Lantronix's Q4 Earnings Meet Estimates, Down Y/Y, Stock Declines

Core Insights - Lantronix, Inc. (LTRX) reported fourth-quarter fiscal 2025 non-GAAP earnings per share (EPS) of 1 cent, matching the Zacks Consensus Estimate, down from 15 cents in the same period last year [1] - Revenues for the quarter totaled $28.8 million, exceeding the consensus mark by 1.2%, but decreased 41.2% year over year; sequentially, revenues increased by $28.5 million from the prior quarter, reflecting a 4% year-over-year growth when excluding Gridspertise [2][10] Financial Performance - IoT System Solutions revenues contributed 57.8% to total revenues, amounting to $16.7 million, a decrease of 53.2% year over year [8] - Embedded IoT Solutions revenues accounted for 35.4% of total revenues, totaling $10.2 million, down 10.1% year over year [11] - Software & Services revenues, which made up 6.8% of total revenues, fell 6.7% year over year to $2 million [11] - Non-GAAP gross margin improved to 40.6%, up from 38.8% in the prior quarter, driven by cost and supply chain initiatives [12] Strategic Developments - The company secured a multi-year contract with a Tier-1 U.S. wireless operator for managing nationwide backup power systems, enhancing network resilience and reducing costs [6] - Recent design wins in drones and commercial Edge AI solutions indicate the company's evolution into a strategic platform partner [4] - Partnerships with Aerora and the launch of the NTC-500 Series industrial-grade 5G routers expanded the company's portfolio [7] Outlook - For the first quarter of fiscal 2026, management projects revenues between $28.5 million and $30.5 million, with non-GAAP EPS expected in the range of 2-4 cents [14]