Lantronix Expands Presence in Global Drone and Defense Markets with Trillium Engineering Collaboration

Rhea-AI Summary

Lantronix (NASDAQ: LTRX) announced on December 11, 2025 that its NDAA/TAA-compliant Edge AI solution and engineering services were selected by Trillium Engineering to power gimbaled imaging systems for military and commercial uncrewed aircraft systems (UAS). The collaboration uses Lantronix Open-Q 5165RB System on Module powered by Qualcomm® Dragonwing™ processors to enable Trillium’s GD-Loc and NyxCore products with real-time edge AI, object detection and low-latency precision targeting.

The release cites a $57.8 billion global drone market forecast to 2030 and frames the design win as a growth and recurring-revenue opportunity that expands Lantronix’s footprint in defense and commercial drone markets.

Key Figures

Global drone market size $57.8 billion Projected market size by 2030 per Drone Industry Insight

Market Reality Check

$6.58 Last Close

Volume Volume 276,785 is slightly below 20-day average 311,118 (relative volume 0.89). normal

Technical Price $5.83 is above 200-day MA $3.47 and 2.51% below the 52-week high.

Peers on Argus

Before this news, LTRX was down 1.35% while key peers CRNT, INSG, AUDC, BKTI and SILC were all positive on the day (ranging from about 1.91% to 6.5%), indicating a more stock-specific move rather than a sector-wide trend.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 09	Product launch news	Positive	+1.7%	Announcement of new Edge AI solutions to debut at CES 2026.
Dec 03	Insider donation	Neutral	-0.5%	Founder donates 3.0M shares to a charitable foundation.
Nov 12	Investor conferences	Neutral	+2.4%	CEO scheduled for multiple investor conferences in New York.
Nov 05	Earnings update	Positive	-0.2%	Q1 FY2026 results at high end of guidance with margin gains.
Oct 28	AI drone design win	Positive	+1.4%	Edge AI tech selected by Sightline for drone video processors.

Pattern Detected

AI/drone design-win announcements have recently seen modest positive alignment, while governance and earnings items have produced small, sometimes contrary moves.

Recent Company History

Over the last few months, Lantronix has combined product momentum with corporate and financial updates. An AI-powered drone design win with Sightline on Oct 28, 2025 and the CES 2026 Edge AI launch news on Dec 9, 2025 both saw modest positive price reactions. By contrast, the fiscal Q1 FY2026 earnings release on Nov 5, 2025 and a large founder share donation on Dec 3, 2025 drew slight negative moves. Conference participation news on Nov 12, 2025 was received positively. Today’s Trillium collaboration extends the AI drone design-win narrative.

Market Pulse Summary

The stock surged +12.9% in the session following this news. A strong positive reaction aligns with Lantronix’s pattern of favorable responses to AI and drone design-win announcements, as seen after the Sightline and CES 2026 news. The company traded near its 52‑week high at $5.83 with volume close to its 311,118 share average before this release, suggesting prior optimism. Investors would still need to weigh execution on recurring revenue, overall IoT demand, and balance sheet data disclosed in recent filings when assessing durability.

Key Terms

edge ai technical

"Lantronix Edge AI technology selected to power Trillium’s gimbaled imaging systems"

Edge AI refers to artificial intelligence systems that process data directly on local devices or nearby servers rather than sending information to distant data centers. This allows for faster decision-making and real-time responses, similar to how a home security camera can instantly detect motion without needing to connect to a remote server. For investors, edge AI represents a growing trend toward more efficient, responsive technology that can create new opportunities across various industries.

ndaA/taa-compliant regulatory

"its NDAA/TAA-compliant Edge AI solution and engineering services have been selected"

NDAA/TAA-compliant means a product, vendor or contract meets U.S. government rules that block certain foreign sources (NDAA) and require goods to come from approved trading partner countries (TAA). Think of it like a grocery store label that guarantees ingredients aren’t from banned suppliers and were produced in countries the store accepts. For investors, compliance affects whether a company can win government contracts, avoid regulatory penalties, and reduce supply‑chain risk, which can materially impact revenue and valuation.

gimbaled imaging systems technical

"Trillium Engineering, a leading provider of gimbaled imaging systems for Uncrewed Aircraft Systems"

A gimbaled imaging system is a camera or sensor mounted on a pivoting platform that keeps the image steady and pointed at a target even when the vehicle carrying it moves, like a hand-held camera on a swiveling tripod that cancels out shakes. Investors care because this technology determines the clarity, range and reliability of surveillance, mapping, and targeting products, affecting product value, recurring service revenue and contract competitiveness.

