Lantronix (LTRX) Q3 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 9:34 AM CDT 27 min read

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Date

May 6, 2026

Call participants

• President and Chief Executive Officer — Saleel Awsare

• Chief Financial Officer — Brent Stringham

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Full Conference Call Transcript

Saleel Awsare: Thanks, Brent, and convey you, everyone, for joining today's call. We delivered gross of $30.2 cardinal and non-GAAP EPS of $0.04, some wrong our guidance range. Our Embedded IoT Solutions portfolio delivered highly robust maturation of 22% year-over-year, driving wide sequential and year-over-year gross maturation for the company. This show reinforces our presumption arsenic a captious onboard borderline compute level for unmanned systems, an progressively important contributor to our business. Gross borderline besides remained beardown astatine supra 43%, supported by a richer premix of higher borderline products and recurring gross crossed the portfolio. Overall, these results bespeak a disciplined execution and continued momentum crossed the business. Turning to our results.

We proceed to spot beardown request for unmanned systems oregon drones, supported by favorable manufacture and subject tailwinds that presumption Lantronix for sustained growth. Our lawsuit database successful unmanned systems continues to expand, reflecting some the effectiveness of our drone strategy and the expanding request for reliable, real-time computing solutions. Drones are carnal AI successful action, and we present that capableness to our customers by enabling autonomy, borderline compute and real-time decision-making, further expanding the worth of our technology. The FCC's December 2025 action, which bars DJI and different overseas drone makers connected the covered database from obtaining support for caller drone models successful the U.S. has meaningfully improved the outlook for home and trusted supplier platforms.

This situation strengthens our competitory moat arsenic a U.S. spouse that is some NDAA and TAA compliant, providing trusted and secured AI-enabled borderline compute level solutions for the Group 1 and 2 drone ecosystems. Further, we are expanding some our capabilities and the fig of progressive engagements. Our SoMs oregon System connected Modules supply the onboard borderline compute instauration for greater autonomy, which is becoming progressively captious arsenic ngo complexity rises and the marketplace pushes beyond what quality operators unsocial tin support. In aerospace and defense, standard volition necessitate much intelligence, much autonomy and Lantronix is helping alteration that shift.

As a result, we are moving up the tech stack, evolving from supporting the camera to enabling afloat intelligent drone and antagonistic drone systems. In parallel, increasing involvement successful swarming and coordinated autonomy is driving request for larger fleets requiring much precocious Edge AI and instrumentality learning-based compute solutions to enactment progressively analyzable missions. Beyond the drone itself, we are expanding our relation into antagonistic UAS and spectrum dominance applications. These markets necessitate high-performance, low-power compute to process sensor information and alteration real-time decision-making successful contested environments. As systems go much intelligent, connected and electronically aware, we expect our SoMs and broader exertion to play an progressively cardinal relation crossed much of the ngo stack.