Digi International (DGII) 10-K22 Nov 242024 FY Annual reportFinancial data

Company Profile

Cover Page

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Sep. 30, 2024	Nov. 08, 2024	Mar. 31, 2024
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-34033
Entity Registrant Name	DIGI INTERNATIONAL INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-1532464
Entity Address, Address Line One	9350 Excelsior Blvd.
Entity Address, Address Line Two	Suite 700
Entity Address, City or Town	Hopkins
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55343
City Area Code	952
Local Phone Number	912-3444
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 1,130,000,000
Entity Common Stock, Shares Outstanding		36,582,896
Entity Central Index Key	0000854775
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Amendment Flag	false
Document Financial Statement Error Correction [Flag]	false
Auditor Location	Minneapolis, Minnesota
Auditor Name	Deloitte & Touche LLP
Auditor Firm ID	34
NASDAQ - ALL MARKETS [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	DGII
Security Exchange Name	NASDAQ

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Revenue:
Revenue	$ 424,046	$ 444,849	$ 388,225
Cost of sales:
Amortization	3,813	3,962	5,297
Total cost of sales	174,140	192,646	171,939
Gross profit	249,906	252,203	216,286
Operating expenses:
Sales and marketing	83,278	81,681	70,366
Research and development	60,289	58,648	55,098
General and administrative	58,250	61,779	58,802
Change in fair value of contingent consideration	0	0	(6,200)
Total operating expenses	201,817	202,108	178,066
Operating income	48,089	50,095	38,220
Other expense, net:
Interest expense, net	(15,415)	(25,236)	(19,690)
Other (expense) income, net	(94)	59	98
Total other expense, net	(25,231)	(25,177)	(19,592)
Income before income taxes	22,858	24,918	18,628
Income tax expense (benefit)	353	148	(755)
Net income	$ 22,505	$ 24,770	$ 19,383
Net income per common share:
Basic	$ 0.62	$ 0.69	$ 0.55
Diluted net income per common share:
Diluted	$ 0.61	$ 0.67	$ 0.54
Weighted average common shares:
Basic (shares)	36,316,000	35,820,000	35,031,000
Diluted (shares)	36,984,000	36,869,000	35,995,000
Deferred Debt Issuance Cost, Writeoff	$ (9,722)	$ 0	$ 0
Product
Revenue:
Revenue	304,540	331,162	290,170
Cost of sales:
Cost of sales	144,790	161,451	140,615
Service
Revenue:
Revenue	119,506	113,687	98,055
Cost of sales:
Cost of sales	$ 25,537	$ 27,233	$ 26,027

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 22,505	$ 24,770	$ 19,383
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	3,267	(957)	(3,308)
Other comprehensive income (loss), net of tax	3,267	(957)	(3,308)
Comprehensive income	$ 25,772	$ 23,813	$ 16,075

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 27,510	$ 31,693
Accounts receivable, net	69,640	55,997
Inventories	53,357	74,396
Prepaid expenses and other current assets	3,940	4,112
Total current assets	154,447	166,198
Property, equipment and improvements, net	34,915	29,108
Identifiable intangible assets, net	252,909	277,084
Goodwill	342,774	341,593
Deferred tax assets	16,141	4,884
Operating lease right-of-use assets	10,207	12,876
Other non-current assets	3,682	3,788
Total assets	815,075	835,531
Current liabilities:
Current portion of long-term debt	0	15,523
Accounts payable	23,759	17,148
Taxes Payable	2,549	1,116
Accrued compensation	13,995	16,427
Unearned revenue	30,556	25,274
Current portion of operating lease liabilities	2,973	3,352
Other current liabilities	15,505	7,138
Total current liabilities	89,337	85,978
Income taxes payable	2,749	2,308
Deferred tax liabilities	1,308	1,812
Long-term Debt	123,185	188,051
Operating lease liabilities	11,228	13,989
Other non-current liabilities	6,233	2,905
Total liabilities	234,040	295,043
Commitments and Contingencies (see Note 13)
Stockholders’ equity:
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $.01 par value; 60,000,000 shares authorized; 42,996,725 and 42,501,150 shares issued	430	425
Additional paid-in capital	420,413	403,735
Retained earnings	247,350	224,845
Accumulated other comprehensive loss	(23,744)	(27,011)
Treasury stock, at cost, 6,449,364 and 6,436,204 shares	(63,414)	(61,506)
Total stockholders’ equity	581,035	540,488
Total liabilities and stockholders’ equity	$ 815,075	$ 835,531

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2024	Sep. 30, 2023
Statement of Financial Position [Abstract]
Preferred stock, par or stated value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par or stated value per share	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares, issued	42,996,725	42,501,150
Treasury stock, shares	6,449,364	6,436,204

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Operating activities:
Net income	$ 22,505	$ 24,770	$ 19,383
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, equipment and improvements	8,511	6,753	6,644
Amortization	25,106	27,203	30,928
Deferred Debt Issuance Cost, Writeoff	9,722	0	0
Stock-based compensation expense	13,159	13,286	8,578
Deferred income tax provision	(11,761)	(12,739)	(3,387)
Share-based Payment Arrangement, Noncash Expense	13,159	13,286	8,578
Change in fair value of contingent consideration	0	0	(6,200)
Litigation Settlement, Expense	5,700	0	0
Other, net	(1,540)	(806)	(188)
Changes in operating assets and liabilities (net of acquisitions):
Accounts receivable	(13,641)	(5,558)	(114)
Inventories	8,786	(5,062)	(34,468)
Other assets	(107)	(1,214)	(545)
Income taxes	2,281	4,088	(1,305)
Accounts payable	6,448	(15,503)	7,281
Accrued expenses	7,923	1,533	11,133
Net cash provided by operating activities	83,092	36,751	37,740
Investing activities:
Acquisition of businesses, net of cash acquired	0	0	(347,554)
Purchase of property, equipment, improvements and certain other intangible assets	(2,226)	(4,345)	(1,974)
Expended for property, plant and equipment	2,226	4,345	1,974
Proceeds from Sale of Intangible Assets	2,229	0	0
Net cash provided by (used in) investing activities	3	(4,345)	(349,528)
Financing activities:
Proceeds from long-term debt	214,062	0	350,000
Payments of debt issuance costs	0	0	13,443
Payments on long-term debt	(304,725)	(36,375)	(148,118)
Proceeds from stock option plan transactions	2,978	3,926	9,505
Proceeds from employee stock purchase plan transactions	2,206	2,263	1,500
Taxes paid for net share settlement of share-based payment awards	(3,569)	(4,314)	(6,662)
Net cash (used in) provided by financing activities	(89,048)	(34,500)	192,782
Effect of exchange rate changes on cash and cash equivalents	1,770	(1,113)	1,474
Net decrease in cash and cash equivalents	(4,183)	(3,207)	(117,532)
Cash and cash equivalents, beginning of period	31,693	34,900	152,432
Cash and cash equivalents, end of period	27,510	31,693	34,900
Supplemental disclosures of cash flow information:
Interest paid	14,763	26,351	14,209
Income taxes paid, net	7,306	8,693	4,333
Supplemental schedule of non-cash investing and financing activities:
Accrual for property, equipment, improvements and certain other intangibles assets	(164)	(277)	(191)
Transfer of inventory to property, equipment and improvements	$ (12,252)	$ (3,889)	$ (6,237)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock, Common	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance at Sep. 30, 2021	$ 472,517	$ 407	$ (56,535)	$ 370,699	$ 180,692	$ (22,746)
Beginning balance (in shares) at Sep. 30, 2021		40,653	6,391
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,383				19,383
Other comprehensive income (loss)	(3,308)					(3,308)
Employee stock purchase issuances (in shares)			(80)
Employee stock purchase issuances	1,500		$ 726	774
Taxes paid for net share settlement of share-based payment awards (in shares)			102
Taxes paid for net share settlement of share-based payment awards	(6,662)		$ (2,363)	(4,299)
Issuance of stock under stock award plans (in shares)		1,297
Issuance of stock under stock award plans	9,505	$ 13		9,492
Stock-based compensation expense	8,578			8,578
Ending balance (in shares) at Sep. 30, 2022		41,950	6,413
Ending balance at Sep. 30, 2022	501,513	$ 420	$ (58,172)	385,244	200,075	(26,054)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	24,770				24,770
Other comprehensive income (loss)	(957)					(957)
Employee stock purchase issuances (in shares)			(83)
Employee stock purchase issuances	2,263		$ 787	1,476
Taxes paid for net share settlement of share-based payment awards (in shares)			106
Taxes paid for net share settlement of share-based payment awards	(4,314)		$ (4,121)	(193)
Issuance of stock under stock award plans (in shares)		551
Issuance of stock under stock award plans	3,927	$ 5		3,922
Stock-based compensation expense	13,286			13,286
Ending balance (in shares) at Sep. 30, 2023		42,501	6,436
Ending balance at Sep. 30, 2023	540,488	$ 425	$ (61,506)	403,735	224,845	(27,011)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,505				22,505
Other comprehensive income (loss)	3,267					3,267
Employee stock purchase issuances (in shares)			(102)
Employee stock purchase issuances	2,207		$ 998	1,209
Taxes paid for net share settlement of share-based payment awards (in shares)			115
Taxes paid for net share settlement of share-based payment awards	(3,569)		$ (2,906)	(663)
Issuance of stock under stock award plans (in shares)		496
Issuance of stock under stock award plans	2,978	$ 5		2,973
Stock-based compensation expense	13,159			13,159
Ending balance (in shares) at Sep. 30, 2024		42,997	6,449
Ending balance at Sep. 30, 2024	$ 581,035	$ 430	$ (63,414)	$ 420,413	$ 247,350	$ (23,744)

