Lantronix (NASDAQ:LTRX) closed out fiscal 2026 looking like a different company than it was a year earlier. Revenue for the fourth quarter, which ended June 30 and was reported on August 26, came in at $31.2 million, up 8% from a year ago, while non-GAAP earnings per share jumped 300% to $0.04. The company also finished the year debt-free with $60.5 million in cash. What used to be a niche embedded-connectivity supplier is now leaning hard into drones, edge AI compute, and recurring software revenue.
That shift shows up most clearly in unmanned systems. A year ago the company had roughly 10 active engagements in the category; by the end of fiscal 2026 that number had tripled to over 30. Unmanned systems revenue hit $12.6 million for the year, above the midpoint of the $10 million to $14 million range management had guided to, and embedded IoT solutions overall grew 34% on the strength of that business.
CEO Saleel Awsare pointed to the company's US Army short-range reconnaissance program win, tied to Teal Drones' Black Widow platform and its status as a Blue UAS approved supplier, as proof of its camera tuning and sensor fusion expertise. Management is layering in partnerships too, including a deal with AVT Australia to build its system-on-module tech into gimbal camera payloads and a collaboration with Swarmer that roughly quadruples onboard processing power for Group 1 drones. For fiscal 2027, management expects unmanned systems to reach 15% to 20% of total revenue, more than $25 million.
The balance sheet backs up the ambition: a $44 million capital raise during the quarter helped push cash to $60.5 million while the company paid off its remaining $8.7 million in debt. On top of that, the $11.7 million purchase of Vecima Networks' Industrial IoT business, including the Nero Global Tracking platform and its 125,000 device tags, is expected to add $5.3 million in annual revenue and push software and services to about 10% of total revenue on a pro forma basis, up from 7% to 8% previously.
Not every input is cooperating. CFO Brent Stringham flagged that memory availability has tightened and prices have risen as AI infrastructure and hyperscale data centers absorb a growing share of global supply, a dynamic he described as industry-wide rather than specific to Lantronix. The company's IoT Systems Solutions segment, which grew 16% sequentially to $15.3 million, was still recovering from federal government shutdowns that slowed procurement in the prior two quarters, a reminder of how exposed that business is to Washington's budget calendar. And despite the non-GAAP profit, Lantronix posted a GAAP net loss of $269,000 for the quarter, an improvement from the $2.6 million loss a year earlier but still red ink.
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That shift shows up most clearly in unmanned systems. A year ago the company had roughly 10 active engagements in the category; by the end of fiscal 2026 that number had tripled to over 30. Unmanned systems revenue hit $12.6 million for the year, above the midpoint of the $10 million to $14 million range management had guided to, and embedded IoT solutions overall grew 34% on the strength of that business.
CEO Saleel Awsare pointed to the company's US Army short-range reconnaissance program win, tied to Teal Drones' Black Widow platform and its status as a Blue UAS approved supplier, as proof of its camera tuning and sensor fusion expertise. Management is layering in partnerships too, including a deal with AVT Australia to build its system-on-module tech into gimbal camera payloads and a collaboration with Swarmer that roughly quadruples onboard processing power for Group 1 drones. For fiscal 2027, management expects unmanned systems to reach 15% to 20% of total revenue, more than $25 million.
The balance sheet backs up the ambition: a $44 million capital raise during the quarter helped push cash to $60.5 million while the company paid off its remaining $8.7 million in debt. On top of that, the $11.7 million purchase of Vecima Networks' Industrial IoT business, including the Nero Global Tracking platform and its 125,000 device tags, is expected to add $5.3 million in annual revenue and push software and services to about 10% of total revenue on a pro forma basis, up from 7% to 8% previously.
Not every input is cooperating. CFO Brent Stringham flagged that memory availability has tightened and prices have risen as AI infrastructure and hyperscale data centers absorb a growing share of global supply, a dynamic he described as industry-wide rather than specific to Lantronix. The company's IoT Systems Solutions segment, which grew 16% sequentially to $15.3 million, was still recovering from federal government shutdowns that slowed procurement in the prior two quarters, a reminder of how exposed that business is to Washington's budget calendar. And despite the non-GAAP profit, Lantronix posted a GAAP net loss of $269,000 for the quarter, an improvement from the $2.6 million loss a year earlier but still red ink.
#gaap
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