olivLaw · US equity research
Lantronix, Inc. LTRX
Computer Communications Equipment · SIC 3576 · Vertical: Computer Communications Equipment (SIC 3576)
Lantronix is a global provider of Edge AI and Industrial IoT solutions, focused on NDAA-compliant unmanned systems (drones), critical infrastructure and resilient enterprise networks. Fiscal 2026 net revenue reached 120.9 million USD, and the company expects double-digit revenue growth in fiscal 2027 as demand for trusted, compliant components in defense and public safety grows.
At the close of 04 Nov 2026, Lantronix, Inc. (LTRX) stock was 5.65 USD (−3.58% on the day), with market capitalisation 263.9 m USD, beta 1.79, 52-week range 4.48–8.45 USD. Latest reported quarter (Q4 2026): revenue of 31.2 m USD (+8.0% YoY), net income of -269.0 k USD, diluted EPS -0.01 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 40.8
- weak (30–45)
- Bollinger (20, 2)
- 5.30 – 6.78
- in the lower half of the band · %B 0.24 · band width 24.5%
- SMA 50 / 200
- 6.04 / 6.09
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.11 / -0.08
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −20.8% | −1.1% | −19.7 pp | — |
| 3 months | −4.1% | −0.5% | −3.6 pp | — |
| 6 months | −16.5% | +4.4% | −20.9 pp | — |
| Year to date | −3.6% | +12.3% | −15.9 pp | — |
| 1 year | +21.2% | +13.5% | +7.7 pp | −9.0% |
| 3 years | +25.8% | +76.4% | −50.6 pp | +63.6% |
| 5 years | −42.3% | +63.7% | −106.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 34.4 m | 31.2 m | 28.5 m | 28.8 m | 29.8 m | 29.8 m | 30.2 m | 31.2 m |
| Cost of revenue | 19.9 m | 17.9 m | 16.1 m | -57.0 k | 77.0 k | 16.8 m | 17.2 m | 22.0 k |
| Gross profit | 14.5 m | 13.3 m | 12.4 m | 11.5 m | 13.3 m | 13.0 m | 13.0 m | 13.6 m |
| Research & development | 5.0 m | 5.0 m | 4.5 m | 4.2 m | 4.6 m | 4.6 m | 4.1 m | 4.2 m |
| SG&A | 9.5 m | 8.8 m | 9.0 m | 9.0 m | 9.5 m | 8.7 m | 9.4 m | 9.3 m |
| Operating income | -2.1 m | -2.2 m | -3.6 m | -3.1 m | -1.5 m | -1.1 m | -1.1 m | -392.0 k |
| Depreciation & amortisation | 543.0 k | 573.0 k ≈ | 502.0 k ≈ | 466.0 k | 446.0 k | 407.0 k ≈ | 395.0 k ≈ | 354.0 k |
| Pre-tax income | -2.3 m | -2.3 m | -3.8 m | -3.3 m | -1.4 m | -1.1 m | -1.1 m | -309.0 k |
| Income tax | 218.0 k | 94.0 k | 111.0 k | -662.0 k | 42.0 k | 243.0 k | 34.0 k | -40.0 k |
| Net income | -2.5 m | -2.4 m | -3.9 m | -2.6 m | -1.4 m | -1.3 m | -1.2 m | -269.0 k |
| Diluted EPS | -0.07 | -0.06 | -0.10 | -0.07 ≈ | -0.04 | -0.03 | -0.03 | -0.01 ≈ |
| Operating cash flow | 2.7 m | 340.0 k ≈ | 3.2 m ≈ | 1.1 m | 3.6 m | 2.2 m ≈ | 2.2 m ≈ | 1.9 m |
| Capex | 157.0 k | 84.0 k ≈ | 121.0 k ≈ | 143.0 k | 74.0 k | 92.0 k ≈ | 237.0 k ≈ | 209.0 k |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 46.9 m | 59.9 m | 71.5 m | 129.7 m | 131.2 m | 160.3 m | 122.9 m | 120.9 m |
| Revenue YoY | +2.9% | +27.7% | +19.4% | +81.4% | +1.2% | +22.2% | −23.3% | −1.6% |
| Net income | -408.0 k | -10.7 m | -4.0 m | -5.4 m | -9.0 m | -4.5 m | -11.4 m | -4.2 m |
| Net income YoY | −160.0% | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | -0.02 | unavailable | -0.14 | -0.16 | -0.25 | -0.12 | -0.29 | -0.10 |
| Diluted EPS YoY | −150.0% | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -0.9% | -17.9% | -5.7% | -4.1% | -6.8% | -2.8% | -9.3% | -3.5% |
| Free cash flow | -2.6 m | -3.1 m | 3.5 m | -11.5 m | -2.4 m | 17.1 m | 6.8 m | 9.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- 60.5 m USD
- Financial debt
- 0 USD
- Net debt
- -60.5 m USD
- Equity
- 119.3 m USD
- Total assets
- 160.3 m USD
- Debt / equity
- 0.00x
- Current ratio
- 3.66x
- ROE
- -4.3%
- ROA
- -2.9%
- FCF margin
- 7.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 71.5 m | 129.7 m | 131.2 m | 160.3 m | 122.9 m | 120.9 m | SEC (XBRL)· 27 Aug 2026verified |
| Cost of revenue | 38.5 m | 74.1 m | 74.9 m | 376.0 k | 220.0 k | 255.0 k | SEC (XBRL)· 27 Aug 2026verified |
| Gross profit | 33.0 m | 55.6 m | 56.3 m | 64.4 m | 51.7 m | 52.9 m | SEC (XBRL)· 27 Aug 2026verified |
| Research & development | 11.1 m | 17.7 m | 19.6 m | 20.3 m | 18.6 m | 17.6 m | SEC (XBRL)· 27 Aug 2026verified |
| SG&A | 20.8 m | 34.5 m | 36.9 m | 40.2 m | 36.2 m | 37.0 m | SEC (XBRL)· 27 Aug 2026verified |
| Operating income | -3.3 m | -5.0 m | -6.7 m | -2.9 m | -11.0 m | -4.1 m | SEC (XBRL)· 27 Aug 2026verified |
| Depreciation & amortisation | 817.0 k | 1.0 m | — | 2.2 m | 2.1 m | 1.6 m | SEC (XBRL)· 27 Aug 2026verified |
| EBITDA | -2.5 m ≈ | -4.0 m ≈ | — | -699.0 k ≈ | -8.9 m ≈ | -2.5 m ≈ | SEC (XBRL)· 27 Aug 2026derived |
| Interest expense | 278.0 k | — | — | — | — | — | SEC (XBRL)· 27 Aug 2021verified |
| Pre-tax income | -3.8 m | -7.2 m | -8.2 m | -3.8 m | -11.6 m | -3.9 m | SEC (XBRL)· 27 Aug 2026verified |
| Income tax | -195.0 k | -1.8 m | 748.0 k | 745.0 k | -239.0 k | 279.0 k | SEC (XBRL)· 27 Aug 2026verified |
| Net income | -4.0 m | -5.4 m | -9.0 m | -4.5 m | -11.4 m | -4.2 m | SEC (XBRL)· 27 Aug 2026verified |
| Diluted EPS | -0.14 | -0.16 | -0.25 | -0.12 | -0.29 | -0.10 | SEC (XBRL)· 27 Aug 2026verified |
| Weighted average diluted shares | 28.7 m | 32.7 m | 36.3 m | 37.4 m | 38.6 m | 40.1 m | SEC (XBRL)· 27 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 9.7 m | 17.2 m | 13.5 m | 26.2 m | 20.1 m | 60.5 m | SEC (XBRL)· 27 Aug 2026verified |
| Receivables | 13.5 m | 26.3 m | 27.7 m | 31.3 m | 25.1 m | 25.3 m | SEC (XBRL)· 27 Aug 2026verified |
| Inventories | 15.1 m | 37.7 m | 49.7 m | 27.7 m | 26.4 m | 25.8 m | SEC (XBRL)· 27 Aug 2026verified |
| Current assets | 43.2 m | 90.0 m | 96.6 m | 89.0 m | 77.4 m | 117.4 m | SEC (XBRL)· 27 Aug 2026verified |
| Property, plant & equipment, net | 1.6 m | 3.7 m | 4.6 m | 4.0 m | 2.5 m | 1.5 m | SEC (XBRL)· 27 Aug 2026verified |
| Goodwill | 15.8 m | 20.8 m | 27.8 m | 27.8 m | 31.1 m | 31.1 m | SEC (XBRL)· 27 Aug 2026verified |
| Intangibles (excl. goodwill) | 9.4 m | 14.6 m | 10.6 m | 5.3 m | 3.7 m | 2.2 m | SEC (XBRL)· 27 Aug 2026verified |
| Total assets | 72.6 m | 137.4 m | 151.6 m | 136.2 m | 123.7 m | 160.3 m | SEC (XBRL)· 27 Aug 2026verified |
| Accounts payable | 9.1 m | 20.6 m | 12.4 m | 10.3 m | 13.3 m | 17.0 m | SEC (XBRL)· 27 Aug 2026verified |
| Short-term debt | 1.5 m | 1.7 m | 2.7 m | 3.0 m | 3.1 m | 0 | SEC (XBRL)· 27 Aug 2026verified |
| Long-term debt | 2.2 m | 14.3 m | 16.2 m | 13.2 m | 8.7 m | 0 | SEC (XBRL)· 27 Aug 2026verified |
| Current liabilities | 22.9 m | 35.5 m | 46.4 m | 30.2 m | 30.4 m | 32.1 m | SEC (XBRL)· 27 Aug 2026verified |
| Total liabilities | 26.5 m | 57.5 m | 74.1 m | 54.9 m | 49.3 m | 41.1 m | SEC (XBRL)· 27 Aug 2026verified |
| Equity | 46.1 m † | 79.9 m † | 77.6 m † | 81.4 m † | 74.4 m † | 119.3 m † | SEC (XBRL)· 27 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 4.3 m | -9.4 m | 237.0 k | 18.6 m | 7.3 m | 9.9 m | SEC (XBRL)· 27 Aug 2026verified |
| Capex | 783.0 k | 2.1 m | 2.7 m | 1.5 m | 505.0 k | 612.0 k | SEC (XBRL)· 27 Aug 2026verified |
| Free cash flow | 3.5 m ≈ | -11.5 m ≈ | -2.4 m ≈ | 17.1 m ≈ | 6.8 m ≈ | 9.3 m ≈ | SEC (XBRL)· 27 Aug 2026derived |
| Investing cash flow | -783.0 k | -25.7 m | -7.3 m | -1.5 m | -7.0 m | -612.0 k | SEC (XBRL)· 27 Aug 2026verified |
| Financing cash flow | -1.5 m | 42.6 m | 3.3 m | -4.4 m | -6.5 m | 31.1 m | SEC (XBRL)· 27 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 38 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 263.9 m USD
Key indicators
Coverage and freshness
Score by group
- Quality27
- Growth4
- Valuation63
- Balance sheet100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 2.40 – 16.44 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/Sales2.40 – 16.44 (Mid 7.11)7 companies used · median multiple 2.2x · quartiles 0.4x – 5.9xATEN, BOSC, CSCO, DGII, EXTR, FOXX, HUBC
- Peers: EV/EBITDAunavailable · the base of the ratio is not positive
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 38/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 43.8% | 9 (on a fixed band) | 12% |
| EBIT margin · Quality | -3.4% | 47 (vs peers) | 10% |
| FCF margin · Quality | 7.7% | 31 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | -2.7% | 0 (on a fixed band) | 19% |
| Revenue growth (YoY) · Growth | -1.6% | 13 (vs peers) | 10% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 3.7x | 100 (on a fixed band) | 7% |
| EV/Sales · Valuation | 1.7x | 57 (vs peers) | 19% |
| FCF yield · Valuation | 3.5% | 70 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/2 factors with a value
- Growth4/100 · 2/2 factors with a value
- Quality27/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation63/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
LANTRONIX, INC. (LTRX). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 120.9 m USD in 2026; YoY growth -1.6%; net margin -3.5%; ROE -4.3%.
