Here are 1-3 brief analogies for Lantronix (LTRX):

• Cisco for IoT device connectivity.
• Intel for secure IoT device modules and gateways.

• Embedded IoT Modules & SOMs: These products provide ready-to-use wireless connectivity and processing solutions for manufacturers to integrate into their own IoT devices.
• External Device Servers: These devices enable remote access and management of serial devices by connecting them to an IP network.
• Managed Ethernet Switches: Industrial-grade Ethernet switches are provided to build robust and secure network infrastructures for various industrial and enterprise applications.
• KVM Over IP Solutions: These solutions allow for secure, remote access and control of servers and PCs over a standard IP network, simplifying IT management.
• IoT Gateways & Routers: Offer secure and reliable connectivity solutions to bridge IoT devices and sensors to enterprise networks and cloud platforms.

Lantronix (LTRX) sells primarily to other companies (B2B).

Based on their most recent annual report (Form 10-K for the fiscal year ended June 30, 2023), no single customer accounted for 10% or more of Lantronix's net revenue for that fiscal year. This indicates a diversified customer base.

However, in previous fiscal years, a major distribution partner was identified:

• Arrow Electronics, Inc. (ARW) was a significant customer, accounting for 12% of net revenue in fiscal year 2022 and 13% in fiscal year 2021. As a global provider of products, services, and solutions for industrial and commercial users of electronic components and enterprise computing solutions, Arrow serves as a key channel partner through which Lantronix's products reach a broad array of original equipment manufacturers (OEMs) and enterprises.

While specific end-user customer companies are not publicly disclosed due to the diversified nature of their business and sales through various channels (including distributors like Arrow), Lantronix's products and solutions are typically adopted by OEMs, system integrators, and enterprises in sectors such as:

• Industrial IoT (e.g., smart factories, asset tracking, remote monitoring)
• Medical (e.g., patient monitoring, medical device connectivity)
• Enterprise IT (e.g., data center management, remote access, KVM solutions)
• Transportation (e.g., fleet management, in-vehicle connectivity)

• Benchmark Electronics, Inc. (BHE)
• Key Tronic Corporation (KTCC)
• TTM Technologies, Inc. (TTMI)

Saleel Awsare, Chief Executive Officer

Mr. Awsare joined Lantronix in November 2023. Prior to this, he served as Senior Vice President and General Manager of the Enterprise and Mobile Division at Synaptics. He was also President of Conexant Systems, LLC, where he successfully positioned the company as a market leader in audio and voice technologies, leading to its acquisition by Synaptics in 2017. Earlier, he was President of Nuvoton Technology Corporation America. He was instrumental in Synaptics' pivot to the IoT and enterprise markets.

Brent Stringham, Chief Financial Officer

Mr. Stringham was appointed Chief Financial Officer in January 2025, having previously served as Interim CFO and Chief Accounting Officer since September 2024. He has been with Lantronix since 2012. Before joining Lantronix, he held financial leadership positions at Iteris Inc., Netlist Inc., and Ernst & Young.

Mathi Gurusamy, Chief Product & Strategy Officer

Mr. Gurusamy has served as Chief Product & Strategy Officer since May 2024. His previous roles include Chief Operating Officer at Ikotek USA, Inc., and President at Telit Cinterion. He also served as Chief Operating Officer of Telit from January 2010 to March 2016.

Kurt Hoff, Chief Revenue Officer

Mr. Hoff serves as the Chief Revenue Officer.

Jason W. Cohenour, Chairman

Mr. Cohenour has served as Chairman since 2024. He was previously President and Chief Executive Officer of Parabellum Acquisition Corp., and co-founder, President, and Chief Executive Officer of Adesto Technologies, a company that was acquired by Dialog Semiconductor PLC in 2020.

Key Risks to Lantronix (LTRX)

1. Customer Concentration and Market Volatility: Lantronix faces significant risk due to its dependence on a limited number of major customers and the inherent volatility of the Internet of Things (IoT) and IT markets. The company experienced a substantial sequential and year-over-year revenue decline in fiscal year 2025, primarily attributed to the absence of shipments to a large smart grid customer in Europe, which had previously accounted for approximately 25% of total revenue in fiscal year 2024. This highlights how a decline in sales to one or more significant customers can materially impact the business, financial condition, and results of operations. Furthermore, the IoT and IT markets are subject to rapid technological changes and economic fluctuations.

2. Cybersecurity Threats and Product Vulnerabilities: As a provider of connectivity solutions, Lantronix is inherently exposed to cybersecurity risks that could compromise its products and services. Notably, critical vulnerabilities have been identified in Lantronix's XPort devices, which are widely deployed in critical infrastructure sectors globally, including energy, manufacturing, and transportation systems. These vulnerabilities could allow attackers to bypass authentication, gain unauthorized access to device configuration interfaces, and disrupt operations, potentially leading to safety hazards, service disruptions, and financial losses. While Lantronix has been notified of these flaws, it has recommended customers upgrade to newer products like XPort Edge rather than providing direct patches for the affected legacy XPort models, posing an ongoing risk for users of the older devices.

