Lumentum Holdings Inc. stock research
FY2025 Q2
Lumentum Holdings (LITE) Gross Margin — Quarter Ended Dec 28, 2024
Revenue and gross profit both rose compared with the prior quarter and the same quarter last year, while cost of revenue increased from the prior quarter but was nearly unchanged from a year ago. The gross margin strengthened sequentially and year over year, reflecting a larger proportion of revenue flowing through to gross profit.
Gross margin takeaway
Quarter ended Dec 28, 2024 · FY2025 Q2
Revenue and gross profit both rose compared with the prior quarter and the same quarter last year, while cost of revenue increased from the prior quarter but was nearly unchanged from a year ago. The gross margin strengthened sequentially and year over year, reflecting a larger proportion of revenue flowing through to gross profit.
- The strongest observable driver of gross margin improvement was the increase in revenue relative to cost of revenue. Revenue grew at a faster rate than cost of revenue compared with the prior quarter, and cost of revenue declined slightly year over year while revenue rose, leading to a higher gross margin.
- Compared with the immediately preceding quarter, gross margin improved as revenue and gross profit increased more than cost of revenue. Compared with the same quarter one year earlier, gross margin improved significantly, driven by higher revenue and a slightly lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.8%
Gross profit
$99.6M
Revenue
$402.2M
Cost of revenue
$302.6M
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+7.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 30, 2024 | $366.5M | $59.5M | $307.0M | 16.2% |
| Jun 29, 2024 | $308.3M | $51.3M | $257.0M | 16.6% |
| Sep 28, 2024 | $336.9M | $77.9M | $259.0M | 23.1% |
| Dec 28, 2024 | $402.2M | $99.6M | $302.6M | 24.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2024
+1.6 pts
Year-over-year change
Dec 30, 2023
+7.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin improvement was the increase in revenue relative to cost of revenue. Revenue grew at a faster rate than cost of revenue compared with the prior quarter, and cost of revenue declined slightly year over year while revenue rose, leading to a higher gross margin.
Compared with the immediately preceding quarter, gross margin improved as revenue and gross profit increased more than cost of revenue. Compared with the same quarter one year earlier, gross margin improved significantly, driven by higher revenue and a slightly lower cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as the margin improvement depends on revenue growth outpacing cost increases.