Lumentum Holdings Inc. (LITE) SEC Filings & Earnings Calls

Convertible Note Extinguishment Loss

“The GAAP net loss for fiscal year 2026 was driven by the equalization of certain amounts of our convertible notes in the fourth quarter of fiscal year 2026, which contributed to a one-time, non-cash loss on debt extinguishment of $7.8 billion.” · word for word

Rapidly Evolving Market

“Given the rapid evolution occurring in our industry and markets, we set 1-year EPS performance goals with 3-year cliff vesting, allowing us to set more aggressive and rigorous targets than could be projected over a longer performance period” · word for word

Export control risk - Huawei revenue loss

“we stopped all of our product shipments to Huawei, historically our largest networking customer in China, in the beginning of calendar year 2024.” · word for word

Tariff cost pressure on margins

“The imposition of tariffs on certain imported goods and materials and export controls on critical components may increase our costs and place upward pressure on the cost of goods sold, which, in turn, may reduce our gross margins if we are unable to pass these costs onto customers through price increases.” · word for word

Customer concentration

“We have consistently relied on a small number of customers for a significant portion of our sales.” · word for word

Supply chain disruption

“From time to time, we experience logistics and supply chain issues and shortages of the types of components we and our customers require in our products, and when we experience these shortages, we have had to incur incremental supply and procurement costs in order to increase our ability to fulfill demands from our customers .” · word for word

One-time non-cash loss on debt extinguishment of $7.8 billion due to equitization of convertible notes.

“GAAP net loss was driven by the equitization of certain amounts of our convertible notes in the fourth quarter of fiscal year 2026, which contributed to a one-time, non-cash loss on debt extinguishment of $7.8 billion.” · word for word

Loss of a senior executive in quality and reliability could impact operational oversight, though consulting arrangement mitigates transition risk.

“Retirement of EVP Global Reliability & Quality, with consulting services for two years.”

Dilution from convertible note exchange may pressure stock price; remaining $172.2M notes still outstanding.

“approximately $172.2 million in aggregate principal amount of Notes will remain outstanding”

Tariff and trade restriction risk

“The impact of tariffs is dependent upon negotiations with customers and suppliers and other mitigation efforts and potential further changes in global trade policies, including higher tariffs in the U.S. or other countries.” · word for word

Customer concentration risk

“During the three months ended March 28, 2026, two customers individually accounted for 26% and 12% of our total revenue, respectively.” · word for word

Supply chain constraint risk

“This demand is outpacing our current supply which has required us to make decisions on supply allocation.” · word for word

Huawei export restriction risk

“We stopped all of our product shipments to Huawei, historically our largest networking customer in China, in the beginning of calendar year 2024.” · word for word

Share dilution reduces EPS and ownership percentage for existing shareholders.

“Incremental dilution of 0.6M shares; total 5.7M shares issued.”

Export control and legal risk

“We submitted voluntary self-disclosures to BIS regarding certain product shipments we made to Huawei following the adoption of the final rules. In August 2024, we received an administrative subpoena from BIS requesting the production of records in connection with our business with Huawei. We also received a related subpoena from the U.S. Department of Justic” · word for word

Customer concentration risk

“We have consistently relied on a small number of customers for a significant portion of our sales. We expect that this customer concentration will continue in the future, and we expect that our financial performance in certain business lines and growth prospects will continue to depend in part on a small number of customers.” · word for word

Supply chain disruption risk

“We depend on a limited number of suppliers for raw materials, packages and components, and any failure or delay by these suppliers in meeting our requirements could have an adverse effect on our business and results of operations.” · word for word

Customer concentration risk from AI hyperscalers; rapid scaling may strain supply chain.

“Extraordinary customer demand; scaling rapidly for OCS and CPO.”

Minimal risk; orderly transition with overlap period

“Sepe to remain until fall 2026; Chang already onboard as SVP Finance.”

Export control restrictions on Huawei

“We stopped all of our product shipments to Huawei, historically our largest networking customer in China, in the beginning of calendar year 2024.” · word for word

DOJ and BIS investigations

“In August 2024, we received an administrative subpoena from BIS requesting the production of records in connection with our business with Huawei. We also received a related subpoena from the U.S. Department of Justice (DOJ) that also requested information regarding our business with Huawei.” · word for word

Tariff and trade policy uncertainty

“Throughout 2025, the U.S. imposed a series of tariffs on imported goods. While these tariffs are positioned to have the most significant impacts on goods originating from China, nearly all countries worldwide are impacted at levels ranging from 15% to stacked tariffs in excess of 100% in some cases.” · word for word

Customer concentration and lack of long-term commitments

“We have consistently relied on a small number of customers for a significant portion of our sales. Many of our customers purchase products under purchase orders or under contracts that do not contain volume or long-term purchase commitments.” · word for word

Supply chain constraints

“These supply constraints have resulted in extended lead-times to our customers or accelerated ordering for certain of our products that resulted in inventory backlog that was subsequently managed down, resulting in reduced ordering.”

Dependence on AI compute demand sustainability; any slowdown in hyperscaler capex could impact growth.

“Our guidance indicates we expect more than 20 percent sequential revenue growth, even before meaningful contributions from two of our next major growth engines—optical circuit switches and co-packaged optics.” · word for word