Lantronix Full Year 2025 Earnings: EPS Beats Expectations Despite Revenue Decline and Widened Net Loss

Lantronix reported FY 2025 revenue of $122.9m, down 23% from FY 2024. The company incurred a net loss of $11.4m, a 152% increase from FY 2024. EPS beat expectations by 5.4%. The company's shares are up 35% from a week ago. Lantronix is expected to grow revenue by 6.8% per annum over the next two years.

Lantronix Inc. (LTRX) reported its fourth-quarter (Q4) fiscal 2025 earnings, with revenue of $28.8 million, a non-GAAP earnings per share (EPS) of $0.01, and a GAAP net loss of $2.6 million. Despite the loss, the company secured significant wins in the defense and telecom sectors, positioning it for a multi-year growth cycle.

The company's Q4 revenue exceeded analyst expectations by 1.2%, driven by continued momentum in its Edge IoT products [1]. Lantronix's strategic transformation, new contracts, and product launches were key drivers behind the performance. The company secured a multi-year contract with a Tier-1 U.S. wireless operator and partnered with Red Cat's Teal Drones to power U.S. Army-approved Black Widow drones under the SRR Program [2]. Additionally, Lantronix introduced the NTC-500 Series 5G routers and expanded its leadership team to accelerate growth in Edge IoT and Network Infrastructure.

Lantronix's revenue from the Americas, Europe, the Middle East and Africa region, and the Asia Pacific and Japan region were $19.8 million, $5.3 million, and $3.7 million, respectively, contributing 68.7%, 18.5%, and 12.8% of total revenues [1]. Non-GAAP gross margin was 40.6%, up from 38.8% in the prior-ago quarter, driven by ongoing cost and supply chain initiatives, along with a favorable product mix [1].

Despite the revenue beat, Lantronix's stock experienced a post-earnings slump, losing 6.5% in the pre-market trading session following the announcement. The company expects Q1 FY2026 revenue to range between $28.5 million and $30.5 million, with non-GAAP EPS projected between $0.02 and $0.04 [2].

Lantronix's entry into the drone market represents a significant growth opportunity. The company's momentum in unmanned aerial systems has accelerated, with active engagement across over 10 military and industrial drone customers. Strategic alignment with U.S. Department of Defense priorities and regulatory compliance (NDAA/TAA) is unlocking volume opportunities in both defense and commercial drone platforms [3].

The company's multi-year agreement with a major U.S. mobile carrier to deploy 50,000 FOX gateway devices nationwide is establishing a high-margin annual recurring revenue (ARR) base, positioning Lantronix as a solution provider rather than solely a hardware vendor [3].

References:
[1] https://finance.yahoo.com/news/lantronixs-q4-earnings-meet-estimates-141200602.html
[2] https://www.ainvest.com/news/lantronix-q4-earnings-revenue-expectations-shares-plummet-hours-2508/
[3] https://www.aol.com/finance/lantronix-drone-carrier-deals-boost-215918475.html