Lantronix Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.66%.
Did LTRX Beat Earnings? Q4 2025 Results
Lantronix delivered a mixed fiscal fourth quarter, posting a narrow revenue beat alongside an earnings miss as the company navigates a significant top-line reset. The IoT and edge computing specialist reported Q4 FY2025 revenue of $28.84 million, edging past the $28.48 million consensus by 1.28%, but non-GAAP EPS of $0.01 fell short of the $0.01 analyst estimate by 20.00%. The headline revenue figure also reflected a steep 41.2% year-over-year decline, a drop management attributed primarily to the wind-down of Gridspertise, a major EMEA smart grid customer that had contributed roughly 25% of FY2024 revenue; excluding that customer, core revenue grew approximately 4%. Gross margins compressed sequentially to 40.0% from 43.5%, pressured by aged inventory charges and tariff headwinds, though the company has shifted manufacturing outside China to reduce exposure. Looking ahead, Lantronix guided Q1 FY2026 revenue of $28.50 million to $30.50 million with non-GAAP EPS of $0.02 to $0.04, citing improving visibility and new contracts in drone and wireless infrastructure markets as emerging growth catalysts.
- Cost reduction initiatives removing over $4 million in costs relative to FY2024
- Continued momentum in Edge IoT products driving core revenue growth excluding Gridspertise
- Favorable product mix and supply chain optimization initiatives
- Proactive manufacturing shift outside China to reduce tariff exposure
“Fiscal 2025 was a year of strategic transformation for Lantronix, one in which we executed with discipline, streamlined our operations and made targeted investments in high-value markets. We strengthened our foundation for sustainable, profitable growth by aligning our resources with our highest-impact opportunities, enhancing supply chain resilience and advancing our platform capabilities.”
Lantronix CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY2026 (ending September 30, 2025), Lantronix expects revenue in the range of $28.5 million to $30.5 million and non-GAAP EPS of $0.02 to $0.04. Management indicated Q1 is off to a strong start with healthy customer engagement across multiple verticals. The company expects gross margins to recover to first-half FY2025 levels as tariff and inventory impacts normalize. Visibility into fiscal 2026 has improved, supported by momentum in Edge IoT and Network Infrastructure. Revenue contributions from the Red Cat Teal Drones and Aerora partnerships are expected to begin in fiscal 2026.
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Figures from SEC filings and company reports. Not investment advice.