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Description We are a leading global provider of business and mission-critical IoT connectivity products, services and solutions. We help our customers create next-generation connected products to deploy, monitor and manage critical communications infrastructures and compliance standards in demanding environments with high levels of security and reliability. We have two reportable segments: (i) IoT Products & Services; and (ii) IoT Solutions. Principles of Consolidation The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year presentation. Accounting Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates. Cash and Cash Equivalents Cash equivalents consist of money market accounts and other highly liquid investments purchased with an original maturity of three months or less. The carrying amounts approximate fair value due to the short maturities of these investments. We maintain our cash and cash equivalents in bank accounts which may exceed federally insured limits at times. We have not experienced any losses in these accounts. Accounts Receivable Accounts receivable are stated at the amount we expect to collect. This amount is net of an allowance for credit losses for estimated losses resulting from the inability of our customers to make required payments and a reserve for future credit returns and pricing adjustments. The following factors are considered when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, and changes in customer payment terms or practices. In addition, overall historical collection experience, current economic industry trends, and a review of the current status of trade accounts receivable are considered when determining the required allowance for credit losses. Based on our assessment, we provide for estimated uncollectible amounts through a charge to earnings and a credit to our allowance for credit losses. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the allowance for credit losses and a credit to accounts receivable. Estimated reserves for future credit returns and pricing adjustments are established based on an analysis of historical patterns of credit returns and price adjustments compared to received credit returns and distribution sales for the current period. Estimated reserves for future credit returns and price adjustments are charged against revenue in the same period as the corresponding sales are recorded. The following table presents a reconciliation of the allowance for credit losses (in thousands): Year ended September 30, 2024 2023 Balance at beginning of period $ 1,693 $ 3,285 Additions 2,090 1,134 Uncollectible accounts charged to allowance, net of recoveries (2,221) (2,726) Balance at end of period $ 1,562 $ 1,693 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Inventories Inventories are valued at the lower of cost or net realizable value using the first-in, first-out ("FIFO") method. Appropriate consideration is given to deterioration, obsolescence and other factors in evaluating net realizable value. Property, Equipment and Improvements, Net Property, equipment and improvements are carried at cost, net of accumulated depreciation. Depreciation is provided by charges to operations using the straight-line method over the estimated asset useful lives. Furniture and fixtures, purchased software and other equipment are depreciated over a period of three years to ten years. Building improvements and buildings are depreciated over ten years and 39 years, respectively. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the asset. Long-lived assets to be held and used, such as property, equipment and improvements, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Expenditures for maintenance and repairs are charged to operations as incurred, while major renewals and betterments are capitalized. The assets and related accumulated depreciation accounts are adjusted for asset retirements and disposals with the resulting gain or loss included in operations. Identifiable Intangible Assets Purchased proven technology, license agreements, covenants not to compete and other identifiable intangible assets are recorded at fair value when acquired in a business acquisition, or at cost when not purchased in a business acquisition. All other identifiable intangible assets are amortized on a straight-line basis over their estimated useful lives of three years to 20.5 years. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. Amortization of purchased and core technology is included in cost of sales in the Consolidated Statements of Operations. Amortization of all other acquired identifiable intangible assets is charged to operating expenses as a component of general and administrative expense. Identifiable intangible assets are reviewed for impairment whenever events or circumstances indicate that undiscounted expected future cash flows are not sufficient to recover the carrying value amount. Impairment losses, if any, are recorded in the period the impairment is identified. There were no impairments identified in fiscal 2024, 2023 or 2022. Goodwill Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is quantitatively tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. We have two reportable and operating segments: our IoT Products & Services segment and our IoT Solutions segment (see Note 4 to the consolidated financial statements). Our IoT Products & Services business is structured to include four reporting units under the IoT Products & Services segment: Cellular Routers, Console Servers, OEM Solutions and Infrastructure Management. Following our acquisition of Ventus in the first fiscal quarter of 2022, IoT Solutions is comprised of two reporting units: Ventus and SmartSense by Digi. We have six reporting units that have been tested individually for impairment. Our goodwill impairment tests as of June 30, 2024, June 30,2023 and June 30, 2022 indicated no impairment (see Note 3 ). During the fourth quarter of fiscal 2024, we assessed various qualitative factors to determine whether or not an additional goodwill impairment assessment was required as of September 30, 2024, and we concluded that no additional impairment assessment was required. Contingent Consideration We measure our contingent consideration liabilities recognized in connection with business combinations at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy as defined in ASC 820 "Fair Value Measurement." We used a probability-weighted discounted cash flow approach as a valuation technique to 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) determine the fair value of the contingent consideration on the acquisition date. At each subsequent reporting period, the fair value is re-measured with the change in fair value recognized in general and administrative expense in our Consolidated Statements of Operations. Amounts, if any, paid to the seller in excess of the amount recorded on the acquisition date will be classified as cash flows used in operating activities. Payments to the seller not exceeding the acquisition-date fair value of the contingent consideration will be classified as cash flows used in financing activities. Warranties In general, we warrant our hardware products to be free from defects in material and workmanship under normal use and service. The warranty periods generally range from one year to five years. We typically have the option to either repair or replace hardware products we deem defective with regard to material or workmanship. Estimated warranty costs are accrued in the period that the related revenue is recognized based upon an estimated average per unit repair or replacement cost applied to the estimated number of units under warranty. These estimates are based upon historical warranty incidents and are evaluated on an ongoing basis to ensure the adequacy of the warranty accrual. We also warrant our software or firmware incorporated into our products generally for a period of one year and offer to provide a bug fix or software patch within a reasonable period. We have not accrued specifically for this warranty and have not had claims specifically related to software or firmware. We are not responsible for, and do not warrant that, custom software versions, created by OEM customers based upon our software source code, will function in a particular way, will conform to any specifications or are fit for any particular purpose. Further, we do not indemnify these customers from any third-party liability as it relates to or arises from any customization or modifications made by the OEM customer. Treasury Stock We record treasury stock at cost. Treasury stock may be acquired from employees for tax withholding purposes related to vesting of restricted stock unit awards as part of our stock-based compensation program and issued pursuant to the Employee Stock Purchase Plan. Revenue Recognition We recognize hardware product revenue upon transfer of control of goods or services to customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We determine the amount of revenue to be recognized through application of the following steps: • identification of the contract, or contracts with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when or as we satisfy the performance obligations. Hardware Product Revenue and SmartSense by Digi Equipment Revenue and Associated Installation Fees Our hardware product revenue is derived primarily from the sale of wired and wireless hardware products to our distributors and OEM customers. Product revenue generally is recognized upon shipment of the product to a customer. Sales to authorized domestic distributors and OEM customers typically are made with certain rights of return and price adjustment provisions. Estimated reserves for future credit returns and pricing adjustments are established based on an analysis of historical patterns of credit returns and price adjustments compared to received credit returns and distribution sales for the current period. Estimated reserves for future credit returns and price adjustments are charged against revenue in the same period as the corresponding sales are recorded. Material differences between the historical trends used to determine estimated reserves and actual credit returns and pricing adjustments could result in a material change to our consolidated results of operations or financial position. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Equipment revenue from SmartSense by Digi and Ventus within our IoT Solutions segment is recognized upon shipment of the equipment to a customer. Installation service charges from these sales are recorded when the product is installed. Subscription and Support Services Revenue Our SmartSense by Digi and Ventus subscription revenue is recorded on a monthly basis. These subscriptions are generally in a range from one year to five years, and may contain an evergreen renewal provision. Generally, our subscription renewal charges per month are the same as the original contract term. We derive service revenue from our platform-as-a-service (“PaaS”) offerings, whereby customers pay for services consumed based on the number of devices managed or monitored per month. Depending on the billing method set forth in the contract, we invoice our customers monthly, quarterly or annually either in advance or in arrears. Revenue is recognized over the life of the service term as the customer simultaneously receives and consumes the services. Because these arrangements involve repetitive services that are substantially the same from one month to the next, we apply the guidance under ASC 606-10-25-15. We utilize a time-based output method to recognize revenue over time as this properly depicts our transfer of control to the customer. These revenues are included in our IoT Products & Services segment. Digi Support Services revenues are recognized over the life of the support contract and included in our IoT Products & Services segment. Some of Digi Support Services revenue is for training and this revenue is recognized as the services are performed. Professional Services Revenue Professional services revenue is derived from our Digi Wireless Design Services contracts on either on a time-and-materials or a fixed-fee basis. These revenues, which are included in our IoT Products & Services segment are recognized as the services are performed for time-and-materials contracts or as invoiced for fixed-fee contracts. Contracts with Multiple Performance Obligations Some of our contracts with customers in IoT Products and Services and, to a much lesser extent, in IoT Solutions include multiple performance obligations. In these contracts, each performance obligation is recognized at the amount of the allocated transaction price, which is determined based on each performance obligations standalone selling price ("SSP") for the distinct obligation. The best evidence of SSP is the observable price of a product or service when we sell the goods separately in similar circumstances and to similar customers. In instances where SSP is not directly observable, we estimate SSP using information that may include market conditions. In some of our IoT Solution contracts we are providing subscription services, while retaining ownership of the equipment, we have determined there is a single performance obligation encompassing the various activities that are inputs into the service. As such, all revenue derived from the service is recognized over the subscription term of the contract ratably as a series. We have made an accounting policy election to exclude from the measurement of our revenues any sales or similar taxes we collect from customers. Research and Development Research and development costs are expensed when incurred. Research and development costs include compensation, allocation of corporate costs, depreciation, utilities, professional services and prototypes. Software and firmware development costs are expensed as incurred until the point that both the technological feasibility and the proven marketability of the product are established. To date, the time period between the establishment of technological feasibility and completion of software development has been short and no significant development costs have been incurred during that period. Accordingly, we have not capitalized any software development costs to date. Income Taxes Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is equal to the tax payable for the period and the change during the period in deferred tax assets and liabilities as well as changes in income tax reserves. We maintain valuation allowances unless it is more likely than not that all or a portion of the deferred tax assets will be realized. Changes in valuation allowances from period to period are included in our tax provision in the period of change. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Stock-Based Compensation Stock-based compensation expense represents the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. This cost must be recognized over the period during which an employee is required to provide the service (usually the vesting period). Foreign Currency Translation Financial position and results of operations of our international subsidiaries are measured using local currencies as the functional currency. Assets and liabilities of these operations are translated at the exchange rates in effect at the end of each reporting period. For our international subsidiaries, our statements of operations accounts are translated at the weighted average rates of exchange prevailing during each reporting period. Translation adjustments arising from the use of differing currency exchange rates from period to period are included in accumulated other comprehensive loss in stockholders’ equity. Gains and losses on foreign currency exchange transactions, as well as translation gains or losses on transactions denominated in currencies other than an entity’s functional currency, are reflected in the statement of operations. During fiscal 2024, 2023 and 2022 there were net transaction (losses) gains of $(0.1) million, $0.0 million and $0.1 million, respectively that were recorded in other income, net. We manage our net asset or net liability position for U.S. dollar accounts in our foreign locations to reduce our foreign currency risk. We have not implemented a formal hedging strategy. Comprehensive Income Our comprehensive income is comprised of net income, foreign currency translation adjustments and unrealized gains and losses on available-for-sale marketable securities. These items are charged or credited to the accumulated other comprehensive loss account in stockholders’ equity. Net Income Per Common Share Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares of our stock result from common stock options and restricted stock units. We use the treasury stock method to calculate the weighted-average shares used in the diluted earnings per share computation. Under this method the proceeds from exercise of an option, any amount of compensation cost for future service that we have not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital when the option is exercised are assumed to have been used to repurchase shares in the current period. The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data): Year ended September 30, 2024 2023 2022 Numerator: Net income $ 22,505 $ 24,770 $ 19,383 Denominator: Denominator basic net income per common share — weighted average shares outstanding 36,316 35,820 35,031 Effect of dilutive securities: Stock options and restricted stock units 668 1,049 964 Denominator diluted net income per common share — adjusted weighted average shares 36,984 36,869 35,995 Net income per common share, basic $ 0.62 $ 0.69 $ 0.55 Net income per common share, diluted $ 0.61 $ 0.67 $ 0.54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Because their effect would be anti-dilutive at period end, certain potentially dilutive shares related to stock options to purchase common shares were excluded in the above computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of our common shares. For the years ended September 30, 2024, 2023 and 2022, such excluded stock options were 678,697, 395,190 and 647,181, respectively.

Acquisitions

Acquisitions	12 Months Ended
Acquisitions	Sep. 30, 2024
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS Fiscal 2022 Acquisition Acquisition of Ventus On November 1, 2021, we acquired Ventus for approximately $350 million in cash. The acquisition was funded through a combination of cash on hand and debt financing under a $350 million credit facility committed by BMO Harris Bank N.A. For tax purposes, this acquisition was treated as an asset acquisition. We believe this is a complementary acquisition for us as it significantly enhances our IoT Solutions segment by enhancing Digi's service portfolio and immediately extends the company's market reach with a Managed Network-as-a-Service ("MNaaS") solutions offering. Costs directly related to the acquisition of $4.4 million incurred in fiscal 2022 were charged to operations and are included in general and administrative expense in our consolidated statements of operations. These acquisition costs include legal, accounting, valuation and investment banking fees. The following table summarizes the fair values of Ventus assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 350,000 Fair value of net tangible assets acquired $ 20,365 Identifiable intangible assets: Customer relationships 179,000 Purchased and core technology 16,000 Trademarks 16,000 Goodwill 118,635 Total $ 350,000 The consolidated balance sheet as of September 30, 2022 reflected the final allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair value of customer relationships was calculated using the excess earnings method, while purchased and core technology and patents were valued using the relief from royalty method. These methodologies utilize future estimates including revenues attributable to customer relationships, tax rates, discount rates, royalty rates and obsolescence rates. The final purchase price allocation includes an adjustment made in the fourth fiscal quarter of 2022 to reflect an update from our preliminary purchase price allocation to the valuation of the net tangible assets acquired and goodwill resulting from the acquisition. Included in the fair value of net tangible assets acquired was $0.9 million of right-of-use asset included in other non-current assets and $0.9 million of lease liability included in other current liabilities and other non-current liabilities associated with Ventus’ operating leases. The weighted average useful life for all the identifiable intangibles listed above is estimated to be 19.2 years. For purposes of determining fair value, the existing customer relationships identified above are assumed to have a useful life of 20.5 years, purchased and core technology is assumed to have useful life of 11 years and trademarks are assumed a useful life of 13 years. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. The identifiable intangible assets are amortized using the straight-line method which reflects the pattern in which the assets are expected to be consumed. The fiscal 2022 consolidated results include $54.3 million in revenue contributed by the acquired Ventus business. It is impracticable to quantify the amount of Ventus contribution to our consolidated net income due to the business structure management uses for reporting and allocating expenses to segments. 2. ACQUISITIONS (CONTINUED) The following consolidated pro forma information is presented as if the acquisition had occurred on October 1, 2020 (in thousands): Year ended September 30, 2022 2021 Net sales $ 393,290 $ 360,820 Net income (loss) $ 14,274 $ (2,701) Pro forma net income has been adjusted to include interest expense related to debt incurred as a result of the acquisition, amortization on the fair value of the intangibles acquired and remove any costs incurred with the sale transaction. Net income for the year ended September 30, 2021 was adjusted to include acquisition-related costs of $3.1 million.

Goodwill and other Identifiable

Goodwill and other Identifiable Intangible Assets	12 Months Ended
Goodwill and other Identifiable Intangible Assets	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill Disclosure	3. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET Identifiable Intangible Assets, Net Amortizable identifiable intangible assets, net as of September 30, 2024 and 2023 were comprised of the following (in thousands): September 30, 2024 September 30, 2023 Gross Accum. Net Gross Accum. Net Purchased and core technology $ 85,041 $ (63,654) $ 21,387 $ 85,032 $ (59,833) $ 25,199 License agreements 112 (112) — 112 (112) — Patents and trademarks 40,335 (22,047) 18,288 39,957 (19,888) 20,069 Customer relationships 309,223 (95,989) 213,234 309,196 (77,380) 231,816 Non-compete agreements 600 (600) — 600 (600) — Order backlog 1,000 (1,000) — 1,000 (1,000) — Total $ 436,311 $ (183,402) $ 252,909 $ 435,897 $ (158,813) $ 277,084 Amortization expense is included in our consolidated statements of operations in cost of sales and general and administrative expense. Amortization expense in cost of sales includes amortization for purchased and core technology and certain patents and trademarks. Amortization expense for fiscal years 2024, 2023 and 2022 was as follows (in thousands): Fiscal year Total 2024 $ 24,553 2023 $ 25,226 2022 $ 27,195 Estimated amortization expense for the next five fiscal years is as follows (in thousands): Fiscal year Total 2025 $ 21,811 2026 $ 21,579 2027 $ 21,579 2028 $ 20,410 2029 $ 18,355 3. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED) The changes in the carrying amount of goodwill by reportable segments are (in thousands): IoT IoT Total Balance on September 30, 2022 $ 172,931 $ 167,546 $ 340,477 Foreign currency translation adjustment 1,026 90 1,116 Balance on September 30, 2023 $ 173,957 $ 167,636 $ 341,593 Foreign currency translation adjustment 1,136 45 1,181 Balance on September 30, 2024 $ 175,093 $ 167,681 $ 342,774 No goodwill impairment has been recorded in any period presented. Goodwill represents the excess of cost over the fair value of net identifiable assets acquired. Goodwill is quantitatively tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. We continue to have two reportable and operating segments, our IoT Products & Services segment and our IoT Solutions segment (see Note 4 ). Our IoT Products & Services business is structured to include four reporting units under the IoT Products & Services segment: Cellular Routers, Console Servers, OEM Solutions and Infrastructure Management. Following our acquisition of Ventus, IoT Solutions is comprised of two reporting units. All six reporting units were included in our fiscal 2022, 2023 and 2024 annual impairment tests. For our quantitative goodwill impairment tests, we determine the estimated fair value of each reporting unit and compare it to the carrying value of the reporting unit, including goodwill. If the carrying amount of a reporting unit is higher than its estimated fair value, then an impairment loss must be recognized for the excess. Fair values for the six reporting units were each estimated on a standalone basis using a weighted combination of the income approach and market approach. The income approach indicates the fair value of a business based on the value of the cash flows the business or asset can be expected to generate in the future. A commonly used variation of the income approach used to value a business is the discounted cash flow (“DCF”) method. The DCF method is a valuation technique in which the value of a business is estimated on the earnings capacity, or available cash flow, of that business. Earnings capacity represents the earnings available for distribution to stockholders after consideration of the reinvestment required for future growth. Significant judgment is required to estimate the amount and timing of future cash flows for each reporting unit and the relative risk of achieving those cash flows. Key assumptions used in the analysis were related to the determination of discount rates and forecasts of future gross margins and earnings before income taxes, depreciation and amortization margins. The market approach indicates the fair value of a business or asset based on a comparison of the business or asset to comparable publicly traded companies or assets and transactions in its industry as well as our prior acquisitions. This approach can be estimated through the guideline company method. This method indicates fair value of a business by comparing it to publicly traded companies in similar lines of business. After identifying and selecting the guideline companies, we make judgments about the comparability of the companies based on size, growth rates, profitability, risk, and return on investment in order to estimate market multiples. These multiples are then applied to the reporting units to estimate a fair value. Assumptions and estimates to determine fair values under the income and market approaches are complex and often subjective. They can be affected by a variety of factors. These include external factors such as industry and economic trends. They also include internal factors such as changes in our business strategy and our internal forecasts. Changes in circumstances or a potential event could negatively affect the estimated fair values. We will continue to monitor potential impacts to our assumptions, as any changes could potentially affect our cash flows and market capitalization. If our future operating results do not meet current forecasts or if we experience a sustained decline in our market capitalization that is determined to be indicative of a reduction in fair value of one or more of our reporting units, we may be required to record future impairment charges for goodwill. 3. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED) Results of our Fiscal 2024 Annual Impairment Test
Goodwill and Intangible Assets Disclosure [Text Block]	GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET Identifiable Intangible Assets, Net Amortizable identifiable intangible assets, net as of September 30, 2024 and 2023 were comprised of the following (in thousands): September 30, 2024 September 30, 2023 Gross Accum. Net Gross Accum. Net Purchased and core technology $ 85,041 $ (63,654) $ 21,387 $ 85,032 $ (59,833) $ 25,199 License agreements 112 (112) — 112 (112) — Patents and trademarks 40,335 (22,047) 18,288 39,957 (19,888) 20,069 Customer relationships 309,223 (95,989) 213,234 309,196 (77,380) 231,816 Non-compete agreements 600 (600) — 600 (600) — Order backlog 1,000 (1,000) — 1,000 (1,000) — Total $ 436,311 $ (183,402) $ 252,909 $ 435,897 $ (158,813) $ 277,084 Amortization expense is included in our consolidated statements of operations in cost of sales and general and administrative expense. Amortization expense in cost of sales includes amortization for purchased and core technology and certain patents and trademarks. Amortization expense for fiscal years 2024, 2023 and 2022 was as follows (in thousands): Fiscal year Total 2024 $ 24,553 2023 $ 25,226 2022 $ 27,195 Estimated amortization expense for the next five fiscal years is as follows (in thousands): Fiscal year Total 2025 $ 21,811 2026 $ 21,579 2027 $ 21,579 2028 $ 20,410 2029 $ 18,355 3. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED) The changes in the carrying amount of goodwill by reportable segments are (in thousands): IoT IoT Total Balance on September 30, 2022 $ 172,931 $ 167,546 $ 340,477 Foreign currency translation adjustment 1,026 90 1,116 Balance on September 30, 2023 $ 173,957 $ 167,636 $ 341,593 Foreign currency translation adjustment 1,136 45 1,181 Balance on September 30, 2024 $ 175,093 $ 167,681 $ 342,774 No goodwill impairment has been recorded in any period presented. Goodwill represents the excess of cost over the fair value of net identifiable assets acquired. Goodwill is quantitatively tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. We continue to have two reportable and operating segments, our IoT Products & Services segment and our IoT Solutions segment (see Note 4 ). Our IoT Products & Services business is structured to include four reporting units under the IoT Products & Services segment: Cellular Routers, Console Servers, OEM Solutions and Infrastructure Management. Following our acquisition of Ventus, IoT Solutions is comprised of two reporting units. All six reporting units were included in our fiscal 2022, 2023 and 2024 annual impairment tests. For our quantitative goodwill impairment tests, we determine the estimated fair value of each reporting unit and compare it to the carrying value of the reporting unit, including goodwill. If the carrying amount of a reporting unit is higher than its estimated fair value, then an impairment loss must be recognized for the excess. Fair values for the six reporting units were each estimated on a standalone basis using a weighted combination of the income approach and market approach. The income approach indicates the fair value of a business based on the value of the cash flows the business or asset can be expected to generate in the future. A commonly used variation of the income approach used to value a business is the discounted cash flow (“DCF”) method. The DCF method is a valuation technique in which the value of a business is estimated on the earnings capacity, or available cash flow, of that business. Earnings capacity represents the earnings available for distribution to stockholders after consideration of the reinvestment required for future growth. Significant judgment is required to estimate the amount and timing of future cash flows for each reporting unit and the relative risk of achieving those cash flows. Key assumptions used in the analysis were related to the determination of discount rates and forecasts of future gross margins and earnings before income taxes, depreciation and amortization margins. The market approach indicates the fair value of a business or asset based on a comparison of the business or asset to comparable publicly traded companies or assets and transactions in its industry as well as our prior acquisitions. This approach can be estimated through the guideline company method. This method indicates fair value of a business by comparing it to publicly traded companies in similar lines of business. After identifying and selecting the guideline companies, we make judgments about the comparability of the companies based on size, growth rates, profitability, risk, and return on investment in order to estimate market multiples. These multiples are then applied to the reporting units to estimate a fair value. Assumptions and estimates to determine fair values under the income and market approaches are complex and often subjective. They can be affected by a variety of factors. These include external factors such as industry and economic trends. They also include internal factors such as changes in our business strategy and our internal forecasts. Changes in circumstances or a potential event could negatively affect the estimated fair values. We will continue to monitor potential impacts to our assumptions, as any changes could potentially affect our cash flows and market capitalization. If our future operating results do not meet current forecasts or if we experience a sustained decline in our market capitalization that is determined to be indicative of a reduction in fair value of one or more of our reporting units, we may be required to record future impairment charges for goodwill. 3. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS, NET (CONTINUED) Results of our Fiscal 2024 Annual Impairment Test

