Lantronix Targets Drone Boom With Edge AI, U.S.-Based Supply Push

Lantronix is prioritizing aerospace and defense, particularly edge-computing modules for drones and other unmanned systems. Its Open-Q system-on-modules enable onboard computer vision and decision-making in GPS-denied or communications-constrained environments. The company is expanding U.S.-based operations and supply capacity, aiming to reduce reliance on China while preparing to produce tens of thousands of modules monthly. It is also building partnerships with drone manufacturers, software providers and Western suppliers. Drone revenue started near zero in fiscal 2026 but was forecast at $10 million to $14 million for the year, or roughly 10% of company revenue at the midpoint. Lantronix also continues to grow through recurring-revenue IoT monitoring and enterprise edge-device businesses.

Lantronix NASDAQ: LTRX has repositioned its business around “edge intelligence” products that combine computing and connectivity, with aerospace and defense, critical-infrastructure monitoring and enterprise markets serving as its three primary verticals, President and CEO Saleel Awsare said during a Canaccord Genuity discussion. Awsare, who has been with the company for about 2.5 years, said the aerospace and defense business is currently Lantronix’s fastest-growing vertical. The company is focused primarily on unmanned systems, including drones, while also pursuing opportunities involving ground systems, unmanned surface vessels and counter-drone applications.

Lantronix supplies Open-Q system-on-modules, or SOMs, that Awsare described as the compute platform or “brains” used for cameras and computer-vision systems in drones. The modules can be incorporated into a drone’s payload, camera or gimbal, he said. Awsare said Lantronix is NDAA and TAA certified and is “99.9% out of China” for its manufacturing, while noting that printed circuit boards still need to come from China and that the company is working on that issue. The company is expanding warehouse, testing and capacity operations in Plymouth, Minnesota, with the goal of increasing U.S.-based final testing and ultimately working toward U.S. country-of-origin status. “Having a trusted supplier based in the United States, headquartered here with the software development happening in North America, is a big plus for us,” Awsare said. He said Lantronix’s first lead drone customer was Red Cat’s Teal Drones unit, where the company is designed into the Teal Black Widow short-range reconnaissance drone. Lantronix began working with Red Cat in November 2024 and began first shipments in July 2025, according to Awsare. The transition from development kits to production can take as little as six to eight months or as long as 12 to 18 months, depending on the customer’s progression from low-rate initial production to volume production, he said. Lantronix has also introduced a Drone Reference Platform, intended to provide equipment for camera, computer-vision and flight-control development. Awsare said the company expects to announce a second version of the platform and is awaiting final Department of War approval for Blue UAS certification for its SOMs.

Awsare said edge computing is increasingly important for unmanned systems that must operate in GPS-denied or communications-constrained environments. Lantronix’s modules can run third-party models locally, allowing devices to analyze data and make decisions without relying on cloud connectivity, he said. He said the company is working with multiple vendors participating in the government’s Drone Dominance Program.