Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Lumentum Holdings Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Jun 28, 2025	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020
Net income (loss)	25,900)	(546,500)	(131,600)	198,900)	397,300)	135,500)
Depreciation expense	104,300)	110,600)	106,600)	81,600)	91,400)	113,300)
Stock-based compensation	177,200)	128,800)	148,400)	103,100)	92,900)	73,200)
Bad debt expense	3,400)	—)	—)	—)	—)	—)
Loss on early extinguishment of debt	—)	—)	—)	—)	—)	8,000)
Gain on sale of product lines	—)	—)	—)	—)	(500)	(14,500)
Amortization and write-off of acquired intangible assets	152,400)	179,700)	149,000)	85,500)	85,700)	78,600)
Write-off of right-of-use assets	7,800)	—)	—)	—)	—)	—)
(Gain) loss on sales and dispositions of property, plant and equipment	5,200)	2,600)	8,600)	(3,000)	300)	21,800)
Amortization of debt discount and debt issuance costs	3,000)	14,600)	24,300)	72,400)	60,200)	39,600)
Amortization of inventory fair value adjustment in connection with acquisition	—)	8,300)	17,800)	—)	—)	5,800)
Gain on repurchase of convertible notes	—)	—)	(1,000)	—)	—)	—)
Gain on sale of facility	(34,900)	—)	—)	—)	—)	—)
Other non-cash (income) expense, net	(3,500)	(12,200)	(5,700)	11,400)	9,900)	(2,400)
Accounts receivable	(58,700)	72,300)	83,200)	(49,200)	20,200)	5,000)
Inventories	(71,300)	73,800)	(81,500)	(51,800)	(6,600)	32,700)
Operating lease right-of-use assets, net	5,100)	3,400)	15,500)	(6,200)	11,300)	11,600)
Prepayments and other current and non-currents assets	(35,100)	30,600)	(4,200)	(14,300)	(4,800)	17,300)
Income taxes, net	(218,200)	77,700)	(37,900)	(21,100)	16,000)	31,300)
Accounts payable	69,200)	(89,700)	(74,000)	47,000)	(34,000)	(11,700)
Accrued payroll and related expenses	22,000)	(8,900)	(36,300)	300)	900)	11,100)
Operating lease liabilities	(5,700)	(4,300)	(16,200)	600)	(9,000)	(11,600)
Accrued expenses and other current and non-current liabilities	(21,800)	(16,100)	14,800)	4,100)	7,500)	(20,300)
Changes in operating assets and liabilities	(314,500)	138,800)	(136,600)	(90,600)	1,500)	65,400)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	100,400)	571,200)	311,400)	260,400)	341,400)	388,800)
Net cash provided by operating activities	126,300)	24,700)	179,800)	459,300)	738,700)	524,300)
Payments for acquisition of property, plant and equipment	(231,000)	(133,000)	(128,500)	(91,200)	(84,800)	(86,000)
Acquisition of businesses, net of cash acquired	—)	(700,900)	(861,600)	—)	—)	—)
Payment for acquisition of intangible assets	—)	(4,000)	—)	—)	—)	—)
Payment for asset acquisitions	—)	—)	—)	—)	(10,000)	(4,000)
Proceeds from sale of product lines	—)	—)	—)	—)	1,300)	20,100)
Purchases of short-term investments	(365,900)	(278,700)	(1,030,300)	(1,085,100)	(1,991,000)	(1,341,300)
Proceeds from maturities and sales of short-term investments	464,700)	1,001,500)	1,146,100)	973,600)	2,062,200)	423,500)
Proceeds from sale of facility, net of cash and selling costs	47,800)	—)	—)	—)	—)	—)
Term loan funding provided to NeoPhotonics	—)	—)	—)	(30,000)	—)	—)
Proceeds from the sales of property and equipment	300)	800)	300)	6,400)	23,300)	—)
Net cash (used in) provided by investing activities	(84,100)	(114,300)	(874,000)	(226,300)	1,000)	(987,700)
Proceeds from the issuance of 2029 Notes, net of issuance costs	—)	—)	599,400)	—)	—)	—)
Proceeds from the issuance of 2028 Notes, net of issuance costs	—)	—)	—)	854,100)	—)	—)
Proceeds from the issuance of 2026 Notes, net of issuance costs	—)	—)	—)	—)	—)	1,042,200)
Proceeds from term loans	76,500)	—)	—)	—)	—)	—)
Payment, repurchase and conversion of 2024 Notes	—)	(323,100)	(132,800)	(1,800)	—)	—)
Principal payments on term loans	(8,100)	—)	(5,900)	—)	—)	(497,500)
Repurchase of common stock	—)	—)	(175,600)	(543,900)	(236,000)	(200,000)
Payment of withholding taxes related to net share settlement of restricted stock units	(41,700)	(24,000)	(37,200)	(39,000)	(39,700)	(14,000)
Payment of acquisition related holdback	(1,000)	—)	—)	—)	—)	—)
Proceeds from employee stock plans	16,100)	14,400)	15,100)	13,500)	12,600)	9,900)
Proceeds from the exercise of stock options	—)	—)	—)	—)	200)	700)
Principal payments on finance leases	—)	—)	—)	—)	(500)	(12,500)
Net cash provided by (used in) financing activities	41,800)	(332,700)	263,000)	282,900)	(263,400)	328,800)
Increase (decrease) in cash and cash equivalents	84,000)	(422,300)	(431,200)	515,900)	476,300)	(134,600)
Cash and cash equivalents at beginning of period	436,700)	859,000)	1,290,200)	774,300)	298,000)	432,600)
Cash and cash equivalents at end of period	520,700)	436,700)	859,000)	1,290,200)	774,300)	298,000)

