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Investor Presentation November 2025
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| PUBLIC | © DIGI INTERNATIONAL INC.2 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 or implied by the forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors including those identified in the Company’s most recent Form 10‐K and other subsequent periodic filings with the Securities and Exchange Commission.
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DGII is a Global Industrial IoT (IIoT) Leader • 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 9/30/2025 multiplied by 12 • 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 $152 million in ARR, now approximately 35% of annualized revenues • A 40-year rich history of innovation supported by investing 15% of revenue into R&D • Capital light model enables allocation of capital to M&A, furthering Digi’s market leadership • Massive addressable market, approaching $1.4T, growing double-digits long-term | PUBLIC | © DIGI INTERNATIONAL INC.3
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| PUBLIC | © DIGI INTERNATIONAL INC. Industrial IoT Market is Large and Growing 4 • Total 2030 market opportunity ~$1.4T with the spectrum of IIoT technologies growing double digits • Historically, hardware drove growth. Now, growth is fueled by faster growing software, connectivity applications, and services segments • The profitability opportunity is driven by growing high margin annual recurring revenue in security, software and services IIoT Tech Stack Market Size/Growth Rates ($ billions) Sources: Research Nester (2025), Grand View Research (2025), Precedence Research (2025)
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NASDAQ DGII 1985 Year Founded ~900 Employees Worldwide 23 Consecutive Years of Profitability $430 Million FY25 Revenue 25% FY25 A-EBITDA Margin 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 Digi Transforms How Businesses Work by Enabling Remote Presence and Control SCALABILITY MANAGEABILITY SECURITY RELIABILITY 5 | PUBLIC | © DIGI INTERNATIONAL INC.
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Fiscal Fourth Quarter and Full-Year 2025 Set New Records | PUBLIC | © DIGI INTERNATIONAL INC.6 • Revenue +9% to $114 million • Annualized recurring revenue (ARR) +31% to $152 million • Gross margin +280 bps to 63.9% • Adj. EBITDA +11% to $29 million FQ4 2025 Results YoY • 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 9/30/2025 multiplied by 12 • Revenue +10% to +15% • ARR +10% • Adj. EBITDA +15% to +20% FY26 Guidance (+Jolt) YoY • Revenue +1% to $430 million • Annualized recurring revenue (ARR) +31% to $152 million • Gross margin +400 bps to 62.9% • Adj. EBITDA +11% to $108 million FY 2025 Results YoY
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Digi’s Business Segments INFRASTRUCTURE MANAGEMENT OEM SOLUTIONS CELLULAR SOLUTIONS Complete suite of embedded solutions for customers to develop, build, deploy and manage IoT devices. Automated workflows, task management, condition monitoring, and compliance for Health Care, Food Service, Convenience Stores and Logistics verticals. Console servers allow secure access to network devices for Day One provisioning, every-day device management, and when the primary network goes down. Industrial-networking solutions to maintain a secure, constant flow of data between devices with serial, USB and I/O connectivity. Cellular solutions to connect people, places and machines for business enterprises, industrial applications and transportation. Managed Network as a Service (MNaaS) for Financial Services, Lottery/Gaming, Retail, and IIoT verticals. IoT Products and Services Segment IoT Solutions Segment
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| PUBLIC | © DIGI INTERNATIONAL INC.8 • 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 9/30/2025 multiplied by 12 Fiscal Fourth Quarter and Fiscal 2025 Segment Results • Revenue +4% to $82 million • ARR +33% to $32 million • Operating margin +30 bps to 15.2% Products & Services FQ4 2025 YoY • Revenue +23% to $32 million • ARR +30% to $120 million • Operating margin -640 bps to 5.6% Solutions FQ4 2025 YoY Solutions Fiscal 2025 YoY Products & Services Fiscal 2025 YoY • Revenue -2% to $318 million • ARR +33% to $32 million • Operating margin +50 bps to 14.8% • Revenue +13% to $112 million • ARR +30% to $120 million • Operating margin +670 bps to 8.3%
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ARR Improving Quality of Revenue and Expanding Gross Margins | PUBLIC | © DIGI INTERNATIONAL INC.9 Revenue Growth and Drivers: • ARR now represents 35% of total revenue. Prioritizing ARR over one-time revenue • Total revenue growth five-year CAGR of +9%; disciplined acquisitions and a shift to subscription revenue initiatives • ARR growth five-year CAGR of 44% as company focuses on solutions Revenue Categories: • Recurring (ARR): subscriptions with extended visibility • Reoccurring: design wins that produce repeated product shipments with ever increasing visibility • Non-Reoccurring: one time product shipments - 50 100 150 200 250 300 350 400 450 500 Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026F Revenues ($ millions) 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 20 40 60 80 100 120 140 160 180 ARR as % of Total Revenue ARR ($ millions)
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| PUBLIC | © DIGI INTERNATIONAL INC. 1 0 ARR Pushing Gross Marginand ExpandingProfit Margins A-EBITDA Margin Dynamics: • Improvement of ~1500 basis points since 2020 • Thoughtful management of operating expenses • FY2025 margin of 25.2% Gross Margin Dynamics: • Increase in high margin subscription ARR • ~1100 basis point improvement since 2020, reaching +62% • Differentiated offerings delivering high value 42% 44% 46% 48% 50% 52% 54% 56% 58% 60% 62% 64% F2020 F2021 F2022 F2023 F2024 F2025 2026F 0% 5% 10% 15% 20% 25% 30% Gross Margin A-EBITDA Margin
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| PUBLIC | © DIGI INTERNATIONAL INC. 1 1 Strong Balance Sheet and Cash Flow * A-EBITDA to free cash flow conversion rate historically ~90% Balance Sheet ($ millions) FQ4 2025 Cash and Equivalents $22 Total Debt $159 Net Debt $137 TTM A-EBITDA $108 Net Debt / A-EBITDA 1.3x Quarterly Cash Flow ($ millions) FQ4 2024 FQ4 2025 YoY Operating Cash Flow $26 $28 8% Capital Expenditures $0.9 $0.5 9% Free Cash Flow* $25.1 $27.5 10%
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| PUBLIC | © DIGI INTERNATIONAL INC. 1 2 M&A is the Top Capital Allocation Priority • Digi has acquired 10 companies in the past 10 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 • A shift to fewer, larger acquisitions • “When a deal closes, we celebrate, but that’s when the real work begins... on integration” - Digi CEO Ron Konezny
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| PUBLIC | © DIGI INTERNATIONAL INC. 1 3 Digi Expects to Double ARR and A-EBITDA by FY28 $200 Million in A-EBITDA in 5-Years$200 Million in ARR in 5-Years $0 $50 $100 $150 $200 $250 FY 2018 FY 2023 FY 2028 14% CAGR FY 2025 $0 $50 $100 $150 $200 $250 FY 2018 FY 2023 FY 2028 37% CAGR 16% CAGR FY 2025 44% CAGR • ARR on pace to meet our goal • Operating leverage and ARR growth expected to accelerate A-EBITDA growth