Lantronix (LTRX)
NASDAQ:LTRX
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Lantronix
(NASDAQ:LTRX)
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Rating:55Neutral
Price Target:
$5.50
▼(-8.18% Downside)
Action:ReiteratedDate:02/06/26
Overall score reflects a tug-of-war between weak profitability and top-line trajectory (major headwind) versus strengthening financial flexibility and positive free cash flow (support). Earnings call signals improving execution and stronger drone-driven outlook, but technicals remain weak and valuation support is limited due to a negative P/E and no dividend yield.
Positive Factors
De‑risked Balance Sheet
Zero reported debt and a meaningful equity base versus assets provide durable financial flexibility. This allows the company to fund R&D, support customer deployments and absorb cyclical demand without levering up, improving ability to execute multi‑quarter product and platform investments.
Negative Factors
Sharp Revenue Contraction
A severe decline in revenue reduces operating leverage and scale, weakening the company’s ability to absorb fixed costs and invest in product roadmaps. Sustained top‑line weakness would pressure margins, slow software ARR expansion and require execution to restore multi‑quarter growth.
Read all positive and negative factors
Positive Factors
Negative Factors
De‑risked Balance Sheet
Zero reported debt and a meaningful equity base versus assets provide durable financial flexibility. This allows the company to fund R&D, support customer deployments and absorb cyclical demand without levering up, improving ability to execute multi‑quarter product and platform investments.
Read all positive factors
Lantronix (LTRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$223.07M
Dividend YieldN/A
Average Volume (3M)607.53K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth-26.85%
EPS Growth-93.91%
CountryUS
Employees367
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.04
Shares Outstanding39,692,024
10 Day Avg. Volume374,561
30 Day Avg. Volume607,526
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)1.49
Price to Sales (P/S)0.90
P/FCF Ratio16.35
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue1.95
Enterprise Value/Gross Profit4.61
Enterprise Value/Ebitda-53.45
Forecast
1Y Price Target
$9.13Price Target Upside52.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.19
Revenue Forecast (FY)$122.13M
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 Paci...
How the Company Makes Money
Lantronix primarily makes money by selling connectivity and compute products and the associated software that enable customers and OEMs to add networking/IoT capabilities to their equipment and to remotely manage deployed devices.
Key revenue str...
Lantronix Key Performance Indicators (KPIs)
Lantronix Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum—most notably accelerated drone adoption and upgraded drone revenue guidance—improving margins year-over-year, reduced operating expenses, positive operating cash flow, debt reduction, and multiple strategic wins validating the company’s edge AI platform. Offsetting items include a short-term federal purchasing slowdown tied to a government shutdown, sequential gross margin moderation versus the previous quarter, supply-chain/memory pricing pressures, persistent (though reduced) GAAP net loss, and execution/concentration risks as drone revenue becomes a larger portion of the business. Overall, the positives (revenue within guidance, significant acceleration and upgraded drone outlook, expanding recurring revenue, margin improvement YoY, and balance-sheet improvements) outweigh the negatives, which are largely transitory or being actively managed.Positive Updates
Revenue and EPS Within Guidance
Reported revenue of $29.8 million in the fiscal second quarter and non-GAAP EPS of $0.04, both within the company's guidance ranges.
Negative Updates
Short-Term Federal Purchasing Slowdown
A recent government shutdown created a short-term slowdown in purchasing activity from certain federal agency customers, contributing to sequential weakness in IoT systems/box products.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and EPS Within Guidance
Reported revenue of $29.8 million in the fiscal second quarter and non-GAAP EPS of $0.04, both within the company's guidance ranges.
Read all positive updates
Company Guidance
Management's formal outlook called for Q3 (ending Mar 31, 2026) revenue of $28.5–$32.5 million and non‑GAAP EPS of $0.03–$0.04; they also raised fiscal‑year drone revenue to $8–$12 million (from $5–$10M) and said drones should be ~15–20% of revenue in fiscal 2027 (implying roughly $20–$30M), noted current drone ASPs of ~$400–$500 (with turnkey systems adding "hundreds" more), gave a near‑term OpEx run‑rate of about $11.8–$12.3M per quarter, reported software & services at ~6% of revenue over the past 12 months with a plan to more than double that mix mid‑term, and indicated gross margins are expected to remain near recent levels (Q2 GAAP gross margin 43.6% / non‑GAAP 44%).Lantronix Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
66
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 116.91M | 122.92M | 160.33M | 131.19M | 129.66M | 71.48M |
| Gross Profit | 49.48M | 51.70M | 64.35M | 56.26M | 55.59M | 33.02M |
| EBITDA | -4.27M | -5.07M | 4.62M | 792.00K | 896.00K | 377.00K |
| Net Income | -9.23M | -11.37M | -4.52M | -8.98M | -5.36M | -4.04M |
Balance Sheet | ||||||
| Total Assets | 121.73M | 123.72M | 136.21M | 151.62M | 137.37M | 72.57M |
| Cash, Cash Equivalents and Short-Term Investments | 22.96M | 20.10M | 26.24M | 13.45M | 17.22M | 9.74M |
| Total Debt | 18.31M | 21.16M | 26.55M | 31.25M | 24.23M | 6.01M |
| Total Liabilities | 47.31M | 49.34M | 54.85M | 74.07M | 57.48M | 26.47M |
| Stockholders Equity | 74.42M | 74.38M | 81.36M | 77.56M | 79.90M | 46.10M |
Cash Flow | ||||||
| Free Cash Flow | 9.63M | 6.78M | 17.14M | -2.44M | -11.53M | 3.52M |
| Operating Cash Flow | 10.06M | 7.29M | 18.62M | 237.00K | -9.42M | 4.30M |
| Investing Cash Flow | -430.00K | -6.96M | -1.48M | -7.32M | -25.75M | -783.00K |
| Financing Cash Flow | -5.88M | -6.46M | -4.36M | 3.32M | 42.65M | -1.47M |
Lantronix Technical Analysis
Positive
5.99
Price Trends
5.89
Positive
5.86
Positive
4.98
Positive
Market Momentum
-0.09
Negative
55.79
Neutral
86.13
Negative
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 5.99 is above the 20-day moving average (MA) of 5.65, above the 50-day MA of 5.89, and above the 200-day MA of 4.98, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 86.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LTRX.
Lantronix Risk Analysis
Lantronix disclosed 44 risk factors in its most recent earnings report. Lantronix reported the most risks in the "Tech & Innovation" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $359.77M | 20.23 | 34.98% | ― | 10.12% | 153.04% | |
63 Neutral | $283.72M | 12.04 | 5.54% | ― | 10.89% | ― | |
62 Neutral | $213.94M | ― | -1.22% | ― | -3.78% | -92.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $223.07M | -43.34 | -12.36% | ― | -26.85% | -93.91% | |
55 Neutral | $235.63M | 31.48 | 4.98% | 4.28% | 0.15% | 17.21% | |
55 Neutral | $215.87M | 185.41 | -9.51% | ― | -17.45% | 76.52% |
* Technology Sector Average
LTRX
Lantronix
5.99
3.95
193.63%
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Lantronix Corporate Events
Business Operations and StrategyFinancial Disclosures
Lantronix Reports Q2 2026 Results, Highlights Edge AI Growth
Positive
Feb 4, 2026
On Feb. 4, 2026, Lantronix reported fiscal second-quarter 2026 results for the period ended Dec. 31, 2025, posting net revenue of $29.8 million, GAAP loss per share of $0.03 and non-GAAP earnings per share of $0.04, with cash and equivalents of $2...
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.