v3.26.1
Revenue
 9 Months Ended
Jun. 30, 2026
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 June 30,Nine months ended June 30,
2026202520262025
North America, primarily the United States$117,197 $89,725 $329,742 $252,279 
Europe, Middle East & Africa13,491 12,461 38,068 45,460 
Rest of world7,982 5,328 24,065 18,144 
Total revenue$138,670 $107,514 $391,875 $315,883 
The following table summarizes our revenue by the timing of revenue recognition (in thousands):
Three months ended June 30,Nine months ended June 30,
2026202520262025
Transferred at a point in time$91,303 $76,364 $261,315 $224,769 
Transferred over time47,367 31,150 130,560 91,114 
Total revenue$138,670 $107,514 $391,875 $315,883 
8. REVENUE (CONTINUED)
We had no customers that represented over 10% of consolidated revenue in the three months ended June 30, 2026. We had one customer, a distributor of Digi's IoT Products & Services segment, that represented 11% of consolidated revenue in the nine months ended June 30, 2026.
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 $21.5 million and $22.9 million as of June 30, 2026 and September 30, 2025, respectively, are included in property, equipment and improvements, net. Depreciation expense for these subscriber assets, which is included in cost of sales, was $2.5 million and $2.3 million for the three months ended June 30, 2026 and 2025, respectively. Depreciation expense for these subscriber assets was $7.3 million and $6.3 million for the nine months ended June 30, 2026 and 2025, respectively.
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.
Our contract liabilities were $73.0 million and $40.0 million at June 30, 2026 and 2025, respectively.
There were contract liability balances of $48.2 million and $36.8 million as of September 30, 2025 and 2024, respectively. Of these balances, Digi recognized $36.8 million and $22.5 million as revenue in the nine months ended June 30, 2026 and 2025, respectively.
Remaining Performance Obligation
As of June 30, 2026, we had approximately $240.1 million of remaining performance obligations on contracts with an original duration of one year or more. We expect to recognize revenue on approximately $121.3 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.