8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 8, 2025

LANTRONIX, INC.

(Exact Name of Registrant as Specified in Charter)

Delaware	1-16027	33-0362767
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
48 Discovery, Suite 250 Irvine, California 92618
(Address of Principal Executive Offices, including zip code)
Registrant’s telephone number, including area code: (949) 453-3990
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.0001 par value	LTRX	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On May 8, 2025, Lantronix, Inc., a Delaware corporation (the “Company”), issued a press release setting forth the Company’s financial results for its third fiscal quarter ended March 31, 2025.  A copy of the press release is attached hereto as Exhibit 99.1. In addition, a transcript of management’s prepared remarks for the Company’s third quarter fiscal 2025 investor conference call and audio webcast, scheduled for 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on May 8, 2025, is attached hereto as Exhibit 99.2.

Following the conference call, a replay of the webcast will be available on the Company’s website at www.lantronix.com for one year from the date of the call.

The information furnished under this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01. Regulation FD Disclosure.

The information disclosed in Item 2.02 of this Current Report on Form 8-K is incorporated by reference into this Item 7.01.

The information furnished pursuant to this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. 

Item 9.01. Financial Statements and Exhibits.

The following exhibits are filed with this Current Report on Form 8-K:

Exhibit No.	Description
99.1	Press Release, dated May 8, 2025, reporting the Company’s financial results for the third fiscal quarter ended March 31, 2025
99.2	Transcript of management’s prepared remarks for third quarter fiscal 2025 investor conference call and audio webcast, scheduled for May 8, 2025.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LANTRONIX, INC.
By:	/s/ Brent Stringham
	Brent Stringham Chief Financial Officer

Date: May 8, 2025

3

EX-99.1

Exhibit 99.1

Lantronix Reports Results for Third Quarter of Fiscal 2025

· Third Quarter Net Revenue of $28.5 Million

· Third Quarter GAAP EPS of ($0.10)

· Third Quarter Non-GAAP EPS of $0.03

IRVINE, Calif., May 8, 2025 – Lantronix Inc. (NASDAQ: LTRX), a global leader of compute and connectivity for the Internet of Things (IoT) solutions enabling Artificial Intelligence (AI) Edge Intelligence, today reported results for its third quarter of fiscal 2025.

Despite a complex macroeconomic environment, Lantronix delivered revenue within guidance and continued executing its long-term strategy toward becoming a leader in intelligent edge computing.

Lantronix continued its leadership in AI edge intelligence and industrial connectivity through several key initiatives in the last quarter. The company enabled Teledyne/FLIR’s AI-driven drone thermal camera, validating the performance and reliability of its Open-Q™ platform in mission-critical edge vision systems. Further expanding its AI-capable compute portfolio, Lantronix launched the Open-Q™ 8550CS SoM, built on Qualcomm’s advanced QCS8550 processor, which delivers premium AI/ML performance and is designed for next-generation industrial and robotics applications.

 Q3 FY2025 Financial Results

• Net Revenue: $28.5 million, in range of $27.0 million to $31.0 million guidance

• GAAP EPS: ($0.10), compared to ($0.01) in Q3 FY2024 and ($0.06) in Q2 FY2025

• Non-GAAP EPS: $0.03, compared to $0.11 in Q3 FY2024 and $0.04 in Q2 FY2025

“We’re positioning Lantronix to lead the next wave of industrial and enterprise transformation at the edge,” said Saleel Awsare, president and CEO of Lantronix. “This quarter reflects continued investment in high-growth areas—from AI-enabled gateways to 5G connectivity—while advancing our innovation roadmap, global partnerships, and talent base.”

Q4 FY2025 Business Outlook

Lantronix expects the following results for the fourth fiscal quarter ending June 30, 2025:

• Revenue: $26.5 million to $30.5 million

• Non-GAAP EPS: $0.00 to $0.02

Conference Call and Webcast

Management will host an investor conference call and audio webcast on Thursday, May 8, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss its results for the third quarter of fiscal 2025 that ended Mar. 31, 2025. To access the live conference call, investors should dial 1-844-802-2442 (U.S.) or 1-412-317-5135 (international) and indicate they are participating in the Lantronix fiscal 2025 third-quarter call.

