Lantronix Inc
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.75%.
Did LTRX Beat Earnings? Q3 2026 Results
Lantronix delivered a modest fiscal third-quarter miss on both top and bottom lines, with revenue of $30.18 million falling just 0.99% short of the $30.48 million consensus and non-GAAP EPS of $0.04 coming in 8.68% below the $0.04 estimate, even as the company posted 5.9% year-over-year revenue growth. The primary growth engine was the Embedded IoT Solutions segment, which climbed 22% year-over-year to $14.62 million on expanding traction in the drone market, helping offset a decline in IoT System Solutions tied to slower federal procurement timing. On the strength of that momentum, Lantronix raised its fiscal 2026 drone revenue outlook to a $10 million to $14 million range and said it expects drone revenue to roughly double in fiscal 2027, potentially representing 15% to 20% of total revenue. The company also recently unveiled a new drone reference platform targeting defense and commercial OEMs, though the offering of up to $30 million in common stock raised investor concerns about dilution. For Q4 FY2026, management guided revenue of $29 million to $33 million and non-GAAP EPS of $0.03 to $0.05.
- 22% year-over-year growth in Embedded IoT Solutions driven by unmanned systems/drone demand
- Software & Services mix expanded from 5-6% to 8-9% of total revenue over last two quarters
- GAAP operating expenses down approximately 12% year-over-year from prior restructuring actions
- Strong gross margins above 43% supported by richer mix of higher-margin products
- Americas revenue growth driven by defense and commercial drone programs
“Our third-quarter results reflect our disciplined execution and continued momentum across the business as we reported year-over-year revenue and earnings growth. Our position as a critical onboard edge compute platform for unmanned systems continues to expand, reflected by the 22 percent growth we delivered in our Embedded IoT Solutions portfolio.”
Lantronix CEO, on the earnings call
Forward Guidance & Outlook
For Q4 FY2026 (ending June 30, 2026), Lantronix expects revenue in the range of $29.0 million to $33.0 million ($31.0 million at midpoint) and non-GAAP EPS of $0.03 to $0.05. The company raised its FY2026 drone revenue outlook to $10 million to $14 million ($12 million at midpoint) and expects drone revenue to roughly double in fiscal 2027, representing approximately 15%-20% of total revenue. Management aims to deliver double-digit revenue growth in fiscal 2027. Software and services mix is expected to sustainably reach double digits as a percentage of total revenue over the midterm.
LTRX YoY Financials
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Figures from SEC filings and company reports. Not investment advice.