Lumentum Holdings Inc.

Company facts

Industry

Communications Equipment, NEC

Headquarters

San Jose, California

Most recent report

10-Q, filed Nov 3, 2026

Incorporated

Delaware

Filings on record

1,003+ filings

On EDGAR

CIK 1633978

Fiscal year ends

June

Filer status

Large accelerated filer

What to read: Sep 2026 10-Q

SECSift found 4 of 10 sections worth reading, with 2 positive, 18 notable, and 4 negative flags.

• Financial Statements (Item 1)

  Massive revenue jump, huge stock-based comp, convertible debt conversions, and a pending merger.
  Notable

  • A customer paid $100M upfront for manufacturing capacity, recorded as accrued receivable and non-current liability.
  • NVIDIA holds 2.9M shares of Series A Preferred Stock, convertible 1:1 into common, purchased for $2.0B in March 2026.
  • Two end customers accounted for 37% and 11% of Q1 2027 revenue, showing high customer concentration.
  • Termination fee is $2.9B if Lumentum backs out, $5.8B if Marvell backs out, or $3.2B regulatory fee.

• Management's Discussion (Item 2)

  Revenue up 136.5%, gross margin 51% vs 34%, huge customer concentration, and $2.9B purchase obligations.
  Positive

  • Net revenue up 136.5% to $1,262.6M in Q1 FY2027, from $533.8M a year ago.
  • Gross margin rose to 51.0% in Q1 FY2027 from 34.0%, driven by higher revenue and lower manufacturing costs.
  Notable

  • R&D expense rose 135.6% to $191.8M, including $89.7M stock-based comp from an executive retirement award modification.
  • All convertible notes remain convertible; $779.9M in conversion requests received after Q1 FY2027 end.
  • Cash from operations was $267.7M in Q1 FY2027, up from $57.9M a year ago, but cash balance fell $771.3M.
  • Capital expenditures were $229.8M in Q1 FY2027, up from $76.2M a year ago, to expand manufacturing capacity.
  Negative

  • Two customers made up 37% and 11% of revenue in Q1 FY2027, up from 22% and 21% a year ago.

• Market Risk (Item 3)

  Contains specific FX loss, convertible debt details, and interest rate sensitivity.
  Notable

  • Total convertible notes outstanding: $1.32B (2032: $1.265B, 2029: $27.2M, 2028: $21.1M, 2026: $4.2M).
  • Conversion prices: 2032 Notes at $187.77, 2029 at $69.54, 2028 at $131.03, 2026 at $99.29 per share.
  • 2032 Capped Call Options cap price initially $268.24/share; above that, dilution or cash payments not offset.
  • Cash, equivalents, and short-term investments total $1.98B; weighted-average portfolio life ~12 months.
  • 1% rate change would shift fair value of fixed-income portfolio by ~$7.4M; 0.5% change by ~$3.7M.
  • $400M credit facility with $23M letter-of-credit sublimit; no borrowings outstanding as of Q1 2026.
  Negative

  • Net FX loss of $6.7M in Q1 2026, reversing a $1.5M gain in Q1 2025, showing currency volatility.
  • $489.2M unrestricted cash at risk if financial institutions fail; no losses to date but risk noted.

• Risk Factors (Item 1A)

  New merger risk factors with specific terms: fixed exchange ratio, $2.9B termination fee, regulatory conditions.
  Notable

  • FCC may add optical transceivers to 'Covered List', potentially restricting Lumentum's ability to manufacture or source products.
  • Each Lumentum share converts into 4.500 Marvell shares; value depends on Marvell's stock price at closing.
  • Merger must close by November 1, 2027, extendable to August 1, 2028 if regulatory approvals are pending.
  • Only three of Lumentum's current board members are expected to join Marvell's board after the merger.
  Negative

  • If merger fails under certain conditions, Lumentum must pay Marvell a $2.9 billion termination fee, threatening liquidity.

What changed: Sep 2026 vs. Mar 2026

About 15% of LITE's Sep 2026 10-Q is new information. 71 paragraphs were added, 214 changed, and 454 removed. Below are the most important lines SECSift identified.

• Item 1 147
• Item 2 51
• Item 1A 34
• Item 3 8
• Item 6 3
• Item 4 2
• Item 5 1