Exhibit 99.1

Lantronix Reports Fiscal Third-Quarter 2026 Financial Results

IRVINE, Calif., May 6, 2026 — Lantronix Inc. (Nasdaq: LTRX), a global provider of Edge AI and Industrial IoT solutions that power NDAA-compliant unmanned systems, critical infrastructure and resilient enterprise networks, today reported results for the fiscal third quarter ended March 31, 2026.

Management Commentary

“Our third-quarter results reflect our disciplined execution and continued momentum across the business as we reported year-over-year revenue and earnings growth,” said Saleel Awsare, president and CEO of Lantronix. “Our position as a critical onboard edge compute platform for unmanned systems continues to expand, reflected by the 22 percent growth we delivered in our Embedded IoT Solutions portfolio.”

Lantronix continues to deepen its presence across the unmanned systems ecosystem, broadening its customer list and capabilities. The company is evolving from initially supporting the camera to now enabling fully intelligent drone and counter-drone systems. As the autonomous ecosystem continues to evolve, Lantronix is positioned to become the provider of choice for unmanned systems compute, further strengthening the business as a critical platform partner to the unmanned ecosystem.

“We are approaching the end of fiscal 2026 from a position of strength, and our recent momentum gives us great confidence in our growth trajectory. We believe we will carry the momentum we’ve created into next year and aim to deliver double-digit revenue growth in fiscal 2027, an important step in our evolution towards a faster-growing, higher quality and more profitable business,” concluded Awsare

Q3 FY2026 Financial Results

Q3 FY2026 and Recent Business Highlights

Q4 FY2026 Financial Outlook

Conference Call and Webcast

Management will host an investor conference call and audio webcast today (Wednesday, May 6, 2026) at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss its results for the fiscal third quarter of 2026 and financial outlook. To access the live conference call, investors should dial 1-844-802-2442 (U.S.) or 1-412-317-5135 (international) and indicate they are participating in the Lantronix fiscal 2026 third-quarter call. The webcast will also be available simultaneously via the investor relations section of the Company’s website.

Investors can access a conference call replay starting at approximately 4:00 p.m. Pacific Time on May 6, 2026, on the Lantronix website. A telephonic replay will also be available through May 13, 2026, by dialing 1-855-669-9658 (US & Canada Toll-Free) or 1-412-317-0088 (international) and entering passcode 7909343.

About Lantronix

Lantronix Inc. (Nasdaq: LTRX) is a global leader in Edge AI and Industrial IoT solutions, delivering intelligent computing, secure connectivity and remote management for mission-critical applications. Serving high-growth markets, including smart cities, enterprise IT and commercial and defense unmanned systems, including drones, Lantronix enables customers to optimize operations and accelerate digital transformation. Its comprehensive portfolio of hardware, software and services powers applications from secure video surveillance and intelligent utility infrastructure to resilient out-of-band network management. By bringing intelligence to the network edge, Lantronix helps organizations achieve efficiency, security and a competitive edge in today’s AI-driven world.

For more information, visit the Lantronix website.

Discussion of Non-GAAP Financial Measures

Lantronix believes that the presentation of non-GAAP financial information, when presented in conjunction with the corresponding GAAP measures, provides important supplemental information to management and investors regarding financial and business trends relating to the company’s financial condition and results of operations. Management uses the aforementioned non-GAAP measures to monitor and evaluate ongoing operating results and trends to gain an understanding of our comparative operating performance. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations of the non-GAAP financial measures to the financial measures calculated in accordance with GAAP should be carefully evaluated. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Non-GAAP net loss consists of net loss excluding (i) share-based compensation and the employer portion of withholding taxes on stock grants, (ii) depreciation and amortization, (iii) interest income (expense), (iv) other income (expense), (v) income tax provision (benefit), (vi) restructuring, severance and related charges, (vii) acquisition related costs, (viii) impairment of long-lived assets, (ix) amortization of purchased intangibles, (x) amortization of manufacturing profit in acquired inventory, (xi) fair value remeasurement of earnout consideration, and (xii) loss on extinguishment of debt.

Non-GAAP EPS is calculated by dividing non-GAAP net income by non-GAAP weighted-average shares outstanding (diluted). For purposes of calculating non-GAAP EPS, the calculation of GAAP weighted-average shares outstanding (diluted) is adjusted to exclude share-based compensation, which, for GAAP purposes, is treated as proceeds assumed to be used to repurchase shares under the GAAP treasury stock method.

