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LTRX Stock Analysis 2026 - LANTRONIX INC AI Rating

LTRX Nasdaq Computer Communications Equipment DE CIK: 0001114925
Recently Updated • Analysis: Apr 12, 2026 • SEC Data: 2025-12-31
SELL
72% Conf
Pending
Analysis scheduled

📊 LTRX Key Takeaways

Revenue: $59.6M
Net Margin: -4.6%
Free Cash Flow: $5.6M
Current Ratio: 2.75x
Debt/Equity: 0.13x
EPS: $-0.07
AI Rating: SELL with 72% confidence

Is LTRX a Good Investment? Thesis Analysis

Claude

Lantronix is operationally unprofitable with zero revenue growth and negative returns on both equity and assets, indicating fundamental business challenges. While strong liquidity and positive free cash flow provide near-term stability, the inability to generate operating income at zero growth rates signals structural issues requiring operational turnaround.

Why Buy LTRX? Key Strengths

Claude
  • + Strong liquidity position: 2.75x current ratio with $23.0M cash provides 1-2 years of runway
  • + Positive free cash flow of $5.6M (9.4% margin) despite operating losses
  • + Conservative leverage: 0.13x debt/equity ratio with only $9.7M long-term debt

LTRX Investment Risks to Consider

Claude
  • ! Operating unprofitability with -4.4% margin and -$2.6M operating loss
  • ! Revenue stagnation at 0.0% YoY growth with no visible growth catalyst
  • ! Negative ROE (-3.7%) and ROA (-2.2%) indicating poor capital deployment and efficiency

Key Metrics to Watch

Claude
  • * Operating margin trajectory and path to breakeven profitability
  • * Revenue growth reacceleration or market share losses in core segments
  • * Operating cash flow sustainability and working capital trends as operational losses persist

LTRX Financial Metrics

Revenue
$59.6M
Net Income
$-2.7M
EPS (Diluted)
$-0.07
Free Cash Flow
$5.6M
Total Assets
$121.7M
Cash Position
$23.0M

💡 AI Analyst Insight

Strong liquidity with a 2.75x current ratio provides a solid financial cushion.

LTRX Profitability Ratios

Gross Margin 44.2%
Operating Margin -4.4%
Net Margin -4.6%
ROE -3.7%
ROA -2.2%
FCF Margin 9.4%

LTRX vs Technology Sector

How LANTRONIX INC compares to Technology sector averages

Net Margin
LTRX -4.6%
vs
Sector Avg 18.0%
LTRX Sector
ROE
LTRX -3.7%
vs
Sector Avg 22.0%
LTRX Sector
Current Ratio
LTRX 2.7x
vs
Sector Avg 2.5x
LTRX Sector
Debt/Equity
LTRX 0.1x
vs
Sector Avg 0.5x
LTRX Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is LTRX Overvalued or Undervalued?

Based on fundamental analysis, LANTRONIX INC has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
-3.7%
Sector avg: 22%
Net Profit Margin
-4.6%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.13x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

LTRX Balance Sheet & Liquidity

Current Ratio
2.75x
Quick Ratio
1.79x
Debt/Equity
0.13x
Debt/Assets
38.9%
Interest Coverage
-2.83x
Long-term Debt
$9.7M

LTRX 5-Year Financial Trend & Growth Analysis

LTRX 5-year financial data: Year 2021: Revenue $71.5M, Net Income -$10.7M, EPS N/A. Year 2022: Revenue $129.7M, Net Income -$4.0M, EPS $-0.14. Year 2023: Revenue $131.2M, Net Income -$5.4M, EPS $-0.16. Year 2024: Revenue $160.3M, Net Income -$9.0M, EPS $-0.25. Year 2025: Revenue $160.3M, Net Income -$4.5M, EPS $-0.12.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: LANTRONIX INC's revenue has grown significantly by 124% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.12 indicates the company is currently unprofitable.

LTRX Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
9.4%
Free cash flow / Revenue

LTRX Quarterly Performance

Quarterly financial performance data for LANTRONIX INC including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q2 2026 $29.8M -$1.3M $-0.03
Q1 2026 $29.8M -$1.4M $-0.04
Q3 2025 $28.5M -$423.0K $-0.01
Q2 2025 $31.2M -$2.4M $-0.06
Q1 2025 $33.0M -$1.9M $-0.05
Q3 2024 $33.0M -$423.0K $-0.01
Q2 2024 $31.5M -$2.6M $-0.07
Q1 2024 $31.8M -$1.7M $-0.05

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

LTRX Capital Allocation

Operating Cash Flow
$5.8M
Cash generated from operations
Capital Expenditures
$166.0K
Investment in assets
Dividends
None
No dividend program

LTRX SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for LANTRONIX INC (CIK: 0001114925)

📋 Recent SEC Filings

Date Form Document Action
Mar 13, 2026 4 xslF345X05/ownership.xml View →
Mar 3, 2026 4 xslF345X05/ownership.xml View →
Mar 3, 2026 4 xslF345X05/ownership.xml View →
Mar 3, 2026 4 xslF345X05/ownership.xml View →
Mar 3, 2026 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about LTRX

What is the AI rating for LTRX?

LANTRONIX INC (LTRX) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are LTRX's key strengths?

Claude: Strong liquidity position: 2.75x current ratio with $23.0M cash provides 1-2 years of runway. Positive free cash flow of $5.6M (9.4% margin) despite operating losses.

What are the risks of investing in LTRX?

Claude: Operating unprofitability with -4.4% margin and -$2.6M operating loss. Revenue stagnation at 0.0% YoY growth with no visible growth catalyst.

What is LTRX's revenue and growth?

LANTRONIX INC reported revenue of $59.6M.

Does LTRX pay dividends?

LANTRONIX INC does not currently pay dividends.

Where can I find LTRX SEC filings?

Official SEC filings for LANTRONIX INC (CIK: 0001114925) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is LTRX's EPS?

LANTRONIX INC has a diluted EPS of $-0.07.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is LTRX a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, LANTRONIX INC has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is LTRX stock overvalued or undervalued?

Valuation metrics for LTRX: ROE of -3.7% (sector avg: 22%), net margin of -4.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

Should I buy LTRX stock in 2026?

Our dual AI analysis gives LANTRONIX INC a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is LTRX's free cash flow?

LANTRONIX INC's operating cash flow is $5.8M, with capital expenditures of $166.0K. FCF margin is 9.4%.

How does LTRX compare to other Technology stocks?

Vs Technology sector averages: Net margin -4.6% (avg: 18%), ROE -3.7% (avg: 22%), current ratio 2.75 (avg: 2.5).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 12, 2026 | Data as of: 2025-12-31 | Powered by Claude AI