Executive Summary
Lumentum reported a resilient top-line uptick in QQ2 2025 with revenue of USD 402.2 million, up 9.65% year over year and 19.38% quarter over quarter, underscoring ongoing demand in optical communications and laser technologies. Gross profit was USD 99.6 million, delivering a gross margin of 24.8%, while operating income remained negative at USD -51.6 million, reflecting sustained investment in R&D and go-to-market expenses that offset the revenue growth. EBITDA stood at USD 28.2 million (7.0% margin), yet net income declined to USD -60.9 million, producing an EPS of -0.88. Despite the bottom-line weakness, the company generated USD 24.3 million of operating cash flow and ended the period with USD 479.7 million in cash (and USD 896.7 million in cash and short-term investments) against USD 2.61 billion of total debt, signaling a leveraged but liquid balance sheet.
Key Performance Indicators
Key Insights
Revenue: USD 402.2m; YoY +9.65%, QoQ +19.38%
Gross Profit: USD 99.6m; Gross Margin 24.76%; YoY +12.04%, QoQ +27.86%
Operating Income: USD -51.6m; Operating Margin -12.83%; YoY +50.95%, QoQ +37.38%
Net Income: USD -60.9m; Net Margin -15.14%; YoY +38.55%, QoQ +26.09%
EPS: -0.88; EPS Diluted -0.88; YoY +40.14%, QoQ +27.27%
EBITDA: USD 28.2m; EBITDA Margin 7.01%; EBITDARatio 0.0701
Cash Flow: Operating Cash Flow USD 24.3m; Free Cash Flow -USD 15.9m; Capex USD -40.2m
Liquidity & Leverage: Cash U...
Financial Highlights
Revenue: USD 402.2m; YoY +9.65%, QoQ +19.38%
Gross Profit: USD 99.6m; Gross Margin 24.76%; YoY +12.04%, QoQ +27.86%
Operating Income: USD -51.6m; Operating Margin -12.83%; YoY +50.95%, QoQ +37.38%
Net Income: USD -60.9m; Net Margin -15.14%; YoY +38.55%, QoQ +26.09%
EPS: -0.88; EPS Diluted -0.88; YoY +40.14%, QoQ +27.27%
EBITDA: USD 28.2m; EBITDA Margin 7.01%; EBITDARatio 0.0701
Cash Flow: Operating Cash Flow USD 24.3m; Free Cash Flow -USD 15.9m; Capex USD -40.2m
Liquidity & Leverage: Cash USD 479.7m; Cash & Equivalents plus ST investments USD 896.7m; Total Debt USD 2.608b; Net Debt USD 2.129b; Current Ratio 4.76; Quick Ratio 3.60; Debt to Capitalization 0.749; Debt to Equity 2.99
Balance Sheet: Total Assets USD 3.967b; Total Liabilities USD 3.094b; Stockholders’ Equity USD 872.3m; Goodwill & Intangible Assets USD 1.596b
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
402.20M |
9.65% |
19.38% |
| Gross Profit |
99.60M |
12.04% |
27.86% |
| Operating Income |
-51.60M |
50.95% |
37.38% |
| Net Income |
-60.90M |
38.55% |
26.09% |
| EPS |
-0.88 |
40.14% |
27.27% |
Key Financial Ratios
operatingProfitMargin
-12.8%
operatingCashFlowPerShare
$0.35
freeCashFlowPerShare
$-0.23
priceEarningsRatio
-23.86
Management Commentary
No earnings call transcript data provided in the dataset. As a result, there are no management quotes or theme-based highlights to extract and summarize. If/when transcripts are available, Key themes would be organized by strategy, operations, and market conditions with context and significance for investors.
Forward Guidance
No explicit forward guidance in the provided data. In the absence of management-provided targets, the outlook must rely on industry dynamics and the quarter’s trajectory. Potential positives include continued demand for high-bandwidth optical components and laser systems in data-center deployments and industrial applications, with potential margin uplift if product mix shifts toward higher-value offerings and cost controls take hold. Key factors to monitor: (1) trajectory of OpComms and Commercial Lasers demand, (2) ASP/mix-driven gross margin progression, (3) cadence of R&D and SG&A spend relative to revenue, (4) working capital evolution and capex intensity, and (5) leverage normalization as (and if) operating cash flow improves. Given net debt levels and interest exposure, external financing costs and refinancing options will be important in the near term.