REVENUE
Revenue Disaggregation
The following table summarizes our revenue by geographic location of our customers:
| | | | | | | | | | | | | | | | | |
| Year ended September 30, |
| ($ in thousands) | 2025 | | 2024 | | 2023 |
| North America, primarily the United States | $ | 341,904 | | | $ | 302,491 | | | $ | 323,714 | |
| Europe, Middle East & Africa | 62,887 | | | 64,890 | | | 69,980 | |
| Rest of world | 25,430 | | | 56,665 | | | 51,155 | |
| Total revenue | $ | 430,221 | | | $ | 424,046 | | | $ | 444,849 | |
The following table summarizes our revenue by the timing of revenue recognition:
| | | | | | | | | | | | | | | | | |
| Year ended September 30, |
| ($ in thousands) | 2025 | | 2024 | | 2023 |
| Transferred at a point in time | $ | 303,470 | | | $ | 313,421 | | | $ | 345,119 | |
| Transferred over time | 126,751 | | | 110,625 | | | 99,730 | |
| Total revenue | $ | 430,221 | | | $ | 424,046 | | | $ | 444,849 | |
We had one distributor customer of Digi's IoT Products & Services segment that represented 13% of consolidated revenue for the twelve months ended September 30, 2025. No customers represented over 10% of consolidated revenue for the twelve months ended September 30, 2024 or 2023.
9. REVENUE (CONTINUED)
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 $22.9 million and $23.6 million as of September 30, 2025 and September 30, 2024, respectively, are included in property, equipment and improvements, net. Depreciation expense for these subscriber assets was $8.6 million and $5.3 million for the twelve months ended September 30, 2025 and 2024, respectively. We depreciate the cost of this equipment over its useful life and include these expenses in cost of sales.
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, 2025 and September 30, 2024.
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 $48.2 million and $36.8 million at September 30, 2025 and 2024, respectively.
Of the $36.8 million and $27.9 million balances as of September 30, 2024 and 2023, Digi recognized $29.7 million and $20.0 million as revenue in the twelve months ended September 30, 2025 and 2024, respectively.
Remaining Performance Obligation
As of September 30, 2025, we had approximately $203.5 million of remaining performance obligations on contracts with an original duration of one year or more. We expect to recognize revenue on approximately $97.3 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 to five years.