Lantronix Expects Q1 Revenue Between $28.5M and $30.5M, in Line with Market Expectations.

Lantronix has forecasted Q1 revenue between $28.5 million and $30.5 million, in line with market expectations. The company specializes in IoT and IT solutions, with a focus on IoT System Solutions. Despite a recent decline in revenue growth, Lantronix has historically demonstrated strong growth in this segment. However, the company faces challenges in profitability and must adapt to the competitive technology landscape. Its valuation metrics are mixed, with a P/S ratio of 0.96.

Lantronix, a leading provider of Internet of Things (IoT) and edge computing solutions, has forecasted Q1 revenue between $28.5 million and $30.5 million, aligning with market expectations [1]. The company's focus on IoT System Solutions has historically demonstrated strong growth, although recent revenue declines necessitate strategic adaptation to maintain profitability [2].

In Q4 FY2025, Lantronix reported GAAP revenue of $28.8 million, down 41.3% from the previous year, primarily due to a significant contraction in the IoT System Solutions segment [2]. Despite this decline, the company's gross profit reached $11.54 million, and non-GAAP EPS was $0.01 per share. Management credits recent strategic shifts and a stronger focus on high-value segments for the momentum [1].

Lantronix has secured several high-profile contracts, including deals with a major US wireless provider and a defense drone company, which have bolstered revenue visibility and set a growth path in areas like edge IoT and network infrastructure [1]. The company's product launches, such as the NTC-500 Series industrial 5G routers and Edge AI-enabled robotics solutions, align with significant market opportunities [3].

However, Lantronix faces challenges in profitability and must navigate a competitive technology landscape. The company's valuation metrics are mixed, with a P/S ratio of 0.96, indicating a balance between growth potential and current market conditions [1].

For markets: Investor optimism is building. Lantronix's shares now trade at 19 times projected earnings, up sharply from a P/E of 6 just three months back. Every analyst tracked in August rated the company a “buy” or “strong buy,” with a median twelve-month price target of $4.25 [1].

The bigger picture: Tech’s focus is shifting toward stability. Lantronix's playbook reflects a broader trend in tech: prioritizing high-margin areas like edge IoT and 5G network solutions. With long-term contracts in hand and new 5G offerings rolling out, the company is aiming to add more predictability to its growth [1].

Looking ahead, management projects revenue of $28.5–$30.5 million and non-GAAP EPS of $0.02–$0.04 for Q1 FY2026. The company ended Q4 FY2025 with $20.1 million in cash and $26.4 million in inventories. Management has prioritized ongoing cost discipline, continued integration of recently acquired assets, and evolving its portfolio to drive sustainable growth [2].

References:
[1] https://finimize.com/content/lantronix-tops-revenue-forecasts-and-eyes-high-margin-growth
[2] https://www.nasdaq.com/articles/lantronix-posts-41-revenue-drop-q4
[3] https://www.ainvest.com/news/lantronix-q4-2025-earnings-call-pivotal-moment-industrial-iot-adoption-2508/