Lantronix reported net revenue of $29.8 million for the quarter ended December 31, 2025, landing squarely within its guidance range. GAAP earnings per share were a loss of $0.03, while non-GAAP earnings per share were $0.04, outperforming the Zacks Consensus Estimate by one cent. Cash and cash equivalents stood at $23.0 million, providing ample liquidity to support ongoing product development and strategic investments.

The company raised its full-year Drone revenue forecast to $8 million–$12 million from $5 million–$10 million, reflecting strong sequential growth in defense and autonomous applications. Several customer programs transitioned from pilot to initial production, positioning Lantronix as a platform partner with higher lifetime engagement value rather than a component supplier.

During the quarter, Lantronix secured a design win with Flock Safety for Drone-as-First Responders, partnered with Trillium Engineering on gimbaled imaging systems for ISR and wildfire operations, and collaborated with Safe Pro Group to integrate object-threat detection models for landmine identification. At CES 2026, the company unveiled its Drone Reference Platform and SmartEdge.ai/SmartSwitch.ai solutions, enabling OEMs to accelerate UAV prototyping and deploy real-time video analytics with 5G-ready networking.

Management projects Q3 revenue of $28.5 million to $32.5 million, with non-GAAP EPS between $0.03 and $0.06. The company plans to leverage its strengthened customer relationships and improving operating leverage to capture rising demand in smart infrastructure, enterprise connectivity and defense unmanned systems, while maintaining disciplined execution against its Edge AI platform strategy.