Lantronix Inc. reported its third quarter fiscal 2025 results on May 8, 2025, with net revenue of $28.5 million, a 30.8% decrease compared to $41.2 million in the prior year period. This revenue figure missed the analyst consensus estimate of $29.12 million.
The GAAP net loss for the quarter was $3.9 million, or ($0.10) per share, compared to a net loss of $0.4 million, or ($0.01) per share, in the prior year. Non-GAAP EPS was $0.03, meeting the analyst consensus estimate.
Despite revenue pressures, gross margin increased to 43.5% from 40.1% in the prior year, attributed to lower overhead costs and a favorable product sales mix. Operating expenses decreased by $0.6 million, reflecting cost reduction initiatives, including a $1.6 million restructuring charge related to a January 2025 headcount reduction impacting approximately 12% of the workforce.
Lantronix generated positive operating cash flow of $3.2 million in the quarter. For the fourth quarter of fiscal 2025, the company provided guidance expecting revenue in the range of $26.5 million to $30.5 million and non-GAAP EPS in the range of $0.00 to $0.02 per share, which was below analyst expectations of $0.05.
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