Segment Information and Major C

Segment Information and Major Customers	12 Months Ended
Segment Information and Major Customers	Sep. 30, 2024
Segment Reporting [Abstract]
SEGMENT INFORMATION AND MAJOR CUSTOMERS	SEGMENT INFORMATION AND MAJOR CUSTOMERS We have two reportable segments that also serve as our operating segments: (i) IoT Products & Services and (ii) IoT Solutions. This determination was made by considering both qualitative and quantitative information. The qualitative information included, but was not limited to, the following: each segment is led by a single segment manager that reports to the Chief Operating Decision Maker (CODM), the nature of the products and services and customers differ between the two segments, discrete financial information is available through gross profit for both segments and the CODM is reviewing both segments’ financial information separately to make decisions about the allocation of resources. IoT Products & Services derives revenue from the sale of products and services that help original equipment manufacturers ("OEMs"), enterprise and government customers create and deploy, secure IoT connectivity solutions. IoT Solutions derives revenue from the sale of software-based services that are enabled through the use of connected devices that utilize cellular communications. Our CEO is our CODM and the metric he uses to measure profitability within each of our reportable segments is segment gross profit. Summary operating results for each of our segments were as follows (in thousands): Year ended September 30, 2024 2023 2022 Revenue IoT Products & Services $ 324,444 $ 345,680 $ 297,645 IoT Solutions 99,602 99,169 90,580 Total revenue $ 424,046 $ 444,849 $ 388,225 Gross Profit IoT Products & Services $ 177,201 $ 187,958 $ 160,117 IoT Solutions 72,705 64,245 56,169 Total gross profit $ 249,906 $ 252,203 $ 216,286 Depreciation and Amortization IoT Products & Services $ 12,446 $ 12,544 $ 13,974 IoT Solutions 20,615 19,432 19,865 Total depreciation and amortization $ 33,061 $ 31,976 $ 33,839 Total expended for property, plant and equipment was as follows (in thousands): Year ended September 30, 2024 2023 2022 IoT Products & Services $ 1,005 $ 588 $ 1,952 IoT Solutions* 845 3,510 22 Total expended for property, plant and equipment $ 1,850 $ 4,098 $ 1,974 * Excluded from this amount is $12.3 million, $3.9 million and $6.2 million of transfers of inventory to property plant and equipment for subscriber assets for the year ended September 30, 2024, 2023 and 2022, respectively. 4. SEGMENT INFORMATION AND MAJOR CUSTOMERS (CONTINUED) Total assets for each of our segments were as follows (in thousands): As of September 30, 2024 2023 IoT Products & Services $ 376,998 $ 384,018 IoT Solutions 410,567 419,820 Unallocated* 27,510 31,693 Total assets $ 815,075 $ 835,531 *Unallocated consists of cash and cash equivalents. Net property, equipment and improvements by geographic location were as follows (in thousands): As of September 30, 2024 2023 United States $ 34,416 $ 28,631 International, primarily Europe 499 477 Total net property, equipment and improvements $ 34,915 $ 29,108 Our U.S. export sales represented 28.7%, 27.2% and 22.1% of revenue for the fiscal years ended September 30, 2024, 2023 and 2022, respectively. No single customer exceeded 10% of revenue or accounts receivable for any of the periods presented.

Selected Balance Sheet Data

Selected Balance Sheet Data	12 Months Ended
Selected Balance Sheet Data	Sep. 30, 2024
Selected Balance Sheet Data [Abstract]
SELECTED BALANCE SHEET DATA	SELECTED BALANCE SHEET DATA The following table shows selected balance sheet data (in thousands): As of September 30, 2024 2023 Accounts receivable, net: Accounts receivable $ 78,672 $ 61,880 Less allowance for credit losses 1,562 1,693 Less reserve for future credit returns and pricing adjustments 7,470 4,190 Total accounts receivable, net $ 69,640 $ 55,997 Inventories: Raw materials $ 18,669 $ 29,974 Work in process 52 66 Finished goods 34,636 44,356 Total inventories $ 53,357 $ 74,396 Property, equipment and improvements, net: Land $ 570 $ 570 Buildings 2,338 2,338 Improvements 11,794 11,703 Equipment 18,422 17,909 Purchased software 5,186 5,143 Furniture and fixtures 2,436 2,459 Subscriber assets 40,787 28,532 Total property, equipment and improvements, gross 81,533 68,654 Less accumulated depreciation and amortization 46,618 39,546 Total property, equipment and improvements, net $ 34,915 $ 29,108

Debt

Debt	12 Months Ended
Debt	Sep. 30, 2024
Debt Disclosure [Abstract]
DEBT	INDEBTEDNESS On November 1, 2021, we entered into a second amended and restated credit agreement with BMO Harris Bank N.A. ("BMO"). This agreement provides us with a senior secured credit facility (the "2021 Credit Facility") consisting of a $350 million term loan B secured loan (the “Term Loan Facility”) and a $35 million revolving credit facility (the “Revolving Loan Facility”) with an uncommitted option to increase incremental loans under the 2021 Credit Facility, subject to an incremental cap. The Revolving Loan Facility includes a $10 million letter of credit subfacility and $10 million swingline subfacility. Digi may use proceeds of the Revolving Loan Facility in the future for general corporate purposes. This loan replaced our syndicated senior secured credit agreement with BMO that was entered into on March 15, 2021 and replaced the remaining balance of our revolver with this new term loan. This prior agreement provided us with committed credit facilities ("Prior Credit Facility") consisting of a $200 million revolving loan. The debt issuance costs and remaining balance under the Prior Credit Facility totaled $2.3 million at November 1, 2021. Of this amount $1.9 million was written off and included in interest expense upon the entry into the new amendment and $0.4 million is being amortized over the term of the amended loan and reported in interest expense. Digi incurred an additional $11.7 million and $1.7 million in debt issuance costs relating to the November 1, 2021 and December 22, 2021 amendments, respectively. These amounts are being amortized over the term of the amended loan and reported in interest expense. On December 22, 2021, Digi entered into a third amended and restated credit agreement with BMO. Digi refinanced the Term Loan Facility and Revolving Loan Facility under its existing credit agreement entered into on November 1, 2021, but did not receive any additional proceeds from nor modify the amounts of any facilities or subfacilities contained within that credit agreement. On December 7, 2023, Digi entered into a credit agreement (the “Credit Agreement”) with BMO Bank N.A. (“BMO”), as administrative and collateral agent, BMO Capital Markets Corp., BofA Securities, Inc. and MUFG Bank, Ltd., as joint lead arrangers and joint bookrunners, and the several banks and other financial institutions or entities from time to time party thereto as lenders (the “Lenders”). The Credit Agreement provides Digi with a senior secured credit facility (the “2023 Credit Facility”). The 2023 Credit Facility includes a $250 million senior secured revolving credit facility (the “Revolving Loan”), with an uncommitted accordion feature that provides for additional borrowing capacity of up to the greater of $95 million or one hundred percent of trailing twelve month adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA"). The 2023 Credit Facility also contains a $10 million letter of credit sublimit and $10 million swingline sub-facility. Digi may use the proceeds of the 2023 Credit Facility in the future for general corporate purposes. Digi borrowed a total of $215 million under the 2023 Credit Facility to repay all obligations and to pay related fees and expenses under the Third Amended and Restated Credit Agreement dated as of December 22, 2021 (the “2021 Credit Facility”), by and among Digi, as the borrower, BMO, as administrative agent and collateral agent, BMO Capital Markets Corp., as sole lead arranger and bookrunner, and the other lenders from time-to-time party thereto. The 2021 Credit Facility consisted of a $350 million term loan B secured loan and a $35 million revolving credit facility that included a $10 million letter of credit subfacility and $10 million swingline subfacility. Borrowings under the 2023 Credit Facility bear interest at a rate per annum equal to Term SOFR with a floor of 0.00% for an interest period of one, three, or six months as selected by Digi, reset at the end of the selected interest period (or a replacement benchmark rate if Term SOFR is no longer available) plus the applicable margin or a base rate plus the applicable margin. The base rate is determined by reference to the highest of BMO’s prime rate, the rate determined by BMO to be the average rate of Federal funds in the secondary market plus 0.50%, or one-month SOFR plus 1.00%. The applicable margin for loans under the 2023 Credit Facility is in a range of 1.75% to 2.75% for Term SOFR loans and 0.75% to 1.75% for base rate loans, depending on Digi’s total net leverage ratio. All borrowings from October through May were made at Term SOFR for a one-month interest election period plus an applicable margin of 2.50%. All borrowings from June through September were made at Term SOFR for a one-month interest election period plus an applicable margin of 2.25%. Our weighted average interest rate for our 2023 Credit Facility was 7.46% as of September 30, 2024. In addition to paying interest on the outstanding principal, Digi is required to pay a commitment fee on the unutilized commitments under the 2023 Credit Facility. The commitment fee is between 0.20% and 0.35% depending on Digi’s total net leverage ratio. Our weighted average Revolving Loan commitment fee was 0.25% as of September 30, 2024. The Credit Facility is secured by substantially all of the property of Digi and its domestic subsidiaries. 6. INDEBTEDNESS (CONTINUED) The debt issuance costs and remaining balance under the 2021 Credit Facility totaling $9.7 million at December 7, 2023 were written off and included in other expenses upon the entry into the Credit Agreement. Digi incurred an additional $1.3 million in debt issuance costs upon entry into the Credit Agreement, with this amount amortized over the term of the Credit Agreement and reported in interest expense. The Revolving Loan is due in a lump sum payment at maturity December 7, 2028, if any amounts are drawn. The fair value of the Revolving Loan approximated carrying value at September 30, 2024. Digi made payments against the Revolving Loan of $91.1 million in twelve months ended September 30, 2024. Digi made early payments against the term loan under the 2021 Credit Facility of $18.9 million and $100.0 million in twelve months ended September 30, 2023 and 2022, respectively. The following table is a summary of our long-term indebtedness (in thousands): Year ended September 30, 2024 2023 Revolving loan $ 124,300 $ — Term loan — 213,625 Total loans 124,300 213,625 Less unamortized issuance costs (1,115) (10,051) Less current maturities of long-term debt — (15,523) Total long-term debt, net of current portion $ 123,185 $ 188,051 Covenants and Security Interest The Credit Agreement requires Digi to maintain a minimum interest coverage ratio of 3.00 to 1.00 and a total net leverage ratio not to exceed 3.00 to 1.00, with certain exceptions for a covenant holiday of up to 3.50 to 1.00 after certain material acquisitions. The total net leverage ratio is defined as the ratio of Digi’s consolidated total funded indebtedness minus unrestricted cash as of such date up to a maximum amount not to exceed $50 million, to consolidated EBITDA for such period. The Credit Agreement also contains other customary affirmative and negative covenants, including covenants that restrict the ability of Digi and its subsidiaries to incur additional indebtedness, dispose of significant assets, make certain investments, including any acquisitions other than permitted acquisitions, make certain restricted payments, enter into sale and leaseback transactions or grant additional liens on its assets, subject to certain limitations. Amounts borrowed under the 2023 Credit Facility are secured by substantially all of our assets.

