Lantronix Reports $29.8 Million Revenue, Net Loss Improvement in Latest Quarter

Lantronix Inc. reported a net revenue of $29.8 million for the three months ended December 31, 2025, a decrease of 4.5% compared to $31.2 million in the same period last year. The decline was primarily attributed to a significant 28.6% drop in revenue from the IoT System Solutions product line, which was partially offset by a 28.6% increase in Embedded IoT Solutions and a 47.2% rise in Software and Services. The company recorded a net loss of $1.3 million, an improvement from a net loss of $2.4 million in the prior year, driven by a reduction in operating expenses.

For the six months ending December 31, 2025, Lantronix's total revenue was $59.6 million, down 9.2% from $65.6 million in the same period of 2024. The decrease was largely due to a 20.4% decline in the IoT System Solutions segment, which saw reduced sales to a key customer, Gridspertise. However, the Embedded IoT Solutions and Software and Services segments experienced growth, with increases of 4.8% and 10.7%, respectively. The net loss for the six-month period was $2.7 million, compared to a loss of $4.9 million in the previous year.

Operationally, Lantronix has seen a shift in its product mix, with Embedded IoT Solutions now accounting for 46.6% of total revenue in the latest quarter, up from 34.6% a year prior. The Americas region contributed significantly to revenue growth, with a 25% increase year-over-year, while the EMEA and Asia Pacific Japan regions experienced declines of 43.1% and 27.6%, respectively. The company’s total assets decreased slightly to $121.7 million from $123.7 million, while total liabilities also fell to $47.3 million from $49.3 million.

In terms of strategic developments, Lantronix has focused on enhancing its product offerings and expanding its market presence. The company has continued to invest in research and development, with expenses totaling $4.6 million for the latest quarter, reflecting a decrease from the previous year. Additionally, the company has made efforts to streamline operations, resulting in a reduction of restructuring charges to $43,000 in the latest quarter from $193,000 a year earlier. Looking ahead, Lantronix anticipates fluctuations in gross margins based on product mix and market conditions, while maintaining a cautious outlook on revenue growth and operational efficiency.