Q1 FY2027
Filed Nov 9, 2026Lantronix Q1 FY2027: net revenue up over 8% to $32.4 million, Embedded IoT Solutions up 37%, GAAP net loss narrowed to $463 thousand, non-GAAP net income up 50%
Revenue grew over 8% year over year and Embedded IoT Solutions grew 37%, and the company reports non-GAAP net income up 50%. GAAP net loss remains, cash fell from $60,466 thousand to $37,620 thousand, inventories and receivables rose, and the filing does not print a Q2 outlook above the Q1 revenue level by a wide margin.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenue (Q1 FY2027)GAAP | $32.37M | – | over 8% |
| Embedded IoT Solutions revenue (Q1 FY2027)GAAP | $15.68M | – | 37% |
| IoT System Solutions revenue (Q1 FY2027)GAAP | $14.07M | – | – |
| Software and Services revenue (Q1 FY2027)GAAP | $2.62M | – | – |
| Cost of revenue (Q1 FY2027)GAAP | $17.86M | – | – |
| Gross profit (Q1 FY2027)GAAP | $14.51M | – | – |
| Non-GAAP gross profit (Q1 FY2027)non-GAAP | $14.65M | – | – |
| Non-GAAP gross margin (Q1 FY2027)non-GAAP | 45.3% | – | – |
| Selling, general and administrative expense (Q1 FY2027)GAAP | $10.01M | – | – |
| Research and development expense (Q1 FY2027)GAAP | $4.34M | – | – |
| Restructuring, severance and related charges (Q1 FY2027)GAAP | $89K | – | – |
| Acquisition-related costs (Q1 FY2027)GAAP | $245K | – | – |
| Amortization of intangible assets (Q1 FY2027)GAAP | $391K | – | – |
| Total operating expenses (Q1 FY2027)GAAP | $15.07M | – | – |
| Loss from operations (Q1 FY2027)GAAP | −$558K | – | – |
| Interest income (expense), net (Q1 FY2027)GAAP | $340K | – | – |
| Other income (expense), net (Q1 FY2027)GAAP | −$51K | – | – |
| Loss before income taxes (Q1 FY2027)GAAP | −$269K | – | – |
| Provision (benefit) for income taxes (Q1 FY2027)GAAP | $194K | – | – |
| Net loss (Q1 FY2027)GAAP | −$463K | – | – |
| Net loss per share, basic and diluted (Q1 FY2027)GAAP | $(0.01) | – | – |
| Non-GAAP net income (Q1 FY2027)non-GAAP | $2.22M | – | 50% |
| Non-GAAP net income per share, diluted (Q1 FY2027)non-GAAP | $0.05 | – | – |
| Cash and cash equivalents (at September 30, 2026)GAAP | $37.62M | – | – |
| Total assets (at September 30, 2026)GAAP | $172.6M | – | – |
| Total stockholders' equity (at September 30, 2026)GAAP | $119.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Embedded IoT SolutionsThe CEO attributes the growth to continued momentum across unmanned systems (company explanation). | $15.68M | – | 37% |
| IoT System SolutionsThe filing does not explain the change in this product line. Prior-year revenue was $16,459 thousand and prior-quarter revenue was $15,301 thousand. | $14.07M | – | – |
| Software and ServicesThe filing does not explain this line's change. The CEO cites the Nero Global Tracking acquisition in support of a higher software and services mix (company statement). | $2.62M | – | – |
| AmericasThe filing does not explain the regional change. Prior-year revenue was $20,651 thousand and prior-quarter revenue was $22,896 thousand. | $23.30M | – | – |
| EMEAThe filing does not explain the regional change. Prior-year revenue was $5,087 thousand and prior-quarter revenue was $5,155 thousand. | $5.60M | – | – |
| Asia Pacific JapanThe filing does not explain the regional change. Prior-year revenue was $4,056 thousand and prior-quarter revenue was $3,103 thousand. | $3.46M | – | – |
Q2 FY2027 outlook
- Revenue$32.5 million to $34.5 million
- NoteNon-GAAP net income: $1.8 million to $2.7 million
- NoteNon-GAAP net income per share: $0.04 to $0.06
- NoteCompany reaffirms expectation for double-digit revenue growth in fiscal 2027 (the filing gives no numeric fiscal 2027 range)
Capital returns
- The filing reports no share repurchases and no dividends for the quarter.
- The weighted-average diluted share count rose to 46,743 thousand (GAAP basis) from 42,186 thousand in the prior quarter and 39,188 thousand in the prior-year quarter, as printed in the statements of operations.
What drove it
- The CEO attributes the 37% growth in Embedded IoT Solutions revenue to continued momentum across unmanned systems (company explanation).
- The CEO cites the strategic tuck-in acquisition of Nero Global Tracking as having expanded the pro forma software and services mix above 10% of total revenue (company statement). The filing does not print the acquisition's purchase price or its revenue contribution.
- The CEO cites growing interest in out-of-band management solutions from customers deploying AI and data center infrastructure (company statement). The filing does not quantify this.
- Non-GAAP net income rose 50% year over year and non-GAAP gross margin was 45.3%, as printed in the headline and reconciliation.
- Recent business highlights include the Open-Q 8550CS SOM added to the Blue UAS Framework, the Spotter robotics platform expected in the fourth quarter of calendar 2026, and two commercial and industrial computer vision design wins (Trimble Inc. and a jobsite security provider).
Concerns
- GAAP net loss remains at $(463) thousand, or $(0.01) per share, although the loss narrowed from $(1,401) thousand in the prior-year quarter. Non-GAAP net income excludes share-based compensation, depreciation and amortization, acquisition-related costs and other items.
- IoT System Solutions revenue of $14,074 thousand is below the prior-year quarter's $16,459 thousand and the prior quarter's $15,301 thousand. The filing does not explain the decline.
- Cash and cash equivalents fell by $22,846 thousand from June 30, 2026 to $37,620 thousand, while marketable securities of $13,836 thousand were added. The filing does not state the cash use.
- Inventories rose to $31,161 thousand from $25,804 thousand and accounts receivable rose to $28,894 thousand from $25,317 thousand.
- The filing prints a long-term debt balance of $4,541 thousand, which was nil at June 30, 2026.
- The Q2 FY2027 revenue range of $32.5 million to $34.5 million starts just above the Q1 FY2027 revenue of $32.4 million. The filing prints no Q2 gross margin or operating expense guidance.
- The filing lists risks including tariffs, supply chain disruption, project-based order timing and dependence on the November 3, 2026 midterm elections for U.S. legislative priorities.
What to watch
- Whether Embedded IoT Solutions growth continues at the pace reported in Q1 FY2027.
- Whether IoT System Solutions revenue recovers from $14,074 thousand toward prior levels.
- The Q2 FY2027 result against the $32.5 million to $34.5 million revenue range and the $0.04 to $0.06 non-GAAP EPS range.
- Inventory and receivable trends, given the increases shown on the balance sheet.
- The Nero Global Tracking contribution to software and services revenue, which the filing does not quantify.
- The double-digit fiscal 2027 revenue growth the company reaffirmed, once the filing discloses the basis for that comparison.
Balance sheet and cash flow
- Cash and cash equivalents fell to $37,620 thousand at September 30, 2026 from $60,466 thousand at June 30, 2026.
- Marketable securities of $13,836 thousand at September 30, 2026 compare with a dash (nil) at June 30, 2026.
- Accounts receivable, net rose to $28,894 thousand from $25,317 thousand. Inventories, net rose to $31,161 thousand from $25,804 thousand. Accounts payable rose to $22,989 thousand from $16,971 thousand.
- Goodwill rose to $34,383 thousand from $31,089 thousand. Intangible assets, net rose to $8,684 thousand from $2,177 thousand.
- Current portion of long-term debt, net is $250 thousand and long-term debt, net is $4,541 thousand at September 30, 2026. Both were a dash (nil) at June 30, 2026.
- Total liabilities rose to $53,208 thousand from $41,060 thousand.
- The filing does not print operating cash flow, free cash flow or capital expenditure figures.
