Lantronix (LTRX) AI Stock Analysis

• Market Cap: $89.45M
• Dividend Yield: N/A
• Average Volume (3M): 258.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -2.06%
• EPS Growth: -22.58%
• Country: US
• Employees: 367
• Sector: Technology
• Sector Strength: 82
• Industry: Communication Equipment
• EPS (TTM): 0.03
• Shares Outstanding: 38,890,327
• 10 Day Avg. Volume: 257,842
• 30 Day Avg. Volume: 258,406
• PEG Ratio: 0.16
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.87
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: 6.35
• 1Y Price Target: $4.60
• Price Target Upside: 88.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 64 Neutral
• Price Target: $2.50 ▲(2.46%Upside)

Lantronix's overall performance is moderate, with strengths in cash flow management and strategic board expansion. However, financial challenges, valuation concerns, and mixed earnings sentiment weigh on the score.

Positive Factors

Financial Performance

The company is generating positive cash flow with a healthy balance sheet.

Growth Prospects

Lantronix has healthy growth prospects in the 'smart' segment, as well as emerging 'out-of-band' and intelligent-edge enterprise solutions.

Product Innovations

Important new product innovations are underway at the company, targeting a massive TAM capable of transformational success.

Negative Factors

Customer Activity

Key customer Gridspertise halted procurement due to excess inventory relative to the pace of deployments.

Earnings

The company reported GAAP net income and GAAP net income per share that were worse than respective estimates.

Guidance

Guidance for June was weaker than anticipated.

Lantronix Business Overview & Revenue Model

Company Description

Lantronix, Inc. (LTRX) is a global provider of secure data access and management solutions for Internet of Things (IoT) and Information Technology (IT) environments. The company operates in sectors such as IoT connectivity, remote environment management, and mobility solutions. Lantronix's core products and services include IoT modules, embedded IoT gateways, and secure device management software, which facilitate secure and reliable connectivity for various industrial and commercial applications.

How the Company Makes Money

Lantronix makes money primarily through the sale of its IoT connectivity and management solutions. The company generates revenue from the sale of hardware products, such as IoT modules and gateways, which are embedded into customers' products and systems to enable secure and efficient data transmission. Additionally, Lantronix earns money from software solutions that provide device management and remote monitoring capabilities. Key revenue streams include product sales, software licensing, and subscription services for ongoing support and updates. Strategic partnerships and collaborations with industry leaders further enhance Lantronix's market reach and contribute to its financial performance.

Lantronix Financial Statement Overview

Summary

Lantronix displays resilience in cash flow management with positive free cash flow growth, but faces challenges with declining revenue and negative profit margins. The balance sheet remains solid, but profitability issues are significant.

Income Statement

Lantronix shows a mixed performance with declining revenue in TTM compared to the previous year, indicating a challenging market environment. Gross profit margins remain stable, but negative EBIT and EBITDA margins reflect ongoing operational challenges. The net profit margin is also negative, pointing to persistent losses.

Balance Sheet

The company maintains a healthy equity ratio, suggesting a solid capital structure with a manageable debt-to-equity ratio. However, the negative return on equity highlights profitability issues, which need addressing to enhance shareholder value.

Cash Flow

Lantronix has improved its free cash flow position, showing positive growth in TTM. The operating cash flow to net income ratio is robust, indicating effective cash flow management despite net losses. Nonetheless, sustaining positive free cash flow is crucial for long-term financial health.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
143.16M	160.33M	131.19M	129.66M	71.48M	59.88M
	Gross Profit
57.13M	64.35M	56.26M	55.59M	33.02M	26.90M
	EBIT
-6.78M	-2.86M	-6.67M	-2.17M	-643.00K	1.72M
	EBITDA
-1.32M	4.62M	792.00K	896.00K	377.00K	-1.85M
	Net Income Common Stockholders
-8.36M	-4.52M	-8.98M	-5.36M	-4.04M	-10.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.79M	26.24M	13.45M	17.22M	9.74M	7.69M
	Total Assets
151.49M	136.21M	151.62M	137.37M	72.57M	67.93M
	Total Debt
30.55M	26.55M	18.96M	15.95M	3.68M	5.15M
	Net Debt
17.75M	314.00K	5.51M	-1.28M	-6.06M	-2.54M
	Total Liabilities
73.46M	54.85M	74.07M	57.48M	26.47M	21.41M
	Stockholders Equity
78.03M	81.36M	77.56M	79.90M	46.10M	46.52M
Cash Flow		Free Cash Flow
7.99M	17.14M	-2.44M	-11.53M	3.52M	-3.09M
	Operating Cash Flow
8.51M	18.62M	237.00K	-9.42M	4.30M	-2.52M
	Investing Cash Flow
-6.97M	-1.48M	-7.32M	-25.75M	-783.00K	-13.97M
	Financing Cash Flow
-6.18M	-4.36M	3.32M	42.65M	-1.47M	5.90M

Lantronix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTRX, the sentiment is Positive. The current price of 2.44 is above the 20-day moving average (MA) of 2.26, above the 50-day MA of 2.19, and below the 200-day MA of 3.17, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.92 is Neutral, neither overbought nor oversold. The STOCH value of 76.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LTRX.

Lantronix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTRX	64 Neutral	$89.45M	―	-10.88%	―	-2.06%	-22.58%
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
SILC	58 Neutral	$82.49M	―	-8.55%	―	-42.62%	61.22%
INSG	56 Neutral	$114.96M	22.71	111.75%	―	1.60%	―
KVHI	51 Neutral	$101.92M	―	-6.78%	―	-14.38%	49.11%
AIRG	49 Neutral	$48.59M	―	-25.57%	―	8.46%	39.81%

Lantronix Corporate Events

Lantronix Expands Board with New Director Appointment

On May 6, 2025, Lantronix Inc. expanded its board of directors from four to five members, appointing Dr. Sailesh Chittipeddi as a non-employee director and member of the Audit Committee. Dr. Chittipeddi, with his extensive experience in Industrial, IoT, and Infrastructure businesses, is expected to enhance Lantronix’s strategic positioning amid global supply chain challenges. His appointment is anticipated to bring valuable insights into manufacturing, procurement, and logistics, benefiting the company’s operations and stakeholders.

The most recent analyst rating on (LTRX) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Lantronix stock, see the LTRX Stock Forecast page.

Lantronix Reports Q3 2025 Results Amid Strategic Growth

On May 8, 2025, Lantronix Inc. reported its third-quarter fiscal 2025 results, achieving a net revenue of $28.5 million, which was within its guidance range. Despite a challenging macroeconomic environment, the company continued to execute its strategy to lead in intelligent edge computing, launching the Open-Q™ 8550CS SoM and supporting AI-driven applications like Teledyne/FLIR’s drone thermal camera. The company reported a GAAP EPS of ($0.10) and a non-GAAP EPS of $0.03, reflecting its ongoing investment in high-growth areas such as AI-enabled gateways and 5G connectivity. Lantronix’s efforts are aimed at positioning itself for the next wave of industrial and enterprise transformation.