Lantronix 2026 Q1 Earnings Revenue Beats Estimates Despite 44% Net Loss Reduction

Lantronix (LTRX) reported fiscal 2026 Q1 earnings on Nov 7, 2025, with revenue slightly exceeding expectations and a narrowed net loss. The company’s strategic focus on drones and AI platforms, including EdgeFabric.ai and Kompress.ai, underscored its growth trajectory.

, yet outperformed the $29.55 million consensus estimate. , reflecting improved operational efficiency and cost management.

Revenue

. The decline in total revenue was attributed to market conditions and strategic shifts, but the beat against expectations signaled resilience in key segments like embedded IoT and drone solutions.

Earnings/Net Income

Lantronix’s non-GAAP EPS improved to $0.04, aligning with guidance, while GAAP EPS remained at a loss of $0.04 per share. , though profitability challenges persist.

Post-Earnings Price Action Review

Lantronix’s stock showed modest gains, . The company’s strategic advancements in Edge AI and asset monitoring, , suggest cautious optimism. While the steady post-earnings performance may indicate market caution, the narrowed losses and forward-looking initiatives position LTRX for potential recovery.

CEO Commentary

CEO highlighted progress in drone OEM engagements, which grew from 10 to 17 in Q1, . He noted, , with a focus on long-term market opportunities in AI and defense-driven UAS adoption.

Guidance

For Q2 FY2026, Lantronix projects revenue between $28 million and $32 million, . .

Additional News

Lantronix announced a partnership with Vodafone IoT to launch Kompress.ai, a SaaS platform targeting the industrial air compressor market. Analysts at Needham raised their price target to $7.50 from $5.50, citing confidence in the company’s drone and AI strategies. Additionally, the firm’s CEO reiterated plans to expand drone revenue to 15% of total sales by fiscal 2027, driven by multiyear defense contracts and OEM partnerships.