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Lantronix (LTRX)
NASDAQ:LTRX
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Lantronix (LTRX) AI Stock Analysis

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LTRX

Lantronix

(NASDAQ:LTRX)

Rating:66Neutral
Price Target:
$3.00
▼(-6.25%Downside)
Lantronix's overall stock score is primarily influenced by its technical momentum and financial performance. While the stock shows positive technical indicators, financial challenges such as negative profit margins and valuation concerns weigh on the score. The mixed sentiment from the earnings call, highlighting both strategic expansions and operational challenges, further moderates the score.
Positive Factors
Growth Prospects
Lantronix has healthy growth prospects in the 'smart' segment, as well as emerging 'out-of-band' and intelligent-edge enterprise solutions.
Product Innovation
Important new product innovations are underway at the company.
Strategic Initiatives
Management is placing key focus on edge AI/compute applications with several green-shoot wins.
Negative Factors
Customer Challenges
Key customer Gridspertise halted procurement due to excess inventory relative to the pace of deployments.
Financial Performance
The company reported GAAP net income and GAAP net income per share that were worse than respective estimates.
Revenue Decline
Revenue was down sequentially from the prior quarter, primarily due to lower volume from the company's largest automotive customer (Togg) and slightly lower activity.

Lantronix (LTRX) vs. SPDR S&P 500 ETF (SPY)

Lantronix Business Overview & Revenue Model

Company DescriptionLantronix, 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 MoneyLantronix 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 Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q3-2025)
|
% Change Since: 40.97%|
Next Earnings Date:Sep 10, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with positive aspects including revenue and EPS within guidance, gross margin improvement, and expansion of distribution networks. However, these were balanced by notable challenges such as a decline in revenue, restructuring costs, and expected pressure on future gross margins.
Q3-2025 Updates
Positive Updates
Revenue and EPS Within Guidance
Lantronix reported a revenue of $28.5 million for Q3 fiscal 2025 and a non-GAAP EPS of $0.03, both within the quarterly guidance range.
Gross Margin Improvement
GAAP gross margin improved to 43.5% in Q3 2025 from 42.6% in the prior quarter and 40.1% in the year-ago quarter. Non-GAAP gross margin was 44.1%, showing a similar improvement.
Expansion of Distribution Network
Lantronix expanded its partnership with TD SYNNEX to distribute throughout Europe and leveraged the acquired channel network from NetComm to expand in Asia Pacific, Australia, and New Zealand.
New AI-Powered Camera Solution
Lantronix announced a new AI-powered camera solution with Teledyne/FLIR, integrating advanced processing for AI-driven situational awareness, thermal imaging, and real-time decision-making.
Improved Cash Position
Cash and cash equivalents increased to $20 million by the end of Q3, with positive operating cash flow of $3.2 million for the quarter.
Negative Updates
Revenue Decline
Revenue was down sequentially and year-over-year due to no shipments to a large smart grid customer in Europe. GAAP net loss was $3.9 million compared to a $400,000 loss in the year-ago quarter.
Restructuring Costs
The current quarter GAAP net loss includes a restructuring charge of approximately $1.6 million related to cost reduction initiatives.
Pressure on Gross Margins Expected
Lantronix expects pressure on gross margins in Q4 due to the current environment, affecting non-GAAP EPS forecast.
Dependence on Large Customers
The decline in revenue was partly due to dependency on large customers like Gridspertise, with no shipments in the current quarter.
Company Guidance
During the Lantronix 2025 Q3 Results Conference Call, the company reported revenue of $28.5 million and a non-GAAP EPS of $0.03, both within their guidance range. Their GAAP gross margin increased to 43.5% from 42.6% in the prior quarter, while the non-GAAP gross margin rose to 44.1% from 43.2%. Operating expenses were reported at $16 million, with non-GAAP OpEx reduced by $1.2 million year-over-year. The company reported a GAAP net loss of $3.9 million, partly due to a restructuring charge, but achieved a non-GAAP net income of $1.1 million. Lantronix's cash position improved to $20 million, supported by a positive operating cash flow of $3.2 million for the quarter. For Q4 2025, they anticipate revenue between $26.5 million to $30.5 million, with non-GAAP EPS expected between $0.00 to $0.02 per share. The company emphasized its focus on expanding its distribution network, managing costs in response to tariffs, and advancing its edge AI solutions.

