Forensic Analysis · Technology / Software · as of Aug 15, 2026
Lantronix Inc (LTRX)
A forensic read on Lantronix Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Grey Zone
Financial health
1.2
Distress distance
Clean
Earnings quality
4
Forensic signals
-38.8
P / E (ttm)
-15.3%
ROE
$258M
Market cap
0.00%
Dividend yield
-23.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Lantronix Inc earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 1.2, placing it in the Grey zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-11.4%
FY2025
Return on invested capital.Return on invested capital is -11.4% in the latest fiscal year and slipping from -5% — well below its ~10% cost of capital, and it has been across FY2011–FY2025, so reinvested dollars have not been earning their keep.
+5.7%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +18% over the last 3 years to FY2025 (+5.7%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~5.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~15%.
84d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 67 to 84 days FY2024→FY2025 (receivables -20% vs revenue -23%). Receivables are creeping up relative to sales. Across FY2021–FY2025 the day count ran 64 → 56 → 75 → 67 → 84 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in.
5% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 5% of revenue and 90% of free cash flow in FY2025 — about $0.16 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 5.8% a year, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$122.9M
Revenue Growth YoY-23.3%
Net Margin-9.3%
Free Cash Flow$6.8M
Return on Equity-15.3%
Debt / Equity0.16x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Lantronix Inc's actual 10-K/10-Q/8-K filings?