Stock Analysis on Net
Stock Analysis on Net

Lumentum Holdings Inc. (NASDAQ:LITE)

Common-Size Income Statement 
Quarterly Data

Lumentum Holdings Inc., common-size consolidated income statement (quarterly data)

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3 months ended: Jun 27, 2026 Mar 28, 2026 Dec 27, 2025 Sep 27, 2025 Jun 28, 2025 Mar 29, 2025 Dec 28, 2024 Sep 28, 2024 Jun 29, 2024 Mar 30, 2024 Dec 30, 2023 Sep 30, 2023 Jul 1, 2023 Apr 1, 2023 Dec 31, 2022 Oct 1, 2022 Jul 2, 2022 Apr 2, 2022 Jan 1, 2022 Oct 2, 2021 Jul 3, 2021 Apr 3, 2021 Dec 26, 2020 Sep 26, 2020
Net revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -50.66 -53.45 -60.98 -62.35 -62.72 -66.72 -69.92 -70.20 -76.19 -77.68 -76.69 -70.18 -70.98 -65.91 -62.27 -55.76 -53.26 -53.77 -49.99 -44.69 -54.42 -52.13 -48.91 -51.22
Amortization of acquired developed intangibles -1.91 -2.39 -2.95 -3.65 -4.01 -4.47 -5.32 -6.68 -7.17 -6.08 -5.86 -5.67 -4.85 -4.88 -4.88 -4.54 -3.70 -3.95 -3.56 -3.52 -4.06 -3.77 -3.13 -3.32
Gross profit 47.43% 44.16% 36.08% 34.00% 33.26% 28.81% 24.76% 23.12% 16.64% 16.23% 17.45% 24.15% 24.16% 29.21% 32.85% 39.70% 43.05% 42.29% 46.45% 51.78% 41.52% 44.10% 47.95% 45.47%
Research and development -10.37 -11.21 -12.04 -15.25 -16.54 -17.85 -18.45 -22.05 -23.74 -21.06 -21.35 -23.14 -19.93 -22.27 -14.98 -14.34 -13.43 -14.34 -11.91 -12.07 -13.80 -13.64 -11.03 -11.14
Selling, general and administrative -9.06 -11.23 -14.44 -15.94 -17.39 -26.34 -18.97 -22.65 -24.29 -21.20 -23.20 -22.98 -18.42 -19.93 -19.45 -20.86 -16.49 -16.14 -15.45 -14.12 -14.87 -15.61 -12.80 -12.44
Restructuring and related charges (reversals) -0.24 -0.14 0.06 -1.55 -1.08 -1.69 -0.17 -2.88 -11.87 -5.24 -1.58 -3.46 -0.89 -0.42 -2.75 -1.84 0.00 0.03 -0.02 0.25 -1.17 -0.69 -0.04 0.00
Gain on sale of facility 0.00 0.00 0.00 0.00 0.00 8.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 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 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 49.46 0.00 0.00
Operating expenses -19.68% -22.58% -26.42% -32.75% -35.01% -37.68% -37.59% -47.58% -59.91% -47.50% -46.13% -49.59% -39.24% -42.62% -37.17% -37.04% -29.92% -30.45% -27.38% -25.94% -29.84% 19.52% -23.87% -23.59%
Income (loss) from operations 27.76% 21.59% 9.66% 1.26% -1.75% -8.87% -12.83% -24.46% -43.27% -31.27% -28.68% -25.44% -15.08% -13.41% -4.33% 2.66% 13.12% 11.84% 19.07% 25.85% 11.68% 63.62% 24.08% 21.88%
Loss on debt extinguishment -770.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Escrow settlement 0.00 0.00 4.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest expense -0.36 -0.77 -0.95 -1.07 -1.12 -1.34 -1.39 -1.63 -1.75 -2.46 -2.64 -3.05 -2.54 -2.27 -1.76 -1.68 -6.28 -4.98 -3.83 -3.77 -4.59 -3.91 -3.40 -3.54
Other income (expense), net 2.25 1.92 1.65 0.79 0.50 0.99 3.70 2.58 3.67 4.42 3.65 6.68 5.37 2.97 0.73 2.72 1.94 0.56 0.22 0.13 0.18 0.57 -0.19 0.13
Income (loss) before income taxes -741.16% 22.74% 14.50% 0.97% -2.37% -9.22% -10.52% -23.51% -41.36% -29.30% -27.67% -21.82% -12.24% -12.70% -5.36% 3.71% 8.79% 7.41% 15.47% 22.21% 7.27% 60.29% 20.49% 18.48%
Income tax (provision) benefit 29.47 -4.90 -2.75 -0.19 46.74 -1.15 -4.62 -0.95 -40.54 -5.35 0.65 0.44 -3.99 2.45 -0.91 -3.79 -0.57 -0.83 -2.78 -4.04 -1.79 -6.53 -3.11 -3.65
Net income (loss) -711.69% 17.84% 11.75% 0.79% 44.37% -10.37% -15.14% -24.46% -81.90% -34.65% -27.02% -21.38% -16.24% -10.25% -6.26% -0.08% 8.22% 6.58% 12.69% 18.18% 5.48% 53.75% 17.38% 14.83%

