Lantronix (NASDAQ:LTRX) Announces Quarterly Earnings Results

Key Points

• Lantronix reported a quarterly EPS loss of ($0.03), missing the consensus $0.05, with revenue of $30.18M slightly below expectations, and updated Q4 2026 guidance to $0.03–$0.05 EPS.
• Management cited a 22% year-over-year increase in embedded IoT solutions and raised its drone revenue outlook to $10M–$14M for fiscal 2026, forecasting drone sales to roughly double in fiscal 2027 to about 15–20% of total revenue.
• Profitability and liquidity improved: GAAP gross margin ~43%, non‑GAAP net income $1.5M, GAAP net loss narrowed to $1.2M, cash of $23.5M, debt reduced to $8.7M, and positive operating cash flow year‑to‑date.

Lantronix (NASDAQ:LTRX - Get Free Report) announced its earnings results on Wednesday. The technology company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.08), Zacks reports. The firm had revenue of $30.18 million during the quarter, compared to analysts' expectations of $30.49 million. Lantronix had a negative return on equity of 10.37% and a negative net margin of 7.90%. Lantronix updated its Q4 2026 guidance to 0.030-0.050 EPS.

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

• Q3 revenue was $30.2 million with non-GAAP EPS of $0.04 (both within guidance), driven by strong demand for embedded IoT and a 22% year-over-year increase in embedded IoT solutions.
• Management raised its fiscal 2026 drone outlook to $10 million-$14 million (midpoint $12M) and expects drone revenue to roughly double in fiscal 2027 to represent about 15%-20% of total revenue.
• Profitability and liquidity improved—GAAP gross margin ~43%, non-GAAP net income $1.5M, GAAP net loss narrowed to $1.2M, cash of $23.5M and debt reduced to $8.7M, with positive operating cash flow YTD.
• Core enterprise and networking IoT system solutions are being impacted by slower federal spending and extended procurement cycles, creating timing-driven order delays.
• Strategic moves broaden market exposure—expanded multi-silicon strategy with MediaTek, new international customers (U.K., Ukraine), and partnerships (e.g., Unusual Machines) while expanding into counter‑UAS and spectrum dominance use cases.

Lantronix Stock Down 1.9%

LTRX stock opened at $6.77 on Thursday. The business's 50-day moving average price is $5.98 and its 200-day moving average price is $5.77. The stock has a market cap of $268.70 million, a P/E ratio of -28.21 and a beta of 1.63. The company has a quick ratio of 1.79, a current ratio of 2.75 and a debt-to-equity ratio of 0.13. Lantronix has a twelve month low of $2.03 and a twelve month high of $8.24.

Insider Transactions at Lantronix

In related news, insider Mathi Gurusamy sold 14,467 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $6.21, for a total value of $89,840.07. Following the completion of the sale, the insider directly owned 55,569 shares of the company's stock, valued at approximately $345,083.49. This represents a 20.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 2.40% of the company's stock.

Hedge Funds Weigh In On Lantronix

Hedge funds have recently modified their holdings of the company. Soviero Asset Management LP bought a new stake in Lantronix in the 3rd quarter valued at $2,331,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Lantronix by 135.5% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 669,183 shares of the technology company's stock valued at $3,058,000 after purchasing an additional 385,075 shares during the last quarter. Citadel Advisors LLC increased its holdings in shares of Lantronix by 1,191.2% in the third quarter. Citadel Advisors LLC now owns 195,583 shares of the technology company's stock worth $894,000 after purchasing an additional 180,436 shares during the last quarter. Millennium Management LLC lifted its position in shares of Lantronix by 121.0% in the fourth quarter. Millennium Management LLC now owns 272,512 shares of the technology company's stock worth $1,597,000 after buying an additional 149,194 shares in the last quarter. Finally, UBS Group AG lifted its position in shares of Lantronix by 7,023.2% in the third quarter. UBS Group AG now owns 127,576 shares of the technology company's stock worth $583,000 after buying an additional 125,785 shares in the last quarter. 39.38% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on LTRX shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of Lantronix in a research note on Tuesday, April 21st. Wall Street Zen upgraded shares of Lantronix from a "buy" rating to a "strong-buy" rating in a research report on Saturday, February 7th. Craig Hallum reaffirmed a "buy" rating and set a $10.00 target price on shares of Lantronix in a report on Thursday, February 5th. Finally, Needham & Company LLC increased their price target on shares of Lantronix from $7.50 to $8.50 and gave the stock a "buy" rating in a research report on Thursday, February 5th. Four investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $7.38.

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.