May 2026
DGII is a Global Industrial IoT (IIoT) Leader
We provide IIoT solutions that deliver remote presence enabling customers to operate more effectively and efficiently
Digi's top priority is growing annualized recurring revenue (ARR)
Digi's experienced team has led the company through its transition from zero to $184 million in ARR, now approximately 36% of trailing twelve-month revenue
A +40-year rich history of innovation supported by investing 15% of revenue into R&D
Consistent profitability and strong cash generation with capital light model enables
allocation of capital to M&A, furthering Digi's market leadership
Massive addressable market, approaching $0.8T, growing double-digits long-term
3 | PUBLIC | © DIGI INTERNATIONAL INC.
A reconciliation of the non-GAAP financial information to the most directly comparable GAAP measure is available in our most recent 8-K.
ARR is the measurement of subscription-based revenue recognized as of 03/31/2026 multiplied by 12
Industrial IoT Market is Large and Growing
Massive but fragmented market with
double-digit growth opportunity
Historically, hardware drove growth. Now, growth is fueled by faster growing software, connectivity applications, and services segments
The profitability opportunity is driven by growing high margin annual recurring revenue in security, software and services
IIoT Tech Stack Market Size/Growth Rates
$0.3T → $0.8T
Global IIoT Market 2024 → 2034 | 10.3% CAGR
Hardware
Share of IIoT Market
47%
CAGR: ~7%
Sensors, gateways, routers, embedded modules; largest segment today
Connectivity
Share of IIoT Market
20%
CAGR: ~10%
Cellular, Wi-Fi, Zigbee, LoRa, private 5G, and satellite connectivity
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Market asking for fewer vendors with more complete solutions
Services
Share of IIoT Market
15%
CAGR: ~18%
Integration, managed services,
remote ops; highest CAGR segment
Software
Share of IIoT Market
18%
CAGR: ~13%
Device mgmt platforms, analytics, AI/ML, digital twins, SCADA
Sources: Emergen Research, Mordor Intelligence, Grand View Research (2024-2026 reports), Digi Estimates
Digi Transforms How Businesses Work by Enabling Remote Presence and Control
Solving MISSION and BUSINESS CRITICAL machine communications challenges in the most DEMANDING ENVIRONMENTS
Digi is led by a highly experienced management team that has driven revenue growth and
profitability
Customers rely on Digi's expertise, quality and secure products
Differentiated by technical expertise, impeccable service and a commitment to uptime, Digi provides value-added software and services that are enabled by hardware, and are supported by responsive and knowledgeable resources
Proven, no-nonsense ACTIVELY MANAGED SOLUTIONS THAT WORK and keep working
RELIABILITY
SCALABILITY
SECURITY
DGII 1985 ~900 23 $430 25%MANAGEABILITY
NASDAQ
Year
Founded
Employees
Worldwide
Consecutive Years
of Profitability
Million
FY25 Revenue
FY25 A-EBITDA
Margin
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Fiscal Second Quarter 2026 Set New Records
FQ2 2026 Results YoY
Revenue +25% to $131 million
Annualized recurring revenue (ARR) +50% to $184 million
Gross margin +190 bps to 64.0%
Adj. EBITDA +32% to $34 million
FY26 Guidance YoY
Revenue +20% to +22%
ARR +25%
Adj. EBITDA +23% to +26%
6 | PUBLIC | © DIGI INTERNATIONAL INC.
A reconciliation of the non-GAAP financial information to the most directly comparable GAAP measure is available in our most recent 8-K.
ARR is the measurement of subscription-based revenue recognized as of 03/31/2026 multiplied by 12
CELLULAR SOLUTIONS
Digi's Business Segments
Products and Services Segment
INFRASTRUCTURE MANAGEMENT
Solutions Segment
Cellular solutions to connect people, places and machines for business enterprises, industrial applications and transportation.
Industrial-networking solutions to maintain a secure, constant flow of data between devices with serial, USB and I/O connectivity.
Complete suite of embedded solutions for customers to develop, build, deploy and manage IoT devices.
Console servers enabling secure access to network devices
for Day One provisioning, every-day device management, and when the primary
network goes down.
Automated workflows, task management, condition monitoring, and compliance for healthcare, food service, convenience and grocery stores and logistics verticals.
Managed Network as a Service (MNaaS) for Financial Services,
Lottery/Gaming, Retail, and IIoT verticals.
Fiscal Second Quarter 2026 Segment Results
Products & Services FQ2 2026 YoY
Revenue +20% to $94 million
ARR +104% to $57 million
Operating margin +40 bps to 14.9%
Solutions FQ2 2026 YoY
Revenue +39% to $37 million
ARR +34% to $127 million
Operating margin -80 bps to 8.3%
8 | PUBLIC | © DIGI INTERNATIONAL INC.
A reconciliation of the non-GAAP financial information to the most directly comparable GAAP measure is available in our most recent 8-K.
ARR is the measurement of subscription-based revenue recognized as of 03/31/2026 multiplied by 12
ARR Improving Quality of Revenue and Expanding Gross Margins
550
500
Revenue Categories:
Recurring (ARR): subscriptions with extended visibility
Reoccurring: design wins that produce repeated product shipments with ever increasing visibility
Non-Reoccurring: one time product shipments
Revenue Growth and Drivers:
ARR projected to be 36% of revenue by end of FY26. Prioritizing ARR over one-time revenue
Total revenue growth five-year CAGR of +9%; disciplined acquisitions and a shift to subscription revenue initiatives
ARR growth five-year CAGR of 44% as company focuses on solutions
450
Revenues ($ millions)
400
350
300
250
200
150
100
50
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
2020
2021
2022
2023
2024
2025
2026F
-
200
180
160
ARR ($ millions)
140
120
100
80
60
40
20
0
40%
ARR as % of Total Revenue
35%
30%
25%
20%
15%
10%
5%
0%
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ARR Pushing Gross Margin and Expanding Profit MarginsGross Margin Dynamics:
Increase in high margin subscription ARR
~1100 basis point improvement since 2020, reaching +63%
Differentiated offerings delivering high value
A-EBITDA Margin Dynamics:
Improvement of ~1500 basis points since 2020
Thoughtful management of operating expenses
Forecasting FY2026 A-EBITDA margin
improvement
64%
62%
60%
58%
Gross Margin
56%
54%
52%
50%
48%
46%
44%
42%
F2020 F2021 F2022 F2023 F2024 F2025
30%
25%
A-EBITDA Margin
20%
15%
10%
5%
0%
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Strong Balance Sheet and Cash Flow
Balance Sheet
($ millions) FQ2 2026
Quarterly Cash Flow
($ millions) FQ2 2025 FQ2 2026 YoY
Cash and Equivalents | $32 | Operating Cash Flow | $26.3 | $41.5 | 58% |
Total Debt | $143 | Capital Expenditures | $0.6 | $0.6 | 14% |
Net Debt | $111 | Free Cash Flow* | $25.7 | $40.9 | 59% |
TTM A-EBITDA | $123 |
Net Debt / A-EBITDA 0.9x
Net Debt / TTM A-EBITDA
$50.0
$40.0
Free Cash Flow (S millions)
2.5
2.0
1.5
1.0
0.5
0.0
FQ2 2023 FQ2 2024 FQ2 2025 FQ2 2026
$30.0
$20.0
$10.0
$-
FQ2 2023 FQ2 2024 FQ2 2025 FQ2 2026
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* A-EBITDA to free cash flow conversion rate historically ~90%
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 celebrate, but that's when the real work begins... on integration"
- Digi CEO Ron Konezny
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Digi Expects to Double ARR and A-EBITDA by FY28
Annualized Recurring Revenue (ARR)
Adjusted EBITDA (A-EBITDA)
28% CAGR 190
152
116
17% CAGR
98
108
$ millions
$ millions
135
FY24 FY25 FY26E FY24 FY25 FY26E
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Connect with Confidence
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