Subsequent to the fiscal year, on July 7, 2026 Lantronix signed an asset purchase agreement to acquire the industrial IoT business of Vecima Networks Inc. (including its Nero Global Tracking SaaS platform) for approximately $11.7 million; the deal closed August 1, 2026 and adds an established base of roughly 125,000 asset tags under management, strengthening the critical-infrastructure vertical and recurring software revenue. No amounts were recorded in the FY2026 financial statements because the transaction closed after June 30, 2026.
In March 2026 (Q3 FY2026), the U.S. Court of International Trade ruled that importers who paid IEEPA-based tariffs may be entitled to refunds. Lantronix paid such tariffs on certain imported products and materials but recognized no refund-related amounts as of June 30, 2026, noting the nature, timing, and extent of any recovery remain uncertain. Separately, the company disclosed that ongoing memory supply shortages have led to higher component costs and constrained availability.
Annual (FY2026, ended June 30, 2026) net revenue was $120.9M, down 1.6% from $122.9M in FY2025. Embedded IoT Solutions grew 15.6% to $53.6M on higher drone/defense compute and wired-connectivity unit sales; IoT System Solutions fell 15.2% to $58.3M, driven principally by the absence of approximately $11M of prior-year revenue from customer Gridspertise (zero revenue from that customer in FY2026); Software & Services rose 15.5% to $9.0M on higher SaaS and design-services revenue. Gross margin improved to 43.8% from 42.1%, attributed to the mix shift away from lower-margin Gridspertise revenue.
In response to increased U.S. tariffs on China, Lantronix transitioned contract manufacturing out of China for U.S.-bound products (annual context; the filing states the transition incurred substantial expenses and risked material delays). The company continues to rely on third-party contract manufacturers in Thailand (Hana Microelectronics) and Taiwan (Tailyn, Info-Tek, Rubytech) for most products, with certain final assembly performed in the U.S. to meet trade-compliance requirements.
Over the past fiscal year (annual context), Lantronix expanded its unmanned-systems positioning through Qualcomm Dragonwing-based system-on-modules (Open-Q 8550 micro SoM and Drone Reference Platform) delivering NDAA- and TAA-compliant edge compute, AI-enabled situational awareness, and flight-control for defense and public-safety drones, and extended the platform into counter-UAS applications (detection, tracking, identification, and mitigation of hostile unmanned systems). In critical infrastructure, the company is deploying a nationwide backup-power management solution across more than 50,000 cell sites for a Tier-1 U.S. mobile network operator, using its edge gateways combined with the Percepxion cloud SaaS platform for 24/7 remote monitoring of generators, rectifiers, and power banks.
(Filed on May 7, 2026)
+5.9%
43.1%
$23.5M
Q3 FY2026 net revenue rose 5.9% to $30.2M, led by 21.9% growth in Embedded IoT Solutions (higher unit sales of embedded compute products, including drone and aerospace/defense, in the Americas and EMEA, plus embedded wired connectivity across all regions, offset by lower legacy NIC and optics sales) and 31.0% growth in Software & Services (higher SaaS in the Americas and engineering services in EMEA), partially offset by a 10.2% decline in IoT System Solutions (reduced media converters, gateways/routers/modems, especially in APJ, and telematics gateways in the Americas, partly offset by higher network switch sales). Gross margin was 43.1%, down from 43.5% in the prior-year quarter, attributed to sales mix and higher inventory and overhead costs.
Americas revenue grew 22.9% to $20.3M (67.2% of total), while APJ fell 37.3% to $3.7M and EMEA was roughly flat at $6.2M. Over the nine months ended March 31, 2026, IoT System Solutions revenue declined 17.5% versus the prior-year period, substantially due to the absence of Gridspertise revenue (zero in the current nine months versus just over $11M in the prior-year period), a shift that also contributed to a modest improvement in nine-month gross margin to 43.8% from 42.7%.
In March 2026, the U.S. Court of International Trade ruled that importers who paid tariffs under the International Emergency Economic Powers Act may be entitled to refunds; Lantronix has paid such tariffs on certain imported products and materials but recognized no recovery amounts as of March 31, 2026, with the nature, timing, and extent of any refunds remaining uncertain. The company also disclosed it has transitioned contract manufacturing out of China for U.S.-bound products in response to increased U.S. tariffs against China.
Ongoing headcount restructuring produced $288K in severance and related charges in Q3 (versus $1,581K in the prior-year quarter) and $424K for the nine-month period (versus $2,674K). Q3 R&D personnel expenses fell 5.3% year-over-year, which management attributed to restructuring activities during the current and prior fiscal years; the company stated it may incur additional charges as it identifies further cost savings and efficiencies.
