What guidance did Lantronix's management provide for the next earnings period?

What does Lantronix do and what are its main business segments?

What is Lantronix's gross profit margin?

What factors drove the changes in Lantronix's revenue and profit?

What were the key takeaways from Lantronix's earnings call?

What is the revenue and EPS growth rate for Lantronix year over year?

Did Lantronix beat or miss consensus estimates last quarter?

What were the key takeaways from Lantronix’s earnings call?

- **Revenue resilience**: $29.8M Q1 revenue (+3% YoY), non-GAAP EPS $0.04, driven by drones and network infrastructure.
- **Drone growth engine**: 17 OEMs, 10-15% revenue target by 2027, with $0.04 EPS margin expansion.
- **Recurring revenue play**: Kompress.ai SaaS, 5-7% software/services contribution, 24-month ARR ramp.
- **Financial strength**: 45.3% gross margin, $22.2M cash, $10.7M net debt, Q2 guidance for $28-32M revenue.

**【CEO Summary Section】**
- Q1 2026 revenue of $29.8 million, up 3% sequentially and 3% year-over-year (excluding Gridspertise), with non-GAAP EPS of $0.04, up from $0.01 in Q4.
- Drone business momentum: 17 OEM engagements (up from 10 in Q4), follow-on orders for Red Cat's Teal drones, and Edge AI solutions with Gremsy and Teledyne FLIR.
- New platforms: EdgeFabric.ai for Edge AI deployment, Kompress.ai (with Vodafone IoT) targeting $27B industrial compressor market.
- Long-term strategy: Scale drones (10-15% of revenue by 2027), expand recurring software/services (5-7% of revenue), and leverage cost-optimized operations.

**【CFO Financial Commentary】**
- GAAP gross margin 44.8%, non-GAAP 45.3% (highest in recent years), driven by premium product mix and cost control.
- Sequential cash flow positive ($3.6M), cash balance $22.2M, net debt $10.7M after $1M debt reduction.
- Q2 2026 guidance: Revenue $28-32M, non-GAAP EPS $0.02-0.04.

**【Q&A Key Highlights】**
- Drone adoption timeline: 10-15% revenue contribution by 2027, with 3x growth potential in existing MNO partnerships.
- Kompress.ai model: Vodafone provides connectivity, Lantronix delivers hardware/SaaS, targeting 24-month ARR ramp.
- Out-of-band management growth: New product launch late 2025, expanding into adjacent markets like robotics and surveillance.
- Recurring revenue: Software/services at 5-7% of revenue, expected to expand to 10%+ with drone and asset monitoring scale.
- Risk mitigation: Defense funding stability, minimal impact from government shutdown on multiyear contracts.

Lantronix, Inc. (LTRX) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LTRX

LTRX fundamentals

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