Product Warranty Obligation

Product Warranty Obligation	12 Months Ended
Product Warranty Obligation	Sep. 30, 2024
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY OBLIGATION	PRODUCT WARRANTY OBLIGATION The following table summarizes the activity associated with the product warranty accrual (in thousands) and is listed on our consolidated balance sheets within other current liabilities: Year ended September 30, 2024 2023 2022 Balance at beginning of period $ 772 $ 886 $ 707 Warranties accrued 568 355 537 Settlements made (407) (469) (358) Balance at end of period $ 933 $ 772 $ 886

Leases

Leases	12 Months Ended
Leases	Sep. 30, 2024
Leases [Abstract]
LEASES	LEASES All of our leases are operating leases and primarily consist of leases for office space. For any lease with an initial term in excess of twelve months, the related lease assets and lease liabilities are recognized on our consolidated balance sheets as either operating or financing leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components. We have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of twelve months or less are not recorded on our consolidated balance sheets. Instead we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We generally use a collateralized incremental borrowing rate based on information available at the commencement date, including the lease term, in determining the present value of future payments. When determining our right-of-use asset, we generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Our leases typically require payment of real estate taxes and common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. The following table shows the supplemental balance sheet information related to our leases (in thousands): Balance Sheet Location September 30, 2024 September 30, 2023 Assets Operating leases Operating lease right-of-use assets $ 10,207 $ 12,876 Total lease assets $ 10,207 $ 12,876 Liabilities Operating leases Current portion of operating lease liabilities $ 2,973 $ 3,352 Operating leases Operating lease liabilities 11,228 13,989 Total lease liabilities $ 14,201 $ 17,341 The following were the components of our lease cost which is recorded in both cost of goods sold and selling, general and administrative expense (in thousands): Statement of Operations Location Year ended Year ended Operating lease cost Cost of goods sold and SG&A $ 3,531 $ 3,815 Variable lease cost Cost of goods sold and SG&A 1,263 1,332 Short-term lease cost Cost of goods sold and SG&A 114 93 Total lease cost $ 4,908 $ 5,240 The following table presents supplemental information related to operating leases (in thousands): Year ended Year ended Cash paid for amounts included in the measurement of operating lease liabilities $ 3,065 $ 2,965 Right-of-use assets obtained in exchange for new operating lease liabilities $ 440 $ 276 8. LEASES (CONTINUED) September 30, 2024 Weighted average remaining lease term - operating leases 5.9 years Weighted average discount rate - operating leases 4.80 % The table below reconciles the undiscounted cash flows for each of the first five years as well as all the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of September 30, 2024 (in thousands): Fiscal year Amount 2025 $ 3,791 2026 3,307 2027 2,068 2028 1,897 2029 1,840 Thereafter 3,865 Total future undiscounted lease payments 16,768 Less imputed interest (2,567) Total reported lease liability $ 14,201

Revenue

Revenue	12 Months Ended
Revenue	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue Disaggregation The following table summarizes our revenue by geographic location of our customers: Year ended September 30, ($ in thousands) 2024 2023 2022 North America, primarily the United States $ 302,491 $ 323,714 $ 302,409 Europe, Middle East & Africa 64,890 69,980 53,612 Rest of world 56,665 51,155 32,204 Total revenue $ 424,046 $ 444,849 $ 388,225 The following table summarizes our revenue by the timing of revenue recognition: Year ended September 30, ($ in thousands) 2024 2023 2022 Transferred at a point in time $ 313,421 $ 345,119 $ 302,535 Transferred over time 110,625 99,730 85,690 Total revenue $ 424,046 $ 444,849 $ 388,225 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 $23.6 million and $16.6 million as of September 30, 2024 and September 30, 2023, respectively, are included in property, equipment and improvements, net. Depreciation expense for these subscriber assets was $5.3 million and $3.8 million for the twelve months ended September 30, 2024 and 2023, respectively. We depreciate the cost of this equipment over its useful life and include these expenses in cost of sales. 9. REVENUE (CONTINUED) 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 September 30, 2024 and September 30, 2023. Contract Liabilities 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. 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. Our contract liabilities were $36.8 million and $27.9 million at September 30, 2024 and 2023, respectively. Of the $27.9 million and $21.6 million balances as of September 30, 2023 and 2022, Digi recognized $20.0 million and $17.5 million as revenue in the twelve months ended September 30, 2024 and 2023, respectively. Remaining Performance Obligation As of September 30, 2024, we had approximately $151.0 million of remaining performance obligations on contracts with an original duration of one year or more. We expect to recognize revenue on approximately $73.9 million of remaining performance obligations over the next 12 months. Revenue from the remaining performance obligations we expect to recognize over a range of two

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	10. INCOME TAXES The components of income before income taxes are (in thousands): Year ended September 30, 2024 2023 2022 United States $ 19,088 $ 21,149 $ 13,220 International 3,770 3,769 5,408 Income before income taxes $ 22,858 $ 24,918 $ 18,628 The components of the income tax expense are (in thousands): Year ended September 30, 2024 2023 2022 Current: Federal $ 9,149 $ 9,894 $ 281 State 1,995 1,955 766 Foreign 832 598 1,277 Deferred: Federal (11,189) (12,131) (2,982) Foreign (434) (168) (97) Income tax (benefit) expense $ 353 $ 148 $ (755) 10. INCOME TAXES (CONTINUED) Net deferred tax liability consists of (in thousands): As of September 30, 2024 2023 Non-current deferred tax asset $ 16,141 $ 4,884 Non-current deferred tax liability (1,308) (1,812) Net deferred tax asset (liability) $ 14,833 $ 3,072 Depreciation and amortization $ (4,735) $ (3,362) Lease asset (2,283) (2,866) Lease liability 3,183 3,897 Inventories 6,614 6,407 Compensation costs 5,552 5,559 Deferred Revenue 7,595 5,687 Other accruals 5,805 3,324 Tax credit carryforwards 3,854 3,867 Valuation allowance (3,317) (3,254) Identifiable intangible assets (25,533) (25,276) Research and development costs 18,098 9,089 Net deferred tax asset (liability) $ 14,833 $ 3,072 As of September 30, 2024, we had $3.2 million of tax carryforwards (net of reserves) related to state research and development tax credits. We also had $0.2 million of State net operating losses, non-U.S. net operating losses of $0.2 million, U.S. foreign tax credits of $0.1 million and foreign tax credits of $0.2 million. The majority of our state research and development tax credits have a 15-year carryforward period. The majority of our non-U.S. net operating losses and tax credit carryforwards have an unlimited carryforward period. Our non-U.S. tax credit carryforwards will expire in 2034. Our valuation allowance for certain U.S. and foreign attributes was $3.3 million at September 30, 2024 and September 30, 2023. The deferred tax assets realized could vary if there are differences in the timing or amount of future reversals of existing deferred tax liabilities or changes in the amounts of future taxable income. If future taxable income projections are not realized, an additional valuation allowance may be required. This would be reflected as income tax expense at the time that any such change in future taxable income is determined. 10. INCOME TAXES (CONTINUED) The reconciliation of the statutory federal income tax amount to our income tax benefit is (in thousands): Year ended September 30, 2024 2023 2022 Statutory income tax amount $ 4,800 $ 5,233 $ 3,912 Increase (decrease) resulting from: State taxes, net of federal benefits 401 636 85 Transaction costs — — 2 Employee stock purchase plan 159 165 98 Foreign operations 1,751 984 1,552 Non-deductible executive compensation 519 373 291 Utilization of research and development tax credits (5,224) (4,678) (2,780) ASU 2016-09 excess stock compensation (47) (1,678) (2,967) Contingent consideration — — (1,239) Changes from provision to return (791) 181 413 Adjustment of tax contingency reserves 491 238 417 U.S. deduction for foreign export sales (1,827) (1,419) (584) Other, net 121 113 45 Income tax (benefit) expense $ 353 $ 148 $ (755) A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): Year ended September 30, 2024 2023 2022 Unrecognized tax benefits at beginning of fiscal year $ 3,162 $ 3,316 $ 2,908 Increases related to: Prior year income tax positions 71 100 — Current year income tax positions 768 858 524 Decreases related to: Prior year income tax positions — (159) (21) Expiration of statute of limitations (399) (953) (95) Unrecognized tax benefits at end of fiscal year $ 3,602 $ 3,162 $ 3,316 The total amount of unrecognized tax benefits ("UTB") at September 30, 2024 that, if recognized, would affect our effective tax rate was $3.4 million. We expect that it is reasonably possible that the total amounts of UTB will decrease by approximately $0.4 million over the next 12 months due to the expiration of various statutes of limitations. Of the $3.6 million of UTB, $2.7 million is included in non-current income taxes payable and $0.9 million is included with non-current deferred tax assets on the consolidated balance sheets at September 30, 2024. We recognize interest and penalties related to income tax matters in income tax expense. During fiscal 2024 and 2023, there were insignificant amounts of interest and penalties related to income tax matters in income tax expense. We accrued $0.1 million in interest and penalties related to unrecognized tax benefits as of September 30, 2024 and 2023. These accrued interest and penalties are included in our non-current income taxes payable on our consolidated balance sheets. 10. INCOME TAXES (CONTINUED) We operate in multiple tax jurisdictions both in the U.S. and outside of the U.S. and face audits from various tax authorities regarding transfer pricing, tax credits, and other matters. Accordingly we must determine the appropriate allocation of income to each of these jurisdictions. This determination requires us to make several estimates and assumptions. Tax audits associated with the allocation of this income, and other complex issues, may require an extended period of time to resolve and may result in adjustments to our income tax balances in those years that are material to our consolidated balance sheets and results of operations. We file a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. With few exceptions, we are no longer subject to state and local or non-U.S. income tax examinations by tax authorities for years before fiscal year 2020. At September 30, 2024, the majority of undistributed foreign earnings were taxed under the one time transition tax and the global intangible low-taxed income ("GILTI") provision of the Tax Cuts and Jobs Act of 2017. Additionally, the previously un-taxed accumulated undistributed foreign earnings from prior fiscal years are still permanently reinvested and, as such, we have not accrued additional U.S. tax. It is our position that the earnings of our foreign subsidiaries are to be reinvested indefinitely to fund current operations and provide for future international expansion opportunities and only repatriate earnings to the extent that U.S. taxes have already been recorded. As of September 30, 2024, we are permanently reinvested with respect to previously non-taxed accumulated earnings in all jurisdictions. Undistributed foreign earnings remain indefinitely reinvested in foreign operations. If we change our assertion from indefinitely reinvesting undistributed foreign earnings, we would have to accrue applicable taxes. The amount of any taxes and the application of any tax credits would be determined based on the income tax laws at the time of such repatriation. Under current tax law, we estimate the unrecognized tax liability to be immaterial.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
Stock-Based Compensation	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	11. STOCK-BASED COMPENSATION Stock-based awards granted in 2024 were granted under the Digi International Inc. 2021 Omnibus Incentive Plan (as amended and restated, the "2021 Plan"). Shares subject to awards under the 2021 Plan or any prior plans that are forfeited, canceled, returned to us for failure to satisfy vesting requirements, settled in cash or otherwise terminated without payment also will be available for grant under the 2021 Plan. The authority to grant options under the 2021 Plan and set other terms and conditions rests with the Compensation Committee of the Board of Directors. The 2021 Plan authorizes the issuance of up to 3,500,000 common shares in connection with awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance-based full value awards or other stock-based awards. Eligible participants include our employees, our affiliates, non-employee directors of our Company and any consultant or advisor who is a natural person and provides services to us or our affiliates. Options that have been granted under the 2021 Plan typically vest over a four seven one four three Stock-based awards granted in 2022 were granted under the 2021 Plan before amendments were made to increase the number of authorized shares. There were no other material changes to the plan made in the amendments. Cash received from the exercise of stock options was $3.0 million, $3.9 million and $9.5 million for the year ended September 30, 2024, 2023 and 2022, respectively. Our stock option plans allow the net exercise of options. Shares with a value of $0.7 million, $0.2 million and $4.3 million were forfeited to satisfy tax withholding for the year ended September 30, 2024, 2023 and 2022, respectively. 11. STOCK-BASED COMPENSATION (CONTINUED) Our equity plans and corresponding forms of award agreements generally have provisions allowing employees to elect to satisfy tax withholding obligations through the delivery of shares, having us retain a portion of shares issuable under the award or paying cash to us for the withholding. During fiscal 2024, 2023 and 2022 our employees forfeited 114,889, 106,012 and 102,392 shares, respectively in order to satisfy $2.9 million, $4.1 million and $2.4 million, respectively, of withholding tax obligations related to stock-based compensation, pursuant to terms of awards under our board and shareholder-approved compensation plans. We sponsor an Employee Stock Purchase Plan, as amended and restated as of December 10, 2019 (the "Purchase Plan"), covering all domestic employees with at least 90 days of continuous service and who are customarily employed at least 20 hours per week. The Purchase Plan allows eligible participants the right to purchase common stock on a quarterly basis at the lower of 85% of the market price at the beginning or end of each three-month offering period. The most recent amendments to the Purchase Plan, ratified by our stockholders on January 29, 2020, increased the total number of shares to 3,425,000 that may be purchased under the plan. Employee contributions to the Purchase Plan were $2.2 million, $2.3 million and $1.5 million in fiscal 2024, 2023 and 2022, respectively. Pursuant to the Purchase Plan, 101,730, 82,621, and 80,225 shares of common stock were issued to employees during fiscal 2024, 2023 and 2022, respectively. Shares are issued under the Purchase Plan from treasury stock. As of September 30, 2024, 368,497 shares of common stock were available for future issuances under the Purchase Plan. Stock-based compensation expense is included in the consolidated results of operations as (in thousands): Year ended September 30, 2024 2023 2022 Cost of sales $ 698 $ 628 $ 466 Sales and marketing 4,617 4,107 2,503 Research and development 1,931 1,777 1,236 General and administrative 5,913 6,774 4,373 Stock-based compensation before income taxes 13,159 13,286 8,578 Income tax benefit (2,783) (2,840) (1,819) Stock-based compensation after income taxes $ 10,376 $ 10,446 $ 6,759 Stock Options Below is a summary of our stock options as of September 30, 2024 and changes during the twelve months then ended (in thousands, except per common share amounts): Options Outstanding Weighted Average Exercise Price Weighted Average Contractual Term (in years) Aggregate Intrinsic Value (1) Balance on September 30, 2023 1,553 $18.52 Granted 87 24.60 Exercised (199) 28.04 Forfeited / Canceled (59) 25.13 Balance on September 30, 2024 1,382 $19.01 3.07 $ 12,414 Exercisable on September 30, 2024 1,101 $17.60 2.65 $ 11,321 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $27.53 as of September 30, 2024, which would have been received by the option holders had all option holders exercised their options as of that date. The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. The total intrinsic value of all options exercised during each of the twelve months ended September 30, 2024, 2023 and 2022 was $5.6 million, $5.2 million and $20.3 million, respectively. 11. STOCK-BASED COMPENSATION (CONTINUED) The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions: Year ended September 30, 2024 2023 2022 Weighted average per option grant date fair value $ 12.45 $ 19.87 $ 10.37 Assumptions used for option grants: Risk free interest rate 3.78% - 4.68% 3.50% - 4.15% 1.25% - 3.00% Expected term 6.00 years 6.00 years 6.00 years Expected volatility 46% - 48% 46% 45% - 46% Weighted average volatility 46% 46% 46% Expected dividend yield 0% 0% 0% The fair value of each option award granted during the periods presented was estimated using the Black-Scholes option valuation model that uses the assumptions noted in the above table. Expected volatilities are based on the historical volatility of our stock. We use historical data to estimate option exercise and employee termination information within the valuation model. The expected term of options granted is derived from the vesting period and historical information and represents the period of time that options granted are expected to be outstanding. The risk-free rate used is the zero-coupon U.S. Treasury bond rate in effect at the time of the grant whose maturity equals the expected term of the option. As of September 30, 2024, the total unrecognized compensation cost related to non-vested stock-based compensation arrangements was $2.8 million. The related weighted average period over which this cost is expected to be recognized was approximately 1.5 years. As of September 30, 2024, the weighted average exercise price and remaining life of the stock options were (in thousands, except remaining life and exercise price): Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Life (In Years) Weighted Average Exercise Price Number of Shares Vested Weighted Average Exercise Price $10.33 - $11.87 224 1.25 $ 11.64 224 $ 11.64 $12.48 - $16.75 268 2.61 $ 15.41 261 $ 15.37 $17.10 - $17.53 134 2.68 $ 17.22 127 $ 17.22 $17.94 - $17.94 211 2.16 $ 17.94 211 $ 17.94 $18.20 - $21.53 205 4.21 $ 21.00 128 $ 21.08 $22.54 - $24.59 221 4.87 $ 23.87 95 $ 23.47 $25.15 - $41.16 96 4.65 $ 35.51 55 $ 33.57 $10.33 - $41.16 1,359 3.08 $ 19.00 1,101 $ 17.60 The total grant date fair value of shares vested was $3.0 million, $4.5 million and $3.0 million in each of fiscal 2024, 2023 and 2022, respectively. 11. STOCK-BASED COMPENSATION (CONTINUED) Non-vested Stock Units The following table presents a summary of our non-vested restricted stock units as of September 30, 2024 and changes during the twelve months then ended (in thousands, except per common share amounts): RSUs PSUs Number of Awards Weighted Average Grant Date Fair Value Number of Awards Weighted Average Grant Date Fair Value Nonvested on September 30, 2023 846 $ 30.56 135 $ 37.72 Granted 373 $ 25.17 141 $ 24.93 Vested (287) $ 25.23 (30) $ 37.11 Canceled (86) $ 28.81 (26) $ 29.61 Nonvested on September 30, 2024 846 $ 30.15 220 $ 30.55