Based on: 10-K (reporting date: 2026-06-27), 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-27), 10-K (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-28), 10-K (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-K (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-Q (reporting date: 2022-01-01), 10-Q (reporting date: 2021-10-02), 10-K (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-Q (reporting date: 2020-12-26), 10-Q (reporting date: 2020-09-26).

The financial performance exhibits a distinct U-shaped trajectory in profitability between 2020 and 2026. Initial periods of high margins were followed by a prolonged operational contraction that peaked in early 2024, before a steady recovery in efficiency and operating margins was established toward the end of the period.

Gross Margin Performance
Cost of sales remained relatively stable between 44% and 54% of net revenue until late 2022. Subsequently, costs escalated sharply, peaking at 77.68% in December 2023. This trend led to a severe compression of gross profit, which fell from a high of 51.78% in October 2021 to a low of 16.23% in March 2024. A consistent recovery followed, with gross profit returning to 47.43% by June 2026 as the cost of sales declined to 50.66%.
Operating Expense Trends
Research and development (R&D) expenditures increased from approximately 11% of revenue in 2020 to a peak of 23.74% in June 2024. Selling, general, and administrative (SG&A) expenses followed a similar upward trajectory, peaking at 26.34% in March 2025. In the final year of the period, both expense categories declined significantly, with SG&A dropping to 9.06% by June 2026, suggesting a shift toward tighter cost control and improved operational leverage.
Operational Profitability
Income from operations transitioned from positive margins in 2020 and 2021 to consistent losses starting in late 2022. The operational nadir occurred in June 2024, with an operating loss of 43.27% of revenue. A reversal began in late 2024, with operating income returning to positive territory by September 2025 and reaching 27.76% by June 2026.
Impact of Non-Recurring Items
Net income was heavily influenced by several anomalous events. A merger termination fee in April 2021 resulted in a temporary spike in net income to 53.75%. Later, a gain on the sale of a facility (8.21% in March 2025) and an escrow settlement (4.13% in March 2026) provided brief positive offsets. However, the most significant impact occurred in June 2026, where a loss on debt extinguishment of 770.80% of revenue led to a net loss of 711.69% for the quarter, despite the underlying operational profitability.
Interest and Tax Dynamics
Interest expenses as a percentage of revenue showed a general downward trend, declining from 3.54% in September 2020 to 0.36% by June 2026. Income tax impacts were volatile, featuring a substantial tax benefit of 46.74% in June 2025 and a tax benefit of 29.47% in June 2026, the latter of which partially mitigated the massive loss from debt extinguishment.

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