55024UAD1 Filings — Lumentum Holdings Inc. - FilingSpy
55024UAD1
Lumentum Holdings Inc.
Could not find a ticker for this position, may be a filing error
A maker of lasers and optical gear that keeps the internet humming, Lumentum builds the photonic parts and systems used in data centers, telecom networks, and precision industrial cutting and material processing. It was born in 2015 when JDS Uniphase (JDSU) split in two, with Lumentum taking the optical and laser business and the rest becoming Viavi Solutions. The name comes from "light" and the Latin for "light" — fitting for a company whose chips, modules, and switches help carry AI and cloud traffic worldwide.
10-K · Fiscal year ended Jun 27, 2026 · SEC filing ↗
Lumentum revenue rose 83% to $3.0B and operating income swung to $524.8M, but a $7.76B debt-extinguishment loss drove a $6.94B net loss.
Lumentum's operating business swung to a $524.8 million . rose 83.2% to $3,014.0 million and widened 13.7 points to 41.7% as cloud and AI demand drove laser chip and transceiver shipments, while a $7,756.6 million loss on from note exchanges produced a net loss of $6,935.1 million, or $92.96 per share. The operating recovery is intact; the reported loss is a balance-sheet event, not a reversal of the business.
Key takeaways
rose 83.2% to $3,014.0 million, with Components up 79.7% to $2,005.6 million and Systems up 90.7% to $1,008.4 million, driven by cloud transceivers up more than 173% and over $90 million of initial optical circuit switch shipments.
expanded 13.7 points to 41.7%, with about 54% of the dollar increase from higher factory utilization, 29% from favorable product mix, and 17% from lower .
swung to $524.8 million from a $180.1 million loss, but a $7,756.6 million loss on from exchanging for common stock produced a net loss of $6,935.1 million, or $92.96 per share.
Section summaries
Business
Lumentum is a global optical/photonic products provider with one reportable segment; FY2026 top customer was 26.6% of revenue.
⌄
Lumentum operates as one and disaggregates into Components (semiconductor laser chips, laser sub-assemblies, line subsystems, wavelength management systems) and Systems (optical modules, optical circuit switches, industrial lasers).
Its products serve cloud/AI/ML, telecommunications, consumer, and industrial end markets, including data center interconnect, access/metro/long-haul/submarine networks, and precision material processing.
In fiscal 2026, Customer A accounted for 26.6% and Customer B 15.0% of net , while 79.2% of net revenue came from customers outside the United States.
rose to $751.4 million and turned positive at $300.1 million, while cash and equivalents rose to $2,043.5 million after issuing $1,265.0 million of 0.375% 2032 Notes and selling 2.9 million shares of Series A Convertible Preferred Stock to NVIDIA for $2.0 billion.
fell to $40.5 million from $2,562.6 million as the company converted or settled most ; the $400 million was undrawn.
What changed
, which was 33.3% in Q4 FY2025, rose to 41.7% for FY2026, with Q4 FY2026 at 47.4%, as factory utilization and product mix improved.
, negative for seven consecutive quarters through Q4 FY2025, turned positive at $300.1 million for FY2026, with Q4 FY2026 free cash flow of $196.2 million.
Convertible note risk from Q2 FY2026 resolved through holder conversions and settlements: fell from $2,562.6 million to $40.5 million, but the exchanges produced the $7,756.6 million loss.
growth accelerated from 21% in FY2025 to 83.2% in FY2026, with Q4 FY2026 revenue up 109.3% , as cloud and AI demand continued to outpace supply.
The BIS and DOJ subpoenas regarding past Huawei shipments remain ongoing, and the filing newly emphasizes U.S. tariffs and China rare-earth export controls as risks.
What to watch
Whether Q1 FY2027 growth sustains after Q4 FY2026's 109.3% increase, as comparisons get harder.
in Q1 FY2027, to see whether the 47.4% Q4 FY2026 level holds as factory utilization and product mix evolve.
Remaining convertible note principal and any further exchanges, given the $1,554.3 million of debt disclosed in risk factors and the $400 million .
Any resolution or expansion of the BIS and DOJ subpoenas, and whether U.S. tariffs or China rare-earth export controls affect costs or demand.
AI/cloud demand is outpacing current supply, so the company is investing in internal and contract manufacturing capacity and acquired a Greensboro, North Carolina facility in 2026.
The company holds about 1,000 U.S. and 900 foreign patents with roughly 670 pending applications and employed approximately 13,757 full-time workers as of June 27, 2026.
Strategy focuses on technology leadership, cost leadership, and vertical integration in optical networking, plus long-term OEM relationships in industrial lasers.
Newly emphasized: U.S. tariffs and Section 232/301 investigations, plus China's rare-earth export controls, threaten costs, supply, and sales.
Export restrictions have completely halted all product shipments to Huawei since early calendar 2024, eliminating a historically largest networking customer in China; BIS and DOJ subpoenas are ongoing.
Dependence on a limited number of suppliers and customers, many sole-source and without long-term commitments, creates supply and demand volatility; is not a reliable indicator.
Macro pressures—inflation, high interest rates, recession/stagflation risk, and corrections—have caused order cancellations/delays and margin pressure; AI demand is hard to forecast.
became convertible at holder option in FY2026 with principal settled in cash; $1,554.3 million of debt plus a $400.0 million creates repayment and risk.
Manufacturing concentration in China, Japan, Thailand, the UK, and San Jose, plus reliance on contract manufacturers, exposes operations to disruptions, yield/quality issues, and customer qualification delays.
As of June 27, 2026, the company owned or leased about 3.1 million sq ft across 12 countries, including 2.1 million owned.
⌄
As of June 27, 2026, total owned and leased properties were approximately 3,100,000 square feet, of which about 2,136,000 square feet were owned.
Owned manufacturing and R&D sites include 1,173,000 sq ft in Thailand, 472,000 sq ft in Japan, 183,000 sq ft in the UK, 148,000 sq ft in Greensboro, NC, 124,000 sq ft on the San Jose campus, and 36,000 sq ft in Slovenia.
Leased properties are located in Canada, China, Hong Kong, Italy, Japan, Switzerland, Taiwan, the United States, and South Korea.
In March 2026, the company acquired a manufacturing facility in Greensboro, North Carolina and sold two commercial real estate properties in San Jose, California.
In March 2025, it sold a 250,000 sq ft manufacturing facility in Shenzhen, China; in July 2024, it purchased its wafer fabrication facility in Sagamihara, Japan, ending the building lease.
Management believes existing owned and leased properties are in good condition and suitable for the conduct of its business.
We are subject to a variety of claims and suits that arise from time-to-time in the ordinary course of our business. As such, we regularly evaluate developments in legal matters that could affect the amount of the previously accrued liability and record adjustments as appropriat…
⌄
We are subject to a variety of claims and suits that arise from time-to-time in the ordinary course of our business. As such, we regularly evaluate developments in legal matters that could affect the amount of the previously accrued liability and record adjustments as appropriate. While management currently believes that resolving claims against us, individually or in the aggregate, will not have a material adverse impact on our financial position, results of operations or cash flows, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. Should we experience an unfavorable final outcome, there exists the possibility of a material adverse impact on our financial position, results of operations or cash flows for the period in which the effect becomes reasonably estimable. For a description of our material pending legal proceedings, refer to “Note 16. Commitments and Contingencies” to the consolidated financial statements.
FY2026 revenue rose 83% to $3.0B and gross margin hit 41.7%, but a $7.76B debt extinguishment loss drove a net loss.
⌄
Net rose 83.2% to $3,014.0 million in fiscal 2026, with Components up 79.7% to $2,005.6 million and Systems up 90.7% to $1,008.4 million.
Components growth was led by laser chip and laser assembly shipments (78% of the increase) plus data transport products, while Systems growth was driven by cloud transceivers up more than 173% and over $90 million of initial optical circuit switch shipments.
expanded to 41.7% from 28.0%, with about 54% of the dollar increase from higher factory utilization, 29% from favorable product mix, and 17% from lower .
R&D and SG&A expenses rose 17.3% and 4.3%, respectively, mainly on higher cash incentive compensation and payroll costs; restructuring charges fell 50% to $11.4 million.
A $7,756.6 million loss on from note exchanges drove a net loss of $6,935.1 million, despite a $237.7 million income tax benefit that included a $236.3 million U.S. release.
Cash and equivalents rose to $2,043.5 million, was $751.4 million, and were $451.3 million; the $400 million was undrawn, and management expects sufficient liquidity for at least the next 12 months while demand continues to outpace supply.
Quantitative and Qualitative Disclosures About Market Risk
Company faces FX, equity, interest-rate, and bank-liquidity risks; FX losses were $0.5M in FY2026.
⌄
Foreign exchange losses were $0.5 million in fiscal 2026, versus a $4.2 million loss in fiscal 2025 and a $0.8 million gain in fiscal 2024, with expenses mainly denominated in Chinese Yuan, Canadian Dollar, Thai Baht, Japanese Yen, Hong Kong Dollar, UK Pound, Swiss Franc, and Euro.
Equity price risk comes from conversion options embedded in the company's —the 2032 Notes, 2029 Notes, 2028 Notes, and 2026 Notes—whose aggregate principal amounts as of June 27, 2026 were $1,265.0 million, $54.9 million, $179.6 million, and $54.8 million, respectively.
In fiscal 2026, the company converted to equity $209.7 million, $650.4 million, and $264.8 million of the 2029, 2028, and 2026 Notes, and settled early conversions that reduced principal by $339.1 million, $31.0 million, and $149.3 million, respectively.
For the 2032 Notes, the company entered 2032 with an initial cap price of $268.24 per share, and above that cap there could be or no offset of potential cash payments in excess of principal.
A hypothetical 100 move in interest rates would change the of the $2,738.4 million investment portfolio by about $7.4 million, and a 50 basis point move by about $3.6 million.
As of June 27, 2026, no borrowings were outstanding under the $400.0 million senior secured , which carries variable interest tied to a base rate or term Secured Overnight Financing Rate plus a margin; $635.9 million of unrestricted cash in operating accounts could be lost or inaccessible if financial institutions fail.
FY2026 revenue nearly doubled to $3.01B, but a $7.76B debt-extinguishment loss drove a $6.94B net loss.
⌄
Net rose 83% to $3,014.0 million from $1,645.0 million, with of $1,255.9 million and of $524.8 million versus a $180.1 million operating loss in fiscal 2025.
A $7,756.6 million loss on from exchanging for common stock produced a net loss of $6,935.1 million, or $92.96 per share.
Cash and cash equivalents increased to $2,043.5 million from $520.7 million, and net cash provided by operating activities was $751.4 million versus $126.3 million in fiscal 2025.
The company issued $1,265.0 million of 0.375% 2032 Notes and sold 2.9 million shares of Series A Convertible Preferred Stock to NVIDIA for $2.0 billion.
The company reorganized from two reportable segments to a single integrated enterprise, recorded no , and acquired a Greensboro, North Carolina manufacturing facility for $38.0 million.
The auditor identified valuation as a critical audit matter, and rose to $16.8 million from $0.7 million.