The estimated value range is 2.40–16.44 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 7.11 USD, the price of 5.65 USD leaves a potential of 25.8% (value / price − 1) and a margin of safety of 20.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 38/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 3.7x
- FCF yield: 3.5%
What contradicts it
- Gross margin: 43.8%
- Revenue CAGR 3Y: -2.7%
- Revenue growth (YoY): -1.6%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, Shareholder yield (distributions).
Versus the vertical median
Computer Communications Equipment (SIC 3576) · same industry (4-digit SIC) · compared with 15 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CSCOCisco Systems, Inc. | 408.5 bn | 31.1 | 27.3% | 21.0% | +11.8% | +35% / +114% |
| ANETArista Networks, Inc. | 225.5 bn | 48.0 | 33.5% | 40.0% | +28.6% | +37% / +225% |
| FFIVF5, Inc. | 18.7 bn | 26.3 | 19.8% | 22.0% | +9.7% | +38% / +93% |
| EXTRExtreme Networks, Inc. | 3.0 bn | 58.0 | 67.1% | 4.0% | +12.6% | +31% / +42% |
| DGIIDigi International Inc. | 2.8 bn | 57.5 | 7.5% | 9.6% | +1.5% | +74% / +208% |
| ATENA10 Networks, Inc. | 1.7 bn | 40.0 | 19.4% | 13.9% | +11.0% | +38% / +91% |
| NTGRNETGEAR, Inc. | 586.0 m | — | -7.0% | -4.9% | +3.8% | −16% / +64% |
| ALLTAllot Ltd. | 421.3 m | 108.3 | 4.5% | 3.6% | +10.6% | −10% / +541% |
| LTRXLantronix, Inc. | 263.9 m | — | -4.3% | -3.5% | −1.6% | +21% / +26% |
| SILCSilicom Ltd. | 181.2 m | — | -9.4% | -18.5% | +6.6% | +112% / +95% |
| BOSCBos Better Online Solutions Ltd | 29.8 m | 7.4 | 14.4% | 7.1% | +26.6% | −9% / +48% |
| FOXXFoxx Development Holdings Inc. | 13.3 m | — | — | -100.2% | −20.2% | −58% / −83% |
| INTZIntrusion Inc. | 11.9 m | — | -140.9% | -194.0% | +21.6% | −66% / −93% |
| WLDSWearable Devices Ltd. | 4.2 m | — | -72.3% | -1,253.0% | +23.9% | −92% / −100% |
| HUBCHUB Cyber Security Ltd. | 3.4 m | — | — | -134.5% | −30.7% | −100% / −100% |
| CIITTianci International, Inc. | 2.0 m | — | -55.0% | -16.7% | +53.4% | −93% / −96% |
1- and 3-year price returns: for LTRX from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Lantronix is a global provider of Edge AI and Industrial IoT solutions, focused on NDAA-compliant unmanned systems (drones), critical infrastructure and resilient enterprise networks. Fiscal 2026 net revenue reached 120.9 million USD, and the company expects double-digit revenue growth in fiscal 2027 as demand for trusted, compliant components in defense and public safety grows.
SWOT
Strengths
- The company has a differentiated position in NDAA and TAA compliance, a criterion that matters for defense and public procurement. Its balance sheet is solid, with substantial cash and no debt at fiscal year-end 2026 12.
- The portfolio combines hardware, software and services, enabling complete solutions for customers. The Nero acquisition adds recurring revenue and an existing customer base 12.
