Stock Analysis on Net
Stock Analysis on Net

Lumentum Holdings Inc. (NASDAQ:LITE)

Common-Size Income Statement 

Lumentum Holdings Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Jun 27, 2026 Jun 28, 2025 Jun 29, 2024 Jul 1, 2023 Jul 2, 2022 Jul 3, 2021
Net revenue 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -55.76 -67.05 -75.32 -63.02 -50.28 -51.53
Amortization of acquired developed intangibles -2.57 -5.00 -6.17 -4.78 -3.67 -3.54
Gross profit 41.67% 27.96% 18.50% 32.20% 46.05% 44.93%
Research and development -11.83 -18.47 -22.23 -17.42 -12.89 -12.31
Selling, general and administrative -12.05 -21.17 -22.86 -19.74 -15.51 -13.85
Restructuring and related charges -0.38 -1.39 -5.34 -1.59 0.06 -0.44
Gain on sale of facility 0.00 2.12 0.00 0.00 0.00 0.00
Merger termination fee and related costs, net 0.00 0.00 0.00 0.00 0.00 11.91
Operating expenses -24.26% -38.91% -50.43% -38.75% -28.34% -14.69%
Income (loss) from operations 17.41% -10.95% -31.93% -6.55% 17.71% 30.24%
Loss on debt extinguishment -257.35 0.00 0.00 0.00 0.00 0.00
Escrow settlement 0.91 0.00 0.00 0.00 0.00 0.00
Interest expense -0.72 -1.35 -2.49 -2.01 -4.68 -3.83
Foreign exchange gains (losses), net -0.02 -0.26 0.06 0.40 0.36 -0.25
Interest and investment income 2.00 2.09 4.51 2.31 0.36 0.33
Other income (losses), net -0.21 0.00 0.00 0.06 -0.01 0.09
Other income, net 1.77% 1.84% 4.57% 2.76% 0.70% 0.16%
Income (loss) before income taxes -237.98% -10.46% -29.85% -5.80% 13.73% 26.57%
Income tax (provision) benefit 7.89 12.04 -10.36 -1.65 -2.11 -3.78
Net income (loss) -230.10% 1.57% -40.21% -7.45% 11.61% 22.80%

Based on: 10-K (reporting date: 2026-06-27), 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03).

The financial performance over the analyzed period is characterized by a significant cycle of margin compression and subsequent recovery, punctuated by substantial non-recurring items that decoupled operating performance from net results.

Gross Profitability Trends
A severe contraction in gross margins occurred between 2022 and 2024, with gross profit falling from 46.05% to a low of 18.50% of net revenue. This decline was driven primarily by an increase in the cost of sales, which peaked at 75.32% in 2024. A strong recovery followed, with gross profit margins returning to 41.67% by 2026, indicating a restoration of production efficiency or pricing power.
Operating Expense Evolution
Operating expenses exhibited a steady upward trend from 2021 to 2024, rising from 14.69% to 50.43% of net revenue. Research and development and selling, general, and administrative expenses both peaked in 2024 at 22.23% and 22.86%, respectively. A subsequent contraction in these expenses is observed by 2026, where total operating expenses were reduced to 24.26% of revenue, suggesting a period of aggressive cost optimization.
Operating Income Performance
The operating margin transitioned from a highly profitable 30.24% in 2021 to deep losses, bottoming out at -31.93% in 2024. This volatility reflects the combined impact of rising cost of sales and expanding operating expenditures. Operational profitability was regained by 2026, with income from operations recovering to 17.41% of net revenue.
Net Income and Non-Recurring Items
Net income figures demonstrate extreme volatility due to significant non-operational events. In 2021, a merger termination fee contributed a positive 11.91% to net revenue. Conversely, 2026 saw a catastrophic impact on the bottom line due to a loss on debt extinguishment amounting to 257.35% of net revenue. Despite the recovery in operating income in 2026, this single non-operating event resulted in a net loss of 230.10%.
Financial Ancillaries
Interest expenses as a percentage of revenue showed a general downward trend, decreasing from 4.68% in 2022 to 0.72% in 2026. Additionally, interest and investment income peaked in 2024 at 4.51% of revenue, providing a partial offset to operating losses during that period.

AI Ask an analyst for more