Investors can access a conference call replay starting at approximately 8:00 p.m. Pacific Time on May 8, 2025, on the Lantronix website. A telephonic replay will also be available through May 15, 2025, by dialing 1-877-344-7529 (US) or 1-412-317-0088 (international) or Canada Toll-Free 855-669-9658 and entering passcode 3110521.

1

About Lantronix

Lantronix Inc. is a global leader of compute and connectivity IoT solutions that target high-growth markets, including Smart Cities, Enterprise and Transportation. Lantronix’s products and services empower companies to succeed in the growing IoT markets by delivering customizable solutions that enable AI Edge Intelligence. Lantronix’s advanced solutions include Intelligent Substations infrastructure, Infotainment systems and Video Surveillance, supplemented with advanced Out-of-Band Management (OOB) for Cloud and Edge Computing.

For more information, visit the Lantronix website.

Discussion of Non-GAAP Financial Measures

Lantronix believes that the presentation of non-GAAP financial information, when presented in conjunction with the corresponding GAAP measures, provides important supplemental information to management and investors regarding financial and business trends relating to the company’s financial condition and results of operations. Management uses the aforementioned non-GAAP measures to monitor and evaluate ongoing operating results and trends to gain an understanding of our comparative operating performance. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations of the non-GAAP financial measures to the financial measures calculated in accordance with GAAP should be carefully evaluated. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Non-GAAP net loss consists of net loss excluding (i) share-based compensation and the employer portion of withholding taxes on stock grants, (ii) depreciation and amortization, (iii) interest income (expense), (iv) other income (expense), (v) income tax provision (benefit), (vi) restructuring, severance and related charges, (vii) acquisition related costs, (viii) impairment of long-lived assets, (ix) amortization of purchased intangibles, (x) amortization of manufacturing profit in acquired inventory, (xi) fair value remeasurement of earnout consideration, and (xii) loss on extinguishment of debt.

Non-GAAP EPS is calculated by dividing non-GAAP net loss by non-GAAP weighted-average shares outstanding (diluted). For purposes of calculating non-GAAP EPS, the calculation of GAAP weighted-average shares outstanding (diluted) is adjusted to exclude share-based compensation, which for GAAP purposes is treated as proceeds assumed to be used to repurchase shares under the GAAP treasury stock method.

Guidance on earnings per share growth is provided only on a non-GAAP basis due to the inherent difficulty of forecasting the timing or amount of certain items that have been excluded from the forward-looking non-GAAP measures, and a reconciliation to the comparable GAAP guidance has not been provided because certain factors that are materially significant to Lantronix’s ability to estimate the excluded items are not accessible or estimable on a forward-looking basis without unreasonable effort.

2

Forward-Looking Statements

This news release contains forward-looking statements, including statements concerning our revenue and earnings expectations for the fourth fiscal quarter of 2025, our positioning to capitalize on the next wave of industrial and enterprise transformation using edge computing, and our expectations regarding high-growth market areas. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. We have based our forward-looking statements on our current expectations and projections about trends affecting our business and industry and other future events. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Forward-looking statements are subject to substantial risks and uncertainties that could cause our results or experiences, or future business, financial condition, results of operations or performance, to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. Other factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to: the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to changes in U.S. trade policy, including recently increased or future tariffs, a pandemic or similar outbreak, wars and recent conflicts in Europe, Asia and the Middle East, hostilities in the Red Sea, or other causes; our ability to successfully convert our backlog and current demand;  the impact of a pandemic or similar outbreak on our business, employees, customers, supply and distribution chains and the global economy; our ability to successfully implement our acquisition strategy or integrate acquired companies; uncertainty as to the future profitability of acquired businesses, and delays in the realization of, or the failure to realize, any accretion from acquisition transactions; acquiring, managing and integrating new operations, businesses or assets, and the associated diversion of management attention or other related costs or difficulties; our ability to continue to generate revenue from products sold into mature markets; our ability to develop, market, and sell new products; our ability to succeed with our new software offerings; our use of AI may result in reputational, competitive or financial harm and liability; fluctuations in our revenue due to the project-based timing of orders from certain customers; unpredictable timing of our revenues due to the lengthy sales cycle for our products and services and potential delays in customer completion of projects; our ability to accurately forecast future demand for our products; delays in qualifying revisions of existing products; constraints or delays in the supply of, or quality control issues with, certain materials or components; difficulties associated with the delivery, quality or cost of our products from our contract manufacturers or suppliers; risks related to the outsourcing of manufacturing and international operations; difficulties associated with our distributors or resellers; intense competition in our industry and resultant downward price pressure; rises in inventory levels and inventory obsolescence; undetected software or hardware errors or defects in our products; cybersecurity risks; our ability to obtain appropriate industry certifications or approvals from governmental regulatory bodies; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to protect patents and other proprietary rights and avoid infringement of others’ proprietary technology rights; issues relating to the stability of our financial and banking institutions and relationships; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; the impact of rising interest rates; our ability to attract and retain qualified management; and any additional factors included in our Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on Sept. 9, 2024, including in the section entitled “Risk Factors” in Item 1A of Part I of that report; in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025, expected to be filed with the SEC on or about May 9, 2025 including in the section entitled “Risk Factors” in Item 1A of Part II of such report; and in our other public filings with the SEC. In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

