Lantronix Reports Q2 Earnings, Raises Drone Revenue Outlook

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Lantronix, a provider of secure data access and management solutions, reported its fiscal 2026 second-quarter results. The company said the results reflected continued execution against its long-term Edge AI strategy, with revenue and profitability landing within its guidance range. Lantronix also raised its outlook for drone-related revenue for the fiscal year, citing faster-than-expected scaling and broader customer deployment activity.

Why it matters

Lantronix's strong performance in the quarter, particularly in its drone business, highlights the growing demand for its secure connectivity and management solutions in the Internet of Things (IoT) ecosystem. The company's ability to expand its product offerings and customer base in emerging areas like drones and critical infrastructure monitoring suggests it is well-positioned to capitalize on industry trends.

The details

For the fiscal second quarter, Lantronix delivered revenue of $29.8 million and non-GAAP earnings per share of $0.04. The company achieved double-digit year-over-year growth when excluding its major Smart Grid customer, Gridspertise, and noted profitability benefited from gross margin expansion and operating leverage tied to cost optimization efforts implemented last year. Lantronix also continued to reduce debt, paying down roughly $1.0 million in the quarter to bring outstanding debt to approximately $9.7 million.

• Lantronix reported fiscal 2026 second-quarter results on February 7, 2026.
• The company ended the quarter with $23.0 million in cash and cash equivalents, up about $0.8 million from the prior quarter.
• Lantronix generated positive operating cash flow of nearly $2.2 million during the period.

What they’re saying

What’s next

Lantronix expects drone revenue to continue growing through the remainder of fiscal 2026 and into fiscal 2027 as programs move from pilots into broader deployments.