LTRX · Lantronix, Inc.

Lantronix delivered Q3 FY2026 results with net revenue of $30.2 million, reflecting sequential and year-over-year growth driven by 22% expansion in Embedded IoT Solutions, particularly unmanned systems and edge compute products. Management highlighted disciplined execution, strong gross margins at 43.1% GAAP and 43.6% non-GAAP, supported by a favorable mix of higher-margin products and growing recurring software/services revenue, now at 8-9% of total. GAAP net loss improved to $1.2 million from $3.9 million year-ago, with non-GAAP net income of $1.5 million and EPS of $0.04. Key business highlights include new customer wins in counter-UAS, collaboration with Unusual Machines for autonomous drone components, partnership with MediaTek for multi-silicon strategy, and distribution deal with Melchioni Electronics in Europe. CEO Saleel Awsare emphasized momentum in drones, raising FY26 drone revenue guidance to $10-14 million from prior expectations, positioning unmanned systems for 15-20% of FY2027 revenue. Q4 guidance projects revenue of $29-33 million (midpoint $31 million) and non-GAAP EPS $0.03-0.05, signaling confidence amid federal spending delays in enterprise/networking offset by drone growth. Balance sheet shows $23.5 million in cash, down slightly from June 2025 but supportive of investments in R&D and sales for UAS ecosystem expansion. Overall, results underscore shift toward higher-growth, profitable segments like Edge AI and Industrial IoT for drones.