Lantronix (LTRX 0.81%), a provider of Internet of Things (IoT) connectivity and edge computing solutions, released its fiscal fourth quarter results on August 27, 2025, covering the period ended June 30, 2025. The announcement reported GAAP revenue of $28.8 million for Q4 FY2025, which was near the midpoint of prior guidance. Non-GAAP earnings per share (EPS) came in at $0.01, also consistent with the company’s targeted range. GAAP revenue and profit both declined sharply year over year for fiscal 2025, and the company posted a GAAP net loss for Q4 FY2025. Nevertheless, margins showed some improvement in Q4 FY2025, and management pointed to progress on operating discipline, product innovation, and early momentum in new target markets as positive takeaways from the quarter.
| Metric | Q4 FY2025(Three Months Ended Jun 30, 2025) | Q4 FY2024(Three Months Ended Jun 30, 2024) | Y/Y Change |
|---|---|---|---|
| EPS (Non-GAAP) | $0.01 | $0.15 | (93.3%) |
| Revenue (GAAP) | $28.8 million | $49.1 million | (41.3%) |
| Non-GAAP Gross Margin | 40.6 % | 38.8 % | 1.8 pp |
| Cash and Cash Equivalents | $20.1 million | $26.2 million | (23.3%) |
| Inventories, net | $26.4 million | $27.7 million | (4.7%) |
| Total Stockholders’ Equity | $74.4 million | $81.4 million | (8.6%) |
Business Overview and Strategic Areas
Lantronix delivers hardware and software solutions that connect, manage, and secure devices at the network’s edge. Its main products include embedded IoT solutions, network gateways, Edge AI modules, and cloud-based device management platforms. The product family targets industries such as smart cities, manufacturing automation, and automotive electronics, helping clients enable real-time insights, automation, and secure connectivity for their distributed assets.
Recently, Lantronix has focused on high-value verticals like defense, commercial Edge AI, and private network infrastructure. The company aims to capitalize on emerging trends in artificial intelligence, cloud-managed devices, and secure critical infrastructure. Success in these areas depends on product innovation, establishing key design wins, and maintaining partnerships with large enterprise and government customers. The company’s strategic priorities also include intellectual property protection and compliance with regulations, both of which are necessary to enter tightly controlled markets.
Quarterly Highlights and Segment Performance
During Q4 FY2025, Lantronix’s net revenue (GAAP) fell substantially from the prior year. Revenue dropped by 23.4% year over year on a GAAP basis in fiscal 2025, primarily due to a significant contraction in the IoT System Solutions segment, which had previously benefited from large, project-based orders for European utility grid deployments. These Gridspertise projects did not contribute during the quarter, as management had forecasted. Embedded IoT Solutions brought in $10.2 million (GAAP) for Q4 FY2025. IoT System Solutions generated $16.7 million (GAAP) for Q4 FY2025. Software & Services accounted for $2.0 million (GAAP) for Q4 FY2025.
Performance by geographic region varied widely. Americas revenue (GAAP) rose to $19.8 million in Q4 FY2025, up 15.8% compared to Q4 FY2024. Meanwhile, Europe, Middle East, and Africa revenue was $5.3 million (GAAP) in Q4 FY2025. Asia Pacific and Japan contributed $3.7 million in Q4 FY2025. This geographic shift highlights the company’s challenge: It must fill the gap left by completed or paused mega-projects with more diversified accounts and emerging verticals.
Lantronix’s product development efforts included the introduction of the NTC-500 Series industrial 5G routers, designed for private 5G networks and industrial IoT applications. 5G routers are networking devices that provide wireless connectivity within industrial environments, supporting high-performance and secure data transmissions. The company also advanced its Open-Q System on Modules (SoMs), hardware platforms used to accelerate AI development in applications like drones and robotics. Collaboration with partners such as Aerora and Teledyne FLIR around AI-enabled imaging solutions continued to demonstrate expertise in commercial edge computing.
Non-GAAP gross margin reached 40.6% for Q4 FY2025, improving 1.8 percentage points over the year-ago period but down from the prior quarter. Sequential margin pressure was flagged in earlier management commentary. Despite cost reductions, the company posted a GAAP net loss of $2.6 million for Q4 FY2025, indicating that operating profitability remains a challenge. A restructuring charge of $0.9 million (GAAP) was also reported for Q4 FY2025, further impacting the bottom line.
Financial Outlook and What to Watch
Looking ahead, management projects revenue of $28.5–$30.5 million and non-GAAP EPS of $0.02–$0.04 for Q1 FY2026. No detailed guidance was offered for the full fiscal year, but management indicated that additional design wins and project ramp-ups, especially in edge computing and the defense drone market, could bring future upside. The U.S. Army Black Widow drone shipments, fielded through a partnership with Teal Drones, are highlighted as a key example of early traction in defense applications that may generate higher-margin, multi-year revenue streams.
Investors may wish to monitor the balance between new project wins and base business stabilization. The company ended Q4 FY2025 with $20.1 million in cash, down $6.1 million from Q4 FY2024, and $26.4 million in inventories. Management has prioritized ongoing cost discipline, continued integration of recently acquired assets, and evolving its portfolio to drive sustainable growth.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