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Sep. 30, 2024
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS We currently have a savings and profit sharing plan pursuant to Section 401(k) of the Internal Revenue Code, whereby eligible employees may contribute up to 25% of their pre-tax earnings subject to certain limits under law.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES Leases We lease certain of our buildings and equipment under noncancelable lease agreements. Please refer to Note 8 to our consolidated financial statements for additional information. Litigation In October, 2024 we settled the lawsuit brought on October 23, 2020 by Data Logger Solutions, LLC ("Data Loggers") in Delaware Superior Court against us and our subsidiary Digi SmartSense, LLC for a payment of $5.7 million and a mutual release of all claims associated with the facts that led to the lawsuit. The suit alleged that Data Loggers has not been paid certain commissions it believed it was owed and would continue to be owed under a Reseller Agreement between Data Loggers and TempAlert. SmartSense is the successor of interest of TempAlert and terminated the Reseller Agreement in 2019. Data Loggers claimed it was entitled to actual, speculative and punitive damages in connection with its allegations. In March 2024, a jury found Digi liable for breach of contract and awarded Data Loggers damages of approximately $11.6 million. Delaware law also entitled Data Loggers to seek interest on this award pursuant to a statutory calculation. Each party filed post-trial motions with respect to the jury’s verdict and a hearing on those motions was held on June 28, 2024. Our motions sought to have the case retried or to remit the award of damages. The plaintiffs sought to expand the award of damages for attorney’s fees and interest. The Court granted our motion, remitted the damages award to a pre-interest amount of $5.0 million, and denied Data Loggers’ motion. Court rules permitted Data Loggers to accept the remitted amount or proceed to a new trial on the issue of damages. Following the court’s ruling the parties negotiated the final settlement in lieu of further legal proceedings. Pursuant to ASC 450 we previously made an accrual of $6.2 million for this matter. We have now reversed part of this accrual in the fourth fiscal quarter to reflect the settlement amount of $5.7 million. In addition to the matters discussed above, in the normal course of business, we are presently, and expect in the future to be, subject to various claims and litigation with third parties such as non-practicing intellectual property entities as well as customers, vendors and/or employees. There can be no assurance that any claims by third parties, if proven to have merit, will not materially adversely affect our business, liquidity or financial condition.

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying Accounts	12 Months Ended
Schedule II - Valuation and Qualifying Accounts	Sep. 30, 2024
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
Schedule II- Valuation and Qualifying Accounts	SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS DIGI INTERNATIONAL INC. (in thousands) Additions Description Balance at beginning of period Charged to costs and expenses Charged to Other Accounts Deductions Balance at end of period Valuation allowance - deferred tax assets September 30, 2024 $ 3,254 $ 63 $ — $ — $ 3,317 September 30, 2023 $ 2,976 $ 278 $ — $ — $ 3,254 September 30, 2022 $ 2,186 $ 790 $ — $ — $ 2,976 Reserve for future credit returns and pricing adjustments September 30, 2024 $ 1,311 $ 21,030 $ — $ 19,220 $ 3,121 September 30, 2023 $ 1,131 $ 20,205 $ — $ 20,025 $ 1,311 September 30, 2022 $ 930 $ 17,087 $ — $ 16,886 $ 1,131

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 22,505	$ 24,770	$ 19,383

Insider Trading Arrangements

Insider Trading Arrangements	12 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2024
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation
Accounting Estimates	Accounting Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates.
Cash Equivalents	Cash and Cash Equivalents Cash equivalents consist of money market accounts and other highly liquid investments purchased with an original maturity of three months or less. The carrying amounts approximate fair value due to the short maturities of these investments. We maintain our cash and cash equivalents in bank accounts which may exceed federally insured limits at times. We have not experienced any losses in these accounts.
Accounts Receivable	Accounts Receivable Accounts receivable are stated at the amount we expect to collect. This amount is net of an allowance for credit losses for estimated losses resulting from the inability of our customers to make required payments and a reserve for future credit returns and pricing adjustments. The following factors are considered when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, and changes in customer payment terms or practices. In addition, overall historical collection experience, current economic industry trends, and a review of the current status of trade accounts receivable are considered when determining the required allowance for credit losses. Based on our assessment, we provide for estimated uncollectible amounts through a charge to earnings and a credit to our allowance for credit losses. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the allowance for credit losses and a credit to accounts receivable. Estimated reserves for future credit returns and pricing adjustments are established based on an analysis of historical patterns of credit returns and price adjustments compared to received credit returns and distribution sales for the current period. Estimated reserves for future credit returns and price adjustments are charged against revenue in the same period as the corresponding sales are recorded. The following table presents a reconciliation of the allowance for credit losses (in thousands): Year ended September 30, 2024 2023 Balance at beginning of period $ 1,693 $ 3,285 Additions 2,090 1,134 Uncollectible accounts charged to allowance, net of recoveries (2,221) (2,726) Balance at end of period $ 1,562 $ 1,693
Inventories	Inventories
Property, Equipment and Improvements, Net	Property, Equipment and Improvements, Net Property, equipment and improvements are carried at cost, net of accumulated depreciation. Depreciation is provided by charges to operations using the straight-line method over the estimated asset useful lives. Furniture and fixtures, purchased software and other equipment are depreciated over a period of three years to ten years. Building improvements and buildings are depreciated over ten years and 39 years, respectively. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the asset. Long-lived assets to be held and used, such as property, equipment and improvements, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
Identifiable Intangible Assets	Identifiable Intangible Assets Purchased proven technology, license agreements, covenants not to compete and other identifiable intangible assets are recorded at fair value when acquired in a business acquisition, or at cost when not purchased in a business acquisition. All other identifiable intangible assets are amortized on a straight-line basis over their estimated useful lives of three years to 20.5 years. Useful lives for identifiable intangible assets are estimated at the time of acquisition based on the periods of time from which we expect to derive benefits from the identifiable intangible assets. Amortization of purchased and core technology is included in cost of sales in the Consolidated Statements of Operations. Amortization of all other acquired identifiable intangible assets is charged to operating expenses as a component of general and administrative expense.
Goodwill	Goodwill Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is quantitatively tested for impairment on an annual basis as of June 30, or more frequently if events or circumstances occur which could indicate impairment. We have two reportable and operating segments: our IoT Products & Services segment and our IoT Solutions segment (see Note 4 to the consolidated financial statements). Our IoT Products & Services business is structured to include four reporting units under the IoT Products & Services segment: Cellular Routers, Console Servers, OEM Solutions and Infrastructure Management. Following our acquisition of Ventus in the first fiscal quarter of 2022, IoT Solutions is comprised of two reporting units: Ventus and SmartSense by Digi. We have six reporting units that have been tested individually for impairment. Our goodwill impairment tests as of June 30, 2024, June 30,2023 and June 30, 2022 indicated no impairment (see Note 3 ). During the fourth quarter of fiscal 2024, we assessed various qualitative factors to determine whether or not an additional goodwill impairment assessment was required as of September 30, 2024, and we concluded that no additional impairment assessment was required.
Contingent Consideration	Contingent Consideration We measure our contingent consideration liabilities recognized in connection with business combinations at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy as defined in ASC 820 "Fair Value Measurement." We used a probability-weighted discounted cash flow approach as a valuation technique to 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) determine the fair value of the contingent consideration on the acquisition date. At each subsequent reporting period, the fair value is re-measured with the change in fair value recognized in general and administrative expense in our Consolidated Statements of Operations. Amounts, if any, paid to the seller in excess of the amount recorded on the acquisition date will be classified as cash flows used in operating activities. Payments to the seller not exceeding the acquisition-date fair value of the contingent consideration will be classified as cash flows used in financing activities.
Warranties	Warranties In general, we warrant our hardware products to be free from defects in material and workmanship under normal use and service. The warranty periods generally range from one year to five years. We typically have the option to either repair or replace hardware products we deem defective with regard to material or workmanship. Estimated warranty costs are accrued in the period that the related revenue is recognized based upon an estimated average per unit repair or replacement cost applied to the estimated number of units under warranty. These estimates are based upon historical warranty incidents and are evaluated on an ongoing basis to ensure the adequacy of the warranty accrual. We also warrant our software or firmware incorporated into our products generally for a period of one year and offer to provide a bug fix or software patch within a reasonable period. We have not accrued specifically for this warranty and have not had claims specifically related to software or firmware. We are not responsible for, and do not warrant that, custom software versions, created by OEM customers based upon our software source code, will function in a particular way, will conform to any specifications or are fit for any particular purpose. Further, we do not indemnify these customers from any third-party liability as it relates to or arises from any customization or modifications made by the OEM customer.
Treasury stock	Treasury Stock We record treasury stock at cost. Treasury stock may be acquired from employees for tax withholding purposes related to vesting of restricted stock unit awards as part of our stock-based compensation program and issued pursuant to the Employee Stock Purchase Plan.
Revenue Recognition	Revenue Recognition We recognize hardware product revenue upon transfer of control of goods or services to customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We determine the amount of revenue to be recognized through application of the following steps: • identification of the contract, or contracts with a customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when or as we satisfy the performance obligations. Hardware Product Revenue and SmartSense by Digi Equipment Revenue and Associated Installation Fees Our hardware product revenue is derived primarily from the sale of wired and wireless hardware products to our distributors and OEM customers. Product revenue generally is recognized upon shipment of the product to a customer. Sales to authorized domestic distributors and OEM customers typically are made with certain rights of return and price adjustment provisions. Estimated reserves for future credit returns and pricing adjustments are established based on an analysis of historical patterns of credit returns and price adjustments compared to received credit returns and distribution sales for the current period. Estimated reserves for future credit returns and price adjustments are charged against revenue in the same period as the corresponding sales are recorded. Material differences between the historical trends used to determine estimated reserves and actual credit returns and pricing adjustments could result in a material change to our consolidated results of operations or financial position. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Equipment revenue from SmartSense by Digi and Ventus within our IoT Solutions segment is recognized upon shipment of the equipment to a customer. Installation service charges from these sales are recorded when the product is installed. Subscription and Support Services Revenue Our SmartSense by Digi and Ventus subscription revenue is recorded on a monthly basis. These subscriptions are generally in a range from one year to five years, and may contain an evergreen renewal provision. Generally, our subscription renewal charges per month are the same as the original contract term. We derive service revenue from our platform-as-a-service (“PaaS”) offerings, whereby customers pay for services consumed based on the number of devices managed or monitored per month. Depending on the billing method set forth in the contract, we invoice our customers monthly, quarterly or annually either in advance or in arrears. Revenue is recognized over the life of the service term as the customer simultaneously receives and consumes the services. Because these arrangements involve repetitive services that are substantially the same from one month to the next, we apply the guidance under ASC 606-10-25-15. We utilize a time-based output method to recognize revenue over time as this properly depicts our transfer of control to the customer. These revenues are included in our IoT Products & Services segment. Digi Support Services revenues are recognized over the life of the support contract and included in our IoT Products & Services segment. Some of Digi Support Services revenue is for training and this revenue is recognized as the services are performed. Professional Services Revenue Professional services revenue is derived from our Digi Wireless Design Services contracts on either on a time-and-materials or a fixed-fee basis. These revenues, which are included in our IoT Products & Services segment are recognized as the services are performed for time-and-materials contracts or as invoiced for fixed-fee contracts. Contracts with Multiple Performance Obligations
Research and Development	Research and Development Research and development costs are expensed when incurred. Research and development costs include compensation, allocation of corporate costs, depreciation, utilities, professional services and prototypes. Software and firmware development costs are expensed as incurred until the point that both the technological feasibility and the proven marketability of the product are established. To date, the time period between the establishment of technological feasibility and completion of software development has been short and no significant development costs have been incurred during that period. Accordingly, we have not capitalized any software development costs to date.
Income Taxes	Income Taxes Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is equal to the tax payable for the period and the change during the period in deferred tax assets and liabilities as well as changes in income tax reserves. We maintain valuation allowances unless it is more likely than not that all or a portion of the deferred tax assets will be realized. Changes in valuation allowances from period to period are included in our tax provision in the period of change. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense represents the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. This cost must be recognized over the period during which an employee is required to provide the service (usually the vesting period).
Foreign Currency Translation	Foreign Currency Translation
Comprehensive Income	Comprehensive Income Our comprehensive income is comprised of net income, foreign currency translation adjustments and unrealized gains and losses on available-for-sale marketable securities. These items are charged or credited to the accumulated other comprehensive loss account in stockholders’ equity.
Net Income Per Common Share	Net Income Per Common Share Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares of our stock result from common stock options and restricted stock units. We use the treasury stock method to calculate the weighted-average shares used in the diluted earnings per share computation. Under this method the proceeds from exercise of an option, any amount of compensation cost for future service that we have not yet recognized, and the amount of estimated tax benefits that would be recorded in paid-in capital when the option is exercised are assumed to have been used to repurchase shares in the current period. The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data): Year ended September 30, 2024 2023 2022 Numerator: Net income $ 22,505 $ 24,770 $ 19,383 Denominator: Denominator basic net income per common share — weighted average shares outstanding 36,316 35,820 35,031 Effect of dilutive securities: Stock options and restricted stock units 668 1,049 964 Denominator diluted net income per common share — adjusted weighted average shares 36,984 36,869 35,995 Net income per common share, basic $ 0.62 $ 0.69 $ 0.55 Net income per common share, diluted $ 0.61 $ 0.67 $ 0.54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Because their effect would be anti-dilutive at period end, certain potentially dilutive shares related to stock options to purchase common shares were excluded in the above computation of diluted earnings per share because the options’ exercise prices were greater than the average market price of our common shares. For the years ended September 30, 2024, 2023 and 2022, such excluded stock options were 678,697, 395,190 and 647,181, respectively.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
Summary of Significant Accounting Policies (Tables)	Sep. 30, 2024
Accounting Policies [Abstract]
Accounts Receivable, Allowance for Credit Loss	The following table presents a reconciliation of the allowance for credit losses (in thousands): Year ended September 30, 2024 2023 Balance at beginning of period $ 1,693 $ 3,285 Additions 2,090 1,134 Uncollectible accounts charged to allowance, net of recoveries (2,221) (2,726) Balance at end of period $ 1,562 $ 1,693
Schedule of Calculation of Numerator and Denominator in Earnings Per Share	The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data): Year ended September 30, 2024 2023 2022 Numerator: Net income $ 22,505 $ 24,770 $ 19,383 Denominator: Denominator basic net income per common share — weighted average shares outstanding 36,316 35,820 35,031 Effect of dilutive securities: Stock options and restricted stock units 668 1,049 964 Denominator diluted net income per common share — adjusted weighted average shares 36,984 36,869 35,995 Net income per common share, basic $ 0.62 $ 0.69 $ 0.55 Net income per common share, diluted $ 0.61 $ 0.67 $ 0.54