Analysis
Lantronix reported fiscal first-quarter 2027 net revenue of $32,369 thousand, which the release describes as up over 8% year over year from $29,794 thousand, and up from $31,154 thousand in the prior quarter. The mix moved toward Embedded IoT Solutions, which printed $15,680 thousand against $11,467 thousand a year earlier, a 37% increase that management ties to unmanned systems. IoT System Solutions went the other way, printing $14,074 thousand against $16,459 thousand in the prior-year quarter, and the filing offers no explanation for that line. Software and Services printed $2,615 thousand against $1,868 thousand in the prior-year quarter.
Profitability is mixed. Non-GAAP gross margin was 45.3%, equal to the prior-year quarter's 45.3% and up from 44.1% in the prior quarter. GAAP gross profit was $14,513 thousand. Operating expenses rose to $15,071 thousand from $13,997 thousand in the prior quarter, with SG&A at $10,010 thousand and acquisition-related costs at $245 thousand. GAAP loss from operations was $(558) thousand, against $(1,527) thousand a year earlier. The GAAP net loss was $(463) thousand, or $(0.01) per share. Non-GAAP net income was $2,220 thousand, or $0.05 per diluted share, against $1,478 thousand and $0.04 in the prior-year quarter. The GAAP and non-GAAP figures should be read together because the reconciliation removes share-based compensation, amortization and acquisition costs.
The balance sheet shows several changes from June 30, 2026. Cash and cash equivalents fell to $37,620 thousand from $60,466 thousand. Marketable securities of $13,836 thousand appeared. Inventories rose to $31,161 thousand, accounts receivable to $28,894 thousand and accounts payable to $22,989 thousand. Goodwill rose to $34,383 thousand and intangible assets to $8,684 thousand, consistent with the Nero Global Tracking acquisition, though the filing does not print its purchase price. Long-term debt, net of $4,541 thousand and a current portion of $250 thousand were both nil at the prior quarter-end. Total stockholders' equity was $119,435 thousand against $119,276 thousand. The filing prints no operating or free cash flow, so cash generation cannot be assessed from it.
For Q2 FY2027 the company guides net revenue to $32.5 million to $34.5 million and non-GAAP net income to $1.8 million to $2.7 million, or $0.04 to $0.06 per share. The release says the company reaffirms double-digit revenue growth for fiscal 2027, but it gives no numeric base or range for that target. No previous outlook was provided, so no guidance comparison is made. The most useful figures for a reader are the Embedded IoT growth rate, the decline in IoT System Solutions, the rise in inventory and debt, and the thin spread between the Q1 revenue level and the bottom of the Q2 range.
Management, verbatim
We entered fiscal 2027 from a position of strength, delivering 8% year-over-year revenue growth, non-GAAP gross margins above 45%, and a 50% increase in year-over-year non-GAAP net income,
Saleel Awsare, President and Chief Executive Officer, Lantronix
Together, these developments reinforce our confidence in delivering double-digit revenue growth in fiscal 2027.
Saleel Awsare, President and Chief Executive Officer, Lantronix
Not in the filing
stated, not guessed- Prior-year and prior-quarter comparisons for the non-GAAP gross margin change and for the GAAP gross margin percentage were not printed; GAAP gross margin is not stated as a percentage.
- Year-over-year and quarter-over-quarter percentage changes for IoT System Solutions, Software and Services, cost of revenue, operating expense lines, and the regional revenue lines are not printed.
- Prior-year balance sheet figures (September 30, 2025) are not printed; only the June 30, 2026 comparison is shown.
- Operating cash flow, free cash flow and capital expenditures are not printed.
- Purchase price, consideration and revenue contribution of the Nero Global Tracking acquisition are not printed.
- Share repurchase and dividend activity is not printed.
- Gross margin, operating expense and tax rate guidance for Q2 FY2027 are not printed.
- Numeric base and range for the reaffirmed double-digit fiscal 2027 revenue growth are not printed.
- Previous-release outlook was not provided, so no vs_prior_guidance comparison is possible.
- Share price reaction and analyst consensus expectations are not in the documents.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.