Companies /Technology

Lantronix Inc

NASDAQ: LTRX Communication Equipment
$5.22
▼ $0.04 (−0.76%) today
Markets closed · 5:59pm ET

Q1 2026 Earnings

Reported Nov 5, 2025, 4:15pm ET · SEC source
$0.04
Beat +33.33%
EPS · est. $0.03
$29.8M
Beat +0.81%
Revenue · est. $29.6M
+14.4%
Beating market
LTRX vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−6%0+6%+12%Nov 5Nov 6report 4:15pm ETearnings−1.0%+3.7%
−6%0+6%+12%Nov 5Nov 6earnings−1.0%+3.7%
LTRX +3.7%S&P 500 −1.0%
−6%0+6%+12%Nov 5Nov 6report 4:15pm ETearnings−1.7%+3.7%
−6%0+6%+12%Nov 5Nov 6earnings−1.7%+3.7%
LTRX +3.7%NASDAQ −1.7%
−5%0+5%+10%Nov 4Nov 13report 4:15pm ETearnings−0.8%−2.6%
−5%0+5%+10%Nov 4Nov 13earnings−0.8%−2.6%
LTRX −2.6%S&P 500 −0.8%
−5%0+5%+10%Nov 4Nov 13report 4:15pm ETearnings−2.4%−2.6%
−5%0+5%+10%Nov 4Nov 13earnings−2.4%−2.6%
LTRX −2.6%NASDAQ −2.4%
+9.25%
Day of report
−0.98%
Next session
−3.54%
One week
+16.34%
30 days

S&P 500 over the same 30 days: +1.90%.

Did LTRX Beat Earnings? Q1 2026 Results

Lantronix posted a tidy beat to open fiscal 2026, with the IoT connectivity company reporting Q1 revenue of $29.79 million and non-GAAP EPS of $0.04, edging past Wall Street's $29.55 million revenue estimate and the $0.03 EPS consensus by 33.33%, even as total revenue slipped 13.4% from the year-ago quarter. The headline driver behind the earnings upside was meaningful margin expansion, with non-GAAP gross margin climbing to 45.3%, up from 40.6% the prior quarter, fueled by favorable product mix, lower inventory charges, and royalty benefits that collectively lifted profitability well above recent trends. The drone and UAS segment emerged as a standout strategic bright spot, with OEM engagements growing from 10 to 17 during the quarter on the back of new design wins, a development that has contributed to the stock's notable momentum with investors over the past year. Looking ahead, management guided Q2 revenue of $28 million to $32 million with non-GAAP EPS of $0.02 to $0.04, implying nearly 20% year-over-year growth when excluding the Gridspertise impact, as defense funding and UAS regulatory tailwinds build.

Key Takeaways
  • Favorable product mix driving gross margin expansion to 45.3% non-GAAP
  • Lower inventory charges and royalty benefits
  • Cost optimization initiatives from fiscal 2025 reducing operating expenses 10% year-over-year
  • Strength in Network Infrastructure products driving sequential revenue growth
  • Growing contributions from drone/UAS business with OEM engagements expanding from 10 to 17

“Fiscal 2026 is off to a strong start, with revenue and earnings per share both at the high end of our guidance ranges. Our results reflect margin expansion, disciplined cost management and growing contributions from our high-growth platforms. In drones, we secured new design wins and expanded OEM engagements, which are supported by record defense funding and regulatory momentum that drive long-term opportunities in the UAS market.”

Lantronix CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY2026 (ending December 31, 2025), Lantronix expects revenue of $28 million to $32 million ($30 million at the midpoint) and non-GAAP EPS of $0.02 to $0.04 ($0.03 at the midpoint). At the midpoint, this implies sequential revenue growth and nearly 20% year-over-year growth excluding Gridspertise. Management expects gross margin to remain healthy and generally consistent with first-half fiscal 2025 levels. The company sees potential upside from scaling drone programs through the remainder of fiscal 2026.

LTRX YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$10.0M$20.0M$30.0M$34.4M$29.8MRevenue$14.5M$13.3MGross Profit$-1,190,736$-1,527,000Operating Income$-972,917$-1,401,000Net Income
$0$10.0M$20.0M$30.0MRevenueGross ProfitOperating IncomeNet Income

LTRX Revenue by Segment

IoT System Solutions$16.5M
Embedded IoT Solutions$11.5M
Software & Services$1.9M

LTRX Revenue by Geography

Americas$20.7M
EMEA$5.1M
Asia Pacific$4.1M

Figures from SEC filings and company reports. Not investment advice.