Lantronix (NASDAQ:LTRX) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Lantronix (NASDAQ:LTRX) issued its quarterly earnings data on Wednesday. The technology company reported $0.04 earnings per share for the quarter, beating analysts’ consensus estimates of $0.03 by $0.01, FiscalAI reports. Lantronix had a negative return on equity of 10.35% and a negative net margin of 7.90%.The firm had revenue of $29.77 million during the quarter, compared to analyst estimates of $29.94 million. Lantronix updated its Q3 2026 guidance to 0.030-0.060 EPS.

Here are the key takeaways from Lantronix’s conference call:

• Management raised fiscal 2026 drone revenue guidance to $8M–$12M (from $5M–$10M) and expects drones to represent roughly 15%–20% of company revenue in fiscal 2027 (~$20M–$30M) as customer programs move from pilots into broader deployments.
• Q2 results: revenue of $29.8M, non‑GAAP EPS $0.04, GAAP net loss narrowed to $1.3M, gross margin ~44%, cash $23M and net cash ~ $13.3M after paying down debt to ~$9.7M, with positive operating cash flow of ~$2.2M.
• Company is shifting from component sales to a platform-led Edge AI strategy—launching a drone reference kit and SmartEdge.ai/SmartSwitch.ai—and aims to grow software and recurring revenue (currently ~6% of revenue) to more than double over the mid term.
• Near-term headwinds include a prior government shutdown that slowed some federal purchases and ongoing memory/supply pricing pressures; management says these are being managed but cautions drone margins will be near corporate averages in the short term.

Lantronix Stock Up 2.6%

LTRX stock traded up $0.15 during trading on Friday, reaching $5.97. 498,585 shares of the company traded hands, compared to its average volume of 1,436,436. The business has a 50 day simple moving average of $6.11 and a 200 day simple moving average of $4.96. Lantronix has a 12 month low of $1.91 and a 12 month high of $8.24. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.93 and a current ratio of 3.01. The company has a market capitalization of $234.98 million, a price-to-earnings ratio of -24.89 and a beta of 1.51.

Institutional Trading of Lantronix

A number of institutional investors have recently made changes to their positions in the business. Jane Street Group LLC boosted its stake in Lantronix by 19.7% in the 1st quarter. Jane Street Group LLC now owns 71,293 shares of the technology company’s stock worth $178,000 after purchasing an additional 11,728 shares in the last quarter. XTX Topco Ltd acquired a new position in shares of Lantronix in the 2nd quarter valued at $86,000. Marshall Wace LLP raised its stake in Lantronix by 10.6% in the 2nd quarter. Marshall Wace LLP now owns 446,164 shares of the technology company’s stock worth $1,280,000 after acquiring an additional 42,838 shares during the last quarter. Manatuck Hill Partners LLC acquired a new stake in Lantronix during the 2nd quarter worth about $302,000. Finally, Vanguard Group Inc. raised its holdings in shares of Lantronix by 2.8% during the third quarter. Vanguard Group Inc. now owns 1,486,791 shares of the technology company’s stock worth $6,795,000 after purchasing an additional 40,890 shares during the last quarter. Institutional investors and hedge funds own 39.38% of the company’s stock.

Analyst Ratings Changes

A number of analysts recently issued reports on LTRX shares. Craig Hallum restated a “buy” rating and issued a $10.00 price target on shares of Lantronix in a research report on Thursday. Needham & Company LLC boosted their target price on Lantronix from $7.50 to $8.50 and gave the company a “buy” rating in a research report on Thursday. Wall Street Zen cut shares of Lantronix from a “strong-buy” rating to a “buy” rating in a report on Monday, January 19th. Weiss Ratings reissued a “sell (d-)” rating on shares of Lantronix in a research report on Thursday, January 22nd. Finally, Lake Street Capital lifted their price target on shares of Lantronix from $6.00 to $8.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Four analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $7.38.

About Lantronix

Lantronix, Inc is a provider of secure data access and management solutions designed to simplify the deployment, monitoring and control of devices and equipment across a wide range of industries. Headquartered in Irvine, California, the company develops hardware and software products that enable connectivity for smart devices, industrial machinery, IT infrastructure and other systems in the Internet of Things (IoT) ecosystem.

Founded in 1989, Lantronix was among the early innovators in serial-to-Ethernet device networking and has since expanded its portfolio to include secure console servers, device servers, gateways and embedded modules.