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 $439.90M 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 37.7%, an operating margin of 9.5%, 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

+37.7%

Operating Margin

+9.5%

Net Margin

+17.7%

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

Net income: $439.90M

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

Line item	Amount	Running total
Revenue	$2.49B	$2.49B
Cost of Revenue	−$1.55B	$938.50M
Gross Profit	$938.50M	$938.50M
Operating Expenses	−$701.40M	$237.10M
Operating Income	$237.10M	$237.10M
Other Income / Expense	$37.00M	$274.10M
Pre-tax Income	$274.10M	$274.10M
Tax Benefit	$165.80M	$439.90M
Net Income	$439.90M	$439.90M

Revenue$2.49B
Cost of Revenue−$1.55B
Gross Profit$938.50M
Operating Expenses−$701.40M
Operating Income$237.10M
Other Income / Expense$37.00M
Pre-tax Income$274.10M
Tax Benefit$165.80M
Net Income$439.90M

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Capital Return

Buybacks0.19% TTM

No dividends or stock splits on record for this company.

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

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

Frequently asked questions

+What is an income statement waterfall?

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

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

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

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

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

+What is the USD toggle?

Lumentum Holdings (LITE) Key Financials

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