Acquisitions (Tables)

Acquisitions (Tables)	12 Months Ended
Acquisitions (Tables)	Sep. 30, 2024
Business Combinations [Abstract]
Business Acquisition, Pro Forma Information	The following consolidated pro forma information is presented as if the acquisition had occurred on October 1, 2020 (in thousands): Year ended September 30, 2022 2021 Net sales $ 393,290 $ 360,820 Net income (loss) $ 14,274 $ (2,701)
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the fair values of Ventus assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 350,000 Fair value of net tangible assets acquired $ 20,365 Identifiable intangible assets: Customer relationships 179,000 Purchased and core technology 16,000 Trademarks 16,000 Goodwill 118,635 Total $ 350,000

Goodwill and other Identifiab_2

Goodwill and other Identifiable Intangible Assets (Tables)	12 Months Ended
Goodwill and other Identifiable Intangible Assets (Tables)	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Amortizable Identifiable Intangible Assets	Amortizable identifiable intangible assets, net as of September 30, 2024 and 2023 were comprised of the following (in thousands): September 30, 2024 September 30, 2023 Gross Accum. Net Gross Accum. Net Purchased and core technology $ 85,041 $ (63,654) $ 21,387 $ 85,032 $ (59,833) $ 25,199 License agreements 112 (112) — 112 (112) — Patents and trademarks 40,335 (22,047) 18,288 39,957 (19,888) 20,069 Customer relationships 309,223 (95,989) 213,234 309,196 (77,380) 231,816 Non-compete agreements 600 (600) — 600 (600) — Order backlog 1,000 (1,000) — 1,000 (1,000) — Total $ 436,311 $ (183,402) $ 252,909 $ 435,897 $ (158,813) $ 277,084
Schedule of Amortization Expense	Amortization expense for fiscal years 2024, 2023 and 2022 was as follows (in thousands): Fiscal year Total 2024 $ 24,553 2023 $ 25,226 2022 $ 27,195
Schedule of Estimated Future Amortization Expense Related to Identifiable Intangible Assets	Estimated amortization expense for the next five fiscal years is as follows (in thousands): Fiscal year Total 2025 $ 21,811 2026 $ 21,579 2027 $ 21,579 2028 $ 20,410 2029 $ 18,355
Schedule of Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill by reportable segments are (in thousands): IoT IoT Total Balance on September 30, 2022 $ 172,931 $ 167,546 $ 340,477 Foreign currency translation adjustment 1,026 90 1,116 Balance on September 30, 2023 $ 173,957 $ 167,636 $ 341,593 Foreign currency translation adjustment 1,136 45 1,181 Balance on September 30, 2024 $ 175,093 $ 167,681 $ 342,774

Segment Information and Major_2

Segment Information and Major Customers (Tables)	12 Months Ended
Segment Information and Major Customers (Tables)	Sep. 30, 2024
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Summary operating results for each of our segments were as follows (in thousands): Year ended September 30, 2024 2023 2022 Revenue IoT Products & Services $ 324,444 $ 345,680 $ 297,645 IoT Solutions 99,602 99,169 90,580 Total revenue $ 424,046 $ 444,849 $ 388,225 Gross Profit IoT Products & Services $ 177,201 $ 187,958 $ 160,117 IoT Solutions 72,705 64,245 56,169 Total gross profit $ 249,906 $ 252,203 $ 216,286 Depreciation and Amortization IoT Products & Services $ 12,446 $ 12,544 $ 13,974 IoT Solutions 20,615 19,432 19,865 Total depreciation and amortization $ 33,061 $ 31,976 $ 33,839
Payments to Acquire Property, Plant and Equipment by Segment	Total expended for property, plant and equipment was as follows (in thousands): Year ended September 30, 2024 2023 2022 IoT Products & Services $ 1,005 $ 588 $ 1,952 IoT Solutions* 845 3,510 22 Total expended for property, plant and equipment $ 1,850 $ 4,098 $ 1,974 * Excluded from this amount is $12.3 million, $3.9 million and $6.2 million of transfers of inventory to property plant and equipment for subscriber assets for the year ended September 30, 2024, 2023 and 2022, respectively.
Schedule of Total Assets by Segment	Total assets for each of our segments were as follows (in thousands): As of September 30, 2024 2023 IoT Products & Services $ 376,998 $ 384,018 IoT Solutions 410,567 419,820 Unallocated* 27,510 31,693 Total assets $ 815,075 $ 835,531 *Unallocated consists of cash and cash equivalents.
Schedule of Net Property, Equipment and Improvements by Geographical Location	Net property, equipment and improvements by geographic location were as follows (in thousands): As of September 30, 2024 2023 United States $ 34,416 $ 28,631 International, primarily Europe 499 477 Total net property, equipment and improvements $ 34,915 $ 29,108

Selected Balance Sheet Data (Ta

Selected Balance Sheet Data (Tables)	12 Months Ended
Selected Balance Sheet Data (Tables)	Sep. 30, 2024
Selected Balance Sheet Data [Abstract]
Schedule of Selected Balance Sheet Data	SELECTED BALANCE SHEET DATA The following table shows selected balance sheet data (in thousands): As of September 30, 2024 2023 Accounts receivable, net: Accounts receivable $ 78,672 $ 61,880 Less allowance for credit losses 1,562 1,693 Less reserve for future credit returns and pricing adjustments 7,470 4,190 Total accounts receivable, net $ 69,640 $ 55,997 Inventories: Raw materials $ 18,669 $ 29,974 Work in process 52 66 Finished goods 34,636 44,356 Total inventories $ 53,357 $ 74,396 Property, equipment and improvements, net: Land $ 570 $ 570 Buildings 2,338 2,338 Improvements 11,794 11,703 Equipment 18,422 17,909 Purchased software 5,186 5,143 Furniture and fixtures 2,436 2,459 Subscriber assets 40,787 28,532 Total property, equipment and improvements, gross 81,533 68,654 Less accumulated depreciation and amortization 46,618 39,546 Total property, equipment and improvements, net $ 34,915 $ 29,108

Debt (Tables)

Debt (Tables)	12 Months Ended
Debt (Tables)	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of Debt [Table Text Block]	The following table is a summary of our long-term indebtedness (in thousands): Year ended September 30, 2024 2023 Revolving loan $ 124,300 $ — Term loan — 213,625 Total loans 124,300 213,625 Less unamortized issuance costs (1,115) (10,051) Less current maturities of long-term debt — (15,523) Total long-term debt, net of current portion $ 123,185 $ 188,051

Product Warranty Obligation (Ta

Product Warranty Obligation (Tables)	12 Months Ended
Product Warranty Obligation (Tables)	Sep. 30, 2024
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Accrual	The following table summarizes the activity associated with the product warranty accrual (in thousands) and is listed on our consolidated balance sheets within other current liabilities: Year ended September 30, 2024 2023 2022 Balance at beginning of period $ 772 $ 886 $ 707 Warranties accrued 568 355 537 Settlements made (407) (469) (358) Balance at end of period $ 933 $ 772 $ 886

Leases (Tables)

Leases (Tables)	12 Months Ended
Leases (Tables)	Sep. 30, 2024
Leases [Abstract]
Supplemental Balance Sheet Information	The following table shows the supplemental balance sheet information related to our leases (in thousands): Balance Sheet Location September 30, 2024 September 30, 2023 Assets Operating leases Operating lease right-of-use assets $ 10,207 $ 12,876 Total lease assets $ 10,207 $ 12,876 Liabilities Operating leases Current portion of operating lease liabilities $ 2,973 $ 3,352 Operating leases Operating lease liabilities 11,228 13,989 Total lease liabilities $ 14,201 $ 17,341
Components of Lease Cost	The following were the components of our lease cost which is recorded in both cost of goods sold and selling, general and administrative expense (in thousands): Statement of Operations Location Year ended Year ended Operating lease cost Cost of goods sold and SG&A $ 3,531 $ 3,815 Variable lease cost Cost of goods sold and SG&A 1,263 1,332 Short-term lease cost Cost of goods sold and SG&A 114 93 Total lease cost $ 4,908 $ 5,240
Supplemental Disclosures Leases	The following table presents supplemental information related to operating leases (in thousands): Year ended Year ended Cash paid for amounts included in the measurement of operating lease liabilities $ 3,065 $ 2,965 Right-of-use assets obtained in exchange for new operating lease liabilities $ 440 $ 276 8. LEASES (CONTINUED) September 30, 2024 Weighted average remaining lease term - operating leases 5.9 years Weighted average discount rate - operating leases 4.80 %
Operating Lease Liability Maturity	The table below reconciles the undiscounted cash flows for each of the first five years as well as all the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of September 30, 2024 (in thousands): Fiscal year Amount 2025 $ 3,791 2026 3,307 2027 2,068 2028 1,897 2029 1,840 Thereafter 3,865 Total future undiscounted lease payments 16,768 Less imputed interest (2,567) Total reported lease liability $ 14,201

Revenue (Tables)

Revenue (Tables)	12 Months Ended
Revenue (Tables)	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes our revenue by geographic location of our customers: Year ended September 30, ($ in thousands) 2024 2023 2022 North America, primarily the United States $ 302,491 $ 323,714 $ 302,409 Europe, Middle East & Africa 64,890 69,980 53,612 Rest of world 56,665 51,155 32,204 Total revenue $ 424,046 $ 444,849 $ 388,225 The following table summarizes our revenue by the timing of revenue recognition: Year ended September 30, ($ in thousands) 2024 2023 2022 Transferred at a point in time $ 313,421 $ 345,119 $ 302,535 Transferred over time 110,625 99,730 85,690 Total revenue $ 424,046 $ 444,849 $ 388,225

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Schedule of Components of Income Taxes	The components of income before income taxes are (in thousands): Year ended September 30, 2024 2023 2022 United States $ 19,088 $ 21,149 $ 13,220 International 3,770 3,769 5,408 Income before income taxes $ 22,858 $ 24,918 $ 18,628
Schedule of Components of Income Tax Provision	The components of the income tax expense are (in thousands): Year ended September 30, 2024 2023 2022 Current: Federal $ 9,149 $ 9,894 $ 281 State 1,995 1,955 766 Foreign 832 598 1,277 Deferred: Federal (11,189) (12,131) (2,982) Foreign (434) (168) (97) Income tax (benefit) expense $ 353 $ 148 $ (755)
Schedule of Net Deferred Tax Asset	Net deferred tax liability consists of (in thousands): As of September 30, 2024 2023 Non-current deferred tax asset $ 16,141 $ 4,884 Non-current deferred tax liability (1,308) (1,812) Net deferred tax asset (liability) $ 14,833 $ 3,072 Depreciation and amortization $ (4,735) $ (3,362) Lease asset (2,283) (2,866) Lease liability 3,183 3,897 Inventories 6,614 6,407 Compensation costs 5,552 5,559 Deferred Revenue 7,595 5,687 Other accruals 5,805 3,324 Tax credit carryforwards 3,854 3,867 Valuation allowance (3,317) (3,254) Identifiable intangible assets (25,533) (25,276) Research and development costs 18,098 9,089 Net deferred tax asset (liability) $ 14,833 $ 3,072
Schedule of Effective Income Tax Rate Reconciliation	The reconciliation of the statutory federal income tax amount to our income tax benefit is (in thousands): Year ended September 30, 2024 2023 2022 Statutory income tax amount $ 4,800 $ 5,233 $ 3,912 Increase (decrease) resulting from: State taxes, net of federal benefits 401 636 85 Transaction costs — — 2 Employee stock purchase plan 159 165 98 Foreign operations 1,751 984 1,552 Non-deductible executive compensation 519 373 291 Utilization of research and development tax credits (5,224) (4,678) (2,780) ASU 2016-09 excess stock compensation (47) (1,678) (2,967) Contingent consideration — — (1,239) Changes from provision to return (791) 181 413 Adjustment of tax contingency reserves 491 238 417 U.S. deduction for foreign export sales (1,827) (1,419) (584) Other, net 121 113 45 Income tax (benefit) expense $ 353 $ 148 $ (755)
Schedule of Unrecognized Tax Benefits Roll Forward	A reconciliation of the beginning and ending amount of unrecognized tax benefits is (in thousands): Year ended September 30, 2024 2023 2022 Unrecognized tax benefits at beginning of fiscal year $ 3,162 $ 3,316 $ 2,908 Increases related to: Prior year income tax positions 71 100 — Current year income tax positions 768 858 524 Decreases related to: Prior year income tax positions — (159) (21) Expiration of statute of limitations (399) (953) (95) Unrecognized tax benefits at end of fiscal year $ 3,602 $ 3,162 $ 3,316

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense is included in the consolidated results of operations as (in thousands): Year ended September 30, 2024 2023 2022 Cost of sales $ 698 $ 628 $ 466 Sales and marketing 4,617 4,107 2,503 Research and development 1,931 1,777 1,236 General and administrative 5,913 6,774 4,373 Stock-based compensation before income taxes 13,159 13,286 8,578 Income tax benefit (2,783) (2,840) (1,819) Stock-based compensation after income taxes $ 10,376 $ 10,446 $ 6,759
Schedule of Stock Option Activity	Below is a summary of our stock options as of September 30, 2024 and changes during the twelve months then ended (in thousands, except per common share amounts): Options Outstanding Weighted Average Exercise Price Weighted Average Contractual Term (in years) Aggregate Intrinsic Value (1) Balance on September 30, 2023 1,553 $18.52 Granted 87 24.60 Exercised (199) 28.04 Forfeited / Canceled (59) 25.13 Balance on September 30, 2024 1,382 $19.01 3.07 $ 12,414 Exercisable on September 30, 2024 1,101 $17.60 2.65 $ 11,321
Schedule of Valuation Assumptions	The table below shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions: Year ended September 30, 2024 2023 2022 Weighted average per option grant date fair value $ 12.45 $ 19.87 $ 10.37 Assumptions used for option grants: Risk free interest rate 3.78% - 4.68% 3.50% - 4.15% 1.25% - 3.00% Expected term 6.00 years 6.00 years 6.00 years Expected volatility 46% - 48% 46% 45% - 46% Weighted average volatility 46% 46% 46% Expected dividend yield 0% 0% 0%
Schedule of Weighted Average Exercise Price Range and Remaining Contractual Life	As of September 30, 2024, the weighted average exercise price and remaining life of the stock options were (in thousands, except remaining life and exercise price): Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Life (In Years) Weighted Average Exercise Price Number of Shares Vested Weighted Average Exercise Price $10.33 - $11.87 224 1.25 $ 11.64 224 $ 11.64 $12.48 - $16.75 268 2.61 $ 15.41 261 $ 15.37 $17.10 - $17.53 134 2.68 $ 17.22 127 $ 17.22 $17.94 - $17.94 211 2.16 $ 17.94 211 $ 17.94 $18.20 - $21.53 205 4.21 $ 21.00 128 $ 21.08 $22.54 - $24.59 221 4.87 $ 23.87 95 $ 23.47 $25.15 - $41.16 96 4.65 $ 35.51 55 $ 33.57 $10.33 - $41.16 1,359 3.08 $ 19.00 1,101 $ 17.60
Schedule of Nonvested Restricted Stock Units	The following table presents a summary of our non-vested restricted stock units as of September 30, 2024 and changes during the twelve months then ended (in thousands, except per common share amounts): RSUs PSUs Number of Awards Weighted Average Grant Date Fair Value Number of Awards Weighted Average Grant Date Fair Value Nonvested on September 30, 2023 846 $ 30.56 135 $ 37.72 Granted 373 $ 25.17 141 $ 24.93 Vested (287) $ 25.23 (30) $ 37.11 Canceled (86) $ 28.81 (26) $ 29.61 Nonvested on September 30, 2024 846 $ 30.15 220 $ 30.55

