Lantronix Stock Falls 19% the Day After Fiscal First-Quarter Results

Lantronix Inc. (Nasdaq: LTRX) shares fell 19.4% on Tuesday, Nov. 10, 2026, closing at $4.39 against a previous close of $5.45, on volume about 3.4 times normal. The S&P 500 ETF (SPY) moved -0.37% in the same session. The drop came the day after the company reported fiscal first-quarter results on Monday evening, when it filed an 8-K at 4:05 p.m. Eastern Time with the earnings release as Exhibit 99.1 and management's prepared remarks as Exhibit 99.2. The company's filings do not state why the shares fell.

Revenue grew and the loss narrowed

Net revenue rose 8% from a year earlier to $32.4 million, and Embedded IoT Solutions revenue increased 37%. The GAAP net loss narrowed to $463 thousand, or 1 cent a share, from $1.4 million, or 4 cents, a year earlier. Non-GAAP net income rose 50% to $2.2 million, or 5 cents a share. IoT System Solutions revenue fell to $14.1 million from $16.5 million. Management said the prior-year period had benefited from large shipments to a Tier-1 mobile network operator customer that were substantially completed several quarters ago.

Outlook and cash position

For the second quarter ending Dec. 31, 2026, the company guided to net revenue of $32.5 million to $34.5 million and non-GAAP net income of $1.8 million to $2.7 million, or 4 to 6 cents a share. It reaffirmed its expectation for double-digit revenue growth in fiscal 2027. At Sept. 30, cash and cash equivalents were $37.6 million and marketable securities were $13.8 million, or $51.5 million together. The company closed its Nero Global acquisition during the quarter. Its quarterly report was filed later that evening.