3. Intense Competition and Pricing Pressure: Lantronix operates in a highly competitive IoT and Edge computing market, facing challenges from both established players and emerging startups. This competitive landscape can lead to significant downward pressure on the average selling prices of its products and negatively impact gross margins. Competing with larger industry giants with greater capital for research and development or large-scale acquisitions also presents a disadvantage for Lantronix. The need to continuously develop, market, and sell new products to sustain and grow the business is critical, especially as some of its products are sold into mature markets with declining demand.

The increasing dominance and integration efforts of hyperscale cloud providers (e.g., Amazon Web Services, Microsoft Azure, Google Cloud) in the end-to-end Internet of Things (IoT) ecosystem. These providers are not merely offering backend cloud services but are aggressively expanding into edge computing, device management, security, and comprehensive IoT platforms. This trend threatens to commoditize or subsume many of the discrete hardware and software solutions offered by Lantronix, making it challenging for independent IoT solution providers to differentiate and maintain market share without becoming deeply integrated into, or acquired by, one of these larger ecosystems.

Lantronix (LTRX) primarily offers secure data access and management solutions for the Internet of Things (IoT) and information technology assets, segmented into Embedded IoT Solutions, IoT Systems Solutions, and Software and Services. The company also focuses on Out-of-Band (OOB) management, Edge AI solutions, and KVM (Keyboard, Video, Mouse) switches. Lantronix targets high-growth industries such as Smart Cities, Automotive, and Enterprise markets, in addition to healthcare, industrial, security, energy, transportation, and government sectors.

The addressable markets for Lantronix's main products and services are as follows:

• Smart Cities, Automotive, and Enterprise Markets: The combined serviceable addressable market for these vertical markets is approximately $8.5 billion globally.
• Out-of-Band (OOB) Management: This market is estimated to be between $400 million and $500 million globally.
• KVM Switches: The global KVM switches market size was valued at approximately $728.46 million in 2024. North America holds a dominant market position, accounting for over 35% of the market share, with a revenue of $474.9 million in 2024.
• Edge AI and Machine Learning: The broader AI and machine learning market, which includes Edge AI, is projected to reach $76 billion globally by 2031.

Lantronix (LTRX) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:

1. Expansion in Edge AI and Edge IoT Solutions: Lantronix is strategically focused on Edge AI and Edge IoT development, evidenced by new product launches such as EdgeFabric.ai, a visual orchestration platform for Edge AI deployment, and the Open-Q™ 8550CS System on Module (SoM), designed for next-generation industrial and robotics applications. The company is actively integrating these advanced technologies to enable seamless deployment and management of AI workloads from cloud to edge.
2. Growth in the Drone and Unmanned Systems Market: The drone business is a significant area of momentum for Lantronix, with OEM engagements increasing from 10 to 17 in Q1 FY2026. The company anticipates this segment could contribute 10% to 15% of its total revenue by fiscal 2027, bolstered by new design wins, expanded OEM partnerships, unprecedented defense funding, and favorable regulatory conditions in the Unmanned Aerial Systems (UAS) market.
3. Introduction of New SaaS Platforms and Services: Lantronix is launching new software-as-a-service (SaaS) platforms, including Kompress.ai, an AI-powered optimization platform for the industrial air compressor market, and EdgeFabric.ai, which aims to strengthen customer engagement and create recurring software and services revenue. These platforms are designed to enhance asset monitoring and operational efficiency in high-compute industrial environments.
4. Diversification and Expansion into Key Strategic Verticals: The company is emphasizing growth in high-value opportunities within various strategic verticals, including defense, telecom, smart cities, enterprise, and transportation. This includes securing new multi-year U.S. mobile carrier contracts for hardware and recurring revenue from its perception platform, as well as rolling out new 5G routers and embedded compute solutions for Industrial IoT applications. Lantronix's diversified model and strategic initiatives underscore its progress in delivering profitable growth and shareholder value.

Share Repurchases

• Lantronix did not repurchase any shares of its common stock during fiscal 2025.
• The company outlined a share repurchase program in fiscal 2025, signaling a commitment to returning value to shareholders.

Share Issuance

• As of November 1, 2025, Lantronix had 39,358,610 shares of common stock outstanding.
• In November 2021, Lantronix announced a proposed public offering to issue and sell shares of its common stock for working capital and general corporate purposes, including the repayment of existing indebtedness.
• On November 5, 2025, 13,751 common shares were issued upon the vesting of restricted stock units (RSUs) that were granted on June 12, 2025.

Outbound Investments

• In fiscal 2025, Lantronix Inc. completed the acquisition of Netcomm Wireless Pty Ltd for $6,458,000 in cash.
• This acquisition is expected to enhance Lantronix's focus on Enterprise and Smart City vertical markets and bolster its connectivity solutions.

Capital Expenditures

• Lantronix's capital expenditures growth forecast is 13.5%.
• The company's management indicated continued investment in high-growth areas, including AI-enabled gateways and 5G connectivity, and advancements in its innovation roadmap, global partnerships, and talent base during fiscal year 2025.
• Capital expenditures are anticipated to be a primary factor affecting Lantronix's cash and liquidity.