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LANTRONIX Global Leader in Edge Al & Industrial IOT August 2026 LTRX : NASDAQ
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2www.lantronix.com | This Presentation contains forward-looking statements, including statements concerning our business and product development plans and strategies, the perceived benefits of our products and corporate acquisitions, and our future growth and financial performance. Any statement relating to our plans, goals, expectations or any future event should be considered a forward-looking statement. While we have based our forward-looking statements on our current assumptions and expectations, forward-looking statements are not guarantee of future performance and are subject to substantial risks and uncertainties. As a result, our actual results could differ materially from those indicated in our forward-looking statements, and you should not rely on any of these forward- looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, but are not limited to, volatility in global economic conditions; product development and marketing risks; risks related to manufacturing and international operations; difficulties associated with our suppliers, distributors or resellers; intense competition in our industry; changes in applicable U.S. and foreign government laws, regulations, and tariffs; risks associated with acquisitions, divestitures, mergers, or joint ventures; intellectual property and cybersecurity risks; the outcome of legal proceedings; and other risks and uncertainties described in “Risk Factors” in our Annual Report on Form 10-K filed with the SEC, as well as in our other filings with the SEC. In addition, new risks emerge from time-to-time and we cannot predict all future risks or assess the impact of all risks to our business. Our forward-looking statements are based on our view as of the date they are made. Except as required by law, we expressly disclaim any intent or obligation to update any forward-looking Forward-Looking Statements statements after the date hereof because of new information, future events or otherwise. Some of the financial information and data contained in this Presentation, including non-GAAP operating expenses, non-GAAP net income (loss), and non- GAAP earnings (loss) per share, have not been prepared in accordance with United States generally accepted accounting principles ("GAAP”). We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating historical or projected operating results and trends in and in comparing our financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and revenue that are required by GAAP to be recorded in our financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and revenue items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents historical non- GAAP financial measures in connection with GAAP results. A reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, along with important information regarding our disclosure of the non-GAAP financials, is provided in the Appendix to this Presentation. Presentation contains our trademarks, service marks, trade names & copyrights and other companies which are property of their respective owners.
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Ultra-Low Latency AI Inference: Powers real-time decision- making for edge devices, critical for drone autonomy and surveillance Robust IP and Edge Leadership: Portfolio accelerates secure, compliant solutions for embedded compute Edge AI Hardware Expertise: Capturing multi-year growth in a ~$60B market by 20301 Lantronix at a Glance 3 Global Leader in Edge AI & Industrial IoT Expanding Global F ootprint with Leading Defense and Commercial Drones Proven Ability to Scale Across Large, Distributed Asset Networks A T echnology Growth Engine Key Differentiators Accelerating AI-Ready Edge Deployments: Developing leading-edge products and software to accelerate Edge AI & manage complex workflows Seamless Edge AI Platform: An integrated solution delivering a robust platform for optimized model performance, supporting the rapid development, deployment and acceleration of edge AI solutions Powering Network Infrastructure: Secure and resilient L TE and 5G WAN connectivity at the edge, supporting teams highly dependent on cloud-based and on-prem devices Company Snapshot Proven Expertise & Capabilities $119M TTM Revenue $5.0M TTM Adjusted EBITDA 43.4% TTM Gross Margin ~300 Full-Time Employees U.S. Headquarters LTRX NASDAQ $23.5M 3/31/2026 Cash Balance 1989 Y ear F ounded 1. Edge AI Hardware Market projected at $58.9B by 2030 ( MarketsandMarkets , 2025).
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Combining Compute and Connect 4 One Platform, One Ecosystem, Endless Solutions Scalable Solutions Operational Efficiency Real-Time Decisions Enabling Edge Intelligence with Compute & Connect Connect Compute 20+ years of embedded hardware expertise Proven pivot: Serial device servers to cellular gateways & compute modules Now delivering AI-ready edge solutions with orchestration and remote device management
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5 Positioned at the Center of Three Secular Edge AI Markets Scalable Edge AI platforms driving expansion across defense, infrastructure, and enterprise • $1B+ Pentagon Drone Dominance program1 • Pentagon procurement scaling at unprecedented pace • Edge AI enabling autonomous mission platforms • NDAA/TAA compliance creates structural moat 1. On February 3, 2026, the Department of War announced 25 vendors to compete in Phase 1 of the Drone Dominance Program (DDP) , with $1.1B committed over four phases of the program. Aerospace & Defense Defense Drone Supercycle Underway • Grid modernization fueling large-scale IoT deployments • Edge analytics reducing downtime and operational risk • Resilience mandates sustaining infrastructure spend • Multi-year infrastructure investment cycle underway • AI workloads driving enterprise upgrade cycle • Edge compute improving security, uptime, and cost efficiency • Digital transformation accelerating distributed edge adoption • Enterprise Governance & Compliance driving intelligent surveillance transition Critical Infrastructure Monitoring Infrastructure Digitization Accelerating Enterprise Edge AI Upgrade Cycle Underway
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#01FFFE #47C3FF #E4229D ED1E79 #001B30 #1F4C8E Image area Aerospace & Defense Powering defense & public safety with secure Edge AI solutions 6Note: The applications on this page are representative and not wholistic of all business covered within the vertical. 1. National Defense Authorization Act (NDAA) and Trade Agreement Act (TAA). Lantronix Solutions • Platform Partner in DoW Drone Dominance Program:Lantronix partners/customers included in $1.1B program deploying 200,000+ units through 2027—validating platform approach versus component suppliers • NDAA/TAA-Compliant1 U.S. Supply Chain:Full compliance positions Lantronix to capture accelerating federal spending in secure, U.S.-based drone technologies • Mission-Critical Edge AI:Percepxion software enables secure real-time monitoring, autonomous navigation, and on-device threat detection for defense operations Defense & Public Safety Wins • U.S. Army SRR Program:Active Red Cat Teal Black Widow shipments with expansion into software and next-gen platforms • Public Safety Entry - Flock Safety: First Drone-as-First-Responder design win opens new vertical with 18,000+ U.S. law enforcement agencies • AI Threat Detection - Safe Pro Group:Real-time ground hazard detection demonstrates edge AI differentiation for autonomous navigation applications
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#01FFFE #47C3FF #E4229D ED1E79 #001B30 #1F4C8E Image area Strategic Snapshot: Engaging the $13B+ DoW Budget for UAS applications Defense Focus Focusing on group 1-2, short-range reconnaissance drones align with current unmanned DoW funding Commercial Edge AI Aerora + Teledyne FLIR partnerships for autonomous navigation and industrial inspection Growing Partnership Across UAS Ecosystem Expanding capabilities to the tech stack, enabling full intelligent drone and counter-drone systems Lantronix Advantage Camera + compute expertise, NDAA/TAA 1 compliance, U.S.-based supply chain Positioned for Multi-Year Growth Engaged with 30+ defense and commercial drone vendors globally 71. National Defense Authorization Act (NDAA) and Trade Agreement Act (TAA).
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8 Platform Driven Edge Drone Camera Solutions 1. National Defense Authorization Act (NDAA) and Trade Agreement Act (TAA). Strategic repositioning to defense AI applications Defensible Market Position Relied on by top defense, industry, and business leaders Strategic Differentiation Proven expertise in AI/ML, imaging, security, camera + compute, and connectivity Revenue Potential Drones could reach 15 – 20% of Lantronix's total sales in FY2027 Edge Processing Reduced latency, faster response to input, and a counter to data transfer jamming — RGSBR Research, Unmanned Aerial Vehicles Industry Report (Sep 2025) The civil UAS market is set to become the most promising sector this decade, driven by the rise of commercial applications and the increasing adoption of UAVs by governments for roles in border security and public safety. Reference Solutions1 Original Equipment Manufacturers (OEM)2 • Multi-spectral imaging • EO + IR cameras • Sensor fusion • Advanced communications • AI video pipelines • Design services • Open-Q SOMs • Custom solutions • Flight control and payload systems • North American Supplier: NDAA/TAA -compliant • Low SWaP (Size, Weight, and Power) 1 Actual Size 45mm X 54mm X 3.6mm
