Earnings Recap — Q4 FY2026
CY Q3 2026 · Reported August 26, 2026 · Beat 2 of last 5 quarters
Lantronix, Inc. reported Q4 FY2026 revenue of $31M, a beat of 1.5% against consensus, and EPS of $0.04, a beat of 33.3%.
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
Lantronix's unmanned systems growth and expansion into edge AI compute for drones directly supports the AI infrastructure buildout at the edge, particularly for defense and commercial autonomy. The company's out-of-band management win with SambaNova Systems ties it to AI data center infrastructure, providing remote access to critical compute and networking equipment. These developments position Lantronix as a supplier to both the physical AI edge and the data center AI buildout.
Lantronix reported Q4 FY2026 revenue of $31.2M, up 8% YoY, with non-GAAP EPS of $0.04, a 300% increase. Embedded IoT solutions grew 34% YoY, driven by unmanned systems revenue of $12.6M for the fiscal year, above guidance. IoT systems solutions rebounded with 16% sequential growth, recovering from federal government shutdown headwinds. The company completed the acquisition of Vecima's Industrial IoT business (Nero Global Tracking) for $11.7M, adding ~$5M in annual revenue and increasing software/services mix to ~10% pro forma. Cash position strengthened to over $60M, and the company is now debt-free.
Management guided Q1 FY2027 revenue to $31M-$33M and non-GAAP EPS of $0.04-$0.06. For fiscal 2027, they expect unmanned systems to represent 15%-20% of total revenue, implying roughly $25M+ in absolute dollars, and reiterated confidence in double-digit revenue growth. They expect gross margins to remain at or near current levels, with potential slight improvement from higher-margin software/services and other businesses offsetting mix pressure from lower-margin drone modules. The company is actively expanding go-to-market resources in North America, Europe, and Washington D.C., and continues to evaluate M&A in unmanned systems and recurring revenue areas.
“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.”
on Q4 performance
“This is another clear tailwind for domestic NDAA compliant suppliers like Lantronix, and we expect it to accelerate the shift towards domestically manufactured alternatives.”
on Section 232 tariffs
“We enter fiscal 2027 with multiple engines of profitable growth, the strongest financial position in our history and confidence in our ability to deliver double-digit revenue growth.”
on Fiscal 2027 outlook
What visibility do you have into the fiscal '27 drone guide, and does it assume just current engagements?
Saleel Awsare: The guide is based on current visibility and engagements. We work with over 30 vendors, have shipped to over a dozen, and are also in counter-UAS. We have decent visibility as we started fiscal '27.
What percentage of unmanned revenue is tied to Ukraine, and how would a ceasefire impact it?
Saleel Awsare: For fiscal '26, the majority of drone revenue was U.S.-based. For fiscal '27, Ukraine is not a meaningful portion. We don't see a measurable concern from a ceasefire because the growth is driven by the broader shift to autonomy, not just Ukraine.
Have you seen any change in customer behavior since the Section 232 announcement?
Saleel Awsare: Yes, a few customers have quickly reached out to confirm our NDAA/TAA certification and were pleased to hear we are expanding manufacturing in Plymouth, Minnesota. This is a tailwind for us.