uncrewed aircraft systems (uas) technical

"gimbaled imaging systems for Uncrewed Aircraft Systems (UAS)"

Uncrewed aircraft systems (UAS) are aircraft that fly without a pilot on board along with the ground control stations, communication links and sensors that let them operate — think of a remote‑controlled airplane combined with its remote and camera. For investors, UAS matter because they create new markets and costs: they can enable services like delivery, surveying and surveillance while exposing companies to regulatory approval, safety liabilities and supply‑chain shifts that affect revenue and risk.

system on module (som) technical

"Open-Q 5165RB System on Module (SOM) powered by Qualcomm"

A system on module (SoM) is a compact, pre‑assembled circuit board that packs a processor, memory, power management and essential chips into a single unit that designers plug into a larger product. Think of it as the engine and controls of an electronic device: it lets manufacturers build gadgets faster and with less custom engineering. Investors care because SoMs influence a company’s product development speed, production costs, upgrade path and ability to scale into markets like industrial automation, consumer electronics and IoT.

ai object detection & tracking technical

"AI Object Detection & Tracking. Identifies and tracks multiple targets"

AI object detection & tracking is software that automatically finds items or people in images or video and follows their position over time, like a virtual sensor that spots a ball in a sports broadcast and keeps it in frame. For investors it matters because this capability powers products that automate inspection, security, logistics and autonomous vehicles, creating new revenue streams, cost savings and competitive advantage while also carrying implementation and regulatory risks.

precision targeting with low latency technical

"Precision Targeting with Low Latency. Ensures reliability even in GPS-denied"

Precision targeting with low latency means identifying the exact person, device, or market opportunity you want to reach and acting on that choice almost immediately, with very little delay between decision and delivery. For investors, this combination boosts effectiveness and efficiency—like a courier who finds the right doorstep and arrives instantly—leading to higher conversion, better pricing or execution, lower wasted spend, and a competitive edge in fast-moving markets.

swap optimization technical

"SWaP Optimization. Delivers specific design for compact, power-efficient uncrewed platforms."

Swap optimization is the process of restructuring or selecting interest-rate, currency or other derivative swap contracts to reduce costs, lower risk, or improve cash-flow timing. Think of it like renegotiating a set of recurring bills so the total payments, timing and protections better match a household’s budget; for investors, optimized swaps can meaningfully change a company’s interest expense, hedge effectiveness, liquidity and risk profile, and therefore its valuation.

AI-generated analysis. Not financial advice.

Lantronix Edge AI technology selected to power Trillium’s gimbaled imaging systems for military and commercial unmanned aircraft

IRVINE, Calif., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ: LTRX), a global leader in compute and connectivity IoT solutions powering Edge AI applications, today announced that its NDAA/TAA-compliant Edge AI solution and engineering services have been selected by Trillium Engineering, a leading provider of gimbaled imaging systems for Uncrewed Aircraft Systems (UAS).

Lantronix continues to expand its leadership in the rapidly growing global drone market, solidifying its role as a critical partner in defense and intelligence technology innovation. With the drone industry expected to reach $57.8 billion by 2030, according to Drone Industry Insight’s 2025–2030 Global Drone Market Report, Lantronix’s advanced connectivity solutions are well positioned to benefit from sustained market growth and increasing demand for mission-critical edge computing.

Strategic Significance
The collaboration with Trillium Engineering demonstrates Lantronix’s ability to deliver mission-critical, AI-powered edge computing solutions that drive long-term recurring revenue opportunities in both defense and commercial markets. Trillium’s systems are deployed across multiple segments, including intelligence, surveillance and reconnaissance (ISR), infrastructure inspection, and wildland fire operations.

“Lantronix’s Edge AI technology has been instrumental in advancing our imaging platforms for next-generation uncrewed systems,” said Ryan O’Connor, vice president of Product Development at Trillium Engineering. “Together with Lantronix, we’re enabling our customers to achieve higher operational efficiency and intelligence in real time.”

Mathi Gurusamy, chief strategy officer of Lantronix, said, “Our collaboration with Trillium underscores the scalability of Lantronix’s Edge AI platform in both military and commercial drone applications as well as our company’s leadership position in sectors with strong growth potential and high barriers to entry.”

