence and Control Solving MISSION and BUSINESS CRITICAL machine communications challenges in the RELIABILITY most DEMANDING ENVIRONMENTS • Digi is led by a highly experienced management team that has driven revenue growth and profitability •
Slide 6: Fiscal Third Quarter 2026 Set New Records
Fiscal Third Quarter 2026 Set New Records FQ3 2026 Results YoY • Revenue +29% to $139 million • Annualized recurring revenue (ARR) +52% to $191 million • Gross margin +130 bps to 64.8% • Adj. EBITDA +47% to $40 million FY26 Guidance YoY • Revenue +23% to +24% • ARR at least 27% • Adj. EBITDA +35% to
Slide 7: Digi’s Business Segments
Digi’s Business Segments IoT Products and Services Segment IoT Solutions Segment CELLULAR INFRASTRUCTURE SOLUTIONS MANAGEMENT Cellular solutions to Industrial-networking Complete suite of Console servers Automated workflows, Managed Network connect people, places solutions to maintain a embedded sol
Slide 8: AI is Embedded Across Digi’s IoT Stack
AI is Embedded Across Digi’s IoT Stack Purpose-Built Intelligence Across Hardware, Connectivity, Software and Services — deepening the moat and compounding recurring revenue 8 | PUBLIC | © DIGI INTERNATIONAL INC.
Slide 9: Fiscal Third Quarter 2026 Segment Results
Fiscal Third Quarter 2026 Segment Results Products & Services FQ3 2026 YoY • Revenue +25% to $100 million • ARR +100% to $60 million • Operating margin +160 bps to 16.8% Solutions FQ3 2026 YoY • Revenue +41% to $39 million • ARR +36% to $131 million • Operating margin +570 bps to 15.7% • A reconcili
Slide 10: ARR Improving Quality of Revenue and Expanding Gross Margins
ARR Improving Quality of Revenue and Expanding Gross Margins 550 500 450 Revenues ($ millions) Revenue Categories: 400 350 • Recurring (ARR): subscriptions with extended 300 visibility 250 200 • Reoccurring: design wins that produce repeated 150 product shipments with ever increasing visibility 100
Slide 11: ARR Pushing Gross Margin and Expanding Profit Margins
ARR Pushing Gross Margin and Expanding Profit Margins Gross Margin Dynamics: 64% 30% • Increase in high margin subscription ARR 62% 60% 25% • ~1100 basis point improvement since FY2020, reaching +6% 58% 20% Differentiated offerings delivering high value A-EBITDA Margin • 56% Gross Margin 54% 15% 52%
Slide 12: Strong Balance Sheet and Cash Flow
Strong Balance Sheet and Cash Flow Balance Sheet Quarterly Cash Flow ($ millions) FQ3 2026 ($ millions) FQ3 2025 FQ3 2026 YoY Cash and Equivalents $28 Operating Cash Flow $23.9 $33.3 39% Total Debt $109 Capital Expenditures $1.0 $1.2 20% Net Debt $81 Free Cash Flow* $22.9 $32.1 40% TTM A-EBITDA $136
Slide 13: M&A is the Top Capital Allocation Priority
M&A is the Top Capital Allocation Priority • Digi has acquired 11 companies in the past 11 years • Debt used for the first time in company history for Opengear acquisition in December 2019 • Ventus was the largest acquisition (~$350M) in company history in November 2021 • “When a deal closes, we cel
Slide 14: Digi Expects to Double ARR and A-EBITDA to $200M by FY28
Digi Expects to Double ARR and A-EBITDA to $200M by FY28 Annualized Recurring Revenue Adjusted EBITDA (A-EBITDA) (ARR) 193+ 29% CAGR 23% CAGR 152 147 116 108 98 $ millions $ millions FY24 FY25 FY26E FY24 FY25 FY26E • ARR on pace to meet our goal • Operating leverage and ARR growth expected to accele
Slide 15: Connect with Confidence
OIG” Connect with Confidence
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