Lantronix (NASDAQ:LTRX) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Lantronix (NASDAQ:LTRX) posted its earnings results on Wednesday. The technology company reported $0.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.01, FiscalAI reports. The firm had revenue of $31.15 million during the quarter, compared to analyst estimates of $30.69 million. Lantronix had a negative net margin of 3.46% and a negative return on equity of 5.62%. 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 Price Performance

NASDAQ LTRX opened at $6.03 on Friday. Lantronix has a 12 month low of $3.86 and a 12 month high of $8.75. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.74 and a quick ratio of 1.80. The firm has a market capitalization of $265.22 million, a PE ratio of -54.82 and a beta of 1.70. The company’s 50 day simple moving average is $5.73 and its 200 day simple moving average is $6.05.

Wall Street Analysts Forecast Growth

LTRX has been the topic of a number of recent analyst reports. Wall Street Zen cut Lantronix from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Canaccord Genuity Group increased their price objective on Lantronix from $10.50 to $11.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. JonesTrading assumed coverage on Lantronix in a research report on Wednesday, July 15th. They issued a “buy” rating and a $12.00 target price on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Lantronix in a research report on Friday, July 17th. Finally, Needham & Company LLC reissued a “buy” rating and set a $11.00 price target on shares of Lantronix in a report on Thursday. Six equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $10.40.

Hedge Funds Weigh In On Lantronix

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LTRX. Vanguard Group Inc. increased its position in shares of Lantronix by 2.8% during the 3rd quarter. Vanguard Group Inc. now owns 1,486,791 shares of the technology company’s stock valued at $6,795,000 after purchasing an additional 40,890 shares during the period. Marshall Wace LLP lifted its holdings in shares of Lantronix by 9.7% in the fourth quarter. Marshall Wace LLP now owns 678,929 shares of the technology company’s stock valued at $3,979,000 after buying an additional 59,866 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Lantronix by 135.5% in the third quarter. Arrowstreet Capital Limited Partnership now owns 669,183 shares of the technology company’s stock valued at $3,058,000 after buying an additional 385,075 shares during the period. Soviero Asset Management LP boosted its stake in Lantronix by 11.8% during the fourth quarter. Soviero Asset Management LP now owns 570,000 shares of the technology company’s stock valued at $3,340,000 after buying an additional 60,000 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in Lantronix by 3.3% during the fourth quarter. Geode Capital Management LLC now owns 373,555 shares of the technology company’s stock worth $2,190,000 after acquiring an additional 11,978 shares during the period. 39.38% of the stock is owned by institutional investors.

Key Stories Impacting Lantronix

Here are the key news stories impacting Lantronix this week:

• Positive Sentiment: Quarterly results showed improved operating performance. Fiscal fourth-quarter revenue increased 8% year over year to $31.2 million, while gross profit rose 17.9% to $13.6 million. Reported EPS of $0.04 was slightly above the $0.03 analyst consensus cited by MarketBeat, although Zacks characterized results as matching its consensus estimate. Lantronix fiscal fourth-quarter results
• Positive Sentiment: Cash flow and liquidity strengthened. Operating cash flow rose to $2.2 million, cash and equivalents reached $60.5 million, and total liabilities declined to $41.1 million. These trends may reduce balance-sheet concerns even though Lantronix remained slightly unprofitable at the operating and net-income levels. Lantronix Q4 earnings and financial position
• Positive Sentiment: Growth expectations and analyst support were favorable. Management expects unmanned systems to contribute 15%–20% of fiscal 2027 revenue and guided fiscal Q1 revenue to $31 million–$33 million, with EPS of $0.04–$0.06. Needham reaffirmed its “Buy” rating and $11 price target, implying substantial upside from recent trading levels. Lantronix unmanned systems outlook
• Neutral Sentiment: Executive employment agreements were amended. Lantronix updated compensation and severance arrangements for senior executives, including the chief executive. The changes provide administrative clarity but could draw investor scrutiny depending on the size and terms of the commitments. Lantronix executive compensation update
• Negative Sentiment: Profitability remains a risk. Lantronix reported an operating loss and net loss for the quarter, and an insider sold 14,467 shares during the past six months. These factors may temper enthusiasm around the company’s growth outlook.

About Lantronix

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.