Digi International Inc. (DGII)
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-11-04
$72.58+0.76%
Close 2026-11-04 · 1-day change
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-11-04
QuarterlyIQ Insights · DGII
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-11-04.
The screen ranks DGII against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 3 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 65% of the time over the next year (vs 52% for the rest of the cohort, n=6380).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 2 guided quarters · 5.1% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
ARR growth, margin expansion, and customer retention trends all reinforce our confidence in achieving $200 million in both ARR and Adjusted EBITDA within our targeted time horizon.
Stated in 3 of 3 supplied quarters. Management reported: “ARR growth, margin expansion, and customer retention trends all reinforce our confidence in achieving $200 million in both ARR and Adjusted EBITDA within our targeted time horizon.” “• Annualized Recurring Revenue ("ARR") was $191 million at quarter end, an increase of 52%.”
“ARR growth, margin expansion, and customer retention trends all reinforce our confidence in achieving $200 million in both ARR and Adjusted EBITDA within our targeted time horizon.”
“ARR growth, margin expansion, and customer retention trends all reinforce our confidence in achieving $200 million in both ARR and Adjusted EBITDA within our targeted time horizon.”
“We see continued growth and evolution in the Industrial Internet of Things market, reinforcing our confidence in achieving $200 million in both ARR and Adjusted EBITDA over the next three years.”
Acquisitions remain a top capital priority for Digi as reflected by our acquisition of Particle announced on January 27.
Stated in 3 of 3 supplied quarters. Management reported: “Acquisitions remain a top capital priority for Digi as reflected by our acquisition of Particle announced on January 27.” “Exhibit 99.1 Digi International Expands Senior Secured Revolving Credit Facility to $350 Million (Minneapolis, MN, August 31, 2026) - Digi International® Inc. (Nasdaq: DGII), a leading global provider of business and mission-critical Internet of Things ("IoT") products, services and solutions, today announced it has expanded and refinanced its senior secured revolving credit facility, increasing total borrowing capacity to $350 million.”
Capital Allocation Strategy We intend to continue to deleverage the Company's balance sheet.
Stated in 3 of 3 supplied quarters. Management reported: “Capital Allocation Strategy We intend to continue to deleverage the Company's balance sheet.” “• Cash flow from operations was $33 million in the third quarter of fiscal 2026, compared to $24 million in the third quarter of fiscal 2025.”
“Capital Allocation Strategy We intend to continue to deleverage the Company's balance sheet.”
Grow revenue by combining organic growth with strategic acquisitions such as Jolt and Particle.
Focus on growing subscription-based revenue and improving customer retention to drive compounding value.
Over the trailing year it converted 3.70x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 62% of the time over the next year (vs 51% for the rest of the cohort, n=3136).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
8 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Information Technology names rated neutral grew net income 56% of the time over the next year (vs 55% for the rest of the cohort, n=8114).
Not investment advice. As of 2026-11-04.
“Acquisitions remain a top capital priority for Digi as reflected by our acquisition of Particle announced on January 27.”
“Acquisitions remain a top capital priority for Digi as reflected by our acquisition of Particle announced on January 27.”
“Acquisitions remain a top capital priority for Digi as reflected by our acquisition of Particle announced on January 27.”
“Capital Allocation Strategy We intend to continue to deleverage the Company's balance sheet.”
“Capital Allocation Strategy We intend to continue to deleverage the Company's balance sheet.”