LI

Lumentum Holdings Inc. stock research

Sep 28, 2024

FY2025 Q1

Lumentum Holdings (LITE) Gross Margin — Quarter Ended Sep 28, 2024

Revenue increased quarter over quarter and year over year. Gross profit rose sharply from the previous quarter and was slightly higher than a year ago, leading to an improved gross margin compared to the prior quarter but a slightly weaker margin compared to the same quarter last year.

Gross margin takeaway

Quarter ended Sep 28, 2024 · FY2025 Q1

Revenue increased quarter over quarter and year over year. Gross profit rose sharply from the previous quarter and was slightly higher than a year ago, leading to an improved gross margin compared to the prior quarter but a slightly weaker margin compared to the same quarter last year.

  • The strongest observable driver is the increase in revenue with a relatively smaller increase in cost of revenue compared to the previous quarter, which expanded gross profit margin.
  • Compared to the immediately preceding quarter, gross margin improved significantly, while compared to the same quarter one year ago, gross margin was slightly lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

23.1%

Gross profit

$77.9M

Revenue

$336.9M

Cost of revenue

$259.0M

Quarter-over-quarter change

+6.5 pts

Year-over-year change

-1.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 30, 2023$366.8M$64.0M$302.8M17.4%
Mar 30, 2024$366.5M$59.5M$307.0M16.2%
Jun 29, 2024$308.3M$51.3M$257.0M16.6%
Sep 28, 2024$336.9M$77.9M$259.0M23.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 29, 2024

+6.5 pts

Year-over-year change

Sep 30, 2023

-1.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver is the increase in revenue with a relatively smaller increase in cost of revenue compared to the previous quarter, which expanded gross profit margin.

Compared to the immediately preceding quarter, gross margin improved significantly, while compared to the same quarter one year ago, gross margin was slightly lower.

Monitor the trend in cost of revenue relative to revenue to see if margin improvement can be sustained.