Revenue growth has accelerated to 109.3% YoY in Q4 FY2026, driving a gross margin recovery to 47.4%, yet the full-year operating margin remains negative at -11.7%, indicating persistent overhead and integration costs.
Lumentum Holdings Inc. (LITE) annual income statement — 13-year revenue, gross profit & net income history
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 |
|---|
| Sales/Revenue | 3.01B | 1.65B | 1.36B | 1.77B | 1.71B | 1.71B | 1.68B | 1.57B | 1.25B | 1B | 903M | 837.1M | 817.9M | 769.9M |
| Revenue Growth % | 83.22% | 21.03% | -23.08% | 3.18% | 0% | 2.03% | 7.24% | 25.45% | 24.57% | 10.92% | 7.87% | 2.35% | 6.23% | - |
| Cost of Goods Sold | 1.76B | 1.19B | 1.11B | 1.2B | 924M | 924M | 1.03B | 1.14B | 815.6M | 683.5M | 625.7M | 579.2M | 561.3M | 547.1M |
| COGS % of Revenue | - | 72.04% | 81.5% | 67.8% | 53.95% | 53.95% | 61.27% | 72.79% | 65.37% | 68.24% | 69.29% | 69.19% | 68.63% | 71.06% |
| Gross Profit | 1.26B | 459.9M | 251.5M | 569M | 788.6M | 788.6M | 650.2M | 425.9M | 432.1M | 318.1M | 277.3M | 257.9M | 256.6M | 222.8M |
| Gross Margin % | 41.67% | 27.96% | 18.5% | 32.2% | 46.05% | 46.05% | 38.73% | 27.21% | 34.63% | 31.76% | 30.71% | 30.81% | 31.37% | 28.94% |
| Gross Profit Growth % | - | 82.86% | -55.8% | -27.85% | 0% | 21.29% | 52.66% | -1.43% | 35.84% | 14.71% | 7.52% | 0.51% | 15.17% | - |
| Operating Expenses | 731.1M | 652.1M | 612.9M | 684.7M | 485.3M | 485.3M | 446.1M | 447.5M | 292.2M | 270.5M | 258.4M | 269.7M | 243.1M | 216.3M |
| OpEx % of Revenue | - | 39.64% | 45.09% | 38.75% | 28.34% | 28.34% | 26.58% | 28.59% | 23.42% | 27.01% | 28.62% | 32.22% | 29.72% | 28.09% |
| Selling, General & Admin | 363.2M | 348.2M | 310.7M | 348.8M | 265.7M | 265.7M | 235.2M | 200.3M | 128.2M | 110.2M | 117.3M | 128.9M | 108.2M | 102.6M |
| SG&A % of Revenue | - | 21.17% | 22.86% | 19.74% | 15.51% | 15.51% | 14.01% | 12.8% | 10.27% | 11% | 12.99% | 15.4% | 13.23% | 13.33% |
| Research & Development | 356.5M | 303.9M | 302.2M | 307.8M | 220.7M | 220.7M | 198.6M | 184.6M | 156.8M | 148.3M | 141.1M | 140.8M | 134.9M | 113.7M |
| R&D % of Revenue | - | 18.47% | 22.23% | 17.42% | 12.89% | 12.89% | 11.83% | 11.79% | 12.57% | 14.81% | 15.63% | 16.82% | 16.49% | 14.77% |
| Other Operating Expenses | 1000K | 0 | 0 | 28.1M | -1.1M | -1.1M | 12.3M | 62.6M | 7.2M | 12M | 0 | 0 | 0 | 0 |
| Operating Income | 524.8M | -192.2M | -361.4M | -115.7M | 303.3M | 303.3M | 204.1M | -21.6M | 139.9M | 47.6M | 11.5M | -23.4M | 8.7M | 3.9M |
| Operating Margin % | 17.41% | -11.68% | -26.59% | -6.55% | 17.71% | 17.71% | 12.16% | -1.38% | 11.21% | 4.75% | 1.27% | -2.8% | 1.06% | 0.51% |
| Operating Income Growth % | - | 55.71% | -312.56% | -138.29% | 0% | 48.6% | 1044.91% | -115.44% | 193.91% | 313.91% | 149.15% | -368.97% | 123.08% | - |
| EBITDA | 660.5M | 64.5M | -71.1M | 139.9M | 470.4M | 470.4M | 396M | 135.9M | 217.1M | 108.6M | 66.1M | 27.6M | 53.5M | 49.9M |
| EBITDA Margin % | 21.91% | 3.92% | -5.23% | 7.92% | 27.47% | 27.47% | 23.59% | 8.68% | 17.4% | 10.84% | 7.32% | 3.3% | 6.54% | 6.48% |
