Lantronix’s Latest Quarter in Focus

Lantronix (LTRX) has just posted its Q3 2026 scorecard, with revenue of US$30.2 million and a basic EPS loss of US$0.03, while the trailing 12 month view shows revenue of US$118.6 million and a basic EPS loss of US$0.17. Over recent quarters the company has seen revenue move from US$28.5 million in Q2 2025 to US$30.2 million in Q3 2026, alongside quarterly EPS losses that ranged from US$0.10 to US$0.03. This keeps attention firmly on how quickly margins can tighten and losses can narrow from here.

See our full analysis for Lantronix.

With the headline numbers set, the next step is to see how this earnings print lines up against the widely followed bullish and bearish narratives around Lantronix, and where those storylines might need a reset.

Losses Narrowing on TTM Basis

• On a trailing 12 month view, net loss moved from US$11.4 million in Q4 2025 to US$6.5 million in Q3 2026, while basic EPS loss shifted from US$0.29 to US$0.17 over the same periods.
• What stands out against the bullish view of very large forecast earnings growth of about 153.06% per year is that the reported TTM loss is still US$6.5 million, so:
  • Forecasts suggesting a path to profitability within three years are being compared to a business that is currently loss making on US$118.6 million of TTM revenue.
  • This combination heavily supports the bullish case that trends are moving in the right direction, while also reminding you that the turnaround argument is built on forecasts rather than current profits.

Q3 Margins Still in the Red

• For Q3 2026, Lantronix reported revenue of US$30.2 million and a net loss of US$1.2 million, compared with losses between US$1.3 million and US$3.9 million in each quarter back to Q2 2025.
• Critics highlight that the company has been unprofitable over the past five years with losses increasing about 9.7% a year, and the current quarterly loss pattern speaks directly to that concern because:
  • Every quarter in the period shown, including Q3 2026, still shows a net loss despite revenue generally sitting around the US$28 million to US$31 million range.
  • This run of quarterly losses supports the bearish worry about earnings quality, even as per share losses have been smaller recently than the US$0.10 loss in Q3 2025.

Mixed Signals on Valuation vs Growth Story

• The stock trades around US$5.83 with a P/S of about 2x, compared with a peer average of 1x, a US communications industry average of 2.5x, an analyst price target of US$9.13, and a DCF fair value of about US$5.79.
• Supporters point to forecast revenue growth of 13.7% a year and large expected earnings growth alongside analyst targets that imply around 56.5% upside from the current US$5.83 share price. Yet:
  • The current price sitting only slightly above the DCF fair value of roughly US$5.79 suggests the market is not pricing in a big premium to those cash flow estimates.
  • Paying a P/S that is double the peer average while the company is still reporting TTM losses of US$6.5 million is exactly the kind of tension that bulls and bears tend to focus on most.

For a broader view on how other investors are reading this mix of growth forecasts, ongoing losses and valuation, check out the 📊 Read the what the Community is saying about Lantronix.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Lantronix's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

With sentiment clearly split between risks and rewards, this is the moment to review the figures yourself and decide where you stand, starting with the 2 key rewards and 1 important warning sign.

See What Else Is Out There

Lantronix is still reporting TTM losses of US$6.5 million on US$118.6 million of revenue, with ongoing quarterly net losses despite improving per share figures.

If you are uneasy about paying up for a loss making stock with valuation tensions baked in, it is worth checking out the 72 resilient stocks with low risk scores to focus on companies with more resilient profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.