Lumentum reported stronger-than-expected Q2 FY25 results, driven by rising demand in the cloud market. The company sees continued momentum in networking and AI-related infrastructure, aiming for $500 million in quarterly revenue by the end of 2025. CEO Alan Lowe also announced his transition, with Michael Hurlston set to take over.
Financial Highlights
Q2 FY25 GAAP Results
• Revenue: $402.2 million, up 9.7% YoY and 19.4% QoQ
• Gross margin: 24.8%, up from 17.4% YoY and 23.1% QoQ
• Operating loss: (12.8)% of revenue, improving from (28.7)% YoY
• Net loss: $60.9 million ($0.88 per share), improving from a $99.1 million loss in Q2 FY24
Q2 FY25 Non-GAAP Results
• Gross margin: 32.3%, up from 31.4% YoY
• Operating margin: 7.9%, up from 1.9% YoY
• Net income: $30.0 million ($0.42 per share), up from $16.4 million ($0.24) YoY
Revenue by Segment
• Cloud & Networking: $339.2 million, up 18.3% YoY, driven by strong AI and data center demand
• Industrial Tech: $63.0 million, down 21.3% YoY
Business Outlook for Q3 FY25
• Revenue: $410 million to $425 million
• Non-GAAP operating margin: 9.5% to 10.5%
• Non-GAAP EPS: $0.47 to $0.53
“In the second quarter, we exceeded the high end of our guidance ranges for both revenue and earnings per share, driven by strong demand in the cloud end market. This is an exciting time for Lumentum as we position ourselves to capitalize on expanding cloud opportunities and the recovery of the broader networking market. Our foundational technologies enable us to win in these markets,” said Alan Lowe, President and CEO. “With our strong market position and improving industry trends, we remain confident in achieving our previously stated goal of reaching $500 million in quarterly revenue by the end of calendar year 2025.”
“On a personal note, serving as Lumentum’s President and CEO over the last decade has been the highlight of my career, and I am deeply grateful to our talented team for their dedication. I look forward to continuing my role on the Lumentum Board and serving as an advisor to ensure a smooth transition to Michael Hurlston,” concluded Mr. Lowe.
