Lantronix (LTRX) AI Stock Analysis

• Market Cap: $229.07M
• Dividend Yield: N/A
• Average Volume (3M): 349.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• 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: 39,358,610
• 10 Day Avg. Volume: 455,827
• 30 Day Avg. Volume: 349,542
• 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: 0.77
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 3.49
• Enterprise Value/Ebitda: -38.99
• 1Y Price Target: $7.88
• Price Target Upside: 47.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.19
• Revenue Forecast (FY): $126.26M

• Rating: 65 Neutral
• Price Target: $7.00 ▲(31.09% Upside)

Lantronix's overall stock score is driven by strong technical momentum and a positive earnings call outlook, despite challenges in financial performance and valuation. The company's strategic initiatives in the drone business and new product launches provide potential for future growth, but current profitability issues and overbought technical indicators suggest caution.

Positive Factors

Product Innovation

New product launches like EdgeFabric.ai and Kompress.ai position Lantronix to capture emerging market opportunities, driving future growth.

Strategic Partnerships

Partnerships with firms like Trillium Engineering enhance Lantronix's market reach and recurring revenue potential in defense and commercial sectors.

Gross Margin Improvement

Improved gross margins reflect effective cost optimization and favorable product mix, enhancing long-term profitability potential.

Negative Factors

Revenue Decline

Declining revenue trends indicate challenges in market demand or competitive positioning, potentially impacting long-term growth.

Profitability Issues

Ongoing profitability challenges with negative net margins suggest operational inefficiencies that could hinder sustainable growth.

GAAP Net Loss

Continued GAAP net losses highlight financial challenges, potentially affecting investor confidence and the ability to reinvest in growth.

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 challenges with declining revenues and persistent profitability issues, as evidenced by negative profit margins and returns on equity. However, the company maintains a stable balance sheet with manageable debt levels and shows signs of improvement in cash flow generation. Continued focus on operational efficiency and revenue growth is essential for enhancing financial performance.

Income Statement

Lantronix's income statement shows a declining revenue trend with a negative revenue growth rate of -3.77% in the TTM period. The company has consistently reported negative net profit margins, indicating ongoing profitability challenges. Despite a relatively stable gross profit margin around 42%, the negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.16 in the TTM period, suggesting manageable leverage. However, the negative return on equity indicates that the company is not generating positive returns for shareholders. The equity ratio is not provided, but the overall financial position appears stable with room for improvement in profitability.

Cash Flow

Lantronix's cash flow statement shows a positive free cash flow growth rate of 15.12% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is positive, suggesting some efficiency in cash operations despite negative net income. The free cash flow to net income ratio is close to 1, reflecting effective cash management relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	118.29M	122.92M	160.33M	131.19M	129.66M	71.48M
Gross Profit	50.57M	51.70M	64.35M	56.26M	55.59M	33.02M
EBITDA	-4.53M	-5.07M	4.62M	792.00K	896.00K	377.00K
Net Income	-10.27M	-11.37M	-4.52M	-8.98M	-5.36M	-4.04M
Balance Sheet
Total Assets	119.57M	123.72M	136.21M	151.62M	137.37M	72.57M
Cash, Cash Equivalents and Short-Term Investments	22.19M	20.10M	26.24M	13.45M	17.22M	9.74M
Total Debt	10.66M	21.16M	26.55M	31.25M	24.23M	6.01M
Total Liabilities	45.12M	49.34M	54.85M	74.07M	57.48M	26.47M
Stockholders Equity	74.45M	74.38M	81.36M	77.56M	79.90M	46.10M
Cash Flow
Free Cash Flow	7.80M	6.78M	17.14M	-2.44M	-11.53M	3.52M
Operating Cash Flow	8.23M	7.29M	18.62M	237.00K	-9.42M	4.30M
Investing Cash Flow	-6.88M	-6.96M	-1.48M	-7.32M	-25.75M	-783.00K
Financing Cash Flow	-5.55M	-6.46M	-4.36M	3.32M	42.65M	-1.47M

Lantronix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 5.34 is below the 20-day moving average (MA) of 5.42, above the 50-day MA of 5.13, and above the 200-day MA of 3.55, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 48.33 is Neutral, neither overbought nor oversold. The STOCH value of 26.47 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
BKTI	77 Outperform	$272.71M	22.00	38.74%	―	10.12%	153.04%
AVNW	66 Neutral	$270.36M	19.89	5.24%	―	10.89%	―
LTRX	65 Neutral	$229.07M	-20.20	-13.39%	―	-26.85%	-93.91%
AUDC	65 Neutral	$247.54M	19.60	7.67%	4.27%	0.15%	17.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CRNT	49 Neutral	$176.79M	132.89	0.84%	―	-3.78%	-92.62%
INSG	47 Neutral	$179.79M	-43.91	―	―	-17.45%	76.52%

Lantronix Corporate Events

Lantronix Holds 2025 Annual Stockholders Meeting

On November 4, 2025, Lantronix, Inc. held its 2025 Annual Meeting of Stockholders where several key decisions were made. The stockholders elected six nominees to the Board of Directors, ratified the appointment of Baker Tilly US, LLP as independent accountants for the fiscal year ending June 30, 2026, and approved executive compensation and its annual advisory vote frequency.

Lantronix Reports Fiscal Q1 2026 Results and Innovations

Lantronix reported its fiscal first-quarter 2026 results, showing net revenue of $29.8 million and a non-GAAP EPS of $0.04. The company expanded its drone OEM engagements to 17, highlighting demand in the UAS market. Lantronix also launched new platforms like Kompress.ai and EdgeFabric.ai, enhancing its asset monitoring strategy and edge AI deployment. The company integrated technologies from Gremsy and Teledyne FLIR into its Edge AI drone solutions, improving operational efficiency. Lantronix’s diversified model and strategic initiatives underscore its progress in delivering profitable growth and shareholder value.