| EBITDA Growth % | 1105.29% | 144.89% | -142.32% | -70.19% | 0% | 18.79% | 191.39% | -37.4% | 99.91% | 64.3% | 139.49% | -48.41% | 7.21% | - |
| D&A (Non-Cash Add-back) | 135.7M | 256.7M | 290.3M | 255.6M | 167.1M | 167.1M | 191.9M | 157.5M | 77.2M | 61M | 54.6M | 51M | 44.8M | 46M |
| EBIT | -7.15B | -149.9M | -371.9M | -66.9M | 315.3M | 315.3M | 235.5M | 3M | 147.6M | -54.3M | 9.8M | -23.8M | 10M | 4.7M |
| Net Interest Income | -21.8M | 12.2M | 27.5M | 5.3M | -74.1M | -74.1M | -45.4M | -22.4M | -9.7M | -4.4M | -100K | -700K | -200K | -1M |
| Interest Income | 0 | 34.4M | 61.3M | 40.8M | 6.1M | 6.1M | 15.8M | 13.9M | 8.5M | 1.1M | 0 | 0 | 0 | 0 |
| Interest Expense | 21.8M | 22.2M | 33.8M | 35.5M | 80.2M | 80.2M | 61.2M | 36.3M | 18.2M | 5.5M | 100K | 700K | 200K | 1M |
| Other Income/Expense | -7.7B | 20.1M | -44.3M | 13.3M | -68.2M | -68.2M | -29.8M | -11.7M | -10.5M | -107.4M | -1.8M | -1.1M | 1.1M | -2.8M |
| Pretax Income | -7.17B | -172.1M | -405.7M | -102.4M | 235.1M | 235.1M | 174.3M | -33.3M | 129.4M | -59.8M | 9.7M | -24.5M | 9.8M | 3.7M |
| Pretax Margin % | -237.98% | -10.46% | -29.85% | -5.8% | 13.73% | 13.73% | 10.38% | -2.13% | 10.37% | -5.97% | 1.07% | -2.93% | 1.2% | 0.48% |
| Income Tax | -237.7M | -198M | 140.8M | 29.2M | 36.2M | 36.2M | 38.8M | 3.1M | -118.7M | 42.7M | 400K | -21.1M | -900K | -2.8M |
| Effective Tax Rate % | 3.31% | 115.05% | -34.71% | -28.52% | 15.4% | 15.4% | 22.26% | -9.31% | -91.73% | -71.4% | 4.12% | 86.12% | -9.18% | -75.68% |
| Net Income | -6.94B | 25.9M | -546.5M | -131.6M | 198.9M | 198.9M | 135.5M | -36.4M | 248.1M | -102.5M | 9.3M | -3.4M | 10.7M | 6.5M |
| Net Margin % | -230.1% | 1.57% | -40.21% | -7.45% | 11.61% | 11.61% | 8.07% | -2.33% | 19.88% | -10.23% | 1.03% | -0.41% | 1.31% | 0.84% |
| Net Income Growth % | -26876.45% | 104.74% | -315.27% | -166.16% | 0% | 46.79% | 472.25% | -114.67% | 342.05% | -1202.15% | 373.53% | -131.78% | 64.62% | - |
| Net Income (Continuing) | -6.94B | 25.9M | -546.5M | -131.6M | 198.9M | 198.9M | 135.5M | -36.4M | 248.1M | -102.5M | 9.3M | -3.4M | 10.7M | 6.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -92.96 | 0.37 | -8.12 | -1.93 | 2.68 | 2.68 | 1.75 | -0.54 | 3.82 | -1.71 | -0.05 | -0.06 | 0.18 | 0.11 |
| EPS Growth % | -40517.39% | 104.56% | -320.73% | -172.01% | 0% | 53.14% | 424.07% | -114.14% | 323.39% | -3320% | 14.09% | -132.33% | 63.64% | - |
| EPS (Basic) | - | 0.38 | -8.12 | -1.93 | 2.79 | 2.79 | 1.79 | -0.54 | 3.88 | -1.71 | -0.05 | -0.06 | 0.18 | 0.11 |
| Diluted Shares Outstanding | 74.6M | 69.6M | 67.3M | 68.3M | 74.2M | 74.2M | 77.6M | 70.7M | 63.3M | 60.6M | 61.2M | 58.41M | 58M | 58M |
| Basic Shares Outstanding | 74.6M | 69M | 67.3M | 68.3M | 71.2M | 71.2M | 75.9M | 70.7M | 62.3M | 60.6M | 59.1M | 56.67M | 58M | 58M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | 5.38% | - | - | - |
Quick answers to the most common questions about buying LITE stock.
For fiscal year 2025, Lumentum Holdings Inc. (LITE) reported total revenue of $1.65B. This represents a 113.7% increase compared to $769.9M in 2013.
Lumentum Holdings Inc. (LITE) is profitable, generating $25.9M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
Lumentum Holdings Inc. (LITE) reported an operating income of $-192.2M, resulting in an operating profit margin of -11.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Lumentum Holdings Inc. (LITE) generated $459.9M in gross profit for the year, representing a gross profit margin of 28.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Leverage amid operational losses
Metrics are mathematically derived from official filings.
AI-Driven Demand Accelerates Top Line
Lumentum's revenue growth has accelerated dramatically, reaching 109.3% year-over-year in Q4 FY2026, driven by a surge in demand for optical components in AI data centers, as reported in the company's latest quarterly results.
The sequential acceleration from 58.4% growth in Q1 to over 100% in Q4 suggests a powerful, non-linear demand inflection, likely tied to the ramp of 800G and 1.6T transceivers for AI clusters. This trajectory indicates the company is successfully capturing share in a high-growth vector, moving beyond the cyclical trough in traditional telecom. However, the durability of this growth rate is questionable, as it may reflect a period of intense customer build-out rather than a sustainable run-rate.
Gross Margin Recovery Masks Structural Pressure
Despite a significant recovery to 47.4% gross margin in Q4 FY2026, Lumentum's profitability remains structurally challenged, with an operating margin of -11.7% for the full year indicating persistent overhead and integration costs.
The gross margin expansion from a low of 16.6% in Q4 FY2024 appears driven by improved fab utilization and a more favorable product mix toward higher-value datacom modules. However, the persistent negative operating margin suggests that the company's high fixed-cost structure and SG&A burden are not yet fully absorbed by the current revenue scale. This implies that further margin expansion is contingent on continued volume growth to leverage the existing manufacturing footprint.
Operating Leverage Unlocked by Volume Surge
Lumentum is demonstrating powerful operating leverage, with operating income swinging from a loss of $133.4M in Q4 FY2024 to a profit of $270.3M in Q4 FY2026, as revenue scaled past the fixed-cost breakeven point.
The dramatic improvement in operating margin from -43.3% to 26.9% over two years highlights the high-fixed-cost nature of the business; once revenue exceeds a certain threshold, incremental gross profit flows more directly to the bottom line. This suggests the company's cost structure is well-positioned for a cyclical upswing, but also implies significant downside risk if demand were to falter, as the high fixed costs would quickly erode profitability.
Net Income Distorted by Non-Operating Items
The quality of Lumentum's reported net income is questionable, as a $7.2 billion net loss in Q4 FY2026 contrasts sharply with a $270.3 million operating profit, suggesting significant non-cash charges or write-downs are impacting the bottom line.
The massive discrepancy between operating income and net income in the most recent quarter points to substantial non-operating items, likely related to acquisition accounting, goodwill impairment, or tax adjustments. This makes headline EPS figures unreliable for assessing core operational performance. Investors should focus on operating metrics and cash flow from operations to gauge the true earnings power of the business.
R&D Investment Persists Despite Cyclical Trough
Lumentum maintained a high R&D investment of over $100 million per quarter in FY2026, even during periods of negative operating income, underscoring the necessity of continuous innovation to defend its technological moat.
The consistent R&D spend, which grew from $73.2M in Q4 FY2024 to $104.4M in Q4 FY2026, indicates management's commitment to developing next-generation products like 1.6T transceivers and CPO lasers. This is a strategic imperative in the fast-moving optical components market, but it also contributes to the current operating losses. The key question is whether this investment will translate into sustainable gross margin expansion and market share gains as the new products ramp.
Sustainability of AI-Driven Surge in Question
The strongest challenge to Lumentum's narrative is whether the current hyper-growth in AI data center demand is a sustainable multi-year cycle or a one-time inventory build that could lead to a sharp correction, as seen in previous telecom cycles.
The 109% year-over-year revenue growth is extraordinary but may reflect a period of aggressive customer purchasing to secure supply, rather than end-user consumption. If hyperscaler capital expenditure were to normalize or if competitive pricing pressure intensifies from peers like Coherent, Lumentum's high fixed-cost structure could quickly lead to margin compression. Furthermore, the reliance on a few large customers for this growth creates significant concentration risk.