Lantronix, Inc. Earnings Recaps
Q4 2026
Aug 28, 2026
Lantronix shares rose 6.5% after the company reported Q4 revenue growth of 8% to $31.2 million and non-GAAP EPS of $0.04, both within its guidance range. Investors may also have responded to momentum in embedded IoT and unmanned systems, though the results were not above guidance.
Key takeaways
- Embedded IoT solutions, including drones, grew 34% year over year; gross margin remained above 44%.
- Fiscal 2026 unmanned systems revenue was $12.6 million, above the midpoint of the company’s most recent guidance range. Engagements grew from roughly 10 in Q1 to more than 30.
- IoT System Solutions revenue increased 16% sequentially in Q4, with recovery in out-of-band management, strength in network switches, and early stabilization in federal business.
- Management highlighted domestic-drone regulatory and funding developments as potential tailwinds, while describing autonomy and edge AI compute as longer-term opportunities.
Q3 2026
May 7, 2026
Lantronix shares fell 15.5% as investors reacted negatively to signs of margin pressure despite solid revenue growth, and cautious outlook commentary that tempered enthusiasm for the unmanned systems segment.
Key takeaways
- Revenue came in at $30.2 million, aligned with guidance, supported by a 22% year-over-year increase in the Embedded IoT Solutions portfolio.
- Non-GAAP EPS was $0.04, within guidance but underscoring modest profitability given revenue scale.
- Gross margin held above 43%, aided by a richer product mix, but investors evidently questioned sustainability amid rising investments.
- Management highlighted expanding R&D and sales efforts to capitalize on growth in unmanned systems and counter-drone markets, suggesting increased spending that may weigh on future margins.
- While the strategic shift into edge AI and broader drone applications is promising, cautious outlook signals and potential margin compression likely pressured the stock.
Q2 2026
Feb 5, 2026
Lantronix, Inc. posted a solid second quarter with revenues of $29.8 million and a non-GAAP EPS of $0.04, reflecting double-digit year-over-year growth despite temporary challenges from federal budget disruptions.
Key takeaways
- Strong revenue and EPS results aligned with company guidance, showcasing effective execution in executing their long-term Edge AI strategy.
- Continued gross margin expansion driven by cost optimization initiatives from the previous year.
- Accelerating customer adoption in unmanned systems, signaling potential growth in defense funding and advanced autonomous applications.
- Strategic partnerships, including new collaborations for AI-enabled solutions, strengthen Lantronix's position in the drone market.
- Potential for multi-year engagements in defense applications indicates strong lifetime value from existing contracts with over 15 OEM partners.