Name: Lumentum Holdings Inc. (NASDAQ:LITE) | Cash Flow Statement
Creator: Stock Analysis on Net

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.

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Lumentum Holdings Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Jun 27, 2026	Jun 28, 2025	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021
Net income (loss)	(6,935,100)	25,900)	(546,500)	(131,600)	198,900)	397,300)
Depreciation expense	128,800)	104,300)	110,600)	106,600)	81,600)	91,400)
Stock-based compensation	170,200)	177,200)	128,800)	148,400)	103,100)	92,900)
Bad debt expense	100)	3,400)	—)	—)	—)	—)
Changes in income tax valuation allowance	(236,300)	(153,100)	150,100)	—)	—)	—)
Gain on sale of product lines	—)	—)	—)	—)	—)	(500)
Amortization and write-off of acquired intangible assets	138,200)	152,400)	179,700)	149,000)	85,500)	85,700)
Write-off of right-of-use assets	—)	7,800)	—)	—)	—)	—)
Write-down and (gain) loss on sales and dispositions of property, plant and equipment	21,700)	5,200)	2,600)	8,600)	(3,000)	300)
Loss on debt extinguishment	7,756,600)	—)	—)	—)	—)	—)
Amortization of debt issuance costs	3,800)	3,000)	14,600)	24,300)	72,400)	60,200)
Amortization of inventory fair value adjustment in connection with acquisition	—)	—)	8,300)	17,800)	—)	—)
Inducement expense on partial repurchase of 2026 Notes	5,900)	—)	—)	—)	—)	—)
Gain on repurchase of convertible notes	—)	—)	—)	(1,000)	—)	—)
Gain on sale of facility	—)	(34,900)	—)	—)	—)	—)
Other non-cash (income) expense, net	(10,500)	(3,500)	(12,200)	(5,700)	11,400)	9,900)
Accounts receivable	(270,400)	(58,700)	72,300)	83,200)	(49,200)	20,200)
Inventories	(228,400)	(71,300)	73,800)	(81,500)	(51,800)	(6,600)
Operating lease right-of-use assets, net	(1,300)	5,100)	3,400)	15,500)	(6,200)	11,300)
Prepayments and other current and non-currents assets	(96,200)	(35,100)	30,600)	(4,200)	(14,300)	(4,800)
Income taxes, net	(47,900)	(65,100)	(72,400)	(37,900)	(21,100)	16,000)
Accounts payable	221,600)	69,200)	(89,700)	(74,000)	47,000)	(34,000)
Accrued payroll and related expenses	88,400)	22,000)	(8,900)	(36,300)	300)	900)
Operating lease liabilities	(1,200)	(5,700)	(4,300)	(16,200)	600)	(9,000)
Accrued expenses and other current and non-current liabilities	43,400)	(21,800)	(16,100)	14,800)	4,100)	7,500)
Changes in operating assets and liabilities	(292,000)	(161,400)	(11,300)	(136,600)	(90,600)	1,500)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	7,686,500)	100,400)	571,200)	311,400)	260,400)	341,400)
Net cash provided by operating activities	751,400)	126,300)	24,700)	179,800)	459,300)	738,700)
Payments for acquisition of property, plant and equipment	(451,300)	(231,000)	(133,000)	(128,500)	(91,200)	(84,800)
Acquisition of businesses, net of cash acquired	(38,000)	—)	(700,900)	(861,600)	—)	—)
Payment for acquisition of intangible assets	—)	—)	(4,000)	—)	—)	—)
Payment for asset acquisitions	—)	—)	—)	—)	—)	(10,000)
Proceeds from sale of product lines	—)	—)	—)	—)	—)	1,300)
Purchases of short-term investments	(603,400)	(365,900)	(278,700)	(1,030,300)	(1,085,100)	(1,991,000)
Proceeds from maturities and sales of short-term investments	264,800)	464,700)	1,001,500)	1,146,100)	973,600)	2,062,200)
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	42,400)	300)	800)	300)	6,400)	23,300)
Net cash (used in) provided by investing activities	(785,500)	(84,100)	(114,300)	(874,000)	(226,300)	1,000)
Proceeds from the issuance of Series A Convertible Preferred Stock	1,999,700)	—)	—)	—)	—)	—)
Proceeds from the issuance of 2032 Notes, net of issuance costs	1,254,700)	—)	—)	—)	—)	—)
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 term loans	47,900)	76,500)	—)	—)	—)	—)
Proceeds from employee stock plans	17,100)	16,100)	14,400)	15,100)	13,500)	12,600)
Payment for partial repurchase of 2026 Notes	(843,100)	—)	—)	—)	—)	—)
Cash paid for conversions of convertible notes	(520,000)	—)	—)	—)	—)	—)
Payment, repurchase and conversion of 2024 Notes	—)	—)	(323,100)	(132,800)	(1,800)	—)
Payment for 2032 capped call options	(102,000)	—)	—)	—)	—)	—)
Principal payments on term loans	(14,000)	(8,100)	—)	(5,900)	—)	—)
Repurchase of common stock	—)	—)	—)	(175,600)	(543,900)	(236,000)
Payment of withholding taxes related to net share settlement of restricted stock units	(281,000)	(41,700)	(24,000)	(37,200)	(39,000)	(39,700)
Payment of acquisition related holdback	—)	(1,000)	—)	—)	—)	—)
Payment for financing costs related to revolving credit facility	(2,400)	—)	—)	—)	—)	—)
Proceeds from the exercise of stock options	—)	—)	—)	—)	—)	200)
Principal payments on finance leases	—)	—)	—)	—)	—)	(500)
Net cash provided by (used in) financing activities	1,556,900)	41,800)	(332,700)	263,000)	282,900)	(263,400)
Increase (decrease) in cash and cash equivalents	1,522,800)	84,000)	(422,300)	(431,200)	515,900)	476,300)
Cash and cash equivalents at beginning of period	520,700)	436,700)	859,000)	1,290,200)	774,300)	298,000)
Cash and cash equivalents at end of period	2,043,500)	520,700)	436,700)	859,000)	1,290,200)	774,300)

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 trajectory of the organization is characterized by significant volatility in net income contrasted with a consistent ability to generate positive net cash from operating activities. While net income experienced a severe decline, culminating in a substantial loss of approximately 6.9 billion dollars in 2026, the operating cash flow remained resilient, ending 2026 at 751.4 million dollars. This divergence is primarily driven by massive non-cash adjustments, most notably a 7.7 billion dollar loss on debt extinguishment recorded in 2026.

Operating Cash Flow Trends: Net cash provided by operating activities showed a downward trend from 2021 to 2024, falling from 738.7 million dollars to 24.7 million dollars. A recovery is observed in 2026, though this is largely artificial due to the reconciliation of the massive net loss through non-cash items. Stock-based compensation has remained a consistent add-back, generally increasing from 92.9 million dollars in 2021 to 170.2 million dollars in 2026, reflecting a reliance on equity-based remuneration.
Investing Activities and Capital Expenditure: A clear pattern of aggressive capital expansion is evident in the payments for the acquisition of property, plant, and equipment, which grew steadily from 84.8 million dollars in 2021 to 451.3 million dollars in 2026. Strategic acquisitions were most prominent in 2023 and 2024, with net cash outflows of 861.6 million dollars and 700.9 million dollars respectively. The company also maintained a high volume of activity in short-term investments, characterized by significant cycles of purchases and maturities.
Financing and Liquidity Management: The financing strategy shifted from shareholder returns to aggressive capital raising. Common stock repurchases were significant between 2021 and 2023 but ceased entirely thereafter. To bolster liquidity, the company pivoted toward debt and equity issuance, notably in 2026 with 1.99 billion dollars from Series A Convertible Preferred Stock and 1.25 billion dollars from 2032 Notes. These inflows resulted in a substantial increase in the ending cash balance, which reached 2.04 billion dollars by June 2026.
Working Capital Dynamics: Changes in operating assets and liabilities have exerted varying pressures on cash flow. A notable trend is observed in 2026, where a substantial decrease in accounts receivable (270.4 million dollars) and a significant increase in accounts payable (221.6 million dollars) contributed positively to the cash position, offsetting operational losses.

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