Forensic Analysis · Technology / Software · as of Sep 30, 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.
C · Mixed — selective
Forensic grade
Safe
Financial health
6.9
Distress distance
Clean
Earnings quality
3
Forensic signals
-62.9
P / E (ttm)
-3.5%
ROE
$329M
Market cap
0.00%
Dividend yield
-1.6%
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, going concern, valuation). 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 C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 6.9, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-4.8%
FY2026
Return on invested capital.Return on invested capital is -4.8% in the latest fiscal year, against -2.7% in FY2024, having run between -11.4% and -2.7% across FY2024–FY2026 with no direction held. After-tax operating profit was ($2M) in FY2024 and ($3M) in FY2026, with operating income at -1.8% of revenue in FY2024, -8.9% in FY2025 and -3.4% in FY2026. The capital base behind it came down -18% across FY2024–FY2026, from $83M to $68M, so this return is struck on a smaller base than it started on. FY2025's operating profit carried a $4M restructuring charge that alone took about 3.7 points off that year's return; FY2025 sits between the two ends of FY2024–FY2026, so the charge shapes the path between them without moving the change across it.
+3.6%/yr
FY2024–FY2026
Share-count dilution.Diluted share count changed +7% over the last 2 years to FY2026 (+3.6%/yr). The count is growing — 37.4M shares in FY2024, 40.1M in FY2026: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.6% 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 FY2024 has been diluted ~7%.
5% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 5% of revenue and 68% of free cash flow in FY2026 — 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 3.6% a year across FY2024–FY2026 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. 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$120.9M
Revenue Growth YoY-1.6%
Revenue CAGR (2yr)-13.2%
Net Margin-3.5%
Free Cash Flow$9.3M
Return on Equity-3.5%
Debt / Equity0.00x
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?