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Trusted Partner in Next-Gen Edge Solutions 9 Partnering with Leading Innovators in Edge AI and Thermal Imaging Strategic Positioning: A strategic platform partner in Edge AI and Industrial IoT, Lantronix leverages its compute and connectivity solutions Innovative Pipeline: Developing next-gen Edge AI programs in collaboration with Qualcomm Scaling Advantage: Recognized as Qualcomm’s key western scaling partner, enabling accelerated reach Strategic Application: Collaboration with Teledyne FLIR (thermal camera) on next-gen AI- enabled solutions in autonomous systems, drones, surveillance, and robotics Technology Foundation: Solutions powered by Lantronix Open-Q SOMs built on Qualcomm’s Dragonwing platform Differentiated Capability: Enables advanced thermal image signal processing (ISP) and AI at the edge with greater flexibility for device innovation
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Drone Reference Platform 10 Accelerating autonomous drone development from concept to flight Note: The applications on this page are representative and not wholistic of all business covered within the vertical. Flight-Ready Reference Platform • Complete Edge AI platform reduces development time from months to weeks Integrated Edge AI Architecture • Combines Qualcomm® Dragonwing , Pixhawk PX4, FLIR thermal imaging and onboard AI in a validated design Optimized for Autonomous Systems • SWaP-optimized, NDAA-compliant reference platform that accelerates autonomous UAV development across defense and commercial apps Engineering Services • Turnkey development and design expertise help OEMs accelerate commercialization
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#01FFFE #47C3FF #E4229D ED1E79 #001B30 #1F4C8E Image area Critical Infrastructure Monitoring Enabling infrastructure upgrades at national, state, and regional levels 11Note: The applications on this page are representative and not wholistic of all business covered within the vertical. Tier-1 U.S. Mobile Network Operator (MNO) • Solution that allows MNOs to monitor the generators that are in each cell tower site Edge IoT Gateway Solutions • First AI-enabled IoT Edge gateways for low -voltage grid solutions Grid Resiliency • Smart utilities are improving grid resiliency and flexibility with Edge AI Industrial Compressor Optimization (Kompress.ai + Vodafone IoT) • AI-powered platform integrates Edge hardware, cloud intelligence, and Vodafone connectivity to deliver real -time insights
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#01FFFE #47C3FF #E4229D ED1E79 #001B30 #1F4C8E Image area Strategic Snapshot: Tier-1 U.S. Carrier Win in Critical Network Resilience Digitally transforming the management of power systems 12 Tier-1 Contract • Multi-year nationwide contract for backup power management + cloud - based software platform Percepxion Software • Solution leverages Lantronix’s Edge gateways and Percepxion software Remote Oversight • Demonstrates proven ability to scale across large, distributed asset networks Large Scale • Enables remote oversight and data -driven service to 50,000+ cell sites • Focused on expanding beyond monitoring generators into other high -value applications within the tower (e.g., backup power banks and rectifiers) 24/7/365 Capabilities • 24/7 monitoring of remote sites with automated alerts for outages, tampering or security threats, along with comprehensive audit capabilities
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Vecima Asset-Tracking Acquisition Adds High-Margin ARR Expands critical infrastructure monitoring through the Nero Global Tracking software platform ~$11.7M TOTAL CONSIDERATION ~$5.3M ANNUAL REVENUE ~$4.5M ARR High-60% GROSS MARGIN ~125,000 ASSET TAGS MANAGED COMBINING HARDWARE + SOFTWARE LANTRONIX EDGE Hardware • Connectivity • Firmware + NERO SOFTWARE Asset Tracking • Application Layer HIGHER MARGINS • RECURRING REVENUE • CROSS-SELLING STRATEGIC RATIONALE: Recurring Revenue at Scale: Adds a profitable software business and increases Software & Services to 10%+ of total revenue A More Complete Platform: Adds application- layer software to Lantronix’s edge hardware, secure connectivity, firmware and compute capabilities New Customers and Cross Selling: Expands reach across fleet, municipal, restoration and industrial markets, with opportunities to sell the broader Lantronix portfolio 13Note: Lantronix announced the acquisition of Vecima Networks’ industrial IoT business on July 7, 2026.
