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Lantronix
(NASDAQ:LTRX)
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Rating:55Neutral
Price Target:
$5.50
▼(-11.15% Downside)
Action:Reiterated
Date:06/27/26
LTRX scores in the mid-range primarily due to improving financial fundamentals (strong revenue growth, much lower debt, and currently positive operating/free cash flow) and a generally positive earnings call with raised drone outlook and sustained ~43% gross margins. These are offset by a weak technical backdrop (price below all key moving averages with negative MACD and low RSI/Stoch) and continued GAAP unprofitability, which also limits the usefulness of valuation signals given the negative P/E.
Positive Factors
Revenue Growth & Margin Stability
A very strong TTM revenue rebound (+143%) combined with sustained ~40–43% gross margins indicates durable product pricing and favorable mix. This supports long-term operating leverage as design wins convert to production, helping margins scale as recurring and higher‑ASP sales grow.
Negative Factors
Persistent GAAP Unprofitability
Despite revenue recovery and non‑GAAP gains, the company remains GAAP loss‑making, which suppresses returns on shareholder capital and limits reinvestment capacity. Persistent GAAP losses increase scrutiny on cost structure and the need to convert growth into sustainable accounting profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Margin Stability
A very strong TTM revenue rebound (+143%) combined with sustained ~40–43% gross margins indicates durable product pricing and favorable mix. This supports long-term operating leverage as design wins convert to production, helping margins scale as recurring and higher‑ASP sales grow.
Read all positive factors
Lantronix Key Performance Indicators (KPIs)
Any
Net Revenue by Geography
Breaks revenue down by region (e.g., North America, EMEA, APAC), revealing where Lantronix earns sales and where the biggest growth opportunities or vulnerabilities lie. Highlights exposure to currency moves, regional demand cycles, and supply-chain or geopolitical risks that can concentrate or diversify revenue streams.
Breaks revenue down by region (e.g., North America, EMEA, APAC), revealing where Lantronix earns sales and where the biggest growth opportunities or vulnerabilities lie. Highlights exposure to currency moves, regional demand cycles, and supply-chain or geopolitical risks that can concentrate or diversify revenue streams.
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The Fly
The FlyLantronix (LTRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$231.52M
Dividend YieldN/A
Average Volume (3M)1.34M
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth-17.17%
EPS Growth23.08%
CountryUS
Employees352
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.17
Shares Outstanding44,608,597
10 Day Avg. Volume768,314
30 Day Avg. Volume1,344,575
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$10.33Price Target Upside66.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.28
Revenue Forecast (FY)$139.56M
Lantronix Business Overview & Revenue Model
Company Description
Lantronix, Inc. is a technology company specializing in the delivery of hardware, software-as-a-service (SaaS), and professional engineering services. Its solutions are designed to support edge computing, the Internet of Things (IoT), and remote e...
How the Company Makes Money
Lantronix primarily makes money by selling connectivity and compute products and associated software that enable customers to deploy and operate connected devices.
1) Product (hardware) revenue: A significant portion of revenue comes from the sal...
Lantronix Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial progress: revenue and EPS were in-line with guidance, Embedded IoT grew 22% YoY, margins remained healthy above 43%, cash generation improved, debt was reduced, software recurring revenue increased, and the company significantly expanded its unmanned systems footprint with new design wins, partnerships, and international shipments. Key near-term challenges include slower federal procurement timing impacting IoT systems, a still-present GAAP net loss (albeit improved), slight YoY pressure on non-GAAP gross margin, and uncertainty around timing and magnitude of drone revenue despite an increased outlook. On balance, the positive execution, momentum in higher-growth areas (drones, edge AI, software), improving cash/ leverage metrics, and strategic partnerships outweigh the operational and timing risks.Positive Updates
Revenue and EPS Within Guidance
Revenue of $30.2M and non-GAAP EPS of $0.04 for Q3 FY2026, both within guidance; Q4 revenue outlook $29M–$33M and non-GAAP EPS guidance $0.03–$0.05.
Negative Updates
Slower Federal Spending and Extended Procurements
Slower federal ordering and extended procurement cycles negatively impacting core enterprise and networking (IoT system solutions) demand timing; management classifies these as timing dynamics rather than permanent demand loss.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue and EPS Within Guidance
Revenue of $30.2M and non-GAAP EPS of $0.04 for Q3 FY2026, both within guidance; Q4 revenue outlook $29M–$33M and non-GAAP EPS guidance $0.03–$0.05.