Guidance on earnings per share growth is provided only on a non-GAAP basis due to the inherent difficulty of forecasting the timing or amount of certain items that have been excluded from the forward-looking non-GAAP measures, and a reconciliation to the comparable GAAP guidance has not been provided because certain factors that are materially significant to Lantronix’s ability to estimate the excluded items are not accessible or estimable on a forward-looking basis without unreasonable effort.

Forward-Looking Statements

This news release contains forward-looking statements, including statements concerning our expectations for revenue and earnings for the fourth quarter of fiscal 2026, revenue for our drone business for fiscal 2026, and revenue growth for fiscal 2027; our positioning to become the provider of choice for unmanned systems compute and strengthen our business as a critical platform partner to the unmanned ecosystem; and our expectations regarding the future benefits of our recent collaborations, partnerships and customer wins. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. We have based our forward-looking statements on our current expectations and projections about trends affecting our business and industry, and other future events. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Forward-looking statements are subject to substantial risks and uncertainties that could cause our results or experiences, or future business, financial condition, results of operations or performance, to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. Other factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to: the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to changes in U.S. trade policy, including recently increased or future tariffs, a pandemic or similar outbreak, wars and recent conflicts in Europe, Asia and the Middle East, hostilities in the Red Sea, or other causes; our ability to successfully convert our backlog and current demand; the impact of a pandemic or similar outbreak on our business, employees, customers, supply and distribution chains and the global economy; our ability to successfully implement our acquisition strategy or integrate acquired companies; uncertainty as to the future profitability of acquired businesses, and delays in the realization of, or the failure to realize, any accretion from acquisition transactions; acquiring, managing and integrating new operations, businesses or assets, and the associated diversion of management attention or other related costs or difficulties; our ability to continue to generate revenue from products sold into mature markets; our ability to develop, market, and sell new products; our ability to succeed with our new software offerings; our use of AI may result in reputational, competitive or financial harm and liability; fluctuations in our revenue due to the project-based timing of orders from certain customers; unpredictable timing of our revenues due to the lengthy sales cycle for our products and services and potential delays in customer completion of projects; our ability to accurately forecast future demand for our products; delays in qualifying revisions of existing products; constraints or delays in the supply of, or quality control issues with, certain materials or components; difficulties associated with the delivery, quality or cost of our products from our contract manufacturers or suppliers; risks related to the outsourcing of manufacturing and international operations; difficulties associated with our distributors or resellers; intense competition in our industry and resultant downward price pressure; rises in inventory levels and inventory obsolescence; undetected software or hardware errors or defects in our products; cybersecurity risks; our ability to obtain appropriate industry certifications or approvals from governmental regulatory bodies; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to protect patents and other proprietary rights and avoid infringement of others’ proprietary technology rights; issues relating to the stability of our financial and banking institutions and relationships; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; the impact of rising interest rates; our ability to attract and retain qualified management; and any additional factors included in our Report on Form 10-K for the fiscal year ended June 30, 2025, filed with the Securities and Exchange Commission (the “SEC”) on Aug. 29, 2025, including in the section entitled “Risk Factors” in Item 1A of Part I of that report; in our Quarterly Report on Form 10-Q for the fiscal quarter ended Dec. 31, 2025, filed with the SEC on Feb. 5, 2026, including in the section entitled “Risk Factors” in Item 1A of Part II of such report; and in our other public filings with the SEC. In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

©2026 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark. Other trademarks and trade names are those of their respective owners.

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Lantronix Investor Contact:

Matt Glover and Greg Robles

Gateway Group, Inc.

[email protected]

LANTRONIX, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

LANTRONIX, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

LANTRONIX, INC.

UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS

(In thousands, except per share data)

Exhibit 99.2

FYQ3’26 Combined Script

Intro: Brent Stringham

Good afternoon everyone, and thank you for joining our fiscal third quarter earnings call. Joining me today is our President and Chief Executive Officer Saleel Awsare.

A “live” and archived webcast of today’s call will be available on the Company’s website. In addition, you can find the call-in details for the phone replay in today’s earnings release.

During this call, we may make forward-looking statements which involve risks and uncertainties that could cause our results to differ materially from current expectations.

We encourage you to review the cautionary statements and risk factors contained in today’s earnings release, which was furnished to the SEC and is available on our website, and other SEC filings such as our 10-K and 10-Qs. Lantronix undertakes no obligation to revise or update publicly any forward-looking statements to reflect future events or circumstances.

Additionally, during the call, we will discuss non-GAAP financial measures. Today's earnings release, which is posted in the Investor Relations section of our website, describes the differences between our non-GAAP and GAAP reporting and presents reconciliations for the non-GAAP financial measures that we use.