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#01FFFE #47C3FF #E4229D ED1E79 #001B30 #1F4C8E Image area Enterprise Enabling data centers & enterprise networks with improved resiliency 14Note: The applications on this page are representative and not wholistic of all business covered within the vertical. Out-of-Band Management Solutions • Keeps critical operations functioning with rapid enterprise network recovery Target Segments and Value Delivered • Across banking, logistics, aviation, federal, and healthcare, Lantronix's independent, policy-enforced OOB plane keeps critical operations recoverable, auditable, and automated Reduction in Support Time • Reduces support time and mitigates costly network outages, cutting mean time to repair (MTTR) Cybersecurity • Enhances cybersecurity compliance requirements across complete networks Select Enterprise Customers Include: • Abbott Healthcare, Bank of America, Motorola Solutions
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Sequential Revenue Growth Driving Higher -Margin Mix 2.0 1.9 2.6 2.3 10.2 11.5 13.9 14.6 16.7 16.5 13.3 13.2 $28.8 $29.8 $29.8 $30.2 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26E IoT Systems Solutions Embedded IoT Solutions Software & Services 151. Represents the midpoint of the company’s revenue guidance of $29 million to $33 million. Q4 FY26E guidance issued on May 6, 2026 Diversified revenue base with increasing software and platform contribution Sequential growth supported by improving revenue mix FY26 Drone revenue expected to be in the range of $10 million - $14 million Software & services mix expanding, targeting ~2× increase over ~18 months Platform model driving higher-margin recurring revenue $31.0E1 $ in millions
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Margin Stability Driving Predictable EPS Expansion 40.6% 45.3% 44.0% 43.6% 44.0% $0.01 $0.04 $0.04 $0.04 $0.04 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26E Non-GAAP Gross Margin Non-GAAP EPS 16 Lean cost structure converting growth into operating leverage Operating leverage emerging as revenue scales Gross margins stable at 43–45%, supporting consistent profitability Lean cost structure driving EPS growth as incremental revenue converts efficiently to earnings 1. Q4 FY26E Non -GAAP EPS represents the midpoint of the company's guidance of $0.03 to $0.05. Gross margin represents the midpoi nt of the company’s guidance of 43% -45%. Q4 FY26E guidance issued on May 6, 2026. 1
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Proven Leadership Team Driving Scalable Growth 17 ~300 Full-Time Employees Saleel Awsare President & Chief Executive Officer Brent Stringham Chief Financial Officer Mathi Gurusamy Chief Product & Strategy Officer Kurt Hoff Chief Revenue Officer Steve Burrington VP Global Research & Development Dennis Gallagher VP/General Counsel & Corporate Secretary Recognized Industry Leadership 25+ years of experience 25+ years of experience 25+ years of experience 25+ years of experience 25+ years of experience Fox Series Telematic Gateways Open-Q SOMs Series PoE++ switches NTC-500 Series Gateway IoT Company CEO of the Year Top 50 Edge Computing Innovators Sano Marsiano VP Operations 25+ years of experience 25+ years of experience
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#01FFFE #47C3FF #E4229D ED1E79 #001B30 #1F4C8E Image area Strategically Positioned for Multi-Year, High-Growth at the Intelligent Edge Mission-Critical Solutions Across Three Key Verticals: Critical infrastructure monitoring, enterprise IT, and unmanned aircraft systems Global Leadership Through Two Clear Growth Businesses Edge IoT and Network Infrastructure Global Product Development Design Wins Validate Strategy Provides multi-year revenue visibility through drones, tier -1 carrier, out- of-band management Differentiated Technology Platform and IP NDAA/TAA -compliant solutions, camera/edge compute expertise, and Qualcomm ecosystem partnership Well-Positioned for Secular Growth In AI-driven infrastructure, aerospace modernization, and digital transformation 18 1
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19www.lantronix.com | Appendix
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GAAP Income Statement March 31, June 30, 2026 2025 Assets Current assets: Cash and cash equivalents 23,515$ 20,098$ Accounts receivable, net 23,510 25,092 Inventories, net 26,422 26,371 Contract manufacturers' receivables 884 3,071 Prepaid expenses and other current assets 2,647 2,761 Total current assets 76,978 77,393 Property and equipment, net 1,673 2,456 Goodwill 31,089 31,089 Intangible assets, net 2,327 3,738 Lease right-of-use assets 7,307 8,422 Other assets 643 624 Total assets 120,017$ 123,722$ Liabilities and stockholders' equity Current liabilities: Accounts payable 13,729$ 13,259$ Accrued payroll and related expenses 3,860 3,471 Current portion of long-term debt, net - 3,070 Other current liabilities 10,503 10,622 Total current liabilities 28,092 30,422 Long-term debt, net 8,691 8,684 Other non-current liabilities 8,764 10,238 Total liabilities 45,547 49,344 Commitments and contingencies Stockholders' equity: Common stock 4 4 Additional paid-in capital 312,428 308,397 Accumulated deficit (238,306) (234,394) Accumulated other comprehensive income 344 371 Total stockholders' equity 74,470 74,378 Total liabilities and stockholders' equity 120,017$ 123,722$ Strictly Private & Confidential 20 Unaudited Consolidated Statements of Operations (In thousands, except per share data)