© 2025 Lantronix Inc. All rights reserved. Lantronix is a registered trademark.

Lantronix Investor Relations Contact:

investors@lantronix.com

# # #

3

LANTRONIX, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	March 31,			June 30,
	2025			2024
Assets
Current assets:
Cash and cash equivalents	$	19,999		$	26,237
Accounts receivable, net		23,648			31,279
Inventories, net		28,151			27,698
Contract manufacturers' receivables		1,637			1,401
Prepaid expenses and other current assets		3,029			2,335
Total current assets		76,464			88,950
Property and equipment, net		2,768			4,016
Goodwill		31,089			27,824
Intangible assets, net		4,310			5,251
Lease right-of-use assets		8,974			9,567
Other assets		584			600
Total assets	$	124,189		$	136,208
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	11,005		$	10,347
Accrued payroll and related expenses		3,905			5,836
Current portion of long-term debt, net		3,063			3,002
Other current liabilities		10,594			10,971
Total current liabilities		28,567			30,156
Long-term debt, net		9,458			13,219
Other non-current liabilities		10,694			11,478
Total liabilities		48,719			54,853
Commitments and contingencies
Stockholders' equity:
Common stock		4			4
Additional paid-in capital		306,858			304,001
Accumulated deficit		(231,763	)		(223,021	)
Accumulated other comprehensive income		371			371
Total stockholders' equity		75,470			81,355
Total liabilities and stockholders' equity	$	124,189		$	136,208

4

LANTRONIX, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Three Months Ended									Nine Months Ended
	March 31,			December 31,			March 31,			March 31,
	2025			2024			2024			2025			2024
Net revenue	$	28,500		$	31,161		$	41,183		$	94,084		$	111,252
Cost of revenue		16,097			17,877			24,679			53,922			65,620
Gross profit		12,403			13,284			16,504			40,162			45,632
Operating expenses:
Selling, general and administrative		8,959			8,811			9,753			27,237			29,147
Research and development		4,463			4,984			5,186			14,403			15,017
Restructuring, severance and related charges		1,581			193			350			2,674			900
Acquisition-related costs		100			208			–			337			–
Fair value remeasurement of earnout consideration		–			–			–			–			(9	)
Amortization of intangible assets		879			1,248			1,310			3,378			4,004
Total operating expenses		15,982			15,444			16,599			48,029			49,059
Loss from operations		(3,579	)		(2,160	)		(95	)		(7,867	)		(3,427	)
Interest expense, net		(159	)		(126	)		(171	)		(404	)		(741	)
Other income (loss), net		(19	)		8			2			(48	)		(2	)
Loss before income taxes		(3,757	)		(2,278	)		(264	)		(8,319	)		(4,170	)
Provision for income taxes		111			94			159			423			732
Net loss	$	(3,868	)	$	(2,372	)	$	(423	)	$	(8,742	)	$	(4,902	)
Net loss per share - basic and diluted	$	(0.10	)	$	(0.06	)	$	(0.01	)	$	(0.23	)	$	(0.13	)
Weighted-average common shares - basic and diluted		38,820			38,631			37,509			38,493			37,283

