Lantronix (LTRX) Q3 2026 Earnings
Reported May 6, 2026 at 4:05 PM ET · SEC Source
Q3 26 EPS
$0.04
MISS 8.68%
Est. $0.04
Q3 26 Revenue
$30.2M
MISS 0.99%
Est. $30.5M
vs S&P Since Q3 26
-16.2%
TRAILING MARKET
LTRX -14.4% vs S&P +1.8%
Market Reaction
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 t… Read more 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.
Key Takeaways
- • 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
LTRX 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
Q3 2026 vs Q3 2025, source: SEC Filings
LTRX Revenue by Segment
With YoY comparisons, source: SEC Filings
LTRX Revenue by Geography
With YoY comparisons, source: SEC Filings
“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.”
— Saleel Awsare, Q3 2026 Earnings Press Release
LTRX Earnings Trends
LTRX vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
LTRX EPS Trend
Earnings per share: estimate vs actual
LTRX Revenue Trend
Quarterly revenue: estimate vs actual
LTRX Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 MISS | $0.04 | $0.04 | -8.68% | $30.2M | -0.99% |
| Q2 26 BEAT | $0.03 | $0.04 | +45.45% | $29.8M | -0.54% |
| Q1 26 BEAT | $0.03 | $0.04 | +33.33% | $29.8M | +0.81% |
| Q4 25 MISS FY | $0.01 | $0.01 | -20.00% | $28.8M | +1.28% |
| FY Full Year | — | $0.14 | — | $122.9M | — |