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GAAP to Non-GAAP Reconciliation Strictly Private & Confidential 21 Unaudited Reconciliation of GAAP to Non-GAAP Adjustments (in thousands, excerpt per share data & %’s) Nine Months E nded March 31, December 31, March 31, March 31, 2026 2025 2025 2026 2025 GAAP net loss (1,181)$ (1,330)$ (3,868)$ (3,912)$ (8,742)$ Non-GAAP adjustments: Cost of revenue: Share-based compensation 36 29 34 100 146 Employer portion of withholding taxes on stock grants 2 4 - 8 7 Amortization of manufacturing profit in acquired inventory - - 44 18 44 Depreciation and amortization 108 106 101 320 338 Total adjustments to cost of revenue 146 139 179 446 535 Selling, general and administrative: Share-based compensation 1,358 1,354 1,159 4,166 3,329 Employer portion of withholding taxes on stock grants 51 38 13 116 111 Depreciation and amortization 246 252 345 788 1,044 Total adjustments to selling, general and administrative 1,655 1,644 1,517 5,070 4,484 Research and development: Share-based compensation 207 197 324 688 1,155 Employer portion of withholding taxes on stock grants 13 12 4 31 25 Depreciation and amortization 41 49 56 140 236 Total adjustments to research and development 261 258 384 859 1,416 Restructuring, severance and related charges 288 43 1,581 424 2,674 Acquisition related costs 48 40 100 131 337 Amortization of purchased intangible assets 216 598 879 1,411 3,378 Litigation settlement cost - - - - 198 Total non-GAAP adjustments to operating expenses 2,468 2,583 4,461 7,895 12,487 Interest expense, net 2 9 159 26 404 Other (income) expense, net 17 4 19 (162) 48 Provision for income taxes 34 243 111 319 423 Total non-GAAP adjustments 2,667 2,978 4,929 8,524 13,897 Non-GAAP net income 1,486$ 1,648$ 1,061$ 4,612$ 5,155$ Non-GAAP net income per share - diluted 0.04$ 0.04$ 0.03$ 0.11$ 0.13$ Denominator for GAAP net loss per share - diluted 39,731 39,496 38,820 39,472 38,493 Non-GAAP adjustment 2,134 2,209 1,300 2,185 1,034 Denominator for non-GAAP net income per share - diluted 41,865 41,705 40,120 41,657 39,527 GAAP cost of revenue 17,172$ 16,807$ 16,097$ 50,427$ 53,922$ Non-GAAP adjustments to cost of revenue (146) (139) (179) (446) (535) Non-GAAP cost of revenue 17,026 16,668 15,918 49,981 53,387 Non-GAAP gross profit 13,151$ 13,106$ 12,582$ 39,764$ 40,697$ Non-GAAP gross margin 43.6% 44.0% 44.1% 44.3% 43.3% Three Months E nded
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22www.lantronix.com | Unaudited Consolidated BS (In thousands) Balance Sheet March 31, June 30, 2026 2025 Assets Current assets: Cash and cash equivalents 23,515$ 20,098$ Accounts receivable, net 23,510 25,092 Inventories, net 26,422 26,371 Contract manufacturers' receivables 884 3,071 Prepaid expenses and other current assets 2,647 2,761 Total current assets 76,978 77,393 Property and equipment, net 1,673 2,456 Goodwill 31,089 31,089 Intangible assets, net 2,327 3,738 Lease right-of-use assets 7,307 8,422 Other assets 643 624 Total assets 120,017$ 123,722$ Liabilities and stockholders' equity Current liabilities: Accounts payable 13,729$ 13,259$ Accrued payroll and related expenses 3,860 3,471 Current portion of long-term debt, net - 3,070 Other current liabilities 10,503 10,622 Total current liabilities 28,092 30,422 Long-term debt, net 8,691 8,684 Other non-current liabilities 8,764 10,238 Total liabilities 45,547 49,344 Commitments and contingencies Stockholders' equity: Common stock 4 4 Additional paid-in capital 312,428 308,397 Accumulated deficit (238,306) (234,394) Accumulated other comprehensive income 344 371 Total stockholders' equity 74,470 74,378 Total liabilities and stockholders' equity 120,017$ 123,722$
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23www.lantronix.com | Unaudited Net Revenues by Product Line and Region (In thousands) Segmented Revenue
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24www.lantronix.com | Non-GAAP net income 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, and (x) amortization of manufacturing profit in acquired inventory. Non-GAAP net income per share is calculated by dividing non-GAAP net loss by non-GAAP weighted-average shares outstanding (diluted). For purposes of calculating non-GAAP net income per share, 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. Discussion of Non-GAAP Financial Measures