Lantronix Accelerates Edge AI Strategy Amidst Investor Scrutiny

IRVINE, CA – November 12, 2025 – Lantronix Inc. (NASDAQ: LTRX), a pivotal player in Edge AI and Industrial IoT (IIoT) solutions, is set to intensify its engagement with the financial community. CEO Saleel Awsare, accompanied by CFO Brent Stringham, will participate in three significant investor conferences: the Craig-Hallum Alpha Select Conference on November 18, the ROTH Technology Conference on November 19, and the Headgate Partners NYC Summit on December 16. These meetings underscore Lantronix's proactive investor relations strategy and its commitment to articulating a clear vision in a rapidly evolving technological landscape.

These high-profile engagements occur as the global Edge AI and IIoT markets experience substantial expansion. Driven by the escalating demand for real-time data processing, advanced automation, and seamless connectivity, these sectors are becoming central to digital transformation across industries. For Lantronix, the conferences offer a crucial platform to showcase its strategic positioning and capitalize on these burgeoning trends.

Navigating the Edge AI and IIoT Frontier

The market for Edge AI is projected to surge, potentially reaching between $90.77 billion and $143.06 billion by 2034, with a compound annual growth rate exceeding 20% from 2025. Concurrently, the Industrial IoT market is forecast to achieve a valuation between $198.09 billion by 2032 and $469.67 billion by 2030. This growth is fueled by increased automation, the imperative for real-time operational efficiency, and rapid advancements in sensor technology. Key drivers include the rise of AI-driven IoT, the necessity for edge computing to process data locally, and enhanced connectivity through technologies like 5G and Wi-Fi 6.

Lantronix aims to harness these trends by delivering the essential hardware, software, and services required for sophisticated Edge AI applications, thereby facilitating efficient deployment of IoT edge solutions. The company's innovative efforts have garnered industry recognition, including being named the 2025 Industrial IoT Company of the Year by CompassIntel. Furthermore, its NTC-500 Series 5G wireless routers received the 2025 Industrial IoT Product of the Year Award from IoT Evolution World, highlighting its leadership in providing resilient and rapidly deployable 5G solutions for industrial applications.

Strategic Moves: Acquisitions, Partnerships, and Innovation

Lantronix's strategy for growth is multifaceted, involving targeted acquisitions, robust partnerships, and continuous innovation. In December 2024, the company completed the acquisition of NetComm Wireless's enterprise IoT business for $6.5 million. This strategic move significantly bolstered its "Compute & Connect" strategy by expanding its 5G IoT gateway and router offerings. The acquisition also brought new enterprise customers and opened access to new geographic markets such as Australia and New Zealand, with an expected contribution of $6-7 million in revenue during calendar year 2024.

A cornerstone of Lantronix's innovation strategy is its deep partnership with Qualcomm Technologies. This collaboration leverages Qualcomm's advanced AI and connectivity technologies to develop scalable Edge AI solutions. Notable outcomes include the launch of the SmartLV, an AI-enabled IoT Edge Compute Cellular Gateway designed for smart grids and utility applications, and the Open-Q™ 8550CS System on Module, tailored for industrial and robotics applications. Further demonstrating its commitment to accessible AI deployment, Lantronix recently introduced EdgeFabric.ai, a no-code edge AI orchestration platform engineered to accelerate AI deployment from prototype to production environments.

These strategic initiatives position Lantronix to differentiate itself in a crowded market. With a focus on specialized gateways, connectivity solutions, and burgeoning AI capabilities, coupled with its status as a Western-based supplier, the company offers a distinct value proposition to customers seeking intelligent computing and secure connectivity for mission-critical applications.

Financial Currents and Investor Engagement

Lantronix's recent financial performance reflects a company navigating a complex macroeconomic environment while executing a strategic pivot. For Q3 Fiscal 2025, net revenue reached $28.5 million, within guidance, with non-GAAP EPS at $0.03. Q2 Fiscal 2025 saw revenue of $31.2 million, also within guidance, alongside an improved non-GAAP gross margin of 43.2%. This margin expansion, up from 41% year-over-year, indicates effective cost management and a strategic shift towards higher-margin system solutions, even as Q2 net revenue declined 15.9% year-over-year due to reduced automotive orders and enterprise market softness. Overall, the company's revenue trend shows some fluctuations, with a 4.4% decrease over the last four quarters.

Investor sentiment towards Lantronix appears to be cautious, yet discerning. While the company currently holds a Zacks Rank #4 (Sell) and its shares have seen a 25.2% decline over the past year—contrasting with the Computer - Networking industry's growth—analysts also view Lantronix's strategic transition as a "high-conviction long-term play." The market is keenly observing the company's ability to maintain margin discipline and execute its product roadmap, particularly in its pivot to Edge AI and unmanned systems. The $15 million in Post-IPO Debt Funding secured in August 2025 and the expected contributions from recent acquisitions are seen as positive indicators for future growth.

The upcoming investor conferences are therefore critical. They provide Lantronix's leadership with a direct channel to address investor concerns, articulate the nuances of its strategy, and underscore the significant long-term opportunities in its target markets. The company's consistent presence at such events, including previous participation at The Gateway Conference and its regular showcasing at industry events like CES, underscores its commitment to transparent and ongoing investor communication.

Competitive Dynamics in a Rapidly Evolving Landscape

Lantronix operates within a highly dynamic and competitive market. The Edge AI and IIoT sectors are populated by a diverse array of players, ranging from large industrial conglomerates like Siemens, GE Digital, and Cisco, to specialized IoT and AI solution providers such as Aeris, Sigfox, Maxnerva Technology Services, and Impinj. Companies like Opengear and Raritan, Inc. also contend in specific segments of secure connectivity and remote management.

This competitive landscape is characterized by continuous innovation, with many rivals also emphasizing AI integration and 5G capabilities in their offerings, aligning with the broader industry trends Lantronix is pursuing. The market sees ongoing strategic partnerships and acquisitions, as companies strive to enhance their portfolios and expand their reach. Lantronix's recent product launches, such as SmartLV and the EdgeFabric.ai platform, are part of its proactive efforts to maintain a competitive edge and solidify its position as a go-to provider for intelligent, secure, and reliable edge solutions. The company's focus on specialized gateways and its growing AI capabilities, particularly as a Western-based supplier, continues to be a key differentiator in a market increasingly sensitive to supply chain resilience and data security.