- Pre-certified products across several regions reduce OEM customers' regulatory costs and speed time to market 1.
Weaknesses
- A relatively small number of distributors and end-user customers account for a large share of revenue, and losing them would have significant effects 1.
- Manufacturing is almost entirely outsourced to Asian contract manufacturers, and several components come from a single source, exposing the company to disruption 1.
- Many products sell into mature markets with declining demand, and the source notes that some revenue has already declined and could continue to do so 1.
Opportunities
- If Western governments keep investing in compliant unmanned systems, the company could capture a larger share of defense procurement 1.
- Growing the software and recurring services segment could lift margins, and integrating Nero could bring new customers in critical infrastructure 2.
- The launch of the SLC 9000 console manager for the AI data center market opens a new network management segment 2.
Threats
- Trade restrictions, tariffs and geopolitical conflicts can disrupt supply chains and raise component costs 12.
- Government funding depends on annual budget processes, and contracts can be terminated for convenience, making defense revenue hard to forecast 1.
- Competitors with greater resources could reduce the company's market share, especially in software and SaaS segments 1.
Risks
- Dependence on large customers and distributorshigh
A significant portion of revenue comes from a small number of customers, and lower sales to them could affect financial results 1.
- Component shortages and memory constraintshigh
Some integrated circuits have a single source and the memory market is constrained, which could delay deliveries and cause lost sales 1.
- Reliance on government contractsmedium
Government contracts can be terminated for convenience and funding depends on annual budgets, creating volatility in the drone segment 1.
- Software and SaaS investment riskmedium
The company cannot guarantee it will recover its investment in software or realize meaningful revenue from this segment, which could affect margins 1.
- Project-driven revenue volatilitymedium
Large orders are often tied to customer project timing, which makes quarterly revenue difficult to forecast 1.
Investment thesis
What would need to be true (bull case)
- If the drone segment sustains its growth and reaches its expected revenue share in fiscal 2027, the company could become an important compute supplier for autonomous systems 2.
- A debt-free balance sheet with substantial cash could provide flexibility for acquisitions and investment in new products 2.
- Integrating Nero and growing recurring services could improve profitability and revenue predictability over the medium term 2.
What would break the thesis
- If component shortages and tariffs persist, margins and deliveries could be affected, and the announced growth could be delayed 1.
- Legacy product lines with declining demand could keep eroding revenue if new launches do not offset the decline 1.
- Dependence on government funding and large customers could make revenue volatile, especially if budgets are cut 1.
What to watch
- Delivery against first-quarter revenue guidance of 31 to 33 million USDQ1 2027
- Share of revenue from drones and the expected growth of total revenue above ten percent2027
- Nero contribution to ARR and integration progress, including purchase accounting disclosuresQ1 2027
- Outcome of possible IEEPA tariff refunds and their effect on costsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Lantronix organizes its products into three lines: Embedded IoT Solutions (compute SoMs and connectivity), IoT System Solutions (routing, switching, gateway and media conversion systems) and Software and Services, which includes the Percepxion SaaS platform and, after the August 2026 acquisition, the Nero Global Tracking platform. It operates in three regions: Americas, EMEA and APJ, sells mostly through distributors and also through resellers, direct sales and an e-commerce site, and outsources manufacturing to contract manufacturers in Asia. It had 330 employees at August 21, 2026 12.
The business model depends on customers' design cycles: embedded solutions are designed into OEM and ODM products over nine to 24 months and can generate revenue over the entire product life cycle. IoT systems are typically sold through VARs and integrators with cycles of three to 18 months, often project-based. Because most orders are placed on a purchase order basis rather than under long-term contracts, revenue predictability is only partial 1.
The strategy targets three verticals: unmanned aerial systems, critical infrastructure monitoring and resilient enterprise networks. The company is trying to shift toward recurring, higher-margin software and services, and acquisitions are part of that plan. It describes itself as aiming to be a strategic partner rather than just a hardware vendor 1.
