CluenexLumentum LITE
Lumentum scores good on business quality (6.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Lumentum does
Lumentum Holdings designs and manufactures optical and photonic products, selling optical transceivers and components to networking and cloud equipment makers.
- What it does best
Lumentum scales optical component production rapidly to meet data center demands, driving revenue growth of 83% that sits in the top decile of its sector at the 98th percentile. Competitors like Cisco lag this top-line expansion rate significantly.
- The main risk
A staggering net loss of $6.9 billion anchors extreme bottom-line risk, exposing the business to severe margin erosion if manufacturing costs or R&D spending outpace revenue gains.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 17.9% while net margin is deeply negative at -230%. Profitability is compressing under heavy costs, showing weak scale benefits so far.
Lumentum lacks a wide moat, ranking in the bottom quartile for gross margin at 24th percentile. Low pricing power lets rivals replicate optical components easily within 1-2 years.
Revenue growth hit 83%, leaping from $1.6B to $3.0B and accelerating sharply compared to flat historical periods.
Net cash sits at $1.1 billion with interest coverage at 25x, meaning debt servicing is manageable. Free cash flow reached $300 million, turning positive from prior negative years and getting stronger.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on LITE
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Lumentum scores good on the Cluenex quality check (6.3 of 10), measured against its own industry. Profitability is weak, moat weak, growth fast and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 5, 2026, after the close.
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Cite this page: Cluenex, “Lumentum (LITE)”, https://cluenex.com/stocks/lite/, data as of Oct 10, 2026.