Lantronix (LTRX) Q4 2026 earnings summary

Executive summary

• Achieved 8% year-over-year revenue growth to $121 million for fiscal 2026, with Q4 revenue of $31.2 million, both within guidance ranges and marking the fifth consecutive quarter of sequential revenue growth.

• Embedded IoT solutions, including unmanned systems, grew 34% year-over-year, with unmanned systems revenue reaching $12.6 million.

• Non-GAAP EPS increased 300% year-over-year to $0.04 in Q4 and was $0.15 for the year; gross margins remained strong above 44%.

• Strategic focus on expanding recurring revenue and software mix, now exceeding 10% of total revenue after the Nero acquisition.

• Ended the year with over $60 million in cash and no debt, reflecting a strengthened balance sheet.

Financial highlights

• Fiscal 2026 revenue: $121 million, up 8% year-over-year (excluding Gridspertise).

• Q4 revenue: $31.2 million, up sequentially and year-over-year.

• Q4 GAAP gross margin: 43.7% (up from 40% a year ago); non-GAAP gross margin: 44.1%.

• Q4 GAAP net loss: $269,000 ($0.01/share), improved from $2.6 million loss a year ago.

• Q4 non-GAAP net income: $1.8 million ($0.04/share), up from $0.01/share a year ago; full-year non-GAAP net income was $6.4 million.

• Positive operating cash flow: $1.9 million in Q4, $9.9 million for the year.

• Americas region contributed $84.3 million in revenue for FY2026, with EMEA and APJ at $21.6 million and $15.0 million, respectively.

Outlook and guidance

• Fiscal Q1 2027 revenue expected between $31 million and $33 million.

• Non-GAAP EPS for Q1 2027 expected between $0.04 and $0.06.

• Unmanned systems projected to represent 15%-20% of total revenue in fiscal 2027, targeting $25 million+.

• Company expects double-digit revenue growth for fiscal 2027.