Intense Competition in IoT Markets: Lantronix operates in highly competitive markets for IoT solutions, connectivity, and compute, facing pressure from established players, new entrants, and open-source alternatives that could erode market share or pricing power.

Technological Disruption and Innovation Failure: The rapid pace of technological change in IoT and edge computing requires continuous innovation; failure to anticipate market trends, develop new products, or adapt existing ones could lead to product obsolescence and reduced demand.

Supply Chain Vulnerability and Component Shortages: Lantronix relies on third-party manufacturers and suppliers for components and finished goods, making it susceptible to global supply chain disruptions, component shortages, geopolitical events, or quality control issues that could delay production or increase costs.