Lantronix (LTRX) Q2 2026 earnings summary

Executive summary

• Q2 revenue was $29.8 million, with non-GAAP EPS of $0.04 and GAAP EPS of ($0.03), both within guidance.

• Net loss improved to $1.3 million from $2.4 million a year ago, driven by reduced operating expenses.

• Edge AI and drone strategies drove strong customer adoption and broader deployment across end markets.

• Gross margin increased to 43.6% from 42.6% year-over-year, supported by favorable product mix and software/services growth.

• New partnerships and product launches reinforced transition to a platform provider and expanded into public safety and threat detection.

Financial highlights

• Q2 GAAP gross margin was 43.6%, up from 42.6% a year ago; non-GAAP gross margin was 44.0%, up from 43.2%.

• GAAP net loss for Q2 was $1.3 million ($0.03/share); non-GAAP net income was $1.6 million ($0.04/share).

• Cash and cash equivalents at quarter end were $23.0 million, up sequentially.

• Operating expenses for Q2 were $14.0 million, down from $15.4 million year-over-year.

• Positive operating cash flow of nearly $2.2 million in Q2.

Outlook and guidance

• Q3 revenue expected between $28.5 million and $32.5 million; non-GAAP EPS guidance is $0.03–$0.06.

• Fiscal 2026 drone revenue outlook raised to $8 million–$12 million, up from $5 million–$10 million.

• Drones expected to represent 15%–20% of total revenue in fiscal 2027, or $20 million–$30 million.

• Management expects gross margin to fluctuate due to product mix, pricing, and manufacturing costs.

• Current liquidity and available credit are expected to be sufficient for at least the next 12 months.