Lantronix (LTRX)
NASDAQ:LTRX
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Lantronix
(NASDAQ:LTRX)
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Rating:62Neutral
Price Target:
$8.00
▲(29.24% Upside)
Action:Reiterated
Date:05/30/26
The score is primarily supported by improving fundamentals (rapid TTM revenue growth, lower leverage, and positive operating/free cash flow) and a strong technical uptrend (price above key moving averages with positive MACD). These positives are partly offset by weak valuation support due to ongoing GAAP losses (negative P/E), plus some execution/timing risk highlighted in guidance (notably drones and federal procurement) and potential dilution from the new ATM program.
Positive Factors
Strong TTM Revenue Growth
A 143% TTM revenue increase signals durable demand recovery and execution on design wins across Embedded IoT and unmanned systems. Sustained top-line expansion supports scale efficiencies, long product lifecycles, and the ability to convert design wins into recurring production orders over the next 2–6 months.
Negative Factors
Ongoing GAAP Losses
Persistent GAAP losses and negative returns on shareholder capital limit retained-earnings accumulation and long-term investor returns. Until GAAP profitability is sustained, the company may face pressure to raise equity or temper investments, which could dilute shareholders or slow strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong TTM Revenue Growth
A 143% TTM revenue increase signals durable demand recovery and execution on design wins across Embedded IoT and unmanned systems. Sustained top-line expansion supports scale efficiencies, long product lifecycles, and the ability to convert design wins into recurring production orders over the next 2–6 months.
Read all positive factors
Lantronix Key Performance Indicators (KPIs)
Lantronix (LTRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$336.45M
Dividend YieldN/A
Average Volume (3M)1.01M
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth-17.17%
EPS Growth23.08%
CountryUS
Employees367
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.17
Shares Outstanding39,816,930
10 Day Avg. Volume1,651,130
30 Day Avg. Volume1,012,106
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 Cap0.98
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit6.65
Enterprise Value/Ebitda-147.48
Forecast
1Y Price Target
$8.83Price Target Upside42.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.17
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 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 | -2.24M | -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
Positive
6.19
Price Trends
6.22
Positive
6.21
Positive
5.55
Positive
Market Momentum
0.35
Negative
60.67
Neutral
77.42
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 6.19 is below the 20-day moving average (MA) of 6.69, below the 50-day MA of 6.22, and above the 200-day MA of 5.55, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 60.67 is Neutral, neither overbought nor oversold. The STOCH value of 77.42 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $318.26M | 21.80 | 33.31% | ― | 14.16% | 38.26% | |
62 Neutral | $336.45M | -45.55 | -8.79% | ― | -17.17% | 23.08% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $246.14M | 37.79 | 4.01% | 4.28% | 2.02% | -56.43% | |
59 Neutral | $214.04M | -99.22 | 17.85% | ― | -12.48% | 66.68% | |
57 Neutral | $257.09M | -106.87 | -1.43% | ― | -15.03% | -110.33% | |
54 Neutral | $230.19M | 25.47 | 3.37% | ― | 0.23% | ― |
* Technology Sector Average
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Lantronix Corporate Events
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.