Lantronix (LTRX) AI Stock Analysis

• Market Cap: $184.40M
• Dividend Yield: N/A
• Average Volume (3M): 610.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -23.33%
• EPS Growth: -142.22%
• Country: US
• Employees: 367
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.01
• Shares Outstanding: 39,151,108
• 10 Day Avg. Volume: 438,736
• 30 Day Avg. Volume: 610,774
• 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: 0.61
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 2.18
• Enterprise Value/Ebitda: -22.29
• 1Y Price Target: $5.50
• Price Target Upside: 19.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 63 Neutral
• Price Target: $5.00 ▲(8.46% Upside)

Lantronix's stock score is primarily influenced by strong technical momentum, despite financial challenges and valuation concerns. Strategic opportunities in high-growth markets provide a positive outlook, but current profitability issues and overbought technical indicators suggest caution.

Positive Factors

Strategic Partnerships

This partnership enhances Lantronix's market reach and contributes to high-margin recurring revenue, strengthening its competitive position in the telecommunications sector.

Drone Market Opportunities

The focus on the drone market, particularly in military applications, positions Lantronix for substantial revenue growth, leveraging high-demand sectors.

Improved Financial Position

Reducing debt and maintaining a strong cash position improves Lantronix's financial flexibility, supporting strategic investments and operational stability.

Negative Factors

Revenue Decline

The declining revenue trend indicates challenges in maintaining sales momentum, which could impact long-term growth prospects if not addressed.

Margin Pressure

Declining margins suggest operational inefficiencies and cost pressures, which could hinder profitability and require strategic adjustments to improve.

Profitability Challenges

Ongoing net losses highlight profitability issues, which may limit Lantronix's ability to reinvest in growth initiatives and affect investor confidence.

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

Lantronix faces financial challenges with declining revenue and persistent profitability issues. Despite improved leverage, negative ROE and cash flow constraints indicate ongoing operational and financial pressures.

Income Statement

Lantronix has faced declining revenue with a negative growth rate of -14.14% in the latest year, indicating challenges in maintaining sales momentum. The gross profit margin remains relatively stable at around 42%, but the company struggles with profitability, as evidenced by negative net profit and EBIT margins. These factors suggest operational inefficiencies and pressure on profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.16, indicating a reduction in leverage compared to previous years. However, the return on equity remains negative, reflecting ongoing challenges in generating returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure, but the negative ROE highlights profitability issues.

Cash Flow

Lantronix's cash flow performance is mixed, with a decline in free cash flow growth of -15.17%. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio suggests limited cash generation relative to net income, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	122.92M	122.92M	160.33M	131.19M	129.66M	71.48M
Gross Profit	51.70M	51.70M	64.35M	56.26M	55.59M	33.02M
EBITDA	-5.07M	-5.07M	4.62M	792.00K	896.00K	377.00K
Net Income	-11.37M	-11.37M	-4.52M	-8.98M	-5.36M	-4.04M
Balance Sheet
Total Assets	123.72M	123.72M	136.21M	151.62M	137.37M	72.57M
Cash, Cash Equivalents and Short-Term Investments	20.10M	20.10M	26.24M	13.45M	17.22M	9.74M
Total Debt	11.75M	11.75M	26.55M	31.25M	24.23M	6.01M
Total Liabilities	49.34M	49.34M	54.85M	74.07M	57.48M	26.47M
Stockholders Equity	74.38M	74.38M	81.36M	77.56M	79.90M	46.10M
Cash Flow
Free Cash Flow	6.78M	6.78M	17.14M	-2.44M	-11.53M	3.52M
Operating Cash Flow	7.29M	7.29M	18.62M	237.00K	-9.42M	4.30M
Investing Cash Flow	-6.96M	-6.96M	-1.48M	-7.32M	-25.75M	-783.00K
Financing Cash Flow	-6.46M	-6.46M	-4.36M	3.32M	42.65M	-1.47M

Lantronix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.61
• 50DMA: Positive
• 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 Neutral. The current price of 4.61 is below the 20-day moving average (MA) of 4.68, above the 50-day MA of 3.80, and above the 200-day MA of 3.10, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 47.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LTRX.

Lantronix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTRX	63 Neutral	$184.40M	―	-14.61%	―	-23.33%	-142.22%
SILC	57 Neutral	101.11M	-7.67	-10.72%	―	-24.50%	60.82%
KVHI	57 Neutral	113.32M	-18.25	-7.97%	―	-12.22%	71.69%
INSG	55 Neutral	213.46M	42.93	-61.70%	―	-10.99%	―
AIRG	50 Neutral	49.64M	-7.11	-28.05%	―	6.84%	49.74%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Lantronix Corporate Events

Lantronix Reports Strong Q4 and Annual Results

Lantronix reported its fiscal fourth quarter and full year 2025 financial results, highlighting a net revenue of $28.8 million for the fourth quarter and $122.9 million for the year. The company experienced a strategic transformation in fiscal 2025, focusing on high-value markets and enhancing supply chain resilience. Lantronix secured significant contracts, including a multi-year deal with a Tier-1 U.S. wireless operator and a partnership with Red Cat’s Teal Drones, positioning itself for growth in the secure defense drone market. The company also launched new products and expanded its leadership team to drive growth in Edge IoT and Network Infrastructure.

Lantronix Secures $15 Million Credit Facility

On August 15, 2025, Lantronix, Inc. and its subsidiaries entered into a Fourth Amended and Restated Loan and Security Agreement with Silicon Valley Bank, offering a revolving credit facility of up to $15 million. This facility will refinance existing obligations, cover related fees, and support working capital and general corporate purposes, with a maturity date set for August 1, 2028. The agreement includes customary covenants and events of default, ensuring compliance with minimum liquidity tests and other financial restrictions.

Lantronix Expands Board, Appoints New Director

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.

Lantronix Announces Cooperation Agreement with Shareholders

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.