With that, I will now turn the call over to Saleel.

Saleel Awsare (Section 1):

Thanks, Brent, and thank you, everyone, for joining today’s call.

We delivered revenue of $30.2 million and non-GAAP EPS of $0.04, both within our guidance range.

Our Embedded IoT Solutions portfolio delivered extremely robust growth of 22% year-over-year, driving overall sequential and year-over-year revenue growth for the company. This performance reinforces our position as a critical onboard edge compute platform for unmanned systems, an increasingly important contributor to our business.

Gross margin also remained strong at above 43%, supported by a richer mix of higher-margin products and recurring revenue across the portfolio.

Overall, these results reflect disciplined execution and continued momentum across the business.

Turning to our results. We continue to see strong demand for unmanned systems, or drones, supported by favorable industry and military tailwinds that position Lantronix for sustained growth. Our customer list in unmanned systems continues to expand, reflecting both the effectiveness of our drone strategy and the increasing need for reliable, real-time computing solutions. Drones are physical AI in action, and we deliver that capability to our customers by enabling autonomy, edge compute and real-time decision-making - further increasing the value of our technology.

The FCC’s December 2025 action, which bars DJI and other foreign drone makers on the Covered List from obtaining approval for new drone models in the U.S., has meaningfully improved the outlook for domestic and trusted-supplier platforms.

This environment strengthens our competitive moat as a U.S. partner that is both NDAA- and TAA-compliant, providing trusted and secure AI-enabled edge compute platform solutions for the groups 1 and 2 drone ecosystem.

Further, we are expanding both our capabilities and the number of active engagements. Our SOMs, or system on modules, provide the onboard edge compute foundation for greater autonomy, which is becoming increasingly critical as mission complexity rises, and the market pushes beyond what human operators alone can support. In aerospace and defense, scale will require more intelligence, more autonomy, and Lantronix is helping enable that shift. As a result, we are moving up the tech stack, evolving from supporting the camera to enabling full intelligent drone and counter-drone systems. In parallel, growing interest in swarming and coordinated autonomy is driving demand for larger fleets requiring more advanced edge AI and machine learning–based compute solutions to support increasingly complex missions.

Beyond the drone itself, we are expanding our role into counter-UAS and spectrum dominance applications. These markets require high performance, low-power compute to process sensor data and enable real-time decision-making in contested environments. As systems become more intelligent, connected, and electronically aware, we expect our SOMs and broader technology to play an increasingly central role across more of the mission stack.

Given the growth opportunity ahead, we are investing to scale. We’re expanding our technical R&D talent to deepen our capabilities and capture more opportunities across the drone ecosystem, while also expanding our dedicated drone sales effort. As the unmanned aerial systems market continues to heat up, new entrants will emerge. However, our first mover advantage positions us to become the go-to provider of unmanned systems compute, and these investments are designed to strengthen the moat around our business as a critical platform partner to the unmanned ecosystem.

In parallel with those investments, we are also advancing the product and technology initiatives that will support our next phase of growth. During the quarter, we announced the advancement of our multi-silicon strategy with MediaTek’s Genio family of System-on-Chip, or SoC, platforms, strengthening our ability to serve a wider range of Edge AI and Industrial IoT applications. MediaTek’s SoCs deliver strong AI performance with processing power comparable to our Qualcomm platforms, while offering a feature set highly optimized for industrial and commercial use cases.

By adding MediaTek, we’re filling important use-case coverage in our portfolio – both MediaTek and Qualcomm are highly capable edge AI compute solutions, and together, allow Lantronix to serve a broader set of customers and end markets with architectures tuned to their specific requirements.

Diving deeper, we continued to build momentum during the quarter. We significantly expanded the number of OEMs we’re engaged with and have now shipped product to over a dozen of thse partners.

Importantly, we recently converted one of these engagements into a design win - another Drone-as-First-Responder program with one of the largest U.S.-based body camera makers. This adds a new DFR customer and further validates our position as a leading compute and connectivity provider across the UAS ecosystem.

We also secured a new customer win with a payload that identifies hostile drone operators, marking our expansion into counter drones. This new win reinforces our role as a trusted partner in mission-critical applications, underscoring our expanding relevance into counter-unmanned systems, where FPV drones are used to detect, track, identify and mitigate hostile systems in contested environments. More broadly, it demonstrates how our edge AI drone solution supports the full UAS ecosystem – including counter-drone use cases.

