Lantronix (LTRX) Stock Forecast & Price Target

Lantronix is benefiting from a clear inflection in unmanned systems, with FQ4 unmanned revenue rising to about $5M from $4.2M in FQ3 and FY26 unmanned revenue reaching $12.6M, near the high end of guidance. That momentum is supported by broad customer adoption across more than 30 engaged customers, expanding to more than 40 drone OEMs and subsystem providers, plus recent wins in Europe and APAC that show the opportunity is becoming global. Fundamentally, the company’s edge-computing SOM platform is increasingly central to AI-driven autonomy, helping drive FQ4 revenue up 8% Y/Y to $31.2M, gross margin to 44.1%, and adjusted EBITDA to $1.8M, while management sees unmanned systems at 15–20% of FY27 revenue.

Lantronix is facing a negative outlook because its recent FQ4 strength still depends heavily on a narrow set of drone and embedded-IoT programs, leaving revenue vulnerable to customer timing, deployment shifts, and defense procurement delays. Although revenue rose 8% Y/Y to $31.2M and gross margin improved to 44.1%, IoT System Solutions still fell 8% Y/Y to $15.3M, showing uneven underlying demand and limited breadth across the portfolio. Competitive pressure, supply chain dependence, and rising SG&A and R&D tied to drone expansion could constrain future operating leverage, especially if drone adoption slows below expectations.