Lantronix (NASDAQ:LTRX) Announces Quarterly Earnings Results

Lantronix (NASDAQ:LTRX) posted its quarterly earnings data on Wednesday. The technology company reported $0.04 EPS for the quarter, beating analysts’ consensus estimates of $0.03 by $0.01, FiscalAI reports. The business had revenue of $31.15 million during the quarter, compared to analysts’ expectations of $30.69 million. Lantronix had a negative return on equity of 6.79% and a negative net margin of 5.52%. Lantronix updated its Q1 2027 guidance to 0.040-0.060 EPS.

Here are the key takeaways from Lantronix’s conference call:

• Fiscal 2026 revenue rose 8% to nearly $121 million, while fourth-quarter revenue reached $31.2 million and non-GAAP EPS increased to $0.04. Gross margin improved to 44.1% on a non-GAAP basis.
• Unmanned Systems revenue reached $12.6 million in fiscal 2026, with active engagements expanding to more than 30 vendors. Management expects the business to generate approximately $25 million or more and represent 15%-20% of fiscal 2027 revenue.
• The company cited favorable regulatory and defense-spending trends, including restrictions and tariffs on foreign-made drones, as structural tailwinds for its NDAA- and TAA-compliant domestic solutions. Lantronix is also expanding internationally and adding sales and advocacy resources.
• The $11.7 million acquisition of Vecima’s Industrial IoT business, including Nero Global Tracking, adds roughly $5 million of annual revenue, mid-to-high-60% gross margins, and about 125,000 tracking tags. Management expects the deal to be immediately earnings-accretive and lift software and services above 10% of company revenue.
• Management warned that memory availability is tightening and prices are rising due to AI infrastructure demand, creating potential component-cost pressure. Drone module growth may also weigh on mix, although the company expects customer cost pass-through and higher-margin recurring revenue to offset much of the impact.

Lantronix Stock Down 3.4%

Shares of LTRX opened at $5.66 on Thursday. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.80 and a current ratio of 2.74. Lantronix has a one year low of $3.58 and a one year high of $8.75. The stock has a market capitalization of $248.93 million, a price-to-earnings ratio of -33.29 and a beta of 1.70. The stock has a 50 day moving average price of $5.74 and a 200 day moving average price of $6.05.

Wall Street Analysts Forecast Growth

LTRX has been the topic of a number of research analyst reports. UBS Group reissued a “buy” rating on shares of Lantronix in a research note on Friday, June 12th. Wall Street Zen cut shares of Lantronix from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Canaccord Genuity Group increased their price objective on shares of Lantronix from $10.50 to $11.00 and gave the company a “buy” rating in a report on Thursday, July 9th. JonesTrading started coverage on shares of Lantronix in a research report on Wednesday, July 15th. They issued a “buy” rating and a $12.00 target price on the stock. Finally, Needham & Company LLC initiated coverage on shares of Lantronix in a research note on Friday, June 12th. They set a “buy” rating and a $11.00 target price for the company. Six analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, Lantronix presently has an average rating of “Moderate Buy” and an average price target of $10.40.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LTRX. Invesco Ltd. purchased a new stake in shares of Lantronix during the fourth quarter worth $68,000. Balyasny Asset Management L.P. purchased a new position in shares of Lantronix in the fourth quarter worth about $86,000. Bridgeway Capital Management LLC purchased a new position in shares of Lantronix in the third quarter worth about $85,000. Squarepoint Ops LLC boosted its position in Lantronix by 52.7% during the third quarter. Squarepoint Ops LLC now owns 19,283 shares of the technology company’s stock worth $88,000 after acquiring an additional 6,654 shares during the last quarter. Finally, Engineers Gate Manager LP boosted its position in Lantronix by 79.1% during the fourth quarter. Engineers Gate Manager LP now owns 20,964 shares of the technology company’s stock worth $123,000 after acquiring an additional 9,256 shares during the last quarter. Hedge funds and other institutional investors own 39.38% of the company’s stock.

Lantronix Company Profile

Lantronix, Inc is a provider of secure data access and management solutions designed to simplify the deployment, monitoring and control of devices and equipment across a wide range of industries. Headquartered in Irvine, California, the company develops hardware and software products that enable connectivity for smart devices, industrial machinery, IT infrastructure and other systems in the Internet of Things (IoT) ecosystem.

Founded in 1989, Lantronix was among the early innovators in serial-to-Ethernet device networking and has since expanded its portfolio to include secure console servers, device servers, gateways and embedded modules.