AI Takeaway
LITE delivered a dramatic Q2 FY2026 turnaround, swinging to $78.2M net income from a $60.9M loss a year ago, driven by a 137.5% surge in gross profit, though a near-tenfold spike in current liabilities warrants close attention.
EPS (Basic)
$1.10
++225.00% YoY
Operating Income
$64.3M
++224.61% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Gross profit jumped 137.5% YoY to $421.6M, suggesting a significant improvement in pricing power, product mix, or manufacturing efficiency compared to the prior-year period's $177.5M.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Operating income turned positive at $71.0M versus a loss of $134.0M in Q2 FY2025, and net income reached $78.2M versus a loss of $60.9M, marking a full-cycle recovery in earnings power.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Operating cash flow nearly tripled YoY to $184.6M from $63.9M, indicating that the profitability improvement is translating into real cash generation rather than being an accounting artifact.
Source: Source: 10-Q Cash Flow Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockCurrent liabilities surged 986.1% YoY to $3.77B, while current assets stand at only $2.28B, yielding a current ratio of just 0.61. This implies LITE has significantly more short-term obligations than liquid assets, raising the risk of a liquidity shortfall if obligations cannot be refinanced or met from operations.
Source: Source: 10-Q Balance Sheet (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.67 versus the $1.42 analyst consensus — a +17.4% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Profit | $240.1M | $99.6M | +141.06% |
Operating Income | $64.3M | $-51.6M | +224.61% |
Net Income | $78.2M | $-60.9M | +228.41% |
EPS (Basic) | $1.10 | $-0.88 | +225.00% |
EPS (Diluted) | $0.89 | $-0.88 | +201.14% |
R&D Expense | $80.1M | $74.2M | +7.95% |
SG&A Expense | $96.1M | $76.3M | +25.95% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $4.81B | $3.97B | +21.16% |
Current Assets | $2.28B | $1.65B | +38.26% |
Total Liabilities | $3.96B | $3.09B | +27.96% |
Current Liabilities | $3.77B | $346.9M | +986.08% |
Stockholders' Equity | $846.6M | $872.3M | -2.95% |
Cash & Equivalents | $657.7M | $479.7M | +37.11% |
Long-Term Debt | $47.1M | $2.56B | -98.16% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $184.6M | $63.9M | +188.89% |
Investing Cash FlowYTD | $-299.2M | $-77.8M | -284.58% |
Financing Cash FlowYTD | $251.6M | $56.9M | +342.18% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
ROE | 9.2% | — | — |
ROA | 1.6% | — | — |
Current Ratio | $0.606 | — | — |
Debt to Equity | $4.676 | — | — |
Other companies in Communications Equipment
LITE reported Q2 FY2026 EPS of $0.99 (diluted) and net income of $78.2M, a dramatic turnaround from a -$2.09 EPS loss in Q2 FY2025. Whether this beat Wall Street consensus estimates would require comparison to analyst forecasts, which are not included in the SEC filing itself.
The primary driver was a 137.5% YoY surge in gross profit to $421.6M from $177.5M, which flipped operating income from -$134.0M to +$71.0M and net income from -$60.9M to +$78.2M. This suggests a significant improvement in product mix, pricing, or manufacturing efficiency, though the exact revenue figure is not available in the provided XBRL data.
Long-term debt plummeted 98.2% YoY to just $47.1M from $2.56B, suggesting a major debt restructuring, repayment, or conversion event. However, current liabilities simultaneously surged 986.1% to $3.77B, implying a large portion of debt may have been reclassified as current or new short-term obligations were incurred.
LITE's profitability and cash flow improved dramatically, with net income of $78.2M and operating cash flow of $184.6M, but its current ratio of 0.61 and debt-to-equity of 4.68x highlight significant short-term liquidity risk and high leverage. The near-tenfold spike in current liabilities to $3.77B is the most pressing concern for financial health.
Operating cash flow nearly tripled to $184.6M from $63.9M in Q2 FY2025, reflecting strong underlying business cash generation. However, investing cash outflows were -$299.2M (vs. -$77.8M prior year), indicating heavy capital deployment that likely resulted in negative free cash flow for the quarter.