Lantronix (LTRX) AI Stock Analysis

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Lantronix

(NASDAQ:LTRX)

56Neutral

Lantronix shows resilience in cash flow management and strategic initiatives to improve its market positioning, such as board expansion and distribution network growth. However, significant challenges persist in profitability, revenue decline, and valuation concerns, which weigh on the stock's overall performance.

Positive Factors

Financial Health

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 Innovation

Important new product innovations are underway at the company.

Negative Factors

Customer Activity

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

Guidance

Guidance for June was weaker than anticipated.

Regional Performance

EMEA showed a significant decline, likely impacted by Togg EV production issues.

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

Market Cap

$89.84M

Dividend YieldN/A

Average Volume (3M)245.79K

Price to Earnings (P/E)―

Beta (1Y)0.68

Revenue Growth-2.06%

EPS Growth-22.58%

CountryUS

Employees367

SectorTechnology

Sector Strength77

IndustryCommunication Equipment

Share Statistics

EPS (TTM)0.03

Shares Outstanding38,890,327

10 Day Avg. Volume287,031

30 Day Avg. Volume245,786

Financial Highlights & Ratios

PEG Ratio-2.37

Price to Book (P/B)1.07

Price to Sales (P/S)0.00

P/FCF Ratio8.68

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4.60

Price Target Upside102.64% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

Lantronix Business Overview & Revenue Model

Company DescriptionLantronix, 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 MoneyLantronix generates revenue primarily through the sale of its hardware and software solutions. The company's key revenue streams include product sales, which comprise IoT connectivity hardware and embedded solutions, and service revenues from SaaS offerings for remote management. Lantronix also benefits from strategic partnerships with technology providers and OEMs (Original Equipment Manufacturers) which help expand its market reach. Additionally, custom solutions and value-added services contribute to its earnings by providing tailored offerings to specific industry needs. The company's focus on innovation and expanding its product portfolio further supports its revenue growth.

Lantronix Financial Statement Overview

Summary

Lantronix is experiencing solid revenue growth, but profitability remains a challenge with ongoing net losses. The balance sheet is robust with low leverage, and cash flow management is improving, allowing for operational flexibility. Focus should be on enhancing profitability to leverage revenue growth into sustainable earnings.

Income Statement

Neutral

Lantronix shows stable revenue growth with a revenue increase from $129.7M in 2022 to $155.8M TTM. However, consistent net losses and negative EBIT margins indicate profitability challenges. Gross profit margins are reasonable, but negative EBIT and net profit margins highlight operating inefficiencies and cost control issues.

Balance Sheet

Positive

The balance sheet is stable with a strong equity base and a low debt-to-equity ratio of 0.039 TTM, showing prudent leverage management. However, return on equity is negative due to net losses, indicating inefficient use of shareholder funds.

Cash Flow

Positive

Lantronix has improved its cash flow situation, with a positive operating cash flow of $10.1M TTM and positive free cash flow, indicating good cash management. The free cash flow to net income ratio is favorable, despite negative net income, demonstrating efficient cash conversion.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
155.84M	160.33M	131.19M	129.66M	71.48M	59.88M
	Gross Profit
59.92M	64.35M	56.26M	55.59M	33.02M	26.90M
	EBIT
-2.94M	-2.86M	-6.67M	-2.17M	-643.00K	1.72M
	EBITDA
4.05M	4.62M	792.00K	896.00K	377.00K	-1.85M
	Net Income Common Stockholders
-4.91M	-4.52M	-8.98M	-5.36M	-4.04M	-10.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.21M	26.24M	13.45M	17.22M	9.74M	7.69M
	Total Assets
134.22M	136.21M	151.62M	137.37M	72.57M	67.93M
	Total Debt
24.79M	26.55M	18.96M	15.95M	3.68M	5.15M
	Net Debt
5.58M	314.00K	5.51M	-1.28M	-6.06M	-2.54M
	Total Liabilities
56.31M	54.85M	74.07M	57.48M	26.47M	21.41M
	Stockholders Equity
77.91M	81.36M	77.56M	79.90M	46.10M	46.52M
Cash Flow		Free Cash Flow
9.61M	17.14M	-2.44M	-11.53M	3.52M	-3.09M
	Operating Cash Flow
10.14M	18.62M	237.00K	-9.42M	4.30M	-2.52M
	Investing Cash Flow
-6.99M	-1.48M	-7.32M	-25.75M	-783.00K	-13.97M
	Financing Cash Flow
-6.08M	-4.36M	3.32M	42.65M	-1.47M	5.90M

Lantronix Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.27

Price Trends

50DMA

2.31

Negative

100DMA

2.89

Negative

200DMA

3.26

Negative

Market Momentum

MACD

<0.01

Negative

RSI

51.74

Neutral

STOCH

86.46

Negative

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 2.27 is above the 20-day moving average (MA) of 2.20, below the 50-day MA of 2.31, and below the 200-day MA of 3.26, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 86.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.59B	10.34	-7.15%	2.94%	7.49%	-10.88%
SILC	57 Neutral	$85.70M	―	-8.55%	―	-42.62%	61.22%
LTRX	56 Neutral	$89.84M	―	-10.88%	―	-2.06%	-22.58%
KVHI	54 Neutral	$101.72M	―	-6.78%	―	-14.38%	49.11%
AIRG	51 Neutral	$48.59M	―	-25.57%	―	8.46%	39.81%
INSG	47 Neutral	$134.92M	26.26	111.75%	―	1.60%	―

* Technology Sector Average

Performance Comparison

LTRX

Lantronix

2.22

-1.62

-42.19%

KVHI

KVH Industries

5.18

-0.04

-0.77%

SILC

Silicom

15.46

-1.24

-7.43%

AIRG

Airgain

4.05

-1.25

-23.58%

INSG

Inseego

8.50

1.76

26.11%

FKWL

Franklin Wireless

4.13

1.04

33.66%

Lantronix Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q3-2025)

% Change Since: 0.00%|

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 Corporate Events

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.

Spark’s Take on LTRX Stock

According to Spark, TipRanks’ AI Analyst, LTRX is a Neutral.

Lantronix displays solid revenue growth and strategic initiatives like the NetComm acquisition. However, profitability challenges, negative technical indicators, and valuation concerns weigh on the stock. The company’s strategic positioning in the edge AI market is promising but requires successful execution to overcome current financial and operational weaknesses.

To see Spark’s full report on LTRX stock, click here.

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.

Spark’s Take on LTRX Stock

According to Spark, TipRanks’ AI Analyst, LTRX is a Neutral.

To see Spark’s full report on LTRX stock, click here.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.