Orin
LTRXNasdaq·Communication Equipment

Lantronix, Inc. LTRX

Market cap $285.5MP/E no earnings to divide byGross margin 42.7%Reports Wed 4 Nov, after the close
$6.40
+0.15 (+2.40%)Wed close 16:00 ET
52-wk $4.37 – $8.75
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Orin's take
0.58conviction · moderate
Refreshed 29 Aug · take v6. A new filing or a print queues the next refresh.

Lantronix is a buy on a turnaround that is gaining real traction. FY2026 (ended June 30, 2026) showed the operating loss narrowing to $3.7M from $11.0M in FY2025, total debt eliminated to zero from $21.2M, and free cash flow growing to $9.3M from $6.8M, while Q4 revenue of $31.2M grew 8% YoY with positive EPS of $0.04.

FY2027 guidance for projected annualized EPS of $0.20 and accelerating revenue, combined with the debt-free balance sheet and strategic positioning in NDAA-compliant unmanned systems, supports an upgrade from hold despite the stock trading below both its 50-day MA of $5.73 and 200-day MA of $5.99.

What could go wrong

  • Technical weakness. Stock at $5.37 trades below both its 50-day MA of $5.73 and 200-day MA of $5.99 with a negative MACD histogram of -0.064 and RSI of 42, suggesting near-term selling pressure has not fully cleared.
  • Minimal institutional conviction. Smart money score of 0.0009 across 30 funds as of the quarter ended 2026-06-30 remains very low, and 24-month net insider selling of 2.4M shares suggests limited confidence from sophisticated investors.
  • Full-year revenue still declining. FY2026 revenue of $120.9M is below FY2025's $122.9M, with revenue growth of -0.0165 YoY, so the Q4 acceleration has not yet translated to full-year growth.
  • Guidance execution risk. FY2027 guidance for annualized EPS of $0.20 (per Seeking Alpha) implies a significant step-up from FY2026's diluted EPS of -$0.11, and any miss could reset sentiment sharply given the low institutional base.

What would change my mind

FY2027 quarterly results. First one or two quarters of FY2027 show sustained revenue growth and progress toward positive EPS of $0.20 annualizedbullish
Technical breakout. Stock reclaims and holds above the 50-day MA of $5.73 and 200-day MA of $5.99 on increasing volumebullish
Institutional inflows. Smart money score rises meaningfully above current 0.0009 with fund count increasing beyond 30bullish
Guidance shortfall. FY2027 quarterly revenue decelerates or operating losses widen versus the FY2026 trend, undermining the profitability guidancebearish

Where this comes from: FMP annual fundamentals, fiscal years 2026 and 2025 · MarketBeat and Zacks news articles, 2026-08-26 · Seeking Alpha news article, 2026-08-28 · Technical data as of 2026-08-28. Orin's read on LTRX; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$9.1M0.0% of fund
State Street$8.1M0.0% of fund
AWM Investment Company$7.3M0.6% of fund
Geode Capital Management$5.3M0.0% of fund
Two Sigma Investments$4.9M0.0% of fund
Citadel Advisors$4.6M0.0% of fund

33 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 266 Form 4 filings, net −$1.8M. Of the 50 on hand, 1 was an open-market purchase and 0 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

· Technology
MetricNowOwn medianSector
P/S2.36×
P/B2.3×
What the price assumes

13.6%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

6 firms · 2026-09-23
Consensus target

$11

$10$11 · +66% against today's price

How they rate it
  • 6 buy or overweight
  • 0 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E of 1 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
LTRXLantronix, Inc.$285M42.7%-3.5%-5%
AXTIAXT, Inc.$4B231.1×32.2%3.2%1%

The median is of the 1 peers listed above and nothing else — check it against the column. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year

What its sector has traded at

Technology
FY14 9.0×FY26 48.0×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Every estimate on one scale

price $6.40
52-week range$4 – $9
Analyst targets$10 – $11

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.