Lantronix, Inc. Earnings Recaps
Q4 2026
Aug 28, 2026
The stock gained 2.9% post-earnings, reflecting generally in-line results with some positive momentum in key growth areas but no clear catalyst to drive a stronger market reaction.
Key takeaways
- Revenue grew 8% year-over-year to $31.2 million, within the company’s guidance range.
- Non-GAAP EPS increased 300% year-over-year to $0.04, also within guidance.
- Embedded IoT solutions, including the drone business, expanded 34% year-over-year, highlighting the growing importance of unmanned systems.
- Gross margins remained steady above 44%, indicating disciplined cost management amid growth.
- The company highlighted regulatory tailwinds and multiple partnerships fueling the unmanned systems segment but noted federal procurement challenges in IoT System Solutions are beginning to stabilize.
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.