Lantronix Financial Statement Overview

Summary
Lantronix shows a mixed financial performance with stable gross profit margins but negative EBIT and net profit margins, reflecting ongoing operational challenges. The cash flow position is improving, indicating effective cash management despite losses.
Income Statement
55
Neutral
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
65
Positive
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
70
Positive
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue160.33M131.19M129.66M71.48M59.88M
Gross Profit64.35M56.26M55.59M33.02M26.90M
EBITDA4.62M792.00K896.00K377.00K-1.85M
Net Income-4.52M-8.98M-5.36M-4.04M-10.74M
Balance Sheet
Total Assets136.21M151.62M137.37M72.57M67.93M
Cash, Cash Equivalents and Short-Term Investments26.24M13.45M17.22M9.74M7.69M
Total Debt26.55M18.96M15.95M3.68M5.15M
Total Liabilities54.85M74.07M57.48M26.47M21.41M
Stockholders Equity81.36M77.56M79.90M46.10M46.52M
Cash Flow
Free Cash Flow17.14M-2.44M-11.53M3.52M-3.09M
Operating Cash Flow18.62M237.00K-9.42M4.30M-2.52M
Investing Cash Flow-1.48M-7.32M-25.75M-783.00K-13.97M
Financing Cash Flow-4.36M3.32M42.65M-1.47M5.90M

Lantronix Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.20
Price Trends
50DMA
2.65
Positive
100DMA
2.50
Positive
200DMA
3.01
Positive
Market Momentum
MACD
0.17
Positive
RSI
65.87
Neutral
STOCH
61.28
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 3.2 is above the 20-day moving average (MA) of 3.07, above the 50-day MA of 2.65, and above the 200-day MA of 3.01, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 65.87 is Neutral, neither overbought nor oversold. The STOCH value of 61.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LTRX.

Lantronix Risk Analysis

Lantronix disclosed 43 risk factors in its most recent earnings report. Lantronix reported the most risks in the "Finance & Corporate" 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥234.20B14.887.50%2.60%9.27%5.76%
66
Neutral
$125.23M-10.88%-2.06%-22.58%
63
Neutral
$88.30M-8.55%-42.62%61.22%
57
Neutral
$57.91M-25.57%8.46%39.81%
52
Neutral
$103.49M-6.78%-14.38%49.11%
49
Neutral
$108.80M21.46111.75%1.60%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LTRX
Lantronix
3.20
-0.64
-16.67%
KVHI
KVH Industries
5.28
0.55
11.63%
SILC
Silicom
15.90
-0.20
-1.24%
AIRG
Airgain
5.04
-2.64
-34.37%
INSG
Inseego
7.36
-2.39
-24.51%

Lantronix Corporate Events

Executive/Board Changes
Lantronix Expands Board, Appoints New Director
Neutral
Jul 11, 2025

On July 7, 2025, Lantronix, Inc. expanded its board of directors from five to six members, appointing James C. Auker as a non-employee director effective July 8, 2025. This appointment was part of a Cooperation Agreement with Chain of Lakes Investment Fund, LLC, and others. Mr. Auker will receive compensation in line with the company’s standard program for non-employee directors, including a grant of 10,387 restricted stock units under the 2020 Performance Incentive Plan, set to vest on November 5, 2025. The board confirmed Mr. Auker’s independence and financial literacy according to Nasdaq and SEC regulations.

The most recent analyst rating on (LTRX) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Lantronix stock, see the LTRX Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Lantronix Announces Cooperation Agreement with Shareholders
Neutral
Jun 30, 2025

On June 30, 2025, Lantronix announced a cooperation agreement with Chain of Lakes Investment Fund, LLC, and other shareholders, which includes appointing James C. Auker to its Board of Directors. This agreement aims to enhance shareholder value through strategic collaboration and includes provisions for shareholder voting commitments and strategic evaluations, potentially impacting the company’s governance and strategic direction.

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.

Executive/Board ChangesBusiness Operations and Strategy
Lantronix Expands Board with New Director Appointment
Positive
May 12, 2025

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.

Business Operations and StrategyFinancial Disclosures
Lantronix Reports Q3 2025 Results Amid Strategic Growth
Neutral
May 8, 2025

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.

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.Date of analysis: Jun 27, 2025