What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Lumentum Holdings (LITE) revenue becomes net income?

For TTM through Q1 2026, Lumentum Holdings turned $2.49B of revenue into $440M of net income — a net margin of 17.7%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Lumentum Holdings (LITE) gross, operating, and net margins?

For TTM through Q1 2026, Lumentum Holdings reported a gross margin of 35.4%, an operating margin of 10.2%, and a net margin of 17.7%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Lumentum Holdings (LITE) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Lumentum Holdings (LITE) Income Statement Waterfall

Revenue

$2.49B

Gross Margin

+35.4%

Operating Margin

+10.2%

Net Margin

+17.7%

Income statement waterfall for Lumentum Holdings (LITE) — TTM through Q1 2026

Net income: $440M

Margin breakdown for Lumentum Holdings (LITE) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$2.49B	$2.49B
Cost of Revenue	-$1.61B	$880M
Gross Profit	$880M	$880M
Operating Expenses	-$627M	$253M
Operating Income	$253M	$253M
Other Income / Expense	$20.7M	$274M
Pre-tax Income	$274M	$274M
Tax Benefit	$166M	$440M
Net Income	$440M	$440M

Revenue$2.49B
Cost of Revenue-$1.61B
Gross Profit$880M
Operating Expenses-$627M
Operating Income$253M
Other Income / Expense$20.7M
Pre-tax Income$274M
Tax Benefit$166M
Net Income$440M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Lumentum Holdings (LITE) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

LITE Overview

Counters

Income Statement

Cash Flow

Capital Return

Buybacks0.09% TTM

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation