Shares of Lantronix Inc. (NASDAQ: LTRX), a California-based provider specializing in intelligent compute and connectivity technologies for the Internet of Things (IoT), surged markedly in after-hours trading on Tuesday, closing at $8.11, up 17.68% from the regular session close of $6.89. This represented an 8.5% increase during standard trading hours, highlighting renewed investor interest in the company.
The stock movement followed the announcement of a memorandum of understanding (MOU) and a master services agreement with Safe Pro Group Inc. (NASDAQ: SPAI), a Florida-based security and defense technology firm leveraging artificial intelligence. These agreements formally establish a collaborative framework dedicated to the development, integration, and commercialization of embeddable chipsets designed for Qualcomm-based drone and autonomous vehicle technologies.
Central to this partnership is the technical integration of Safe Pro Group’s Object Threat Detection (SPOTD) AI algorithms with Lantronix’s Qualcomm-based Open-Q™ System-on-Module (SOM) solutions. The SPOTD algorithm is engineered to detect explosive threats, including landmines and smaller hazards, directly on drone platforms without the need for cloud connectivity, enabling real-time threat detection on device. This capability is particularly relevant for unmanned aerial vehicles (UAVs) operating in sensitive defense environments.
In addition to technological synergies, the companies revealed plans to collaborate on both defense and commercial drone initiatives, which notably include Red Cat Holdings' Teal Black Widow quadcopters. These drones are integral to the U.S. Army's Short-Range Reconnaissance program, underscoring the defense applicability of the partnership.
Lantronix highlighted insights from the Drone Industry Insights' 2025–2030 Global Drone Market Report within their release, noting that the global drone market is projected to grow significantly, reaching an estimated $57.8 billion by 2030. This projection illustrates the sizable opportunity the partnership aims to capitalize on within both defense and commercial sectors.
Additionally, Lantronix confirmed it will disclose its second-quarter financial results on February 4, a key event that may provide further insights into the company's performance and strategic trajectory.
From a technical analysis perspective, Lantronix’s Relative Strength Index (RSI) is recorded at 62.32, which typically indicates positive momentum without reaching overbought conditions. The company commands a market capitalization of approximately $271.18 million and maintains a 52-week trading range between $1.91 and $7.14. Reflecting robust performance, the stock has appreciated approximately 84.72% over the past year and is trading near the higher end of its annual range at 95.2%, signaling sustained investor confidence.
These gains coincide with positive price trends documented across short, medium, and long-term time frames based on Benzinga's Edge Stock Rankings, reinforcing the view that Lantronix shares are currently in strong upward momentum.