Lantronix (NASDAQ:LTRX) Issues Earnings Results

Lantronix (NASDAQ:LTRX) announced its earnings results on Wednesday. The technology company reported $0.04 EPS for the quarter, beating analysts’ consensus estimates of $0.03 by $0.01, FiscalAI reports. The business had revenue of $31.15 million during the quarter, compared to analysts’ expectations of $30.69 million. Lantronix had a negative net margin of 5.52% and a negative return on equity of 6.79%. Lantronix updated its Q1 2027 guidance to 0.040-0.060 EPS.

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

• Fiscal 2026 revenue rose 8% to nearly $121 million, while fourth-quarter revenue reached $31.2 million and non-GAAP EPS increased to $0.04. Gross margin improved to 44.1% on a non-GAAP basis.
• Unmanned Systems revenue reached $12.6 million in fiscal 2026, with active engagements expanding to more than 30 vendors. Management expects the business to generate approximately $25 million or more and represent 15%-20% of fiscal 2027 revenue.
• The company cited favorable regulatory and defense-spending trends, including restrictions and tariffs on foreign-made drones, as structural tailwinds for its NDAA- and TAA-compliant domestic solutions. Lantronix is also expanding internationally and adding sales and advocacy resources.
• The $11.7 million acquisition of Vecima’s Industrial IoT business, including Nero Global Tracking, adds roughly $5 million of annual revenue, mid-to-high-60% gross margins, and about 125,000 tracking tags. Management expects the deal to be immediately earnings-accretive and lift software and services above 10% of company revenue.
• Management warned that memory availability is tightening and prices are rising due to AI infrastructure demand, creating potential component-cost pressure. Drone module growth may also weigh on mix, although the company expects customer cost pass-through and higher-margin recurring revenue to offset much of the impact.

Lantronix Price Performance

NASDAQ:LTRX opened at $5.66 on Thursday. The company has a quick ratio of 1.80, a current ratio of 2.74 and a debt-to-equity ratio of 0.12. The business’s 50-day simple moving average is $5.74 and its two-hundred day simple moving average is $6.05. The stock has a market cap of $248.93 million, a PE ratio of -33.29 and a beta of 1.70. Lantronix has a 52 week low of $3.58 and a 52 week high of $8.75.

Institutional Trading of Lantronix

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 during the period. XTX Topco Ltd purchased a new stake in Lantronix during the 2nd quarter valued at approximately $86,000. Marshall Wace LLP raised its position in shares of Lantronix by 10.6% during the second quarter. Marshall Wace LLP now owns 446,164 shares of the technology company’s stock valued at $1,280,000 after buying an additional 42,838 shares during the last quarter. Manatuck Hill Partners LLC bought a new stake in shares of Lantronix during the second quarter valued at approximately $302,000. Finally, Vanguard Group Inc. lifted its holdings in shares of Lantronix by 2.8% in the third quarter. Vanguard Group Inc. now owns 1,486,791 shares of the technology company’s stock worth $6,795,000 after buying an additional 40,890 shares in the last quarter. Hedge funds and other institutional investors own 39.38% of the company’s stock.

Analysts Set New Price Targets

Several analysts have issued reports on LTRX shares. Wall Street Zen lowered Lantronix from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. UBS Group reaffirmed a “buy” rating on shares of Lantronix in a research note on Friday, June 12th. JonesTrading began coverage on Lantronix in a research report on Wednesday, July 15th. They set a “buy” rating and a $12.00 price objective on the stock. Canaccord Genuity Group boosted their price objective on Lantronix from $10.50 to $11.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Lantronix in a report on Friday, July 17th. Six equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $10.40.

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.