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Lantronix
(NASDAQ:LTRX)
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Rating:55Neutral
Price Target:
$5.50
▼(-6.14% Downside)
Action:Reiterated
Date:06/27/26
LTRX scores in the mid-range primarily due to improving financial fundamentals (strong revenue growth, much lower debt, and currently positive operating/free cash flow) and a generally positive earnings call with raised drone outlook and sustained ~43% gross margins. These are offset by a weak technical backdrop (price below all key moving averages with negative MACD and low RSI/Stoch) and continued GAAP unprofitability, which also limits the usefulness of valuation signals given the negative P/E.
Positive Factors
Revenue Growth & Margin Stability
A very strong TTM revenue rebound (+143%) combined with sustained ~40–43% gross margins indicates durable product pricing and favorable mix. This supports long-term operating leverage as design wins convert to production, helping margins scale as recurring and higher‑ASP sales grow.
Negative Factors
Persistent GAAP Unprofitability
Despite revenue recovery and non‑GAAP gains, the company remains GAAP loss‑making, which suppresses returns on shareholder capital and limits reinvestment capacity. Persistent GAAP losses increase scrutiny on cost structure and the need to convert growth into sustainable accounting profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Margin Stability
A very strong TTM revenue rebound (+143%) combined with sustained ~40–43% gross margins indicates durable product pricing and favorable mix. This supports long-term operating leverage as design wins convert to production, helping margins scale as recurring and higher‑ASP sales grow.
Read all positive factors
Lantronix Key Performance Indicators (KPIs)
Any
Net Revenue by Geography
Breaks revenue down by region (e.g., North America, EMEA, APAC), revealing where Lantronix earns sales and where the biggest growth opportunities or vulnerabilities lie. Highlights exposure to currency moves, regional demand cycles, and supply-chain or geopolitical risks that can concentrate or diversify revenue streams.
Breaks revenue down by region (e.g., North America, EMEA, APAC), revealing where Lantronix earns sales and where the biggest growth opportunities or vulnerabilities lie. Highlights exposure to currency moves, regional demand cycles, and supply-chain or geopolitical risks that can concentrate or diversify revenue streams.
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The Fly
The FlyLantronix (LTRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$261.41M
Dividend YieldN/A
Average Volume (3M)1.22M
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth-17.17%
EPS Growth23.08%
CountryUS
Employees352
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.17
Shares Outstanding44,608,597
10 Day Avg. Volume849,739
30 Day Avg. Volume1,219,005
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)1.49
Price to Sales (P/S)0.90
P/FCF Ratio16.35
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$10.25Price Target Upside74.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.23
Revenue Forecast (FY)$138.87M
Lantronix Business Overview & Revenue Model
Company Description
Lantronix, Inc. is a technology company specializing in the delivery of hardware, software-as-a-service (SaaS), and professional engineering services. Its solutions are designed to support edge computing, the Internet of Things (IoT), and remote e...
How the Company Makes Money
Lantronix primarily makes money by selling connectivity and embedded computing products (hardware) and related software/services to OEMs and enterprise/industrial customers that integrate these components into their own connected devices and syste...
Lantronix Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed clear progress: recurring revenue expansion via an accretive tuck-in, strong unmanned systems momentum with $12.6M in revenue and >3x increase in engagements, improved gross margins and a strengthened balance sheet (>$60M cash and debt-free). Management acknowledged supply-chain/memory cost pressure and potential mix effects as drone module volume grows, but presented mitigation actions (secured supply, diversified manufacturing) and offset strategies (higher-margin ARR, product wins). Given the scale and number of positive developments and the company’s improved financial flexibility, the positives outweigh the challenges.Positive Updates
Revenue Growth and Quarter Finish
Fiscal 2026 revenue nearly $121.0M, up 8% year-over-year from ~$111M (ex-Gridspertise). Q4 revenue of $31.2M grew both sequentially and 8% YoY and was within guidance.
Negative Updates
Supply-Chain and Memory Tightness
Memory availability has tightened and prices have increased as AI infrastructure and hyperscalers consume supply. This creates industry-wide component cost pressure; company is proactively securing supply but acknowledges potential cost exposure.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue Growth and Quarter Finish
Fiscal 2026 revenue nearly $121.0M, up 8% year-over-year from ~$111M (ex-Gridspertise). Q4 revenue of $31.2M grew both sequentially and 8% YoY and was within guidance.
