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 join the board in February 2025; Lowe will remain as advisor.

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

• Strategic focus on expanding cloud customer base, scaling production capacity, and developing advanced optical solutions.

Financial highlights

• Q2 FY2025 revenue: $402.2 million; non-GAAP EPS: $0.42; GAAP net loss per share: $(0.88); both revenue and non-GAAP EPS exceeded guidance.

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

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

• Cash, cash equivalents, and short-term investments: $896.7 million at quarter end.

• Operating expenses decreased 10.6% year-over-year, with SG&A down 10.3% and R&D down 5.2%.

Outlook and guidance

• Q3 FY2025 revenue guidance: $410–$425 million; non-GAAP operating margin: 9.5%–10.5%; non-GAAP EPS: $0.47–$0.53.

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

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