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Revenue | 6 Months Ended
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Mar. 31, 2025
Revenue from Contract with Customer [Abstract] |
REVENUE | REVENUE Revenue Disaggregation The following table summarizes our revenue by geographic location of our customers (in thousands):
| Three months ended March 31, |  | Six months ended March 31,
| 2025 |  | 2024 |  | 2025 |  | 2024
North America, primarily the United States | $ | 83,542 |  |  | $ | 72,398 |  |  | $ | 162,554 |  |  | $ | 152,093 |
Europe, Middle East & Africa | 14,989 |  |  | 19,485 |  |  | 32,999 |  |  | 33,875 |
Rest of world | 5,972 |  |  | 15,819 |  |  | 12,816 |  |  | 27,823 |
Total revenue | $ | 104,503 |  |  | $ | 107,702 |  |  | $ | 208,369 |  |  | $ | 213,791 |
The following table summarizes our revenue by the timing of revenue recognition (in thousands):
| Three months ended March 31, |  | Six months ended March 31,
| 2025 |  | 2024 |  | 2025 |  | 2024
Transferred at a point in time | $ | 73,802 |  |  | $ | 80,574 |  |  | $ | 148,405 |  |  | $ | 159,968 |
Transferred over time | 30,701 |  |  | 27,128 |  |  | 59,964 |  |  | 53,823 |
Total revenue | $ | 104,503 |  |  | $ | 107,702 |  |  | $ | 208,369 |  |  | $ | 213,791 |
Contract Balances Contract Related Assets Our contract related assets consist of subscriber assets. Subscriber assets are equipment that we provide to customers pursuant to subscription-based contracts. In these cases, we retain the ownership of the equipment a customer uses and charge the customer subscription fees to receive our end-to-end solutions. The total net book value of subscriber assets of $24.7 million and $23.6 million as of March 31, 2025 and September 30, 2024, respectively, are included in property, equipment and improvements, net. Depreciation expense for these subscriber assets, which is included in cost of sales, was $2.1 million and $1.2 million for the three months ended March 31, 2025 and 2024, respectively. Depreciation expense for these subscriber assets, which is included in cost of sales, was $4.0 million and $2.2 million for the six months ended March 31, 2025 and 2024, respectively. Contract Assets Contract assets at Digi consist of products and services that have been fulfilled, but for which revenue has not yet been recognized. Our contract asset balances were immaterial as of March 31, 2025 and September 30, 2024. Contract Liabilities Contract liabilities consist of unearned revenue related to annual or multi-year contracts for subscription services and related implementation fees, as well as product sales that have been invoiced, but not yet fulfilled. The timing of revenue recognition may differ from the timing of invoicing to customers. Customers are invoiced for subscription services on a monthly, quarterly or annual basis. 7. REVENUE (CONTINUED) Our contract liabilities were $42.5 million and $38.0 million at March 31, 2025 and 2024, respectively. There were contract liability balances of $41.6 million and $35.0 million as of December 31, 2024 and 2023, respectively. Of these balances, Digi recognized $10.2 million and $8.3 million as revenue in the three months ended March 31, 2025 and 2024, respectively. There were contract liability balances of $36.8 million and $27.9 million as of September 30, 2024 and 2023, respectively. Digi recognized $16.4 million and $13.3 million as revenue in the six months ended March 31, 2025 and 2024, respectively. Remaining Performance Obligation As of March 31, 2025, we had approximately $160.8 million of remaining performance obligations on contracts with an original duration of one year or more. We expect to recognize revenue on approximately $76.2 million of remaining performance obligations over the next 12 months. We expect to recognize revenue from the remaining performance obligations over a range of two to five years.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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