Digi International Inc. (DGII)
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
$69.36-1.31%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
QuarterlyIQ Insights · DGII
What must go right, what could break, what the price assumes, and what evidence comes next.
The current health of the standing investment case.
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
One-year growth currently built into the price, compared with our model's estimate.
| Measure | Marker shape | Value |
|---|---|---|
| Growth built into the price | circle | -4.4% |
| Our one-year growth estimate | diamond |
For each item: what to watch, what would become a concern, and what would make it less concerning.
A reporting-risk estimate, not a forecast of the stock-price response.
Historical relationships that met the evidence threshold. They do not prove cause or forecast a move.
Usually moved in the same direction.
Price observations: 365 days
Most sensitive to the broad stock market.
Based on historical daily prices through 2026-09-04.
Past price behavior in dollars on a $10,000 position. This does not measure permanent business risk.
How much price usually moves either way.
Use the underlying financial and sector pages to investigate the cause.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
| 13.3% |
Growth built into the price is above our model estimate.
The price assumes 17.7 percentage points less one-year growth.
The one-year revenue growth assumption on Valuation.
Model as of 2026-09-04 · Compared with 22 industry peers · Company calendar date is not available
DGII — credit agreement
Dated 2026-08-31
Entry into a Material Definitive Agreement . On August 27, 2026 (the “ Closing Date ”), Digi International Inc. (“ Digi ”) entered into an amended and restated revolving credit agreement (the “ Credit Agreement ”) with BMO Bank N.A. (“ BMO ”), as administrative agent and collateral agent, BMO Capital Markets Corp., Bank of America, N.A. and MUFG Bank, Ltd., as joint lead arrangers, BMO Capital Markets Corp. and Bank of America, N.A., as joint bookrunners, and the several banks and other finan…
Why it matters: Keeping cash flow above this level shows strong operations and good financial health.
Supportive ifCash flow from operations remains above $30 million in the next quarter.
Worry ifCash flow from operations is below $30 million. This raises concerns about efficiency.
Why it matters: A rise above $20M would confirm progress in cost management and efficiency improvements. This could support a positive outlook.
Supportive ifOperating income is over $20M in Q2. This shows good cost management.
Worry ifOperating income is under $17M in Q2. This shows possible issues with managing costs.
Why it matters: The new credit facility gives more financial options. It helps support growth and acquisitions.
Watch forDigi announces a big purchase funded by the new credit line. This shows smart use of resources.
Also watch forDigi struggles with the credit line. This may indicate problems with operations or strategy.
Why it matters: Annual Recurring Revenue growth shows how well Digi keeps customers and meets demand.
Supportive ifARR growth of 27% or more shows strong customer demand and a good business plan.
Worry ifARR growth below 25% suggests problems with keeping customers or low market demand.
We watch for confirming and disproving signals on each item. Resolutions are found automatically where possible and checked by hand for unclear cases. Last 90 days shown.
A larger daily loss that occurred about once in every 20 trading days.
Deepest peak-to-trough drop in the last year.
| Measure | Value | Meaning |
|---|---|---|
| Typical day | ±$198 on $10,000 · ±2.0% | How much price usually moves either way. |
| Bad day | $367 loss on $10,000 · 3.7% | A larger daily loss that occurred about once in every 20 trading days. |
| Largest peak-to-trough drop in the past year | $1,863 loss on $10,000 · 18.6% | Deepest peak-to-trough drop in the last year. |
Past year. 1.00 means similar movement; 1.20 means about 20% more.
Past year. 1.00 means similar movement to the sector. This is secondary context.
Latest 30 trading days, shown as an annual percentage.
Latest 252 trading days, shown as an annual percentage.
20-trading-day average in US dollars.
Trading days used by the source risk snapshot.
Past results, not a forecast. Not investment advice.
Why it matters: Improving gross profit is a key focus. It signals better cost management and pricing power.
Supportive ifGross profit margin improves by more than 2% compared to the previous quarter.
Worry ifGross profit margin declines or stays flat compared to the previous quarter.
Why it matters: Revenue growth is a top priority for Digi. Strong results would show progress.
Supportive ifQ2 revenue growth exceeds 10% year over year.
Worry ifQ2 revenue growth falls below 5% year over year.
Why it matters: Adjusted EBITDA growth shows how well Digi controls costs. It shows efficiency and profit.
Supportive ifAdjusted EBITDA growth is at or above 26%.
Worry ifAdjusted EBITDA growth is below 23%.
Why it matters: A stable operating margin shows good cost control. It also means the company is making money.
Supportive ifOperating margin reported at or above 13% for Q3.
Worry ifThe operating margin was below 13% in Q3.
Why it matters: Lowering net debt improves the balance sheet and helps future growth plans.
Supportive ifNet debt is below $80 million. This shows good management of capital.
Worry ifNet debt is above $90 million. This suggests possible financial problems.
Why it matters: Higher margins mean better cost control and pricing power. This can help increase profits.
Supportive ifGross profit margin was above 64.0%. This shows good cost control and pricing strategies.
Worry ifGross profit margin was below 64.0%. This indicates possible problems with cost control or pricing.
Why it matters: This guidance shows profits and how interest costs affect earnings.
Supportive ifNet income per diluted share guidance is confirmed between $0.75 and $0.78.
Worry ifNet income per diluted share guidance is below $0.75.
Why it matters: This guidance will show if Digi can maintain its growth momentum. A strong forecast supports ongoing demand for its IoT solutions.
Supportive ifQ4 revenue guidance of $140M or higher indicates strong demand and growth.
Worry ifQ4 revenue guidance below $138M shows weak demand or problems in operations.
Why it matters: Digi operates in a growth sector. A slowdown could hurt its performance.
Worry ifSector revenue growth drops below its median of 5%.
Less concerning ifSector revenue growth remains above its median.