Lantronix Inc. Common Stock (LTRX)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a durable business earning consistent profits. Lantronix is a small industrial IoT supplier with 327 employees. It has not earned an annual profit in the last four years; the Lynch category is none, because losses occurred in each of the last four years. In fiscal 2026, the year ended 2026-06-30, revenue was $120.9M and net loss $4.2M, or EPS -$0.10. That loss narrowed from fiscal 2025, when revenue was $122.9M and net loss $11.4M, or EPS -$0.29. But fiscal 2024 revenue was $160.3M, so the top line has shrunk materially. Recent quarters show some stabilization: in fiscal Q3 2026, the quarter ended 2026-03-31, revenue was $30.2M and net loss $1.2M, versus fiscal Q3 2025 revenue of $28.5M and net loss $3.9M. The balance sheet is not stretched: debt-to-equity is 0.07, Altman Z-score is 3.10, and Piotroski F-score is 6/9, all FairStock calculations. Free cash flow is positive at $9.3M trailing twelve months, a 3.1% FCF yield. However, at the 2026-10-13 close of $6.38, market cap is $298M, P/B is 2.49, and the negative P/E reflects losses. The stock is not a Graham-style bargain on assets or earnings. A moat is hard to identify in a competitive embedded IoT market. I would want evidence that revenue has stopped declining and that cash earnings translate into consistent GAAP profits before calling this a high-quality compounder.

In plain English: Lantronix makes industrial and enterprise internet-of-things products and services. The business has been unprofitable for years and revenue has shrunk, though it is generating some cash and carries little debt. At $6.38 a share, the price looks full relative to its assets and cash flow rather than obviously cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer