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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:65Neutral
Price Target:
$3.00
▼(-36.44% Downside)
Lantronix's overall score reflects a mix of operational challenges and positive strategic developments. While technical indicators and financial management show some strengths, the company faces valuation challenges due to ongoing losses. Recent corporate developments and earnings call insights provide some optimism for future improvements.
Positive Factors
Market Opportunities
Management remains keen on pursuing opportunities in large and rapidly growing markets, including drones and edge AI.
Revenue Growth
Americas revenue surprised with +16% y/y growth.
Negative Factors
EMEA Performance
EMEA showed a significant decline, likely impacted by Togg EV production issues.
Financial Performance
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 (LTRX) vs. SPDR S&P 500 ETF (SPY)

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 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:Aug 27, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
Lantronix's earnings call highlighted significant new opportunities, particularly in the drone and telecommunications markets, which are expected to drive future growth. However, current financial results show some challenges in margins and revenue impact from Gridspertise, leading to a balanced view of both positive strategic positioning and operational hurdles.
Q4-2025 Updates
Positive Updates
Revenue Growth and Diversification
Lantronix reported revenue of $28.8 million for the fourth quarter, which represents a sequential increase from $28.5 million in the prior quarter and approximately 4% higher than fiscal Q4 2024 when excluding Gridspertise. This growth is driven by Edge IoT products and underscores a diversified revenue base.
Drone Market Opportunities
Lantronix is capitalizing on a growing market for unmanned aerial systems, with significant partnerships such as Red CAT steel drones for the U.S. Army. Over 10 different drone makers are being worked with, primarily in military or industrial applications. This market has the potential to contribute meaningfully to revenue in fiscal 2026 and beyond.
Improved Financial Position
The company ended June with cash and cash equivalents of $20.1 million and reduced term debt by approximately $4.5 million. Lantronix recently refinanced its term debt into an asset-backed line of credit, improving liquidity and capital structure efficiency.
Strategic Wins and Partnerships
Lantronix secured a multi-year agreement with a major U.S. mobile carrier to modernize backup power systems at wireless cell sites. This includes both hardware and the perception platform for remote monitoring, contributing to high-margin annual recurring revenue.
Negative Updates
Margin Pressure
GAAP gross margin was 40% in the fourth quarter, displaying a decline from 43.5% in the prior quarter. Non-GAAP gross margin was also down to 40.6% from 44.1% last quarter, due to inventory charges for aged inventory and higher duties and tariffs.
Gridspertise Revenue Impact
Revenue from Gridspertise significantly declined, with just over $11 million recognized in the first half of fiscal 2025 and minimal contribution in the second half, affecting overall revenue growth.
GAAP Net Loss
The company reported a GAAP net loss of $2.6 million or $0.07 per share for fiscal 2025, compared to GAAP net income of $400,000 or $0.01 per share in the year-ago quarter.
Company Guidance
During the Lantronix Fourth Quarter and Full Year 2025 Results Conference Call, the company provided guidance for fiscal 2026, anticipating revenue in the range of $28.5 million to $30.5 million and non-GAAP EPS between $0.02 and $0.04 per share. The call highlighted the company's strategic focus on the growing demand for unmanned aerial systems, driven by a projected $13 billion in funding from the U.S. Department of Defense for 2026. Lantronix's recent collaboration with Red CAT steel drones and the successful integration of their solutions into Teal's Black Widow drones for the U.S. Army's short-range reconnaissance program were emphasized as key achievements. Additionally, Lantronix's partnership with a major U.S. mobile carrier to enhance backup power systems at wireless cell sites further demonstrates the company's strategic platform transition, which is expected to contribute to high-margin annual recurring revenue. The call also addressed the company's efforts to optimize its cost structure and supply chain, resulting in a leaner operating model and improved financial performance, including a GAAP gross margin of 40% in the fourth quarter.

Lantronix Financial Statement Overview

Summary
Lantronix faces challenges with declining revenue and negative margins, but shows resilience in cash flow management and maintains a solid capital structure with a healthy equity ratio.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue143.16M160.33M131.19M129.66M71.48M59.88M
Gross Profit57.13M64.35M56.26M55.59M33.02M26.90M
EBITDA-471.00K4.62M792.00K896.00K377.00K-1.85M
Net Income-8.36M-4.52M-8.98M-5.36M-4.04M-10.74M
Balance Sheet
Total Assets124.19M136.21M151.62M137.37M72.57M67.93M
Cash, Cash Equivalents and Short-Term Investments20.00M26.24M13.45M17.22M9.74M7.69M
Total Debt22.13M26.55M31.25M24.23M6.01M5.15M
Total Liabilities48.72M54.85M74.07M57.48M26.47M21.41M
Stockholders Equity75.47M81.36M77.56M79.90M46.10M46.52M
Cash Flow
Free Cash Flow7.99M17.14M-2.44M-11.53M3.52M-3.09M
Operating Cash Flow8.51M18.62M237.00K-9.42M4.30M-2.52M
Investing Cash Flow-6.97M-1.48M-7.32M-25.75M-783.00K-13.97M
Financing Cash Flow-6.18M-4.36M3.32M42.65M-1.47M5.90M

Lantronix Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.72
Price Trends
50DMA
3.28
Positive
100DMA
2.76
Positive
200DMA
2.97
Positive
Market Momentum
MACD
0.42
Negative
RSI
69.86
Neutral
STOCH
74.96
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 4.72 is above the 20-day moving average (MA) of 3.60, above the 50-day MA of 3.28, and above the 200-day MA of 2.97, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 69.86 is Neutral, neither overbought nor oversold. The STOCH value of 74.96 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$176.96M-14.61%-23.33%-142.22%
61
Neutral
$35.51B8.11-11.05%1.89%8.55%-8.72%
57
Neutral
$95.59M-10.16%-24.50%60.82%
57
Neutral
$111.96M-4.46%-12.22%71.69%
55
Neutral
$192.70M39.03111.75%-10.99%
53
Neutral
$49.40M-21.97%6.84%49.74%
$48.55M-4.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LTRX
Lantronix
4.52
0.82
22.16%
KVHI
KVH Industries
5.74
1.18
25.88%
SILC
Silicom
16.80
3.62
27.47%
AIRG
Airgain
4.25
-3.27
-43.48%
INSG
Inseego
12.81
-1.58
-10.98%
FKWL
Franklin Wireless
4.11
0.02
0.49%

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: Aug 02, 2025