Technology Advantage Drives Market Differentiation
Lantronix’s Open-Q 5165RB System on Module (SOM) powered by Qualcomm® Dragonwing™ processors provides the power to enable Trillium’s industry-changing GD-Loc and NyxCore products, delivering advanced on-device AI capabilities, including:

• Real-Time Edge AI Processing. Enables high-quality imaging and on-device analytics for immediate, actionable insights.
• AI Object Detection & Tracking. Identifies and tracks multiple targets with adaptive, mission-specific models.
• Precision Targeting with Low Latency. Ensures reliability even in GPS-denied or network-restricted environments.
• SWaP Optimization. Delivers specific design for compact, power-efficient uncrewed platforms.
  
  

Investor Takeaway
This collaboration represents a significant step in Lantronix’s strategy to drive sustainable, high-margin growth through differentiated Edge AI solutions. By expanding its reach into the drone and defense markets, both characterized by robust spending and long product lifecycles, Lantronix is positioned to capture additional recurring revenue opportunities and strengthen its competitive moat in the global IoT and AI ecosystem.

The design win with Trillium Engineering validates Lantronix’s differentiated Edge AI technology and expands its footprint in the government and commercial drone sectors, both of which are high-growth, high-barrier-to-entry markets. As the adoption of unmanned aerial systems accelerates across commercial and military domains, Lantronix is well-positioned to capitalize on opportunities through its hardware and integrated compute solutions.

About Lantronix Solutions and Engineering Services
Lantronix solutions and Engineering Services combine embedded compute technology, compliance expertise and flexible software support to accelerate customer product development. This scalable platform approach enables rapid time‑to‑market for Trillium and positions Lantronix to support future industrial IoT programs that require TAA and NDAA compliance.

Learn more about Lantronix’s Engineering Services, SOM solutions and additional Drone Applications at Lantronix.com.

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, 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.

About Trillium Engineering

Founded in 2013 and based in Hood River, Oregon, Trillium Engineering is a premier provider of superior vision systems for intelligence, surveillance, and reconnaissance (ISR) missions. Trillium specializes in delivering best-in-class stability and imagery for Group 1, 2, and 3 UAS across government, commercial, and civil sectors. From compact units for micro-drones to versatile systems for long-endurance aircraft, their product line features cutting-edge geospatial, visible, and infrared imaging. Committed to technical excellence and rapid innovation, Trillium sets the industry standard for reliability, equipping customers with the advanced technology needed to solve the world’s most complex challenges.

For more information, visit the Trillium Engineering website.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements within the meaning of federal securities laws, including, without limitation, statements concerning growth expectations in the global drone market and Lantronix’s positioning to capitalize on opportunities for long-term, high-margin growth in the drone and defense technology markets. These forward-looking statements are based on our current expectations and are subject to substantial risks and uncertainties that could cause our actual results, future business, financial condition, or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. The potential risks and uncertainties include, but are not limited to, such factors as 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. or foreign government trade policies, including recently increased or future tariffs, a pandemic or other outbreaks, wars and recent conflicts in Europe, Asia and the Middle East, or other factors; future responses to and effects of public health crises; cybersecurity risks; changes in applicable U.S. and foreign government laws and regulations; our ability to successfully implement our acquisitions strategy or integrate acquired companies; difficulties and costs of protecting patents and other proprietary rights; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; and any additional factors included in our Annual 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, as well as in our other public filings with the SEC. Additional risk factors may be identified from time to time in our future filings. In addition, actual results may differ as a result of additional risks and uncertainties about 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.

©2025 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark. Other trademarks and trade names are those of their respective owners.

Lantronix Media Contact:
media@lantronix.com 
949-212-0960 

Lantronix Analyst and Investor Contact:
investors@lantronix.com

FAQ

What did Lantronix announce on December 11, 2025 regarding Trillium Engineering (LTRX)?

Lantronix said its NDAA/TAA-compliant Edge AI solution was selected to power Trillium’s gimbaled imaging systems for UAS.

Which Lantronix product will power Trillium’s GD-Loc and NyxCore systems for LTRX?

The Open-Q 5165RB System on Module powered by Qualcomm Dragonwing processors will be used.

How does the Lantronix–Trillium collaboration affect Lantronix investors (LTRX)?

The company positioned the design win as a recurring-revenue opportunity and expansion into defense and commercial drone markets.

What technical capabilities does Lantronix provide for Trillium’s imaging systems (LTRX)?

Real-time edge AI processing, AI object detection and tracking, low-latency precision targeting, and SWaP optimization.

What market size did the announcement cite for the global drone industry relevant to LTRX?

The release cited a projected global drone market of $57.8 billion by 2030.