Lantronix Q2 Revenue at $29.77M, Below Consensus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy LTRX?
Reports Q2 revenue $29.77M, consensus $29.94M. "We continued our momentum into the second quarter through disciplined execution, delivering financial results within our guidance range," said Saleel Awsare, president and CEO of Lantronix. "Execution across our Edge AI strategy continued to strengthen during Q2, with several customer programs advancing from development and pilot phases into initial production and deployment."
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Analyst Views on LTRX
Wall Street analysts forecast LTRX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LTRX is 7.88 USD with a low forecast of 7.00 USD and a high forecast of 9.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 5.820
Low
7.00
Averages
7.88
High
9.00
Current: 5.820
Low
7.00
Averages
7.88
High
9.00
About LTRX
Lantronix Inc. specializes in compute and connectivity Internet of things (IoT) solutions that target industries including smart cities, automotive and enterprise. The Company's products and services help companies to capitalize on the expanding IoT market by delivering customizable solutions that address each layer of the IoT stack. Its solutions include intelligent substations infrastructure, infotainment systems and video surveillance, supplemented with advanced out-of-band management (OOB) for cloud and edge computing. Its solutions enable ultra-fast ethernet-to-cellular and wi-fi connectivity for machines in the demanding environments. Its product lines include Embedded IoT Modules, IoT Systems Solutions, and Software and Engineering Services. The Company's products include Edge AI, OOB, network infrastructure, industrial IoT, SoMs and dev kits, and connectivity modules. Its SmartLV, powered by the Qualcomm IQ-615 processor, is an AI-enabled IoT Edge Compute Cellular Gateway.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Lantronix (LTRX) Q2 2026 Earnings Call Transcript
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- Revenue Decline: The company’s revenue of $29.77 million represents a 4.5% year-over-year decline, missing the forecast of $29.94 million, which highlights ongoing market demand challenges and competitive pressures.
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- Significant Revenue Growth: Lantronix reported revenue of $29.8 million for Q2 2026, with a non-GAAP EPS of $0.04, both within guidance, indicating strong performance in embedded computing and drone programs that drove overall business growth.
- Drone Revenue Guidance Raised: The company increased its fiscal 2026 drone revenue outlook from $5 million to $10 million to a new range of $8 million to $12 million, projecting that drone revenue will represent 15% to 20% of total revenue in fiscal 2027, reflecting robust market demand and successful strategic transformation.
- Effective Cost Control: CFO reported GAAP operating expenses of $14 million for Q2, down nearly 6% from the prior quarter and approximately 9% from the same period last year, indicating significant success in cost optimization that enhances profitability.
- Increased Customer Engagement: Management emphasized that customer engagement in unmanned systems is transitioning from development and pilot phases to broader deployment, signaling ongoing growth in critical infrastructure monitoring and stable revenue from major mobile network operators.
See More
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- Strong Financial Performance: Lantronix reported revenue of $29.8 million and non-GAAP EPS of $0.04 for Q2 FY2026, exceeding company guidance and demonstrating continued execution of its Edge AI strategy.
- Increased Drone Revenue Outlook: The company raised its fiscal 2026 drone revenue outlook to $8 million to $12 million from a previous range of $5 million to $10 million, reflecting accelerated customer deployment activity and growing market demand.
- Margin Improvement: Lantronix achieved a GAAP gross margin of 43.6%, up from 42.6% year-over-year, while non-GAAP gross margin increased to 44.0% from 43.2%, indicating the effectiveness of cost optimization efforts.
- Healthy Cash Flow: The company ended the quarter with $23.0 million in cash and cash equivalents, an increase of $0.8 million from the prior quarter, and generated nearly $2.2 million in positive operating cash flow during the period, highlighting ongoing financial health improvements.
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Lantronix (LTRX) Q2 2026 Earnings Call Transcript
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Lantronix Q2 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Lantronix reported a non-GAAP EPS of $0.04 for Q2, exceeding expectations by $0.01, indicating stability in profitability despite revenue challenges.
- Revenue Decline: The company’s revenue of $29.77 million represents a 4.5% year-over-year decline, missing the forecast of $29.94 million, which highlights ongoing market demand challenges and competitive pressures.
- Future Outlook: For Q3 FY2026, Lantronix projects revenue between $28.5 million and $32.5 million, with a midpoint estimate of $30.5 million, and non-GAAP EPS expected to range from $0.03 to $0.06, reflecting cautious optimism for future growth.
- Positive Stock Reaction: Despite missing revenue expectations, Lantronix shares rose by 4.33%, indicating a positive investor response to the earnings beat, which may bolster market confidence.
See More
