Lantronix, Inc. Q3 FY2026 earnings call

Delivered revenue of $30.2 million and non-GAAP EPS of $0.04 within guidance. Embedded IoT solutions portfolio grew 22% y-o-y. Strong demand for unmanned systems. Collaborated with Mediatek for multi-silicon strategy. Expanded OEM engagements and had design wins. Software and services ARR expanding. IoT system solutions affected by federal spending but provided strong cash generation

Embedded IoT solutions portfolio had 22% year-over-year growth, revenue was $30.2 million. Gross margin was about 43%. Software and services ARR expanding from 5%-6% to 8%-9%. IoT system solutions affected by slower federal spending and extended procurement cycles, but enterprise and networking products still deliver high margins and strong cash generation

Q3 revenue $30.2M and non-GAAP EPS $0.04 within guidance. Q4 revenue expected $29M-$33M, non-GAAP EPS $0.03-$0.05. 2026 drone outlook $10M-$14M, 2027 expected to double, 15%-20% of total revenue

Risks related to forward-looking statements involving uncertainties, need to review SEC filings for detailed risk factors

Q: Scott Searle asked about drone revenue range and 2027 growth.

A: Salil said range due to confidence in midpoint, growth across drone and counter drone areas.

Q: Austin Bolak asked about international business and Counter UAS.

A: Salil said majority domestic, Counter UAS is growth vector.

Q: Austin Molo asked about drone dominance vendors.

A: Salil said working with some, first blue UAS solution ready.

Q: Christian Squab asked about drone dominance customers.

A: Salil said aligned with some, NDA issues.

Q: Kevin Cassidy asked about gross margin factors.

A: Salil said software/services growth and moving up tech stack for drone business