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 1,693	$ 3,285
Additions	2,090	1,134
Uncollectible accounts charged to allowance, net of recoveries	(2,221)	(2,726)
Balance at end of period	$ 1,562	$ 1,693

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Property, Equipment and Improvements, Net) (Details)	Sep. 30, 2024
Furniture and fixtures, purchases software and other equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	3 years
Furniture and fixtures, purchases software and other equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	10 years
Building Improvements and buildings \| Minimum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	10 years
Building Improvements and buildings \| Maximum
Property, Plant and Equipment [Line Items]
Property, equipment and improvements depreciation life	39 years

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Identifiable Intangible Assets) (Details)	Sep. 30, 2024
Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	20 years 6 months

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Goodwill) (Details)	12 Months Ended
	Sep. 30, 2024 segment
Goodwill [Line Items]
Number of reportable segments	2
Number of operating segments	2
Number of Reporting Units	6
IoT Solutions
Goodwill [Line Items]
Number of Reporting Units	2
IoT Products & Services
Goodwill [Line Items]
Number of Reporting Units	4

Summary of Significant Accoun_8

Summary of Significant Accounting Policies (Warranty) (Details)	12 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Warranty period products, minimum	1 year
Warranty period products, maximum	5 years
Warranty period software	1 year

Summary of Significant Accoun_9

Summary of Significant Accounting Policies (Revenue Recognition) (Details) - Subscription and Circulation	12 Months Ended
	Sep. 30, 2024
Minimum
Customer With Contract, Length Of Contract	1 year
Maximum
Customer With Contract, Length Of Contract	5 years

Summary of Significant Accou_10

Summary of Significant Accounting Policies (Foreign Currency Translation) (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Accounting Policies [Abstract]
Foreign currency net transaction gains (losses)	$ (0.1)	$ 0	$ 0.1

Summary of Significant Accou_11

Summary of Significant Accounting Policies (Net Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Accounting Policies [Abstract]
Net income	$ 22,505	$ 24,770	$ 19,383
Denominator for basic net income per common share — weighted average shares outstanding	36,316,000	35,820,000	35,031,000
Effect of dilutive securities:
Stock options and restricted stock units	668,000	1,049,000	964,000
Denominator for diluted net income per common share — adjusted weighted average shares	36,984,000	36,869,000	35,995,000
Net income per common share:
Basic	$ 0.62	$ 0.69	$ 0.55
Diluted net income per common share:
Diluted	$ 0.61	$ 0.67	$ 0.54
Antidilutive securities excluded from computation of earnings per share	678,697	395,190	647,181

Acquisitions Details (Details)

Acquisitions Details (Details) - USD ($) $ in Thousands		12 Months Ended
Acquisitions Details (Details) - USD ($) $ in Thousands	Nov. 01, 2021	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022	Dec. 22, 2021
Business Acquisition [Line Items]
Change in fair value of contingent consideration		$ 0	$ 0	$ 6,200
Operating lease right-of-use assets		10,207	12,876
Operating lease liabilities		11,228	13,989
Goodwill		342,774	341,593	$ 340,477
Maximum borrowing capacity					$ 215,000
Total reported lease liability		14,201	17,341
Ventus
Business Acquisition [Line Items]
Cash paid at closing	$ 350,000
Operating lease right-of-use assets	$ 900
Weighted average useful life identifiable intangibles	19 years 2 months 12 days
Acquisition costs	$ 4,400		3,100
Goodwill	118,635
Maximum borrowing capacity	350,000
Total reported lease liability	$ 900
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual			54,300
Net sales		393,290	360,820
Net income		$ 14,274	$ (2,701)
Maximum
Business Acquisition [Line Items]
Useful life identifiable intangibles		20 years 6 months
Customer Relationships \| Ventus
Business Acquisition [Line Items]
Weighted average useful life identifiable intangibles	20 years 6 months
Trademarks \| Ventus
Business Acquisition [Line Items]
Weighted average useful life identifiable intangibles	13 years
Technology-Based Intangible Assets \| Ventus
Business Acquisition [Line Items]
Weighted average useful life identifiable intangibles	11 years

Acquisitions (Assets Acquired a

Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands		12 Months Ended
	Nov. 01, 2021	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Business Acquisition [Line Items]
Cash		$ 0	$ 0	$ 347,554
Goodwill		$ 342,774	$ 341,593	$ 340,477
Ventus
Business Acquisition [Line Items]
Cash	$ 350,000
Cash	350,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Tangible Assets Acquired (Liabilities) Assumed	20,365
Goodwill	118,635
Total assets acquired and liabilities assumed	350,000
Customer Relationships \| Ventus
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	179,000
Trademarks \| Ventus
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	16,000
Purchased and Core Technology \| Ventus
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 16,000

Goodwill and other Identifiab_3

Goodwill and other Identifiable Intangible Assets (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2024 USD ($) segment	Jun. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 436,311		$ 435,897
Accumulated amortization	(183,402)		(158,813)
Net	252,909		277,084
Goodwill	$ 342,774		341,593	$ 340,477
Number of operating segments \| segment	2
Number of reportable segments \| segment	2
Number of Reporting Units \| segment	6
IoT Solutions
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 167,681		167,636	167,546
Number of Reporting Units \| segment	2
IoT Products & Services
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 175,093		173,957	$ 172,931
Number of Reporting Units \| segment	4
Enterpise Routers
Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 32,700
OEM Solutions
Finite-Lived Intangible Assets [Line Items]
Goodwill		64,200
Console Servers
Finite-Lived Intangible Assets [Line Items]
Goodwill		57,100
Infrastructure Mgmt.
Finite-Lived Intangible Assets [Line Items]
Goodwill		20,400
Ventus
Finite-Lived Intangible Assets [Line Items]
Goodwill		118,600
SmartSense
Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 48,900
Purchased and Core Technology
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 85,041		85,032
Accumulated amortization	(63,654)		(59,833)
Net	21,387		25,199
License Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	112		112
Accumulated amortization	(112)		(112)
Net	0		0
Patents and Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	40,335		39,957
Accumulated amortization	(22,047)		(19,888)
Net	18,288		20,069
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	309,223		309,196
Accumulated amortization	(95,989)		(77,380)
Net	213,234		231,816
Non-compete Agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	600		600
Accumulated amortization	(600)		(600)
Net	0		0
Order backlog
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,000		1,000
Accumulated amortization	(1,000)		(1,000)
Net	$ 0		$ 0

Goodwill and other Identifiab_4

Goodwill and other Identifiable Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 25,106	$ 27,203	$ 30,928
2025	21,811
2026	21,579
2027	21,579
2028	20,410
2029	18,355
Cost of Sales and General and Administrative Expense [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 24,553	$ 25,226	$ 27,195

Goodwill and other Identifiab_5

Goodwill and other Identifiable Intangible Assets (Goodwill) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Goodwill [Line Items]
Goodwill	$ 341,593	$ 340,477
Foreign currency translation adjustment	1,181	1,116
Goodwill	342,774	341,593
IoT Solutions
Goodwill [Line Items]
Goodwill	167,636	167,546
Foreign currency translation adjustment	45	90
Goodwill	167,681	167,636
IoT Products and Services
Goodwill [Line Items]
Goodwill	173,957	172,931
Foreign currency translation adjustment	1,136	1,026
Goodwill	$ 175,093	$ 173,957

Segment Information and Major_3

Segment Information and Major Customers Summary of Operating Results by Segment (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Segment Reporting Information [Line Items]
Revenue	$ 424,046	$ 444,849	$ 388,225
Gross profit	249,906	252,203	216,286
Operating income (loss)	48,089	50,095	38,220
Depreciation and amortization	$ 33,061	31,976	33,839
Number of operating segments \| segment	2
Number of reportable segments \| segment	2
IoT Products & Services
Segment Reporting Information [Line Items]
Revenue	$ 324,444	345,680	297,645
Gross profit	177,201	187,958	160,117
Depreciation and amortization	12,446	12,544	13,974
IoT Solutions
Segment Reporting Information [Line Items]
Revenue	99,602	99,169	90,580
Gross profit	72,705	64,245	56,169
Depreciation and amortization	$ 20,615	$ 19,432	$ 19,865

Segment Information and Major_4

Segment Information and Major Customers Expended for Property, Plant and Equipment by Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Additions	$ 1,850	$ 4,098	$ 1,974
Inventory Transfer To Property, Plant And Equipment	12,252	3,889	6,237
IoT Products & Services
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Additions	1,005	588	1,952
IoT Solutions
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Additions	$ 845	$ 3,510	$ 22

Segment Information and Major_5

Segment Information and Major Customers Total Assets by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 815,075	$ 835,531
IoT Products & Services
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	376,998	384,018
IoT Solutions
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	410,567	419,820
Unallocated
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 27,510	$ 31,693

Segment Information and Major_6

Segment Information and Major Customers Net Property, Equipment and Improvements by Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	$ 34,915	$ 29,108
North America, primarily United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	34,416	28,631
International, primarily Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net property, equipment and improvements	$ 499	$ 477

Segment Information and Major_7

Segment Information and Major Customers Geographic revenue (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2024 USD ($) customer	Sep. 30, 2023 USD ($) customer	Sep. 30, 2022 USD ($) customer
Segment Reporting Information [Line Items]
Revenue \| $	$ 424,046	$ 444,849	$ 388,225
Accounts Receivable
Segment Reporting Information [Line Items]
Number of Customer Representing over Ten Percent of Consolidated Accounts Receivable	0	0	0
Revenue Benchmark
Segment Reporting Information [Line Items]
Number of customer representing over ten percent of revenue	0	0	0
United States \| U.S. Export Net Sales \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of concentration	28.70%	27.20%	22.10%

Selected Balance Sheet Data (De

Selected Balance Sheet Data (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Accounts receivable, net:
Accounts receivable	$ 78,672	$ 61,880
Less allowance for doubtful accounts	1,562	1,693
Less reserve for future credit returns and pricing adjustments	7,470	4,190
Total accounts receivable, net	69,640	55,997
Inventories:
Raw materials	18,669	29,974
Work in process	52	66
Finished goods	34,636	44,356
Total Inventories	53,357	74,396
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	81,533	68,654
Less accumulated depreciation and amortization	46,618	39,546
Total property, equipment and improvements, net	34,915	29,108
Land
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	570	570
Buildings
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	2,338	2,338
Improvements
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	11,794	11,703
Equipment
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	18,422	17,909
Purchased Software
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	5,186	5,143
Furniture and Fixtures
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	2,436	2,459
Subscriber assets
Property, Plant and Equipment, Net
Total property, equipment and improvements, gross	$ 40,787	$ 28,532

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands		4 Months Ended	8 Months Ended	12 Months Ended
Debt - Narrative (Details) - USD ($) $ in Thousands	Nov. 01, 2021	Sep. 30, 2024	May 31, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022	Dec. 07, 2023	Dec. 22, 2021	Mar. 15, 2021
Line of Credit Facility [Line Items]
Maximum borrowing capacity								$ 215,000
Weighted average interest rate on debt		7.46%		7.46%
Debt issuance costs							$ 9,700		$ 2,300
Debt instrument, basis spread on variable rate		2.25%	2.50%
Proceeds from long-term debt				$ 214,062	$ 0	$ 350,000
Payment for Debt Extinguishment or Debt Prepayment Cost					$ 18,900	$ 100,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage				0.25%
Repayments of Debt				$ 91,100
Credit Agreement [Domain] \| Line of Credit
Line of Credit Facility [Line Items]
Debt Instrument, Covenant, Leverage Ratio, Minimum		3		3
Debt Instrument, Covenant, Liquidity Ratio, Total Net Leverage Ratio		3		3
Debt Instrument, Covenant, Holiday		3.5		3.5
Total Net Leverage Ratio, Unrestricted Cash, Maximum		$ 50,000		$ 50,000
Prior Credit Facility
Line of Credit Facility [Line Items]
Debt issuance costs	$ 400
Amortization of Debt Issuance Costs	1,900
November 1 2021 Credit Agreement
Line of Credit Facility [Line Items]
Debt issuance costs	$ 11,700						1,300
December 22 2021 Credit Agreement
Line of Credit Facility [Line Items]
Debt issuance costs								1,700
Secured Debt [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity								350,000
Secured Debt [Member] \| Base Rate \| Federal Funds Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate				0.50%
Secured Debt [Member] \| Base Rate \| LIBOR
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate				1%
Secured Debt [Member] \| Minimum \| Base Rate
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Basis for Effective Rate				0.00
Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity							250,000	35,000	$ 200,000
Line Of Credit Facility, Accordion Feature, Increase Limit							95,000
Revolving Credit Facility \| Minimum
Line of Credit Facility [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage				0.20%
Revolving Credit Facility \| Minimum \| Base Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate				0.75%
Revolving Credit Facility \| Minimum \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate				1.75%
Revolving Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage				0.35%
Revolving Credit Facility \| Maximum \| Base Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate				1.75%
Revolving Credit Facility \| Maximum \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate				2.75%
Letter of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity							$ 10,000	10,000
Swingline Subfacility
Line of Credit Facility [Line Items]
Maximum borrowing capacity								$ 10,000

Debt - Schedule of Long-Term De

Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Debt Instrument [Line Items]
Total loans	$ 124,300	$ 213,625
Less unamortized issuance costs	(1,115)	(10,051)
Long-term Debt, Current Maturities	0	(15,523)
Total long-term debt, net of current portion	$ 123,185	188,051
Weighted average interest rate on debt	7.46%
Revolving loan
Debt Instrument [Line Items]
Total loans	$ 124,300	0
Term loan
Debt Instrument [Line Items]
Total loans	$ 0	$ 213,625

Product Warranty Obligation (De

Product Warranty Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 772	$ 886	$ 707
Warranties issued	568	355	537
Settlements made	(407)	(469)	(358)
Ending balance	$ 933	$ 772	$ 886

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Assets and Liabilities, Lessee [Abstract]
Operating lease right-of-use assets	$ 10,207	$ 12,876
Total lease assets	10,207	12,876
Current portion of operating lease liabilities	2,973	3,352
Operating lease liabilities	11,228	13,989
Total lease liabilities	$ 14,201	$ 17,341

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Lease, Cost [Abstract]
Operating lease cost	$ 3,531	$ 3,815
Variable lease cost	1,263	1,332
Short-term lease cost	114	93
Total lease cost	$ 4,908	$ 5,240

Leases - Other Information (Det

Leases - Other Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash paid for leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 3,065	$ 2,965
Right Of Use Asset Obtained In Exchange for Lease Liability [Abstract]
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 440	$ 276
Weighted average remaining lease term [Abstract]
Weighted average remaining lease term- operating leases	5 years 10 months 24 days
Weighted Average Discount Rate Leases [Abstract]
Weighted average discount rate - operating leases	4.80%

