Companies /Technology

Lantronix Inc

NASDAQ: LTRX Communication Equipment
$5.22
▼ $0.04 (−0.76%) today
Markets closed · 5:29pm ET

Q2 2026 Earnings

Reported Feb 4, 2026, 4:10pm ET · SEC source
$0.04
Beat +45.45%
EPS · est. $0.03
$29.8M
Miss −0.54%
Revenue · est. $29.9M
+6.6%
Beating market
LTRX vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−8%−4%0Feb 4Feb 5report 4:10pm ETearnings−2.1%−12.2%
−12%−8%−4%0Feb 4Feb 5earnings−2.1%−12.2%
LTRX −12.2%S&P 500 −2.1%
−12%−8%−4%0Feb 4Feb 5report 4:10pm ETearnings−2.6%−12.2%
−12%−8%−4%0Feb 4Feb 5earnings−2.6%−12.2%
LTRX −12.2%NASDAQ −2.6%
−10%0+10%+20%Feb 3Feb 12report 4:10pm ETearnings−0.9%−11.1%
−10%0+10%+20%Feb 3Feb 12earnings−0.9%−11.1%
LTRX −11.1%S&P 500 −0.9%
−10%0+10%+20%Feb 3Feb 12report 4:10pm ETearnings−1.1%−11.1%
−10%0+10%+20%Feb 3Feb 12earnings−1.1%−11.1%
LTRX −11.1%NASDAQ −1.1%
−6.58%
Day of report
+6.19%
Next session
−8.59%
One week
+6.53%
30 days

S&P 500 over the same 30 days: −0.06%.

Did LTRX Beat Earnings? Q2 2026 Results

Lantronix posted a mixed but broadly encouraging fiscal second quarter, clearing the bar on profitability while falling just short on the top line. The embedded computing and IoT specialist reported non-GAAP EPS of $0.04, ahead of the $0.03 consensus by 45.45%, even as revenue of $29.77 million came in 0.54% below estimates and slipped 4.5% from the year-ago period. The headline revenue softness was largely explained by ongoing headwinds from Gridspertise, the company's EMEA smart grid customer; stripped of that drag, management said the underlying business grew at a double-digit year-over-year pace, fueled by embedded compute programs in aerospace, defense, and drones. Gross margin expanded to 43.6% from 42.6% a year ago, reflecting a richer product mix and tighter cost discipline. The growth narrative centered squarely on unmanned systems, with Lantronix raising its fiscal 2026 drone revenue outlook to $8 million to $12 million and projecting drones could represent 15% to 20% of total revenue by fiscal 2027; analysts responded by lifting price targets following the report. For Q3, the company guided revenue of $28.50 million to $32.50 million with non-GAAP EPS of $0.03 to $0.06.

Key Takeaways
  • Strength in embedded compute including aerospace & defense and drone programs
  • Solid contributions from network infrastructure switch products
  • Higher SaaS-based ARR from Tier-1 MNO critical infrastructure monitoring deployment
  • Cost optimization initiatives from FY2025 driving operating leverage
  • Higher mix of premium products supporting gross margin expansion

“We continued our momentum into the second quarter through disciplined execution, delivering financial results within our guidance range. 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.”

Lantronix CEO, on the earnings call

Forward Guidance & Outlook

For Q3 FY2026 (ending March 31, 2026), Lantronix expects revenue of $28.5 million to $32.5 million ($30.5 million at the midpoint) and non-GAAP EPS of $0.03 to $0.06. The company raised its FY2026 drone revenue expectation to $8 million–$12 million, up from the prior range of $5 million–$10 million. Management expects drone revenue to represent approximately 15%–20% of total revenue in fiscal 2027. Software and services currently account for approximately 6% of revenue, with management targeting more than double that mix over the mid-term.

LTRX YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$9.0M$18.0M$27.0M$31.2M$29.8MRevenue$13.3M$13.0MGross Profit$-714,666$-1,074,000Operating Income$-924,060$-1,330,000Net Income
$0$9.0M$18.0M$27.0MRevenueGross ProfitOperating IncomeNet Income

LTRX Revenue by Segment

IoT System Solutions$13.3M
Embedded IoT Solutions$13.9M
Software & Services$2.6M

LTRX Revenue by Geography

Americas$20.5M
EMEA$5.1M
Asia Pacific$4.2M

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