Read all positive updates
Company Guidance
Lantronix guided Q1 FY2027 revenue of $31.0–$33.0 million and non‑GAAP EPS of $0.04–$0.06, and for FY2027 expects double‑digit revenue growth with unmanned systems representing 15%–20% of revenue (management indicated roughly $25M+ of UAS revenue opportunity next year); by way of context FY2026 revenue was nearly $121M (up ~8% YoY vs. ~$111M), Q4 revenue was $31.2M (8% YoY), embedded IoT/IoT solutions grew >15% annually (embedded IoT including drones grew ~34% YoY), unmanned systems revenue was $12.6M (above the prior $10–$14M midpoint), Q4 GAAP gross margin 43.7% / non‑GAAP gross margin 44.1% (management expects margins at or near current levels in FY2027 with upside possible), Q4 GAAP operating expense $14M, Q4 GAAP net loss $0.3M (≈$0.01/sh), Q4 non‑GAAP net income $1.8M ($0.04/sh), the company ended the year with >$60M cash after raising ≈$44M and repaying $8.7M of debt (debt‑free), generated operating cash flow of ~$1.9M in Q4 and ~$9.9M for the year, had net inventory of $25.8M, and closed the $11.7M Nero tuck‑in (adds ~ $5M ARR and pushes software & services to ~10%+ of revenue with mid‑to‑high‑60s gross margins).Lantronix Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
64
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 118.58M | 122.92M | 160.33M | 131.19M | 129.66M | 71.48M |
| Gross Profit | 49.58M | 51.70M | 64.35M | 56.26M | 55.59M | 33.02M |
| EBITDA | -2.59M | -5.07M | 4.62M | 792.00K | 896.00K | 377.00K |
| Net Income | -6.54M | -11.37M | -4.52M | -8.98M | -5.36M | -4.04M |
Balance Sheet | ||||||
| Total Assets | 120.02M | 123.72M | 136.21M | 151.62M | 137.37M | 72.57M |
| Cash, Cash Equivalents and Short-Term Investments | 23.52M | 20.10M | 26.24M | 13.45M | 17.22M | 9.74M |
| Total Debt | 16.88M | 21.16M | 26.55M | 31.25M | 24.23M | 6.01M |
| Total Liabilities | 45.55M | 49.34M | 54.85M | 74.07M | 57.48M | 26.47M |
| Stockholders Equity | 74.47M | 74.38M | 81.36M | 77.56M | 79.90M | 46.10M |
Cash Flow | ||||||
| Free Cash Flow | 8.46M | 6.78M | 17.14M | -2.44M | -11.53M | 3.52M |
| Operating Cash Flow | 9.00M | 7.29M | 18.62M | 237.00K | -9.42M | 4.30M |
| Investing Cash Flow | -546.00K | -6.96M | -1.48M | -7.32M | -25.75M | -783.00K |
| Financing Cash Flow | -4.94M | -6.46M | -4.36M | 3.32M | 42.65M | -1.47M |
Lantronix Technical Analysis
Negative
5.86
Price Trends
5.76
Negative
6.15
Negative
5.98
Negative
Market Momentum
0.04
Positive
45.67
Neutral
15.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTRX, the sentiment is Negative. The current price of 5.86 is below the 20-day moving average (MA) of 5.94, above the 50-day MA of 5.76, and below the 200-day MA of 5.98, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 15.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LTRX.
Lantronix Risk Analysis
Lantronix disclosed 44 risk factors in its most recent earnings report. Lantronix reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lantronix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $289.34M | 21.10 | 29.34% | ― | 15.70% | 9.65% | |
67 Neutral | $235.05M | 38.76 | 4.38% | 4.18% | 2.47% | -43.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $188.15M | -57.34 | -1.90% | ― | -8.88% | -122.88% | |
56 Neutral | $273.67M | 36.52 | 3.37% | ― | 0.23% | ― | |
55 Neutral | $261.41M | -51.74 | -8.79% | ― | -17.17% | 23.08% | |
41 Neutral | $74.39M | 31.19 | 65.39% | ― | -0.81% | -61.23% |
* Technology Sector Average
LTRX
Lantronix
5.66
1.95
52.56%
AUDC
Audiocodes
10.04
1.07
11.88%
AVNW
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20.91
-2.05
-8.93%
CRNT
Ceragon Networks
2.07
0.06
2.99%
BKTI
BK Technologies
76.82
6.35
9.01%
INSG
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4.52
-7.85
-63.46%
Lantronix Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Lantronix Completes Equity Offering to Fund Growth Initiatives
Positive
Jun 1, 2026
On May 29, 2026, Lantronix Inc. entered into an underwriting agreement with Needham Company and Canaccord Genuity for an underwritten public offering of 4,166,667 common shares at $7.20 each, later expanded when underwriters fully exercised a 30-...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Lantronix Launches $30 Million At-The-Market Offering
Positive
May 8, 2026
On May 8, 2026, Lantronix, Inc. entered into a Sales Agreement with Needham Company and Canaccord Genuity to establish an at-the-market equity offering program for up to $30 million of its common stock. The shares will be issued under an effectiv...
Business Operations and StrategyFinancial Disclosures
Lantronix Posts Q3 Results, Boosts Drone Revenue Outlook
Positive
May 6, 2026
On May 6, 2026, Lantronix reported fiscal third-quarter 2026 results for the period ended March 31, posting net revenue of $30.2 million, GAAP loss per share of $0.03 and non-GAAP earnings per share of $0.04, with cash and equivalents of $23.5 mil...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.