**Global Macroeconomic Conditions:** Persistent global macroeconomic headwinds, particularly in industrial markets, can lead to longer sales cycles and impact the company's financial performance. Uncertainty surrounding these conditions poses a threat to revenue growth and customer demand.

**Demand for IoT Connectivity & 5G Adoption:** There is an escalating demand for secure and dependable Internet of Things (IoT) connectivity solutions across various sectors like industrial automation, smart cities, healthcare, and transportation. The expansion of 5G networks further drives the need for ruggedized and TAA-compliant hardware, which Digi International provides, presenting significant growth opportunities.

**Supply Chain Normalization and Inventory Management:** While supply chain issues have stabilized, Digi International is focused on optimizing inventory levels. This involves balancing component availability with customer demand to avoid both shortages and excessive stockpiling, which can impact profitability and operational efficiency.