Lumentum (LITE) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue reached $402.2 million, up 9.7% year-over-year and 19.4% sequentially, driven by strong cloud and AI data center demand, record EML and ultrafast laser shipments, and new hyperscale customer wins.

• Net loss narrowed to $60.9 million from $99.1 million year-over-year, with improved gross margin and lower operating expenses; non-GAAP net income was $30.0 million ($0.42/share).

• CEO Alan Lowe announced retirement, with Michael Hurlston to succeed and Lowe remaining as advisor for a smooth transition.

• Cloud Light acquisition completed, strengthening the Cloud & Networking segment and contributing to revenue growth.

Financial highlights

• Q2 revenue: $402.2 million, up from $336.9 million in Q1 FY25 and $366.8 million in Q2 FY24; non-GAAP EPS: $0.42, both above guidance.

• GAAP gross margin: 24.8% (up from 17.4% year-over-year); non-GAAP gross margin: 32.3% (up year-over-year, slightly down sequentially).

• Non-GAAP operating margin: 7.9% (up 490 bps sequentially, 600 bps year-over-year); adjusted EBITDA: $57.6 million.

• Cash, cash equivalents, and short-term investments totaled $896.7 million at quarter end, down $19.4 million sequentially.

• Net loss per share was $(0.88), compared to $(1.47) in the prior-year quarter.

Outlook and guidance

• Q3 FY25 revenue expected between $410 million and $425 million; non-GAAP operating margin projected at 9.5%-10.5%; non-GAAP EPS guidance: $0.47-$0.53.

• Cloud & Networking segment expected to grow sequentially; Industrial Tech segment to decline by ~$10 million.

• Company reiterates goal of reaching $500 million in quarterly revenue by end of calendar 2025.