Lantronix (NASDAQ:LTRX) Releases Earnings Results, Misses Expectations By $0.01 EPS

Lantronix (NASDAQ:LTRX - Get Free Report) posted its quarterly earnings data on Wednesday. The technology company reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.01), FiscalAI reports. Lantronix had a negative return on equity of 6.79% and a negative net margin of 5.52%.The company had revenue of $30.18 million during the quarter, compared to the consensus estimate of $30.49 million. 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 Price Performance

LTRX opened at $5.83 on Friday. The stock has a market cap of $231.39 million, a P/E ratio of -34.29 and a beta of 1.63. Lantronix has a 12 month low of $2.03 and a 12 month high of $8.24. The company has a quick ratio of 1.79, a current ratio of 2.75 and a debt-to-equity ratio of 0.13. The company has a fifty day simple moving average of $5.98 and a 200 day simple moving average of $5.78.

Analyst Ratings Changes

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

Insiders Place Their Bets

In other Lantronix news, insider Mathi Gurusamy sold 14,467 shares of the business's stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $6.21, for a total value of $89,840.07. Following the completion of the transaction, the insider directly owned 55,569 shares of the company's stock, valued at approximately $345,083.49. The trade was a 20.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.40% of the company's stock.

Hedge Funds Weigh In On Lantronix

Several institutional investors and hedge funds have recently modified their holdings of LTRX. Vanguard Group Inc. increased its stake in Lantronix by 2.8% during the 3rd quarter. Vanguard Group Inc. now owns 1,486,791 shares of the technology company's stock worth $6,795,000 after purchasing an additional 40,890 shares in the last quarter. Marshall Wace LLP lifted its stake in 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 in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in 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 in the last quarter. Soviero Asset Management LP boosted its holdings in shares of Lantronix by 11.8% in 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 during the period. Finally, Geode Capital Management LLC boosted its holdings in shares of Lantronix by 3.3% in the fourth quarter. Geode Capital Management LLC now owns 373,555 shares of the technology company's stock valued at $2,190,000 after buying an additional 11,978 shares during the period. 39.38% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Lantronix

Here are the key news stories impacting Lantronix this week:

• Positive Sentiment: Management raised fiscal 2026 drone revenue expectations to $10M–$14M and said drone business momentum could represent roughly 15%–20% of revenue in fiscal 2027 — a meaningful growth vector that could improve margins if realized. Lantronix targets $10M-$14M fiscal 2026 drone revenue
• Neutral Sentiment: CEO Saleel Awsare and CFO Brent Stringham will participate in Needham and Craig-Hallum investor conferences — increases management access to investors and may help communication but has no direct near-term financial impact. Lantronix CEO and CFO to Participate in Needham and Craig-Hallum Conferences
• Neutral Sentiment: Full Q3 earnings call/transcript and press release are available for investors to hear management’s detail on customer wins, supply-chain commentary and the drone outlook. Useful for deeper due diligence but not new market-moving data by itself. Lantronix (LTRX) Q3 2026 Earnings Transcript
• Negative Sentiment: Lantronix reported GAAP EPS of ($0.03) and non‑GAAP EPS of $0.04; the GAAP result missed consensus and the company showed a negative net margin and negative ROE, which pressured sentiment. Revenue of ~$30.2M was slightly below estimates. Lantronix Reports Fiscal Third-Quarter 2026 Financial Results
• Negative Sentiment: Q4 guidance was provided at EPS $0.03–$0.05 and revenue $29M–$33M; the revenue range and midpoint sit modestly below Street expectations and the EPS range’s low end undercuts consensus, leaving analysts cautious. Lantronix, Inc. (LTRX) Misses Q3 Earnings and Revenue Estimates

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.