Lantronix (NASDAQ:LTRX) Announces Earnings Results

Lantronix (NASDAQ:LTRX) issued its quarterly earnings results on Wednesday. The technology company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.01, FiscalAI reports. Lantronix had a negative return on equity of 11.63% and a negative net margin of 8.68%.The company had revenue of $29.77 million for the quarter, compared to the consensus estimate 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 Price Performance

Shares of Lantronix stock traded down $0.97 during midday trading on Wednesday, hitting $6.23. 2,312,743 shares of the company were exchanged, compared to its average volume of 1,465,797. The firm has a 50 day simple moving average of $6.06 and a 200-day simple moving average of $4.94. The company has a debt-to-equity ratio of 0.14, a current ratio of 3.01 and a quick ratio of 1.93. The firm has a market cap of $245.21 million, a P/E ratio of -23.07 and a beta of 1.51. Lantronix has a 52 week low of $1.91 and a 52 week high of $8.24.

Hedge Funds Weigh In On Lantronix

Several institutional investors have recently added to or reduced their stakes in LTRX. Soviero Asset Management LP acquired a new stake in shares of Lantronix during the third quarter worth approximately $2,331,000. Arrowstreet Capital Limited Partnership grew its position in Lantronix by 135.5% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 669,183 shares of the technology company’s stock worth $3,058,000 after acquiring an additional 385,075 shares during the last quarter. Citadel Advisors LLC increased its holdings in Lantronix by 1,191.2% during the 3rd quarter. Citadel Advisors LLC now owns 195,583 shares of the technology company’s stock valued at $894,000 after purchasing an additional 180,436 shares in the last quarter. UBS Group AG raised its position in Lantronix by 7,023.2% in the 3rd quarter. UBS Group AG now owns 127,576 shares of the technology company’s stock valued at $583,000 after purchasing an additional 125,785 shares during the last quarter. Finally, Millennium Management LLC bought a new position in Lantronix in the 3rd quarter valued at $564,000. 39.38% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Wall Street Zen lowered shares of Lantronix from a “strong-buy” rating to a “buy” rating in a research report on Monday, January 19th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lantronix in a research report on Thursday, January 22nd. Needham & Company LLC lifted their target price on Lantronix from $5.50 to $7.50 and gave the stock a “buy” rating in a research report on Thursday, November 6th. Finally, Lake Street Capital upped their price target on Lantronix from $6.00 to $8.00 and gave the company a “buy” rating in a report on Thursday, December 11th. Three research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Lantronix currently has an average rating of “Moderate Buy” and an average target price of $6.17.

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.