5

LANTRONIX, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(In thousands, except per share data)

	Three Months Ended									Nine Months Ended
	March 31,			December 31,			March 31,			March 31,
	2025			2024			2024			2025			2024
GAAP net loss	$	(3,868	)	$	(2,372	)	$	(423	)	$	(8,742	)	$	(4,902	)
Non-GAAP adjustments:
Cost of revenue:
Share-based compensation		34			48			66			146			171
Employer portion of withholding taxes on stock grants		–			2			1			7			6
Amortization of manufacturing profit in acquired inventory		44			–			190			44			696
Depreciation and amortization		101			114			144			338			339
Total adjustments to cost of revenue		179			164			401			535			1,212
Selling, general and administrative:
Share-based compensation		1,159			1,044			1,337			3,329			4,238
Employer portion of withholding taxes on stock grants		13			20			21			111			68
Depreciation and amortization		345			348			352			1,044			1,024
Total adjustments to selling, general and administrative		1,517			1,412			1,710			4,484			5,330
Research and development:
Share-based compensation		324			421			469			1,155			1,381
Employer portion of withholding taxes on stock grants		4			2			9			25			27
Depreciation and amortization		56			111			76			236			236
Total adjustments to research and development		384			534			554			1,416			1,644
Restructuring, severance and related charges		1,581			193			350			2,674			900
Acquisition related costs		100			208			–			337			–
Fair value remeasurement of earnout consideration		–			–			–			–			(9	)
Amortization of purchased intangible assets		879			1,248			1,310			3,378			4,004
Litigation settlement cost		–			158			–			198			–
Total non-GAAP adjustments to operating expenses		4,461			3,753			3,924			12,487			11,869
Interest expense, net		159			126			171			404			741
Other (income) expense, net		19			(8	)		(2	)		48			2
Provision for income taxes		111			94			159			423			732
Total non-GAAP adjustments		4,929			4,129			4,653			13,897			14,556
Non-GAAP net income	$	1,061		$	1,757		$	4,230		$	5,155		$	9,654
Non-GAAP net income per share - diluted	$	0.03		$	0.04		$	0.11		$	0.13		$	0.25
Denominator for GAAP net income (loss) per share - diluted		38,820			38,631			37,509			38,493			37,283
Non-GAAP adjustment		1,300			953			1,674			1,034			1,021
Denominator for non-GAAP net income per share - diluted		40,120			39,584			39,183			39,527			38,304
GAAP cost of revenue	$	16,097		$	17,877		$	24,679		$	53,922		$	65,620
Non-GAAP adjustments to cost of revenue		(179	)		(164	)		(401	)		(535	)		(1,212	)
Non-GAAP cost of revenue		15,918			17,713			24,278			53,387			64,408
Non-GAAP gross profit	$	12,582		$	13,448		$	16,905		$	40,697		$	46,844
Non-GAAP gross margin		44.1%			43.2%			41.0%			43.3%			42.1%

6

LANTRONIX, INC.

UNAUDITED NET REVENUES BY PRODUCT LINE AND REGION

(In thousands)

	Three Months Ended						Nine Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024		March 31, 2025		March 31, 2024
Embedded IoT Solutions	$	11,990	$	10,784	$	12,452	$	36,161	$	35,589
IoT System Solutions		14,730		18,592		26,789		52,081		68,847
Software & Services		1,780		1,785		1,942		5,842		6,816
	$	28,500	$	31,161	$	41,183	$	94,084	$	111,252

	Three Months Ended						Nine Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024		March 31, 2025		March 31, 2024
Americas	$	16,497	$	16,386	$	17,543	$	50,303	$	61,077
EMEA		6,048		9,036		18,354		25,568		37,831
Asia Pacific Japan		5,955		5,739		5,286		18,213		12,344
	$	28,500	$	31,161	$	41,183	$	94,084	$	111,252

7

EX-99.2

Exhibit 99.2

FYQ3’25 COMBINED Script

Intro: Brent Stringham

Good afternoon and thank you for joining our quarterly earnings call. Joining me today is our President and Chief Executive Officer Saleel Awsare.

