Lantronix (NASDAQ:LTRX) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Lantronix (NASDAQ:LTRX) announced its quarterly earnings results on Wednesday. The technology company reported $0.04 earnings per share for the quarter, topping analysts’ consensus estimates of $0.03 by $0.01, FiscalAI reports. Lantronix had a negative net margin of 8.68% and a negative return on equity of 11.63%. The company had revenue of $29.77 million for the quarter, compared to analysts’ expectations 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 Trading Up 5.1%

LTRX opened at $6.55 on Thursday. Lantronix has a twelve month low of $1.91 and a twelve month high of $8.24. The company has a fifty day moving average of $6.09 and a 200-day moving average of $4.95. The stock has a market cap of $257.81 million, a PE ratio of -23.96 and a beta of 1.51. The company has a quick ratio of 1.93, a current ratio of 3.01 and a debt-to-equity ratio of 0.14.

Key Lantronix News

Here are the key news stories impacting Lantronix this week:

• Positive Sentiment: Beat EPS estimates — Lantronix reported Q2 EPS of $0.04 vs. street $0.03, showing operating leverage on the bottom line despite revenue weakness. Lantronix, Inc. (NASDAQ:LTRX) Q2 2026 Earnings Call Transcript
• Positive Sentiment: Raised 2026 drone revenue outlook — management now expects $8M–$12M of drone-related revenue in 2026, citing traction for its platform strategy; this supports growth optionality in a high-margin market. Lantronix raises drone revenue outlook to $8M–$12M for 2026
• Positive Sentiment: Raised Q3 EPS guidance — Lantronix gave Q3 EPS guidance of $0.03–$0.06 versus a consensus near $0.02, signaling management expects continued EPS improvement. Lantronix Reports Fiscal Second Quarter 2026 Financial Results
• Neutral Sentiment: Mixed revenue guidance range — Q3 revenue guidance of $28.5M–$32.5M straddles the $31.2M consensus; the wide range increases forecast uncertainty even though the top end would beat expectations. Lantronix Reports Fiscal Second Quarter 2026 Financial Results
• Negative Sentiment: Revenue slightly missed estimates — Q2 revenue was $29.77M vs. ~$29.94M expected, which combined with a conservative/uncertain revenue guide likely disappointed short-term growth expectations. Lantronix, Inc. (LTRX) Q2 Earnings Beat Estimates
• Negative Sentiment: Still unprofitable on margins/ROE — the company reported negative net margin (~-8.7%) and negative ROE, and analysts still model a negative FY EPS; that longer-term profitability risk can undermine investor enthusiasm despite the EPS beat. Lantronix Q2 2026 Press Release

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on LTRX shares. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lantronix in a research report on Thursday, January 22nd. Lake Street Capital boosted their target price on Lantronix from $6.00 to $8.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Needham & Company LLC lifted their price objective on shares of Lantronix from $5.50 to $7.50 and gave the company a “buy” rating in a report on Thursday, November 6th. Finally, Wall Street Zen cut shares of Lantronix from a “strong-buy” rating to a “buy” rating in a research report on Monday, January 19th. Three analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $6.17.

Institutional Investors Weigh In On Lantronix

Several institutional investors and hedge funds have recently made changes to their positions in LTRX. Jane Street Group LLC boosted its holdings in shares of Lantronix by 19.7% during the 1st quarter. Jane Street Group LLC now owns 71,293 shares of the technology company’s stock worth $178,000 after buying an additional 11,728 shares in the last quarter. XTX Topco Ltd purchased a new stake in shares of Lantronix in the 2nd quarter valued at $86,000. Marshall Wace LLP increased its holdings in shares of Lantronix by 10.6% in the second quarter. Marshall Wace LLP now owns 446,164 shares of the technology company’s stock worth $1,280,000 after buying an additional 42,838 shares during the period. Manatuck Hill Partners LLC purchased a new stake in Lantronix during the 2nd quarter valued at about $302,000. Finally, Vanguard Group Inc. grew its position in Lantronix by 2.8% during the 3rd quarter. Vanguard Group Inc. now owns 1,486,791 shares of the technology company’s stock worth $6,795,000 after acquiring an additional 40,890 shares during the last quarter. Institutional investors own 39.38% of the company’s stock.

Lantronix Company Profile

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.