Lumentum Holdings Inc.LITE
NasdaqGS•Technology•Communication Equipment
Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. It operates through two segments, Cloud & Networking and Industrial Tech. The Cloud & Networking segment offers optical and photonic chips, components, modules, and subsystems supplied to cloud data center operators, AI/ML infrastructure providers, and network equipment manufacturer customers that are building cloud data centers and network infrastructures. Its Industrial Tech segment provides short-pulse solid-state lasers, kilowatt-class fiber lasers, diode lasers, and gas lasers that serves the semiconductor device, solar cell, display, and electric vehicle and battery manufacturing markets. The company was incorporated in 2015 and is headquartered in San Jose, California.
Lumentum Holdings Inc. (LITE) reported trailing twelve months revenue of $2.49B as of March 2026, a 69.0% increase year-over-year. Quarterly revenue reached $808.40M, reflecting continued top-line momentum.
Lumentum Holdings Inc. generated $439.90M in TTM net income, with quarterly EBITDA of $174.50M. The operating margin expanded from -8.9% to 21.6%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (21.6%) and net margin (17.8%) indicates tight cost control with minimal non-operating drag. Net margin has improved from -10.4% a year ago, signaling stronger bottom-line efficiency.
LITE trades at a P/E of 114.2x (a premium multiple) and a P/S of 20.2x. The price-to-book ratio of 16.9x indicates a significant premium over book value.
The company generated $79.10M in free cash flow over the trailing twelve months, a 222.8% increase year-over-year, indicating cash generation ability. The balance sheet shows $7.03B in total assets with $43.20M in long-term debt against $2.97B in stockholders equity for a debt-to-equity ratio of 0.0, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging -7.3%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
Only 4 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
TTM revenue has grown consistently (7 of 7 quarters up), with ~83.1% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
Free cash flow has been negative in 4 of the last 8 quarters — earnings are not translating to cash.
D/E ratio is 0.0 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
4 of the last 8 quarters had negative FCF — inconsistent cash generation raises sustainability concerns.
Shares outstanding increased 5.5% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation