Published on 2 Apr 2024 on Simply Wall St. via Yahoo Finance

Market Sentiment Around Loss-Making Lantronix, Inc. (NASDAQ:LTRX)

We feel now is a pretty good time to analyse Lantronix, Inc.'s (NASDAQ:LTRX) business as it appears the company may be on the cusp of a considerable accomplishment. Lantronix, Inc. provides solutions for video surveillance, infotainment systems, and intelligent substations infrastructure in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan. The company’s loss has recently broadened since it announced a US$9.0m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$9.2m, moving it further away from breakeven. As path to profitability is the topic on Lantronix's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Lantronix

Consensus from 5 of the American Communications analysts is that Lantronix is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$4.0m in 2025. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 170% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.