Leases - Maturity of Operating

Leases - Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]
2025	$ 3,791
2026	3,307
2027	2,068
2028	1,897
2029	1,840
Thereafter	3,865
Total future undiscounted lease payments	16,768
Less imputed interest	(2,567)
Total reported lease liability	$ 14,201	$ 17,341

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenues	$ 424,046	$ 444,849	$ 388,225
North America, primarily United States
Disaggregation of Revenue [Line Items]
Total revenues	302,491	323,714	302,409
Europe, Middle East & Africa
Disaggregation of Revenue [Line Items]
Total revenues	64,890	69,980	53,612
Rest of world
Disaggregation of Revenue [Line Items]
Total revenues	56,665	51,155	32,204
Transferred at a point in time
Disaggregation of Revenue [Line Items]
Total revenues	313,421	345,119	302,535
Transferred over time
Disaggregation of Revenue [Line Items]
Total revenues	$ 110,625	$ 99,730	$ 85,690

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Depreciation expense	$ 5,300	$ 3,800
Contract with Customer, Liability	36,800	27,900	$ 21,600
Equipment
Disaggregation of Revenue [Line Items]
Contract assets	$ 23,600	$ 16,600

Revenue - Unearned Revenue (Det

Revenue - Unearned Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Unearned Revenue [Roll Forward]
Unearned revenue, beginning of period	$ 27,900	$ 21,600
Revenue recognized	20,000	17,500
Unearned revenue, end of period	$ 36,800	$ 27,900

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details) $ in Millions	Sep. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 151
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 73.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 \| Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation time period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 \| Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation time period	5 years

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Valuation allowance	$ 3,317	$ 3,254
Tax Credit Carryforward [Line Items]
U.S. capital loss carryforward	200
United States Federal Tax Jurisdiction
Tax Credit Carryforward [Line Items]
Federal and state research and development tax credits	3,200
U.S. capital loss carryforward	200
Deferred Tax Assets, Other Tax Carryforwards	200
Foreign Tax Authority
Tax Credit Carryforward [Line Items]
Non-U.S. operating losses	$ 100

Income Taxes (Income Taxes) (De

Income Taxes (Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
United States	$ 19,088	$ 21,149	$ 13,220
International	3,770	3,769	5,408
Income before income taxes	$ 22,858	$ 24,918	$ 18,628

Income Taxes (Income Tax Provis

Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Current:
Federal	$ 9,149	$ 9,894	$ 281
State	1,995	1,955	766
Foreign	832	598	1,277
Deferred:
U.S.	(11,189)	(12,131)	(2,982)
Foreign	(434)	(168)	(97)
Income tax (benefit) expense	$ 353	$ 148	$ (755)

Income Taxes (Deferred Tax Asse

Income Taxes (Deferred Tax Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Gross, Noncurrent	$ 16,141	$ 4,884
Non-current deferred tax liability	(1,308)	(1,812)
Deferred Tax Assets, Net	14,833	3,072
Depreciation and amortization	(4,735)	(3,362)
Lease asset	(2,283)	(2,866)
Lease liability	3,183	3,897
Inventories	6,614	6,407
Compensation costs	5,552	5,559
Deferred Revenue	7,595	5,687
Other accruals	5,805	3,324
Tax credit carryforwards	3,854	3,867
Valuation allowance	(3,317)	(3,254)
Identifiable intangible assets	(25,533)	(25,276)
Deferred Tax Assets, in Process Research and Development	$ 18,098	$ 9,089

Income Taxes (Effective Income

Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Statutory income tax amount	$ 4,800	$ 5,233	$ 3,912
State taxes, net of federal benefits	401	636	85
Transaction costs	0	0	2
Employee stock purchase plan	159	165	98
Foreign operations	1,751	984	1,552
Non-deductible executive compensation	519	373	291
Utilization of research and development tax credits	(5,224)	(4,678)	(2,780)
ASU 2016-09 excess stock compensation	(47)	(1,678)	(2,967)
Contingent consideration	0	0	(1,239)
Changes from provision to return	(791)	181	413
Adjustment of tax contingency reserves	491	238	417
U.S. deduction for foreign export sales	(1,827)	(1,419)	(584)
Other, net	121	113	45
Income tax (benefit) expense	$ 353	$ 148	$ (755)

Income Taxes (Unrecognized Tax

Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	$ 3,162	$ 3,316	$ 2,908
Increases related to prior year income tax positions	71	100	0
Increases related to current year income tax positions	768	858	524
Decreases related to prior year income tax positions	0	(159)	(21)
Decreases related to expiration of statute of limitations	(399)	(953)	(95)
Unrecognized tax benefits, ending balance	$ 3,602	$ 3,162	$ 3,316

Income Taxes (Unrecognized Ta_2

Income Taxes (Unrecognized Tax Benefits, Additional Information) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Income Tax Contingency [Line Items]
Unrecognized tax benefits that would impact effective tax rate	$ 3,400
Unrecognized tax benefits	3,602	$ 3,162	$ 3,316	$ 2,908
Unrecognized Tax Benefits, Interest on Income Taxes Expense		100
Unrecognized Tax Benefits, Income Tax Penalties Accrued	0	0
Unrecognized Tax Benefits, Income Tax Penalties Expense	100	$ 100
Noncurrent income taxes payable
Income Tax Contingency [Line Items]
Unrecognized tax benefits	2,700
Noncurrent deferred tax assets
Income Tax Contingency [Line Items]
Unrecognized tax benefits	900
Maximum
Income Tax Contingency [Line Items]
Decrease in unrecognized tax benefits that is reasonably possible	$ 400

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022	Jan. 29, 2021	Jan. 29, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	114,889	106,012	102,392
Proceeds from employee stock purchase plan transactions	$ 2,206	$ 2,263	$ 1,500
Total intrinsic value of all options exercised	5,600	5,200	20,300
Total grant date fair value of shares vested	3,000	4,500	3,000
Proceeds from Stock Options Exercised	2,978	3,926	9,505
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	700	200	4,300
Total unrecognized compensation cost nonvested awards	$ 2,800
Weighted average period, unrecognized compensation cost, nonvested awards	1 year 6 months
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ 2,900	4,100	2,400
Weighted average period, unrecognized compensation cost, nonvested awards	1 year 10 months 24 days
Total unrecognized compensation cost, restricted stock units	$ 17,700
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of continuous days of service	90 days
Number of hours per week employed	20 hours
Percent of market value	85%
Proceeds from employee stock purchase plan transactions	$ 2,200	$ 2,300	$ 1,500
Common shares issued to employees	101,730	82,621	80,225
Shares available for future issuance	368,497
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period, unrecognized compensation cost, nonvested awards	2 months 12 days
Total unrecognized compensation cost, restricted stock units	$ 1,800
The Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized					3,425,000
The 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future grants	1,953,397
Number of shares authorized				3,500,000
The 2021 Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	7 years
Vesting period	4 years
Director \| The 2021 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	1 year
Vesting period	4 years
Director \| The 2021 Plan \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Executives and Employees \| The 2021 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years

Stock-Based Compensation (Stock

Stock-Based Compensation (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 13,159	$ 13,286	$ 8,578
Income tax benefit	(2,783)	(2,840)	(1,819)
Stock-based compensation after income taxes	10,376	10,446	6,759
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	698	628	466
Sales and Marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	4,617	4,107	2,503
Research and Development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	1,931	1,777	1,236
General and Administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation before income taxes	$ 5,913	$ 6,774	$ 4,373

Stock-Based Compensation (Optio

Stock-Based Compensation (Options and Common Shares Reserved for Grant) (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Options Outstanding [Roll Forward]
Options Outstanding, Beginning Balance \| shares	1,553
Options Outstanding, Granted \| shares	87
Options Outstanding, Exercised \| shares	(199)
Options Outstanding, Forfeited / Cancelled \| shares	(59)
Options Outstanding, Ending Balance \| shares	1,382
Options Outstanding, Exercisable \| shares	1,101
Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Beginning Balance	$ 18.52
Weighted Average Exercise Price, Granted	24.60
Weighted Average Exercise Price, Exercised	28.04
Weighted Average Exercise Price, Forfeited / Cancelled	25.13
Weighted Average Exercise Price, Ending Balance	19.01
Weighted Average Exercise Price, Exercisable	$ 17.60
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Term, Outstanding	3 years 1 month 6 days
Weighted Average Remaining Contractual Term, Exercisable	2 years 8 months 12 days
Aggregate Intrinsic Value, Outstanding \| $	$ 12,414
Aggregate Intrinsic Value, Exercisable \| $	$ 11,321
Closing Stock Price	$ 27.53

Stock-Based Compensation (Fair

Stock-Based Compensation (Fair Value Assumptions) (Details) - Stock Options - $ / shares	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average per option grant date fair value	$ 12.45	$ 19.87	$ 10.37
Assumptions Used For Options Grants [Abstract]
Risk free interest rate, minimum	3.78%	3.50%	1.25%
Risk free interest rate, maximum	4.68%	4.15%	3%
Expected term	6 years	6 years	6 years
Expected volatility rate, minimum	46%	46%	45%
Expected volatility rate, maximum		46%	46%
Weighted average volatility	46%	46%	46%
Expected dividend yield	0%	0%	0%

Stock-Based Compensation (Exerc

Stock-Based Compensation (Exercise Price Range) (Details) - Stock Options shares in Thousands	12 Months Ended
	Sep. 30, 2024 $ / shares shares
11.87
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	$ 10.33
Exercise Price Range, Upper Range	$ 11.87
Options Outstanding \| shares	224
Weighted Average Remaining Contractual Term	1 year 3 months
Weighted Average Exercise Price, Options Outstanding	$ 11.64
Number of Shares Vested, Options Exercisable \| shares	224
Weighted Average Exercise Price, Options Exercisable	$ 11.64
16.75
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	12.48
Exercise Price Range, Upper Range	$ 16.75
Options Outstanding \| shares	268
Weighted Average Remaining Contractual Term	2 years 7 months 9 days
Weighted Average Exercise Price, Options Outstanding	$ 15.41
Number of Shares Vested, Options Exercisable \| shares	261
Weighted Average Exercise Price, Options Exercisable	$ 15.37
17.53
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	17.10
Exercise Price Range, Upper Range	$ 17.53
Options Outstanding \| shares	134
Weighted Average Remaining Contractual Term	2 years 8 months 4 days
Weighted Average Exercise Price, Options Outstanding	$ 17.22
Number of Shares Vested, Options Exercisable \| shares	127
Weighted Average Exercise Price, Options Exercisable	$ 17.22
17.94
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	17.94
Exercise Price Range, Upper Range	$ 17.94
Options Outstanding \| shares	211
Weighted Average Remaining Contractual Term	2 years 1 month 28 days
Weighted Average Exercise Price, Options Outstanding	$ 17.94
Number of Shares Vested, Options Exercisable \| shares	211
Weighted Average Exercise Price, Options Exercisable	$ 17.94
21.53
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	18.20
Exercise Price Range, Upper Range	$ 21.53
Options Outstanding \| shares	205
Weighted Average Remaining Contractual Term	4 years 2 months 15 days
Weighted Average Exercise Price, Options Outstanding	$ 21
Number of Shares Vested, Options Exercisable \| shares	128
Weighted Average Exercise Price, Options Exercisable	$ 21.08
24.59
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	22.54
Exercise Price Range, Upper Range	$ 24.59
Options Outstanding \| shares	221
Weighted Average Remaining Contractual Term	4 years 10 months 13 days
Weighted Average Exercise Price, Options Outstanding	$ 23.87
Number of Shares Vested, Options Exercisable \| shares	95
Weighted Average Exercise Price, Options Exercisable	$ 23.47
41.16
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	25.15
Exercise Price Range, Upper Range	$ 41.16
Options Outstanding \| shares	96
Weighted Average Remaining Contractual Term	4 years 7 months 24 days
Weighted Average Exercise Price, Options Outstanding	$ 35.51
Number of Shares Vested, Options Exercisable \| shares	55
Weighted Average Exercise Price, Options Exercisable	$ 33.57
41.16
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise Price Range, Lower Range	10.33
Exercise Price Range, Upper Range	$ 41.16
Options Outstanding \| shares	1,359
Weighted Average Remaining Contractual Term	3 years 29 days
Weighted Average Exercise Price, Options Outstanding	$ 19
Number of Shares Vested, Options Exercisable \| shares	1,101
Weighted Average Exercise Price, Options Exercisable	$ 17.60

Stock-Based Compensation (Non-V

Stock-Based Compensation (Non-Vested Options) (Details) shares in Thousands	12 Months Ended
	Sep. 30, 2024 $ / shares shares
Restricted Stock Units
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance \| shares	846
Number of Restricted Stock Units, Granted \| shares	373
Number of Restricted Stock Units, Vested \| shares	(287)
Number of Restricted Stock Units, Canceled \| shares	(86)
Number of Restricted Stock Units, Ending Balance \| shares	846
Nonvested Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share [Roll Forward]
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Beginning Balance \| $ / shares	$ 30.56
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted \| $ / shares	25.17
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested \| $ / shares	25.23
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled \| $ / shares	28.81
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance \| $ / shares	$ 30.15
Performance Shares
Nonvested Number of Restricted Stock Units [Roll Forward]
Number of Restricted Stock Units, Beginning Balance \| shares	135
Number of Restricted Stock Units, Granted \| shares	141
Number of Restricted Stock Units, Vested \| shares	(30)
Number of Restricted Stock Units, Canceled \| shares	(26)
Number of Restricted Stock Units, Ending Balance \| shares	220
Nonvested Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share [Roll Forward]
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Beginning Balance \| $ / shares	$ 37.72
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Granted \| $ / shares	24.93
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Vested \| $ / shares	37.11
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Canceled \| $ / shares	29.61
Restricted Stock Units, Weighted Average Grant Date Fair Value per Common Share, Ending Balance \| $ / shares	$ 30.55

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Defined Contribution Plan Disclosure [Line Items]
Matching contributions, amount	$ 3.7	$ 3.4	$ 3.1
Defined contribution plan
Defined Contribution Plan Disclosure [Line Items]
Maximum annual contribution per employee percentage	25%
Defined contribution plan \| Full Employer Match
Defined Contribution Plan Disclosure [Line Items]
Employers percent of matching contributions	100%
Percent of employees' gross pay for employer match	3%
Defined contribution plan \| Half Employer Match
Defined Contribution Plan Disclosure [Line Items]
Employers percent of matching contributions	50%
Percent of employees' gross pay for employer match	2%

Contingencies Contingencies (De

Contingencies Contingencies (Details) - Data Loggers - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
	Jun. 28, 2024	Mar. 31, 2024	Sep. 30, 2024	Jun. 30, 2024
Loss Contingencies [Line Items]
Loss Contingency, Damages Paid, Value			$ 5,700
Loss Contingency, Damages Awarded, Value	$ 5,000	$ 11,600
Loss Contingency Accrual				$ 6,200

Schedule II - Valuation and Q_2

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Valuation allowance - deferred tax assets
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 3,254	$ 2,976	$ 2,186
Charged to costs and expenses	63	278	790
Charged to Other Accounts	0	0	0
Deductions	0	0	0
Balance at end of period	3,317	3,254	2,976
Reserve for future credit returns and pricing adjustments
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	1,311	1,131	930
Charged to costs and expenses	21,030	20,205	17,087
Charged to Other Accounts	0	0	0
Deductions	(19,220)	(20,025)	(16,886)
Balance at end of period	$ 3,121	$ 1,311	$ 1,131