Quality Investor

Lantronix, Inc.

Rank #181StartupWatchlistCompare with other stocks

LTRX · Nasdaq · Technology

Lantronix, Inc. (LTRX) — Rank #181 by gross profitability (GP/assets 0.33) · ROE -3.5% · Piotroski F-Score 6 / 9.

As-of 2026-10-30 · 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

Company Snapshot

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

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

327

Industry

Communication Equipment

Exchange

Nasdaq

10/12

Flags passed

LTRX fails 1 critical flag

Passes 10 of 12 quality flags, 1 caution

  • FAIL
    Revenue declining YoY

    Revenue contracted year over year

  • CAUTION
    Dilution above 2%

    Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

  • PASS
    Gross margin holding
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

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%

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

Profitability

Does it make money well?

Warning: Revenue declining YoY · GP/assets 68th percentile of 26 SIC 35 peers

Gross profitability (GP / assets)

0.33

Primary signal (Novy-Marx).

68th pctl of 26 SIC 35 peers

Return on equity

-3.5%

Gross margin

43.8%

52nd pctl of 26 SIC 35 peers

Revenue growth (YoY)

-1.6%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-2.7%

Revenue CAGR (5Y)

11.1%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 322% above net income

Free cash flow

$9.27M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

321.6%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

5.2%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Caution: Dilution above 2% · net cash $60.47M, F-Score 6/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.34

96th pctl of 26 SIC 35 peers (best = lowest)

Current ratio

3.66×

100th pctl of 26 SIC 35 peers

Quick ratio

2.67×

Net cash

$60.47M

Cash & equivalents minus total debt.

Piotroski F-Score

6 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

3.0 / 5

Good
Share count trend
4.0%1/5 Weak
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
34.4%5/5 Strong

Lifecycle Phase History

20212026
Startup
Hypergrowth
Decline

Price History

LTRX-6.3% · -1.3% CAGRSPY+82.9% · +12.8% CAGR