Net loss narrowed to $1.2M in Q3 from $3.9M in the prior-year quarter, driven by the revenue increase and a $1.8M reduction in total operating expenses. In August 2025, the company completed a refinancing that replaced its term loan with a $15M asset-backed revolving credit facility with Silicon Valley Bank maturing in August 2028; outstanding debt at March 31, 2026 was $8.8M with $1.8M of available borrowing capacity, and the company was in compliance with all financial covenants, including a minimum $5M liquidity test and a 1.50x interest coverage ratio.
(Filed on February 5, 2026)
-4.5%
43.6%
$23M
Net revenue for the three months ended Dec 31, 2025 was $29.8M, down 4.5% year-over-year. The mix shifted materially: Embedded IoT Solutions grew 28.6% to $13.9M (citing higher unit sales of embedded compute products including drone and aerospace/defense programs in the Americas and EMEA, plus embedded ethernet and wireless products), IoT System Solutions fell 28.6% to $13.3M primarily because the company had no shipments to Gridspertise (versus ~$5.8M in the prior-year quarter), and Software & Services rose 47.2% to $2.6M on higher SaaS revenue in the Americas and engineering services in EMEA.
The company disclosed that, in response to increased U.S. tariffs on China, it has transitioned its contract manufacturing out of China for U.S.-bound products and that all contract manufacturers are now located outside of China. The filing notes the company has and may continue to incur substantial expenses, risk material delays, or encounter unexpected issues connected to this transition or future transitions.
Gross margin improved to 43.6% of revenue (from 42.6% a year earlier), which management attributed to product sales mix—specifically the absence of lower-margin Gridspertise hardware revenue and a slightly higher share of software and services. Net loss narrowed to $1.3M (from $2.4M) on a $1.4M year-over-year reduction in operating expenses, including lower R&D personnel costs from prior-year restructuring and reduced professional fees, partially offset by higher share-based compensation and increased outsourced product-development spending (R&D outside services up 193% YoY to $316K).
The company recorded $43K in restructuring, severance, and related charges in the quarter ($136K for the six months ended Dec 31, 2025) tied to headcount reductions, and stated it may incur additional charges in future periods as it identifies further cost savings. R&D and SG&A personnel-related expenses declined year-over-year, consistent with the effects of prior-year restructuring.
The filing highlights that the market is currently experiencing memory supply shortages that may lead to higher costs and constrained availability of memory components, and that the company purchases components on a purchase-order basis without long-term supply arrangements with most vendors, creating exposure to component availability and pricing volatility for its product shipments.
(Filed on November 6, 2025)
-13.4%
44.8%
$22.2M
Net revenue fell 13.4% YoY to $29.8M, with all three product lines declining (Embedded IoT -14.3%, IoT System Solutions -12.3%, Software & Services -18.0%). Revenue concentration shifted sharply to the Americas, which grew 18.5% to $20.7M (69% of total), while EMEA dropped 51.5% to $5.1M and APJ fell 37.8% to $4.1M. SaaS product revenue increased in the Americas and EMEA, partially offsetting declines in engineering services and extended warranty.
IoT System Solutions revenue was materially reduced by the absence of shipments to Gridspertise; Lantronix reported no sales to this customer in the quarter versus over $5M in the same quarter a year prior. The filing notes the decline was partially offset by increased unit sales of network switches (Americas, APJ) and telematic gateways (Americas, EMEA).
On August 15, 2025, Lantronix completed a Fourth Amended and Restated Loan and Security Agreement with Silicon Valley Bank, refinancing its prior term loan into a $15M asset-backed revolving line of credit secured by accounts receivable, maturing August 1, 2028, with interest at the greater of 5.0% or Prime plus 0.0%-0.5%. Available borrowing capacity at September 30, 2025 was $1.9M; the company was in compliance with all covenants.
Gross margin improved to 44.8% from 42.1% a year earlier, which management attributed to product sales mix and reduced logistics and tariff-related costs. The company noted it continues to transition remaining U.S.-bound manufacturing out of China in response to proposed increased U.S. tariffs on Chinese goods, stating a majority of products are now manufactured outside China; it flagged potential expenses, delays, and unexpected issues associated with the transition as a risk.
Lantronix recorded $93K in restructuring and severance charges related to headcount reductions in the quarter (vs. $900K in the prior-year quarter) and stated it may incur additional charges in future periods as it identifies further cost savings. R&D personnel costs declined 5.6% YoY, partly reflecting headcount reductions from the prior fiscal year's restructuring. Net loss narrowed to $1.4M from $2.5M, driven by a $1.73M reduction in operating expenses.
