Lantronix (LTRX) AI Stock Analysis

• Market Cap: $117.06M
• Dividend Yield: N/A
• Average Volume (3M): 278.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -2.06%
• EPS Growth: -22.58%
• Country: US
• Employees: 367
• Sector: Technology
• Sector Strength: 87
• Industry: Communication Equipment
• EPS (TTM): 0.03
• Shares Outstanding: 38,890,327
• 10 Day Avg. Volume: 329,302
• 30 Day Avg. Volume: 278,677
• PEG Ratio: -0.30
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -62.66
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: 12.88
• 1Y Price Target: $4.75
• Price Target Upside: 57.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: $3.00 ▼(-0.33%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

Financial Performance

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

Partnerships

There is a deep partnership with Qualcomm, which is beneficial for Lantronix.

Product Innovations

Important new product innovations are underway at the company.

Negative Factors

Customer Procurement

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

Guidance

Guidance for June was weaker than anticipated.

Revenue Decline

Revenue declined as expected and was down 9% q/q and 16% y/y.

Lantronix Business Overview & Revenue Model

Company Description

Lantronix, Inc. provides software as a service (SaaS), engineering services, and hardware for edge computing, the Internet of Things (IoT), and remote environment management (REM) in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan. The company's IoT products include IoT Connectivity, which provide wired and wireless connections that enhance the value and utility of modern electronic systems and equipment through secure network connectivity, power for IoT end devices through Power over Ethernet, application hosting, protocol conversion, media conversion, secure access for distributed IoT deployments, and various other functions; IoT Compute, such as application processing delivering compute to meet customer needs for data transformation, computer vision, machine learning, augmented/virtual reality, audio/video aggregation and distribution, and custom applications; and IoT Telematics, which provides power efficient products designed to support communications across interfaces and industrial protocols for vehicle, fleet, and asset tracking and management. It also offers network switches, media converters, power over ethernet, NICS and optical SFPs, system on modules, single board computers, and development kits; and services for mechanical, hardware, and software engineering for camera, audio, and artificial intelligence/machine learning development, as well as xPrintServer. In addition, the company's REM products include out-of-band management, console management, power management, and IP connected keyboard-video-mouse products that offers remote access to IT and networking infrastructure deployed in test labs, data centers, branch offices, remote sites, and server rooms. Further, its SaaS platform enables customers to deploy, monitor, manage, and automate across their global deployments through a single platform login. Lantronix, Inc. was founded in 1989 and is headquartered in Irvine, California.

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 faces operational and profitability challenges with declining revenue and negative net income. However, the company shows resilience in cash flow management with a positive free cash flow position and a healthy equity ratio.

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
EBITDA	-1.32M	4.62M	792.00K	896.00K	377.00K	-1.85M
Net Income	-8.36M	-4.52M	-8.98M	-5.36M	-4.04M	-10.74M
Balance Sheet
Total Assets	124.19M	136.21M	151.62M	137.37M	72.57M	67.93M
Cash, Cash Equivalents and Short-Term Investments	20.00M	26.24M	13.45M	17.22M	9.74M	7.69M
Total Debt	3.06M	26.55M	18.96M	15.95M	3.68M	5.15M
Total Liabilities	48.72M	54.85M	74.07M	57.48M	26.47M	21.41M
Stockholders Equity	75.47M	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: 3.01
• 50DMA: Positive
• 100DMA: Positive
• 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 3.01 is above the 20-day moving average (MA) of 2.59, above the 50-day MA of 2.36, and below the 200-day MA of 3.08, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 69.01 is Neutral, neither overbought nor oversold. The STOCH value of 74.65 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	66 Neutral	$117.06M	―	-10.88%	―	-2.06%	-22.58%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
SILC	63 Neutral	$86.59M	―	-8.55%	―	-42.62%	61.22%
KVHI	56 Neutral	$106.03M	―	-6.78%	―	-14.38%	49.11%
INSG	56 Neutral	$130.27M	25.70	111.75%	―	1.60%	―
AIRG	51 Neutral	$49.65M	―	-25.57%	―	8.46%	39.81%
FKWL		$47.73M	―	-4.62%	―	―	―

Lantronix Corporate Events

Lantronix Announces Cooperation Agreement with Shareholders

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.

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.