Did Lantronix just turn a corner? Their latest Q4 2025 earnings call reveals more than just numbers—it’s a roadmap for future growth fueled by Edge AI and IoT. They’re making big moves, from optimizing supply chains to major tech collaborations. But will these strategic shifts truly pay off in fiscal 2026?
Lantronix (LTRX) recently unveiled its robust financial performance for the fourth quarter of fiscal 2025, signaling a significant turning point marked by disciplined execution and strategic transformation. The company’s latest Lantronix Earnings call highlighted a foundational year, setting the stage for sustainable long-term growth and demonstrating a successful return to core revenue expansion, excluding the specific impact of its EMEA smart grid customer, Gridspertise. Investors keen on LTRX Stock are closely monitoring these developments.
During Q4 2025, Lantronix reported revenue of $28.8 million and a non-GAAP EPS of $0.10, comfortably within its guidance range. While the GAAP gross margin stood at 40%, a slight decrease from the prior quarter, the non-GAAP gross margin was 40.6%. This quarter’s modest decline was attributed to specific inventory charges and higher tariffs, although it represented an improvement over the same period in 2024.
Fiscal year 2025 concluded with total revenue reaching $123 million, reflecting a transition from the record-setting fiscal 2024, which had a substantial contribution from Gridspertise. Lantronix strategically managed this shift, with Gridspertise contributing just over $11 million in the first half of fiscal 2025, and minimal impact in the latter half, as the customer navigated its prior deployments.
The company is now entering a new fiscal year with enhanced visibility, underpinned by powerful industry dynamics and a burgeoning traction in its Edge AI Technology strategy. Lantronix’s platform is strategically built on two key pillars: Edge IoT, encompassing compute and connectivity, and network infrastructure, which includes robust out-of-band management and networking solutions. This integrated approach positions them at the forefront of innovation.
Lantronix has made significant strides in operational efficiency, notably improving its cost structure and supply chain. A key initiative involves shifting the manufacturing of most U.S.-bound products outside of China, a move designed to reduce costs and mitigate future tariff exposures. Financially, the company generated positive operating cash flow for the year ($7.3 million) and successfully paid down approximately $4.5 million of term debt, strengthening its balance sheet and liquidity.
A highlight for the future is a new collaboration combining Lantronix compute modules with Teledyne FLIR’s thermal camera and Prism AI software, projected to contribute revenue in Fiscal 2026 Outlook. Furthermore, the company successfully integrated the NetComm IoT Solutions acquisition and deepened its strategic partnership with Qualcomm, expanding capabilities in edge IoT and AI-driven innovation.
To further solidify its Financial Performance, Lantronix refinanced its term debt into an asset-backed line of credit, extending maturity to August 2028. This move is expected to reduce interest expenses and provide greater flexibility on principal repayments, enhancing the efficiency of its capital structure. These strategic financial maneuvers underscore a commitment to sustained profitability.
Looking ahead, the company anticipates fiscal 2026 revenue to be in the range of $28.5 million to $30.5 million, with non-GAAP EPS projected between $0.02 and $0.04 per share. This Fiscal 2026 Outlook reflects Lantronix’s strategic repositioning to capitalize on high-value opportunities in edge AI and infrastructure modernization, embedding meaningful operating leverage into its business model for profitable scaling.