In addition to expanding capabilities and applications, we have been growing beyond the U.S. market into international markets, as we are now supporting global expansion with Red Cat as they enter NATO and across the Asia Pacific.

We also made our first shipment to Evolve Dynamics, a UK-based developer of unmanned aerial systems serving the defense, emergency response, and critical infrastructure markets. Expanding our unmanned OEM customer base internationally is an important part of our growth strategy, and this shipment marks another step in expanding our reach across the global autonomous systems ecosystem.

Additionally, we recently engaged with multiple Ukraine drone makers. Ukraine is becoming one of the most leading-edge and fastest evolving markets for unmanned systems globally, and its domestic drone companies have demonstrated remarkable real-world performance. As the U.S. Department of War continues to increase its investments in unmanned systems, collaborating with leading Ukrainian innovators provides us with critical insights and validation opportunities for our technology in highly demanding, real-world environments.

We are seeing a broader shift toward trusted platforms, with customers increasingly moving away from Chinese components toward NDAA-compliant solutions. This transition is creating meaningful opportunities for Lantronix, particularly as customers evaluate our products, such as our drone reference platform, which helps shorten development cycles and accelerate evaluation to deployment.

Further, in March, we formed a strategic collaboration with Unusual Machines to support the next generation of unmanned platforms. This partnership combines Lantronix’s edge compute and integrated connectivity solutions with UMAC’s flight components to help accelerate deployment timelines and enhance ISR and autonomous capabilities across aerial systems. Together, this enables both companies to pursue emerging opportunities tied to the DoW’s Drone Dominance Program, and we believe we are well-positioned to capitalize on this near-term growth opportunity. We are encouraged by the early progress made during the collaboration so far and we’ll release additional updates as appropriate.

We are making a concerted effort to strengthen our position in the unmanned ecosystem by scaling the platform and introducing new capabilities that support faster, easier, and more effective deployments. As we expand the platform, we are building an ecosystem around it – one that enables customers and partners to adopt, integrate and scale solutions more seamlessly.

We are encouraged by the momentum we’ve built in unmanned systems since entering the market just over a year ago and are once again increasing our fiscal 2026 drone outlook, now to a range of $10 million to $14 million. Our team is executing with urgency, and we continue to see a clear path for unmanned systems to represent 15% to 20% of overall revenue in fiscal 2027.

Moving to software and services, we remain excited about the expanding ARR we are seeing. Over the last two quarters, we have expanded our software, and services mix from 5-6% to 8-9% of total revenue, and we see a clear path of sustainably reaching double digits over the midterm. This confidence is driven by our ability to layer higher-value software and services onto our growing installed base of hardware already in the field. As we integrate capabilities such as device management, analytics and AI orchestration, we are not only expanding recurring revenue streams but also improving overall mix and increasing the lifetime value of each deployment. Over time, we believe this will drive greater revenue visibility, stronger margins and a higher-quality business model overall.

On IoT System Solutions, we continue to experience slower federal spending and extended procurement cycles, particularly with our core enterprise and networking products, which include media converters and out-of-band management. Federal customers are moving more cautiously, and continued government shutdowns have resulted in slower ordering patterns and a more measured pace of conversion.

That said, these are timing dynamics, not demand issues. Importantly, enterprise and networking continue to deliver margins well above our corporate average and provide strong cash generation, giving us the ability to reallocate resources into newer, higher-growth opportunities such as unmanned aerial systems and critical infrastructure monitoring.

In summary, I am encouraged by our third-quarter performance and the discipline of our execution as we continue to deliver strong margins and profitability. We are hyper-focused on growing the business, and we are putting the right team and capabilities in place to capture the growing opportunities we are seeing.

Before passing the call over to Brent, I want to highlight a couple important developments, starting with a key leadership addition for our next phase of growth. In March, we appointed Sano Marsiano as our new VP of Operations, bringing years of leadership experience across global operations, manufacturing, and quality.

Also in March, we participated in ISC West 2026, where we showcased SmartSwitch.ai, SmartEdge Gateways, and our Edge AI solutions for autonomous systems. We saw strong interest in both our drone reference platform and SmartSwitch, particularly from security and surveillance customers evaluating next-generation perimeter monitoring and agentic Edge network configuration, monitoring and proactive maintenance. A consistent theme was the growing shift toward drone-based surveillance for large compounds, complementing, or in some cases, reducing reliance on fixed-perimeter camera infrastructure – an area where we’re uniquely positioned. We offer an integrated, full-stack solution that spans switches and drones, offering customers a single, differentiated partner for autonomous perimeter security – nobody else in the market can deliver the breadth we provide.