Read all positive updates
Company Guidance
Management reported Q3 revenue of $30.2M and non‑GAAP EPS of $0.04 (GAAP gross margin 43.1%, non‑GAAP gross margin 43.6%), with GAAP operating expense $14.1M, a GAAP net loss of $1.2M ($0.03/sh) and non‑GAAP net income $1.5M ($0.04/sh); balance sheet highlights included cash & equivalents $23.5M (net cash ~ $14.8M), operating cash flow ~ $2.2M for the quarter ($7.9M YTD), inventories $26.4M and debt $8.7M (down ~$1M this quarter, nearly $4M Y/Y). For Q4 they guided revenue $29M–$33M and non‑GAAP EPS $0.03–$0.05, raised FY26 drone revenue to $10M–$14M (midpoint $12M) with drones expected to roughly double in FY27 to ~15%–20% of revenue, noted Embedded IoT grew ~22% YoY, software & services rose from ~5%–6% to ~8%–9% of revenue with a path to double‑digits, cited typical ASPs of $400–$700, and said they aim to sustain margins near current levels and push above 45% as they pursue double‑digit revenue growth in FY27.Lantronix Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
64
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 118.58M | 122.92M | 160.33M | 131.19M | 129.66M | 71.48M |
| Gross Profit | 49.58M | 51.70M | 64.35M | 56.26M | 55.59M | 33.02M |
| EBITDA | -2.59M | -5.07M | 4.62M | 792.00K | 896.00K | 377.00K |
| Net Income | -6.54M | -11.37M | -4.52M | -8.98M | -5.36M | -4.04M |
Balance Sheet | ||||||
| Total Assets | 120.02M | 123.72M | 136.21M | 151.62M | 137.37M | 72.57M |
| Cash, Cash Equivalents and Short-Term Investments | 23.52M | 20.10M | 26.24M | 13.45M | 17.22M | 9.74M |
| Total Debt | 16.88M | 21.16M | 26.55M | 31.25M | 24.23M | 6.01M |
| Total Liabilities | 45.55M | 49.34M | 54.85M | 74.07M | 57.48M | 26.47M |
| Stockholders Equity | 74.47M | 74.38M | 81.36M | 77.56M | 79.90M | 46.10M |
Cash Flow | ||||||
| Free Cash Flow | 8.46M | 6.78M | 17.14M | -2.44M | -11.53M | 3.52M |
| Operating Cash Flow | 9.00M | 7.29M | 18.62M | 237.00K | -9.42M | 4.30M |
| Investing Cash Flow | -546.00K | -6.96M | -1.48M | -7.32M | -25.75M | -783.00K |
| Financing Cash Flow | -4.94M | -6.46M | -4.36M | 3.32M | 42.65M | -1.47M |
Lantronix Technical Analysis
Negative
6.19
Price Trends
6.32
Negative
6.17
Negative
5.87
Negative
Market Momentum
-0.30
Positive
38.80
Neutral
22.97
Neutral
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 6.19 is above the 20-day moving average (MA) of 5.65, below the 50-day MA of 6.32, and above the 200-day MA of 5.87, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 38.80 is Neutral, neither overbought nor oversold. The STOCH value of 22.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $307.14M | 21.42 | 33.31% | ― | 14.16% | 38.26% | |
64 Neutral | $195.06M | -79.49 | -1.43% | ― | -15.03% | -110.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $247.15M | 38.89 | 4.01% | 4.28% | 2.02% | -56.43% | |
56 Neutral | $268.95M | 36.46 | 3.37% | ― | 0.23% | ― | |
55 Neutral | $231.52M | -31.10 | -8.79% | ― | -17.17% | 23.08% | |
53 Neutral | $121.91M | 11.70 | 17.85% | ― | -12.48% | 66.68% |
* Technology Sector Average
LTRX
Lantronix
5.19
1.99
62.19%
AUDC
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9.75
-0.57
-5.55%
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20.79
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CRNT
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2.17
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BKTI
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82.03
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0.54%
Lantronix Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Lantronix Completes Equity Offering to Fund Growth Initiatives
Positive
Jun 1, 2026
On May 29, 2026, Lantronix Inc. entered into an underwriting agreement with Needham Company and Canaccord Genuity for an underwritten public offering of 4,166,667 common shares at $7.20 each, later expanded when underwriters fully exercised a 30-...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Lantronix Launches $30 Million At-The-Market Offering
Positive
May 8, 2026
On May 8, 2026, Lantronix, Inc. entered into a Sales Agreement with Needham Company and Canaccord Genuity to establish an at-the-market equity offering program for up to $30 million of its common stock. The shares will be issued under an effectiv...
Business Operations and StrategyFinancial Disclosures
Lantronix Posts Q3 Results, Boosts Drone Revenue Outlook
Positive
May 6, 2026
On May 6, 2026, Lantronix reported fiscal third-quarter 2026 results for the period ended March 31, posting net revenue of $30.2 million, GAAP loss per share of $0.03 and non-GAAP earnings per share of $0.04, with cash and equivalents of $23.5 mil...
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.