A “live” and archived webcast of today’s call will be available on the company’s website. In addition, you can find the call-in details for the phone replay in today’s earnings release.

During this call, management may make forward-looking statements which involve risks and uncertainties that could cause our results to differ materially from management's current expectations.

We encourage you to review the cautionary statements and risk factors contained in the earnings release, which was furnished to the SEC today and is available on our website, and in the Company’s SEC filings such as its 10-K and 10-Qs. Lantronix undertakes no obligation to revise or update publicly any forward-looking statements to reflect future events or circumstances.

Please refer to the news release and the financial information in the investor relations section of our website for additional details that will supplement management’s commentary.

Furthermore, during the call, the company will discuss non-GAAP financial measures. Today's earnings release, which is posted in the Investor Relations section of our website, describes the differences between our non-GAAP and GAAP reporting and presents reconciliations for the non-GAAP financial measures that we use.

With that, I will now turn the call over to Saleel.

Saleel Awsare:

Thanks Brent, and thank you everyone for joining today’s call.

We reported revenue of $28.5 million for the Third Quarter of Fiscal 2025 and our Non-GAAP EPS was 3 cents. Both metrics were well within our quarterly guidance range.

Brent Stringham, our CFO, will be providing more details on the Third Quarter financial results shortly.

On the call today, l would like to cover four topics with you:

· First, I will speak briefly to the current operating environment and how we’ve moved quickly with our own task force on tariffs while remaining focused on executing our business and controlling costs;

· Second, I’d like to talk about how we’re expanding our distribution network in the EU and Asia Pac;

· Third, I would like to highlight some recent customer wins, and mention products we’ve launched; and

· Lastly, I want to highlight our solid operational execution and strengthening financial position which Brent will speak to in more detail in his prepared remarks

So first off, we’re carefully monitoring the current operating environment and we’re working very closely with our customers, suppliers, and contract manufacturers.

In anticipation of the tariffs, we established an internal task force to identify our top priorities and devised a 90-day action plan. We’re currently implementing this plan and closely managing our expenses due to the uncertainty surrounding tariffs and any disruptions to the supply chain.

1

Regarding pricing, we’re working on a customer-by-customer basis with the goal of minimizing the impact to Lantronix. And we’re in discussions with our partners and contract manufacturers to manage and reduce costs. In this operating environment, we will continue to analyze, adjust, and execute our action plan.

Second, regarding our efforts to grow our Channel distribution, we announced this past quarter that we’re expanding our partnership with TD Synnex - - our major distributor in North America. They are now distributing throughout Europe focused on out-of-band management, network infrastructure, and Industrial IoT solutions, bringing expanded support to our customers and partners in the EU. And we’re also leveraging the acquired Channel network from Netcomm to expand the distribution in AsiaPac, Australia and New Zealand.

Overall, the integration of Netcomm products into our business has gone very well, and I’m pleased with the level of customer engagement and new cross-selling opportunities that we’re seeing.

Third, regarding new customer wins, we recently announced a new AI-powered camera solution that uses our high-performance System on Module paired with a thermal infrared camera module from Teledyne FLIR. In this solution our Open-Q SOM provides advanced processing for AI-driven situational awareness, advanced thermal imaging, and real-time decision-making. This integration accelerates next-gen AI camera solutions for drones, surveillance, and robotics.

I’m also pleased we announced our latest SOM using Qualcomm’s Dragonwing 8550 processor that’s uniquely designed for higher AI & ML applications such as video transcoding, camera applications, and Edge gateway integration. As I’ve said previously, we’re very focused on Edge AI solutions because of the benefits of low latency, better security, and low power requirements at the Edge of the network. And we’re seeing more customers moving to hybrid architectures that are leveraging both Cloud Computing for heavy computational processing as well as Edge Computing for intelligent, real-time inferencing.

And finally, we continue to manage our cost structure tightly and I’m pleased to report our Cash position increased sequentially in FQ3 compared to the prior quarter. We also took the prudent step to pay-down some debt, helping us to reduce our interest expense. Brent will be covering that in more detail in his script.

