Lantronix and Vodafone IoT partner on AI platform for air compressors

IRVINE, California - Lantronix Inc. (NASDAQ:LTRX), a $184 million market cap technology company that has seen its stock surge 129% over the past six months according to InvestingPro data, and Vodafone IoT announced Monday a partnership to launch Kompress.ai, an AI-powered subscription platform targeting the industrial air compressor market.

The platform, which will be available this fall in the United States and Canada, combines Lantronix’s Edge hardware and cloud intelligence with Vodafone’s IoT connectivity to provide real-time insights and automation for compressor fleets. With a healthy current ratio of 2.54 and operating with moderate debt levels, Lantronix appears well-positioned to support this expansion, according to InvestingPro analysis.

According to the companies, Kompress.ai is designed to be brand-agnostic and can work with compressors of any age or manufacturer, offering predictive analytics, energy optimization, and compliance automation capabilities.

"Kompress.ai by Lantronix is a scalable SaaS solution designed to generate long-term, high-margin recurring revenue while addressing urgent market needs in industrial efficiency and sustainability," said Mathi Gurusamy, Chief Strategy Officer at Lantronix. The company’s existing gross profit margin of 42.13% and annual revenue of $122.92 million provide a solid foundation for this strategic initiative.

The companies claim the platform can deliver energy savings of up to 30 percent while reducing unplanned downtime and service costs. It also supports sustainability initiatives by helping customers meet ISO 50001 compliance and reduce CO₂ emissions.

Dennis Nikles, managing director at Vodafone IoT Americas, stated, "Our partnership with Lantronix is a testament to how IoT connectivity can accelerate digital transformation across critical infrastructure."

The partnership represents an expansion of Lantronix’s recurring revenue model and builds on its previous work in the generator segment. The companies are targeting the global industrial air compressor market, which they value at over $27 billion.

Industrial air compressors account for approximately 10 percent of electricity use in industrial environments and produce an estimated 4.3 million tons of CO₂ emissions annually, according to information provided in the company’s press release statement.

Lantronix will showcase the Kompress.ai platform at the Best Practices Expo 2025 on October 21-23.

In other recent news, Lantronix Inc. reported its Q4 2025 earnings, showcasing a quarterly revenue of $28.8 million, which marks a 4% year-over-year increase excluding Gridspertise. However, the company’s non-GAAP earnings per share were slightly disappointing at $0.01. In a separate development, Lantronix has been selected by Gremsy for a drone camera stabilization solution, utilizing its Open-Q 5165RB System on Module. Additionally, Lantronix introduced EdgeFabric.ai, a no-code platform for designing and deploying Edge AI applications, aimed at reducing development time significantly.

Analyst firms have also recently adjusted their outlook on Lantronix. Needham raised its price target for Lantronix to $5.50 from $4.50, maintaining a Buy rating, citing confidence in the company’s emerging drone business. Similarly, Lake Street Capital Markets increased its price target to $5.00 from $4.00, also maintaining a Buy rating. Lake Street expressed optimism about the company’s potential growth in the drone sector, which they believe could significantly impact the company’s financials in the future. These developments reflect a mix of achievements and challenges for Lantronix, offering a nuanced picture of the company’s current position.

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