Lantronix, Inc. is a technology company specializing in the delivery of hardware, software-as-a-service (SaaS), and professional engineering services. Its solutions are designed ...
Lantronix, Inc. (NASDAQ: LTRX) is a technology company specializing in Edge AI and Industrial IoT solutions. Founded in 1989 and headquartered in Irvine, California, the company provides hardware, software-as-a-service (SaaS), and engineering services to support edge computing, IoT, and remote environment management (REM). Its product portfolio is organized into three ...Lantronix, Inc. (NASDAQ: LTRX) is a technology company specializing in Edge AI and Industrial IoT solutions. Founded in 1989 and headquartered in Irvine, California, the company provides hardware, software-as-a-service (SaaS), and engineering services to support edge computing, IoT, and remote environment management (REM). Its product portfolio is organized into three main categories: Connectivity, Compute, and Telematics. IoT Connectivity solutions include secure network access, Power over Ethernet (PoE), application hosting, and protocol/media conversion, enabling robust wired and wireless connections for geographically dispersed IoT deployments. The Compute segment offers processing power for data transformation, computer vision, machine learning, AR/VR, and audio/video applications, along with custom software. Telematics solutions provide energy-efficient products for vehicle, fleet, and asset tracking. Additionally, Lantronix supplies networking hardware such as switches, media converters, and optical SFPs, as well as embedded computing components like system-on-modules (SoMs) and development kits. The company also offers REM solutions including out-of-band management, console management, and IP-KVM technologies, and a SaaS platform for global device deployment and management. With 351 employees, Lantronix serves customers across the Americas, Europe, Middle East, Africa, and Asia Pacific. As of the latest data, the company has a market cap of approximately $260 million, and its financial metrics show a focus on innovation with R&D spending at about 14.8% of revenue. Despite recent operating losses, the company maintains a current ratio of 2.74, indicating strong liquidity. Key executive Saleel Awsare became President and CEO in November 2023. Lantronix is committed to enabling secure and efficient operations for critical infrastructure, industrial automation, and enterprise networks.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$120.9M
-1.6%
+3.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-4.2M
+63.2%
+77.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+42.7%
+1.6%
+5.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-3.1%
+65.8%
+52.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-3.5%
+62.6%
+77.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$9.3M
+36.7%
-11.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+7.7%
+38.9%
-13.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
7.0%
-75.6%
-69.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.66x
+43.9%
+33.6%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and welcome to the Lantronix 2026 Fourth Quarter Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Brent Stringham, Chief Financial Officer. Please go ahead.
Brent Stringham: Good afternoon, everyone, and thank you for joining our fiscal fourth quarter earnings call. Joining me today is our President and Chief Executive Officer, Saleel Awsare. A live and archived webcast of today's call will be available on the company's website. In addition, you can find the call-in details for the phone replay in today's earnings release. During this call, we may make forward-looking statements, which involve risks and uncertainties that could cause our results to differ materially from current expectations. We encourage you to review the cautionary statements and risk factors contained in today's earnings release, which was furnished to the SEC and is available on our website and other SEC filings such as our 10-K and 10-Qs. Lantronix undertakes no obligation to revise or update publicly any forward-looking statements to reflect future events or circumstances. Additionally, during the call, we will discuss non-GAAP financial measures. Today's earnings release, which is posted in the Investor Relations section of our website, describes the differences between our non-GAAP and GAAP reporting and presents reconciliations for the non-GAAP financial measures that we use. With that, I will now turn the call over to Saleel.
Saleel Awsare: Thanks, Brent, and thank you, everyone, for joining today's call. The fourth quarter marked a strong finish to fiscal 2026. Over the course of the year, we transformed our operating model, strengthened our balance sheet and built the foundation for profitable growth. We are now seeing the tangible results of that work. Our continued strong execution drove 8% year-over-year revenue growth to $31.2 million and a 300% increase in non-GAAP EPS to $0.04. Both metrics were within our guidance range. Importantly, our embedded IoT solutions, which includes our drone business, grew 34% year-over-year. Gross margins remained strong at above 44%, reflecting our team's disciplined execution as we accelerate momentum across the business. Turning to the broader operating environment, starting with Unmanned Systems. Fiscal 2026 was the year our drone opportunity progressed from early validation to a meaningful growth engine for Lantronix. We set the foundation in Q4 last year when we secured our first drone win with Red Cat powering Teal Drones' Black Widow platform for the U.S. Army's short-range reconnaissance program. As a Blue UAS approved platform, this was a rigorous qualification process, and we believe we won the program because of our deep camera expertise and years of experience in camera tuning, sensor fusion, and the complex software integration required for military-grade imaging. Our status as a North American supplier …
