Lantronix (LTRX) AI Stock Analysis

• Market Cap: $237.76M
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -26.85%
• EPS Growth: -93.91%
• Country: US
• Employees: 367
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.04
• Shares Outstanding: 39,692,024
• 10 Day Avg. Volume: 546,828
• 30 Day Avg. Volume: 1,294,832
• PEG Ratio: -0.07
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 16.35
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 4.93
• Enterprise Value/Ebitda: -57.14
• 1Y Price Target: $9.13
• Price Target Upside: 49.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.19
• Revenue Forecast (FY): $125.56M

• Rating: 55 Neutral
• Price Target: $5.50 ▼(-9.69% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 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 tangible equity base provide durable financial flexibility. This reduces refinancing and interest-rate risk, supports short‑to‑mid‑term funding for R&D, inventory build or product launches, and gives management optionality to fund growth or weather demand cyclicality without urgent external financing.

Positive Free Cash Flow

Sustained positive operating and free cash flow with meaningful growth supports internal investment and working capital needs. Over the next several quarters this cash generation can fund product commercialization, reduce leverage (already being paid down), and smooth volatility from accounting losses while the business scales recurring revenue.

Edge AI & Drone Commercial Momentum

The company is evolving from component supplier to platform partner with design wins, product launches and an upgraded drone revenue outlook. Platform positioning and growing Edge AI deployments create higher-margin, more durable revenue streams and recurring SaaS/service opportunities if design wins convert to production and long‑term contracts.

Negative Factors

Sharply Declining Revenue Trend

A steep multi‑period revenue decline undermines operating leverage and implies weaker product demand or lumpy order flows. Persistently falling top line makes margin expansion harder, pressures per‑unit fixed costs, and increases reliance on a few growth initiatives; recovery requires consistent conversion of design wins to recurring production volumes.

Persistent GAAP Net Losses

Continued GAAP losses indicate the business has not yet translated cash gains into accounting profitability. This limits long‑term capital allocation choices, increases scrutiny on expense discipline, and means investors and counterparties will require evidence of sustained margin and revenue scale before treating profits as structural rather than transitory.

Concentration & Execution Risk as Drone Mix Grows

Pivoting to a business where drones become a material revenue share concentrates customer and program execution risk. Delivering multi‑program ramps requires supply‑chain scaling, memory pricing management and operational discipline; failure to execute cleanly could cause sharp revenue swings and margin pressure given the current revenue base.

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 generates revenue through multiple key streams, primarily from the sale of its hardware products, including IoT gateways and embedded connectivity solutions. Additionally, the company earns income from recurring software subscriptions and support services that enhance the functionality and security of its devices. Strategic partnerships with other technology providers and system integrators also contribute to its revenue, as these collaborations enable broader market reach and integration within various industries. Furthermore, Lantronix's focus on emerging trends in IoT and cloud services positions it to capitalize on the growing demand for connected solutions across various sectors.

Lantronix Financial Statement Overview

Summary

Mixed fundamentals: the income statement is weak with continued losses and sharply negative revenue momentum, but the balance sheet is de-risked with zero debt and meaningful equity. Cash flow is a bright spot with positive and growing free cash flow, though historical volatility and modest cash-flow-to-revenue coverage temper the strength.

Income Statement

TTM (Trailing-Twelve-Months) results show continued losses (negative operating profit and net margin), with revenue down sharply versus the prior period (revenue growth rate: -117%). While gross margin remains relatively healthy around the low-40% range, profitability has not followed through—operating and net results remain meaningfully negative. The trajectory is also unfavorable versus FY2024, which had better revenue momentum and comparatively smaller losses.

Balance Sheet

The balance sheet appears solid and de-risked in TTM (Trailing-Twelve-Months), with total debt at $0 and a meaningful equity base (~$74M) against ~$122M of assets, implying low leverage. That said, returns remain negative (negative return on equity), reflecting that the capital base is not currently generating profits. Overall: strong financial flexibility, but profitability still weighs on quality.

Cash Flow

Cash generation is a key bright spot in TTM (Trailing-Twelve-Months): operating cash flow (~$10.1M) and free cash flow (~$9.6M) are positive, with strong free cash flow growth (23%). Free cash flow is also close to the net loss in magnitude, indicating good cash discipline despite accounting losses. The main weakness is that operating cash flow covers only a modest portion of revenue (coverage ratio ~0.35), and cash flow has been volatile historically (notably weak in FY2022–FY2023).

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	25.35M	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

• Technical Analysis Sentiment: Positive
• Last Price: 6.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 6.09 is below the 20-day moving average (MA) of 6.13, below the 50-day MA of 6.12, and above the 200-day MA of 4.42, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 68.44 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
BKTI	77 Outperform	$315.64M	26.00	38.74%	―	10.12%	153.04%
AVNW	63 Neutral	$313.66M	21.87	5.60%	―	10.89%	―
CRNT	62 Neutral	$205.85M	-89.96	-1.23%	―	-3.78%	-92.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LTRX	55 Neutral	$237.76M	-25.74	-12.12%	―	-26.85%	-93.91%
AUDC	55 Neutral	$196.09M	23.67	7.67%	4.28%	0.15%	17.21%
INSG	55 Neutral	$219.77M	―	―	―	-17.45%	76.52%

Lantronix Corporate Events

Lantronix Reports Q2 2026 Results, Highlights Edge AI Growth

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 $23 million. Management highlighted strong momentum in the unmanned systems sector, particularly drones, where programs are shifting from development to initial production and positioning Lantronix more as a platform partner than a component supplier, supported by growing involvement in defense-related initiatives. During the quarter, the company expanded its Edge AI footprint through partnerships with Trillium Engineering, Flock Safety and Safe Pro Group, and launched new Edge AI offerings at CES 2026, including an NDAA- and TAA-compliant Drone Reference Platform and the SmartEdge.ai/SmartSwitch.ai ecosystem, aimed at accelerating UAV development and real-time video analytics in enterprise and industrial settings. Lantronix also received industry recognition as a Top 100 Edge Computing Leader and won the 2025 IoT Edge Computing Excellence Award, and it guided third-quarter fiscal 2026 revenue to between $28.5 million and $32.5 million with non-GAAP EPS expected between $0.03 and $0.06, underscoring its confidence in continued profitable growth in core markets.

The most recent analyst rating on (LTRX) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Lantronix stock, see the LTRX Stock Forecast page.

Lantronix Raises CFO Brent Stringham’s Annual Base Salary

On January 1, 2026, Lantronix, Inc. amended its letter agreement with Chief Financial Officer Brent Stringham to increase his annual base salary to $375,000, reflecting an adjustment in executive compensation approved at the start of the new year. This compensation change may signal the company’s effort to retain and incentivize key financial leadership as it heads into 2026, potentially reinforcing management stability for stakeholders.

The most recent analyst rating on (LTRX) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Lantronix stock, see the LTRX Stock Forecast page.