Brent, over to you.

Brent Stringham: Thank you, Saleel.

I will review the financial results and some business highlights for our third quarter of fiscal year 2025 before commenting on our financial outlook for the fourth quarter of fiscal 2025.

For the Third Quarter of Fiscal 2025, or FQ3, we reported revenue of $28.5 million. As we expected, revenue was down both sequentially, and on a year-over-year basis, with no shipments in the current quarter to our large Smart Grid customer in Europe as they work through their initial deployments. The revenue impact was partially offset by sequential organic growth in our embedded connectivity and switch products, along with growth in our Gateways and Routers led by products from the acquisition of Netcomm last December.

As expected and discussed on last quarter’s call, we saw sequential and year-over-year increases in our GAAP and Non-GAAP gross margins.

GAAP gross margin was 43.5% in FQ3 2025 compared to 42.6% in the prior quarter and 40.1% in the year ago quarter.

Our Non-GAAP gross margin was 44.1% in FQ3 2025 compared to 43.2% in the prior quarter and 41% in the year ago quarter.

GAAP operating expenses for FQ3 2025 were $16 million compared to $16.6 million in the year-ago quarter and $15.4 million in the prior quarter.

We reduced our non-GAAP Opex for FQ3 2025 by approximately $1.2 million compared to the year-ago quarter and by about $200,000 sequentially. We continue to realize the impact of the various cost reductions we have spoken to in recent quarters.

We note in the March quarter that non-GAAP Opex – including costs related to Netcomm – was within our previously-stated quarterly target range of $11.25 million to $11.75 million, which did not originally contemplate Netcomm operating costs.

2

GAAP net loss was $3.9 million, or 10 cents per share, during FQ3 2025 compared to GAAP net loss of $400 thousand or 1 cent per share, in the year ago quarter. The current quarter GAAP net loss includes a restructuring charge of approximately $1.6 million related to the cost reduction initiatives that we undertook and completed in January.

Non-GAAP net income was $1.1 million, or 3 cents per share, during FQ3 2025, compared to non-GAAP net income of $4.2 million, or 11 cents per share, in the year ago quarter.

Turning to the balance sheet………

Cash and cash equivalents at the end of the March quarter totaled $20 million, slightly up from the prior quarter. For the three and nine-month periods ended March 31, 2025, we generated positive operating cash flow of $3.2 million and $6.2 million, respectively.

Net inventories decreased to $28.2 million as of March 31, 2025, as compared to $29.1 million in the prior quarter.

Given our recent margin expansion and cost reductions, the positive cash flow from operations allowed us to improve our balance sheet during the current quarter by paying down about $2 million or 15% of our existing term debt. As Saleel previously mentioned, this will help provide savings on interest costs.

As of March 31, 2025, our remaining debt balance approximates $12.5 million, giving us net cash of $7.5 million.

Now for the outlook.

· For the Fourth Quarter of Fiscal 2025, we expect revenue to be in the range of $26.5 to $30.5 million.

· Given the current environment, we are expecting some pressure on gross margins in FQ4 compared to our recent near record gross margins in FQ3.

· Accordingly, non-GAAP EPS for FQ4 is expected to be in the range of 0 to 2 cents per share.

Saleel Awsare: Thanks Brent.

As we considered our outlook for the June quarter, we have been cautious given the macro uncertainty.

We’re executing well in the current operating environment and managing our expenses closely.

· We’re generating positive cash flow;

· Our balance sheet is strong; and

· Our customer design win activity is growing nicely.

In addition to solid business execution, we remain very focused on developing Edge Intelligence solutions with Compute and Connect for our customers.

With that, I’d like to ask the Operator to open the call for Q&A.

3

XML

Cover	May 08, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 08, 2025
Entity File Number	1-16027
Entity Registrant Name	LANTRONIX, INC.
Entity Central Index Key	0001114925
Entity Tax Identification Number	33-0362767
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	48 Discovery
Entity Address, Address Line Two	Suite 250
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92618
City Area Code	949
Local Phone Number	453-3990
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	LTRX
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false