Lumentum Announces Fiscal Third Quarter 2025 Financial Results
May 6, 2025
- Net revenue of $425.2 million
- GAAP gross margin of 28.8%; Non-GAAP gross margin of 35.2%
- GAAP operating loss of 8.9%; Non-GAAP operating margin of 10.8%
- GAAP diluted net loss per share of $0.64; Non-GAAP diluted net income per share of $0.57
SAN JOSE, Calif.--(BUSINESS WIRE)-- Lumentum Holdings Inc. (“Lumentum” or the “Company”) today reported results for its fiscal third quarter ended March 29, 2025.
“In my first 90 days as CEO, it’s become clear that Lumentum is uniquely positioned to lead as the convergence of optics and electronics accelerates AI data center scaling. Our innovations—from advanced EMLs to ultra-high-power lasers—are driving transformative power efficiencies across cloud, AI, and long-haul networks, making us an essential partner in this next era of connectivity,” said Michael Hurlston, President and CEO.
“In Q3, we exceeded the high end of our guidance for both revenue and EPS, fueled by strong demand from cloud customers and a recovering networking market. Despite ongoing macroeconomic volatility, we believe AI-driven cloud growth will continue to drive our financial momentum into Q4 and beyond,” Hurlston concluded.
Fiscal Third Quarter Highlights:
Net revenue for the fiscal third quarter of 2025 was $425.2 million, with GAAP net loss of $44.1 million, or $0.64 per diluted share. Net revenue for the fiscal second quarter of 2025 was $402.2 million, with GAAP net loss of $60.9 million, or $0.88 per diluted share. Net revenue for the fiscal third quarter of 2024 was $366.5 million, with GAAP net loss of $127.0 million, or $1.88 per diluted share.
Non-GAAP net income for the fiscal third quarter of 2025 was $40.9 million, or $0.57 per diluted share. Non-GAAP net income for the fiscal second quarter of 2025 was $30.0 million, or $0.42 per diluted share. Non-GAAP net income for the third quarter of 2024 was $6.2 million, or $0.09 per diluted share(1).
The Company held $866.7 million in total cash, cash equivalents, and short-term investments at the end of the fiscal third quarter of 2025, down $30.0 million from the end of the fiscal second quarter of 2025.
Financial Overview – Fiscal Third Quarter Ended March 29, 2025
| GAAP Results ($ in millions)
|
| Q3
|
| Q2
|
| Q3
|
| Change
|
| FY 2025
|
| FY 2025
|
| FY 2024
|
| Q/Q
|
| Y/Y
| Net revenue
| $
| 425.2
|
|
| $
| 402.2
|
|
| $
| 366.5
|
|
| 5.7
| %
|
| 16.0
| %
| GAAP gross margin
|
| 28.8
| %
|
|
| 24.8
| %
|
|
| 16.2
| %
|
| 400 bps
|
| 1,260 bps
| GAAP operating loss
|
| (8.9
| )%
|
|
| (12.8
| )%
|
|
| (31.3
| )%
|
| 390 bps
|
| 2,240 bps
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Results ($ in millions)
|
| Q3
|
| Q2
|
| Q3
|
| Change
|
| FY 2025
|
| FY 2025
|
| FY 2024(1)
|
| Q/Q
|
| Y/Y
| Net revenue
| $
| 425.2
|
|
| $
| 402.2
|
|
| $
| 366.5
|
|
| 5.7
| %
|
| 16.0
| %
| Non-GAAP gross margin
|
| 35.2
| %
|
|
| 32.3
| %
|
|
| 28.7
| %
|
| 290 bps
|
| 650 bps
| Non-GAAP operating margin
|
| 10.8
| %
|
|
| 7.9
| %
|
|
| (0.2
| )%
|
| 290 bps
|
| 1,100 bps
|
| Net Revenue by Segment ($ in millions)
|
| Q3
|
| % of
|
| Q2
|
| Q3
|
| Change
|
| FY 2025
|
| Net Revenue
|
| FY 2025
|
| FY 2024
|
| Q/Q
|
| Y/Y
| Cloud & Networking
| $
| 365.2
| |
| 85.9
| %
|
| $
| 339.2
| |
| $
| 313.8
| |
| 7.7
| %
|
| 16.4
| %
| Industrial Tech
|
| 60.0
|
|
| 14.1
| %
|
|
| 63.0
|
|
|
| 52.7
|
|
| (4.8
| )%
|
| 13.9
| %
| Total
| $
| 425.2
|
|
| 100.0
| %
|
| $
| 402.2
|
|
| $
| 366.5
|
|
| 5.7
| %
|
| 16.0
| %
| | | | | | | | | | | | | | | | | | | (1) During the first fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company’s financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current presentation.
|
The tables above provide comparisons of quarterly results to prior periods, including sequential quarterly and year-over-year changes. A reconciliation between GAAP and non-GAAP measures is contained in this release under the section titled “Use of Non-GAAP Financial Measures.”
Business Outlook
Lumentum expects the following for the fiscal fourth quarter 2025:
- Net revenue in the range of $440 million to $470 million
- Non-GAAP operating margin of 13.0% to 14.0%
- Non-GAAP diluted earnings per share of $0.70 to $0.80
We have not provided reconciliations from GAAP to non-GAAP measures or the equivalent GAAP measure for non-GAAP measures in our outlook, as they cannot be provided without unreasonable effort. A large portion of non-GAAP adjustments, such as stock-based compensation, acquisition related costs, integration related costs, restructuring and related charges, foreign exchange gains and losses, net, non-GAAP income tax reconciling adjustments, and other charges or income related to non-recurring activities, are by their nature highly volatile and we have low visibility as to the range that may be incurred in the future.
Related Announcement and Conference Call
Lumentum will host a conference call today, May 6, 2025, at 2:00 pm PT / 5:00 pm ET to discuss its fiscal third quarter results. A live webcast of the call will be available in the Investors section of the Lumentum website at cts.businesswire.com. To listen to the live conference call, dial (833) 470-1428 or (404) 975-4839 and reference the conference ID 629794. Supporting materials outlining the Company’s latest financial results will be posted on cts.businesswire.com under the “Events and Presentations” section concurrently with this earnings press release. Lumentum has used, and intends to continue to use, its Investor Relations website as means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. This press release is being furnished as an exhibit to a Current Report on Form 8-K filed with the Securities and Exchange Commission and will be available at cts.businesswire.com.
continues at investor.lumentum.com |