Segments
Unmanned systems (UAS)
Unmanned systems revenue grew from a minimal contribution in fiscal 2025 to 12.6 million USD in fiscal 2026, above the midpoint of the 10 to 14 million USD outlook. Products are built on Qualcomm Dragonwing SoMs, including the Open-Q 8550 and a Drone Reference Platform, designed for NDAA and TAA compliance 12.
Critical infrastructure and Nero software
The largest program cited is a nationwide backup-power monitoring deployment with a Tier-1 U.S. mobile operator across more than 50,000 cell sites, using Percepxion cloud software. The Nero Global Tracking acquisition adds about 5.3 million USD of annual revenue, including about 4.5 million USD ARR, and roughly 125,000 asset tags under management; the company says this lifts Software and Services above 10 percent of total revenue on a pro forma basis 12.
Enterprise and out-of-band networking
In enterprise, the company provides out-of-band management to a Tier 1 banking customer to improve network resiliency. The SLC 9000 console manager, integrated with Percepxion, targets the AI data center networking market, while the IoT Systems line has reaccelerated after the core business returned to growth in fiscal 2026 12.
Market context
The company operates in industrial edge computing and IoT, where demand for NDAA- and TAA-compliant components has grown in defense, public safety and critical infrastructure. The source does not give total market size, so no market shares can be calculated. The company says its positioning could help it compete for a larger share of defense procurement if Western governments keep restricting non-compliant drone systems 1.
Core revenue is sensitive to budget cycles and project timing. The company notes that some products sell into mature markets with declining demand, and that growth depends on launching new products and converting backlog. Component markets are also affected by memory shortages and tariffs 1.
Trends
- NDAA and TAA compliance becomes a procurement criteriontailwind
Defense and public-sector procurement rules restrict foreign-sourced components, which favors suppliers that can prove compliance. The company argues this advantage could become more pronounced if U.S. and allied authorities increase investment in unmanned systems 1.
- Rising demand for drones in defense and public safetytailwind
Interest in autonomous systems and counter-UAS use cases widens what the compute modules can deliver. Active unmanned systems engagements rose to more than 30 at year-end fiscal 2026, from about 10 at the start of the year 2.
- Memory shortage and cost pressureheadwind
The component market faces memory chip shortages, which raise costs and limit availability. The company has in the past been unable to meet some orders because of component shortages, and this risk persists 1.
- Shift from hardware to recurring servicesmixed
A larger share of software and recurring services could improve margins and revenue predictability. At the same time, software products carry specific risks, and the company cannot guarantee it will recover its investment in this segment 1.
Competitive position
The industry is highly competitive and changes quickly. The company says it wins customers on product features, software capabilities, reputation, technical support and price. The source gives no market share or performance comparisons, so positioning claims remain qualitative 1.
Competitors include solution providers with greater resources than the company, and entering new segments such as SaaS means facing unfamiliar rivals and distribution channels. Partnerships with integrators and drone ecosystem players are part of the company's response to this pressure 12.
- Swarmer, Inc.SWMR
A partner named by the company, with which it develops a SoM-based compute platform for Group 1 unmanned aerial systems; the relationship is collaborative rather than strictly competitive 2.
- Vecima Networks Inc.
The former owner of the industrial IoT business acquired by Lantronix, including the Nero Global Tracking platform; the assets were transferred to the company in August 2026 1.
- Out-of-band management and cloud network software vendors
The source does not name direct competitors in this segment, but refers to solution providers with larger resources that the company faces in its markets.
- Embedded module and IoT system suppliers
Competition in the embedded segment is described generically without naming specific firms; the company differentiates through pre-certified products and faster time to market 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Proxy statement22 Sept 2026
- Annual report27 Aug 2026
- Current report27 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Current report26 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report01 Jun 2026Material agreement · Regulation FD disclosure · Financial statements and exhibits
- Current report08 May 2026Material agreement · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report06 May 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report05 Feb 2026
- Current report04 Feb 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Lantronix, Inc. · 27 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Lantronix, Inc. · 26 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.