Quality Investor

Lantronix, Inc.

Rank #194Startup

LTRX · Nasdaq · Technology

Lantronix, Inc. (LTRX) — Rank #194 by gross profitability (GP/assets 0.33) · ROE -3.5% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001114925 · all metrics point-in-time as of the filing date.

About

Lantronix, Inc. develops, markets, and sells industrial and enterprise internet of things (IoT) products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan.

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The company's embedded IoT solutions provides embedded products, including compute system-on-module and system-in-package solutions; and application processing solutions for data transformation, computer vision, machine learning, augmented/virtual reality, audio/video aggregation and distribution, and custom applications. It also provides IoT systems solutions, which includes routing, switching or gateway functionalities, telematics, and media conversion; wired and wireless connections which enhances modern electronic systems and equipment by providing secure network connectivity, power for IoT end devices through power over ethernet, application hosting, protocol conversion, media conversion, secure access for distributed IoT deployments, and other functions; and pre-certified products. In addition, the company offers single-pane-of-glass management for out-of-band (OOB) and industrial IoT deployments that enables customers to deploy, monitor, manage, and automate deployments; GPS-based vehicle and asset tracking capabilities for fleet, municipal, and industrial asset tracking customers; engineering services comprising turnkey product development or team augmentation; extended warranty, support, and maintenance services related to OOB and certain other product families. Further, it provides intelligent computing, secure connectivity, and remote management for mission-critical applications, enabling customers to optimize operations, enhance security and accelerate digital transformation; and hardware, software, services, and powers applications from mission-critical autonomous platforms and edge analytics for critical infrastructure to intelligent surveillance and secure network management. Lantronix, Inc.

was incorporated in 1989 and is headquartered in Irvine, California.

Industry
Communication Equipment
Sector
Technology
State
DE
Filer Category
Accelerated filerSmaller reporting company
Fiscal Year End
June 30

Price History

LTRX-17.2% · -3.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens for pre-profit companies.

Market Cap

$242.87M

P/E (annual)

P/S (annual)

2.0

P/B

2.0

P/OCF (annual)

24.6

Shareholder Yield

-4.0%

Employees

327

Industry

Communication Equipment

Exchange

Nasdaq

Signal Flags

1 green1 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Revenue declining YoYRevenue contracted year over year

Quality Profile

Profitability

1/1 pass
GP / assets
0.33
Return on equity
-3.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.34
Current ratio
3.66×
Net cash
$60.47M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
5.2%

Growth

0/2 pass
Revenue growth
-1.6%
Piotroski F-Score
6 / 9
Share dilution
4.0%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

9.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 4.0% — per-share value needs a total required return of 13.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 0.6%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

4.9%

r = 10% (base)

9.3%

r = 12%

13.1%

Net debt / market cap: -29.0%

Note: current FCF margin is 1.7σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $9.3M3Y mean FCF: $3.3M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

2.0xFair
1.2xmed 1.8x2.6x

P / B

Price / book value per share

2.0xCheap
2.0xmed 2.6x4.3x

P / GP

Price / gross profit per share

4.6xExpensive
2.8xmed 3.8x5.7x

P / FCF

Price / free cash flow per share

26.1xCheap
10.8xmed 50.5x596.0x

Burn rate (cash flow) is the primary read at this stage — TAM and product-market fit aren't metrics this dashboard tracks.

Profitability

Gross profitability (GP / assets)

0.33

Primary signal (Novy-Marx).

4th of 5 SIC 3576 peers

Return on equity

-3.5%

Gross margin

43.8%

5th of 5 SIC 3576 peers

Revenue growth (YoY)

-1.6%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.34

1st of 5 SIC 3576 peers (best = lowest)

Current ratio

3.66×

1st of 5 SIC 3576 peers

Quick ratio

2.67×

Net cash

$60.47M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$9.27M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

3.22

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

5.2%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20192026
Startup
Hypergrowth
Decline