Lantronix reports Q4 revenue growth, higher non-GAAP EPS

On Wednesday, Lantronix (NASDAQ: LTRX ) discussed fourth-quarter financial results during its earnings call.

The full transcript is provided below.

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Access the full call at Summary Lantronix reported a strong finish to fiscal 2026, with an 8% year-over-year revenue growth to $31.2 million and a 300% increase in non-GAAP EPS to $0.04, driven by a 34% growth in embedded IoT solutions, particularly in the drone business.

The company's unmanned systems revenue reached $12.6 million, boosted by regulatory shifts favoring domestic suppliers, and new partnerships in Europe and Australia, expanding its international presence.

Lantronix acquired Wesima Networks' industrial IoT business, enhancing its software and services revenue mix to about 10%, aiming for a more predictable, higher-margin business model.

For fiscal 2027, the company expects revenue of $31 million to $33 million for Q1 and anticipates unmanned systems to represent 15% to 20% of total revenue, with continued focus on expanding its drone market and software services.

Gross margins improved to 44.1% in Q4, with expectations to maintain or slightly improve these levels in fiscal 2027 despite potential pressures from component costs.

Lantronix ended fiscal 2026 with over $60 million in cash and no debt, providing flexibility for strategic M&A and growth initiatives.

Full Transcript OPERATOR Good day and welcome to the Lantronix 2026 fourth quarter results conference call.

All participants will be in a listen-only mode.

Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

After today's presentation there will be an opportunity to ask questions.

To ask a question you may press star then one on a touch-tone phone.

To withdraw your question please press star then two.

Please note this event is being recorded.

I would now like to turn the conference over to Mr.

Brent Stringham, Chief Financial Officer.

Please go ahead.

Brent Stringham, Chief Financial Officer Good afternoon everyone and thank you for joining our fiscal fourth quarter earnings call.

Joining me today is our President and Chief Executive Officer, Salil Alsaray.

A live and archived webcast of today's call will be available on the company's website.

In addition, you can find the call-in details for the phone replay in today's earnings release.

During this call we may make forward-looking statements which involve risks and uncertainties that could cause our results to differ materially from current expectations.

We encourage you to review the cautionary statements and risk factors contained in today's earnings release which was furnished to the SEC and is available on our website and other SEC filings such as our 10-K and 10-Qs.

Lantronix undertakes no obligation to revise or update publicly any forward-looking statements to reflect future events or circumstances.

Additionally, during the call we will discuss non-GAAP financial measures.

Today's earnings release, which is posted in the Investor Relations section of our website, describes the differences between our non-GAAP and GAAP reporting and presents reconciliations for the non-GAAP financial measures that we use.

With that, I will now turn the call over to Salil.

Salil Alsaray, President and Chief Executive Officer Thanks, Brent, and thank you everyone for joining today's call.

The fourth quarter marked a strong finish to fiscal 2026.

Over the course of the year we transformed our operating model, strengthened our balance sheet and built the foundation for profitable growth.

We are now seeing the tangible results of that work.

Our continued strong execution drove 8% year over year revenue growth to $31.2 million and a 300% increase in non-GAAP EPS to $0.04.

Both metrics were within our guidance range.