Based on: 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), 10-K (reporting date: 2020-06-27).

The cash flow statement reveals a volatile financial performance over the analyzed period. While net cash provided by operating activities generally remained positive, significant fluctuations occurred in investing and financing activities, leading to considerable shifts in the company’s overall cash position.

Operating Activities: Net cash provided by operating activities demonstrated a peak in fiscal year 2021 at US$738.7 million, followed by a decline to US$179.8 million in 2023. A substantial decrease was observed in 2024, falling to US$24.7 million, before recovering to US$126.3 million in 2025. This volatility is linked to significant swings in net income (loss), with losses reported in 2023, 2024, and partially offset by substantial adjustments to reconcile net income to cash flow. Adjustments to reconcile net income to net cash provided by operating activities consistently exceeded net income in magnitude, indicating a reliance on non-cash items to generate operating cash flow.
Investing Activities: Investing activities consistently represented a net cash outflow throughout the period. The largest outflow occurred in 2020 at US$987.7 million, largely driven by purchases of short-term investments. A significant outflow of US$861.6 million was recorded in 2023, attributed to the acquisition of businesses. Purchases of property, plant, and equipment remained relatively stable, ranging from US$84.8 million to US$231.0 million annually. Proceeds from maturities and sales of short-term investments partially offset these outflows, but were insufficient to generate a net inflow.
Financing Activities: Financing activities exhibited considerable variation. A net cash inflow of US$328.8 million was observed in 2020, primarily due to proceeds from the issuance of notes and employee stock plans. Subsequent years saw fluctuations, including a net outflow of US$263.4 million in 2021, followed by an inflow of US$282.9 million in 2022. 2024 experienced a substantial outflow of US$332.7 million, largely due to the repurchase of common stock and payments related to notes. A modest inflow of US$41.8 million was recorded in 2025.
Cash Position: The company’s cash and cash equivalents fluctuated significantly. Beginning with US$432.6 million in 2020, it peaked at US$1,290.2 million in 2022 before declining to US$436.7 million in 2024. A recovery to US$520.7 million was observed in 2025. The decrease in cash in 2020 and 2023-2024 was directly related to the net cash outflows from investing and financing activities, respectively.
Working Capital: Significant changes were observed in working capital components. Accounts receivable and inventories experienced substantial fluctuations, with notable outflows in certain years. Changes in operating assets and liabilities were also volatile, contributing to the overall variability in operating cash flow. The company consistently managed accounts payable and accrued expenses, but these changes did not consistently offset the fluctuations in other working capital accounts.

Overall, the cash flow statement indicates a company navigating a dynamic business environment. While operating activities generally generated positive cash flow, substantial investments, acquisitions, and financing activities created significant volatility in the company’s cash position. The reliance on non-cash adjustments to bolster operating cash flow and the large swings in financing activities warrant further investigation.

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Lumentum Holdings Inc. (NASDAQ:LITE)

Cash Flow Statement