DGII · Digi International Inc.

The thesis

Digi International's shift from selling hardware to selling recurring software and services remains the case for the shares, and the fiscal fourth-quarter report on 11 November 2026 settles whether annual recurring revenue (ARR) grew past the $191 million reported on 5 August 2026. The shares closed at $78.28 on 28 October 2026, up from $71.75 on 15 October 2026, with the report now 14 days away.

Digi announced on 19 October 2026 that it will release fiscal fourth-quarter and full-year 2026 results after the market close on 11 November 2026, with a video call at 5:00 p.m. Eastern. That replaces the earlier estimate and the unconfirmed 4 November 2026 date. Last year's report came on 12 November 2025.

The close is 8.2% below the 52-week high of $85.24 and above the $72.75 close of 5 August 2026, the day of the last results. The 14-day relative strength index (RSI) is 57.7, down from the oversold reading of 29.1 on 15 October 2026. The narrative is maturing: the story has been well known since the 5 August 2026 report, and the shares have recovered the post-report level ahead of the next test.

Bullish and bearish views on Digi International Inc.

The bull case on Digi International Inc. (DGII), in brief: Recurring revenue is the operating evidence. The bear case: The report is the next test.

Bull case

• Recurring revenue is the operating evidence. Digi reported fiscal third-quarter ARR of $191 million on 5 August 2026, up 52% year over year, with a 29.1% adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin.
• Guidance sat above analyst estimates. On 5 August 2026 Digi guided fiscal fourth-quarter revenue to $138 million–$142 million and adjusted earnings per share to $0.75–$0.78, against estimates of $135.7 million and $0.62 cited by Benzinga. Fiscal 2026 revenue guidance rose to $529 million–$533 million, against an estimate of $521.2 million.
• Third-quarter results beat. Revenue of $138.67 million exceeded the $132.39 million estimate, and adjusted EPS of $0.75 beat $0.67, per Benzinga on 5 August 2026.
• The acquisition adds recurring revenue in Europe. Digi said on 1 October 2026 that Disruptive Technologies had $15 million of 2025 revenue and $4 million of ARR. The company expects about $9 million of added adjusted EBITDA and free cash flow in fiscal 2028.
• Distribution is widening. Opengear signed a pan-European agreement with Ingram Micro on 29 September 2026, covering 20 European markets.
• Two analyst targets sit above the price. Stephens (Overweight) set $85 and B. Riley (Buy) $86, per Benzinga on 6 August 2026. Both exceed the 28 October 2026 close of $78.28.

Bear case

• The report is the next test. A fiscal fourth-quarter result below the $138 million revenue floor, or ARR at or under $191 million, would contradict the guidance given on 5 August 2026.
• Piper Sandler's target is already passed. Piper Sandler (Neutral) set $76 on 6 August 2026, below the 28 October 2026 close of $78.28.
• The deal is paid for with debt. Digi is financing the $130 million from its revolving credit facility. Net leverage was below 1.0x at fiscal third quarter against a 3.50x covenant set on 31 August 2026, before the deal.
• The acquired earnings arrive late. Digi's own estimate puts the added EBITDA in fiscal 2028, and the target's $4 million of ARR is small beside Digi's $191 million.
• Organic growth is unmeasured. The 52% ARR growth includes the Jolt and Particle acquisitions, and the organic split was not broken out on the 5 August 2026 call.

Price setup

Adjusted daily closes run $69.36 on 4 September 2026, $75.61 on 2 October 2026, $71.75 on 15 October 2026 and $78.28 on 28 October 2026. The three-month price change is 12.3%. The 4 September 2026 low came with an RSI of 22.0, and the 15 October 2026 close came with an RSI of 29.1.

The shares reclaimed the $72.75 close of 5 August 2026 and the $76 Piper Sandler target. The 52-week high of $85.24 is the next reference above, close to the Stephens and B. Riley targets.

Crowding evidence is limited. The earnings date is 14 days away and the shares have risen in the two weeks since the oversold reading. No SEC filings or insider transactions were reported in the recent window.

Catalysts, next 30 days

• 11 November 2026, after market close: Fiscal fourth-quarter and full-year 2026 results, with a video call at 5:00 p.m. Eastern. The report tests the $138 million–$142 million revenue guide, ARR against $191 million, and the fiscal 2027 outlook.
• 31 December 2026 (later, outside the window): Expected closing deadline for the Disruptive Technologies acquisition, subject to regulatory approval. Closing starts the cash-funded debt increase.

What would change the view

The case breaks if fiscal fourth-quarter revenue lands under the $138 million guidance floor, or if ARR is below the $191 million reported on 5 August 2026. Net leverage disclosed well above the sub-1.0x level of fiscal third quarter, or a closing of the Disruptive deal slipping past 31 December 2026, would weaken it.

On price, a daily close below $69.36, the 4 September 2026 low before the recovery, would erase the whole September–October rebound and end the case.

What it trades with

Digi sells industrial and enterprise connectivity hardware with a growing software and services layer. Its shares trade on its own results and acquisition news more than on a single sector story. No current theme carries the name, so any peer comparison would rest on the 11 November 2026 results rather than a shared driver.