With that, I’ll turn the call back to Brent to cover financial results. Brent?

Brent Stringham:

Thank you, Saleel.

I’ll first start with our fiscal third quarter financial results and some of the key drivers behind our performance. After which I’ll provide our outlook for the fourth quarter ending June 30, 2026.

As previously discussed, current quarter revenue was $30.2 million. We saw sequential and year-over-year growth driven by strength in embedded compute products, including our A&D and Drone programs, and continuing momentum in software and services revenues. Federal customers are moving cautiously, resulting in slower ordering patterns for our core enterprise and networking products. However, like Saleel mentioned, we believe these are primarily timing dynamics, not demand issues, and we should benefit once this market normalizes.

Turning to our gross margins…

In the third quarter, GAAP gross margin was 43.1%, roughly flat compared to a year ago. On a non-GAAP basis, gross margin was 43.6%, slightly down compared to a year ago. Our current quarter margins reflect the revenue mix we have spoken to, with embedded IoT solutions, particularly our compute products, driving our growth. We continue to remain focused on disciplined cost management that has driven our execution over the last year, which we expect to contribute to sustaining our gross margins near current levels.

Looking at expenses and profitability…

GAAP operating expenses in the third quarter of fiscal 2026 were $14.1 million, nearly flat with the prior quarter, and down approximately 12% from $16.0 million in the year-ago period. We continue to observe the leverage in our Opex model based on the actions we took last year, and the ongoing cost discipline that we are executing on.

GAAP net loss for the third quarter of fiscal 2026 improved to $1.2 million, or 3 cents per share, compared to GAAP net loss of $3.9 million, or 10 cents per share, in the year-ago quarter. On a non-GAAP basis, net income of $1.5 million, or 4 cents per share, was consistent with the prior quarter, and an improvement from the $0.03 per share in the year ago quarter.

Moving to the balance sheet…

Lastly, our outlook for the fourth quarter of fiscal 2026 ending June 30, 2026 is as follows:

Now back to Saleel for some closing remarks.

Saleel Awsare (Section 2):

Thanks, Brent.

Before turning to Q&A, I want to leave you with a few key takeaways as we approach the end of fiscal 2026.

We remain highly confident in the opportunity ahead in unmanned systems. This market is scaling rapidly, supported by strong customer engagement, favorable regulatory dynamics, and an expanding base of OEMs and end-market relationships. We continue to broaden our customer roster, win new programs, and deepen our role with existing partners. At the same time, we are moving up the technology stack beyond cameras – adding more intelligence, secure connectivity, and system-level capabilities – positioning Lantronix as a more strategic and valuable partner over time.

At the midpoint of our raised drone outlook, we are targeting $12 million in revenue this fiscal year. We recently had one of the largest funding catalysts yet with the fiscal 2027 Department of War budget release and a record $75 billion proposed for unmanned and autonomous systems through the Defense Autonomous Warfare Group, or DAWG, reinforcing our view that the supercycle is accelerating across the ecosystem. Looking ahead, we continue to expect drone revenue to roughly double in fiscal 2027 and represent approximately 15% to 20% of total revenue. Just over nine months ago, drones contributed minimal revenue – today, they are becoming a meaningful growth driver and helping propel our next phase of growth.

As Brent mentioned, our Q4 outlook points to a strong finish to fiscal 2026. We believe we are operating from a position of strength and have greater confidence in our growth trajectory today than at any point since beginning this transformation.

In embedded IoT, revenue grew by over 20% year over year driven by strong traction in unmanned systems. We have raised our drone expectations once again, supported by a growing number of shipments, new customer engagements, and expanding use cases across drone and counter-drone applications. We are also broadening our geographic reach with new international customers, further validating Lantronix’s role as a trusted edge AI compute partner for the unmanned systems ecosystem.

In critical infrastructure monitoring, we completed deployment for our tier-1 MNO customer and are adding ARR to the business, which we expect will support higher margins and greater revenue visibility over time. We also see additional land-and-expand opportunities in adjacent high-value cell tower applications, including power banks and rectifiers, while Kompress.ai continues to gain traction in the industrial compressor market.

The progress we’ve made repositioning Lantronix toward higher-growth verticals is becoming increasingly evident in our results, and we believe the momentum we’ve built will carry into next year. Based on what we are seeing today, we expect to deliver double-digit revenue growth in fiscal 2027, marking an important next step in Lantronix’s evolution toward a more focused, faster-growing, higher-quality, and more profitable business.

With that, operator, we will now open the call for questions.