Sentences and paragraphs of LITE's Risk Factors and MD&A, 10-K 2026-08-17 against 10-K 2025-08-19.
Each links to the text at sec.gov.
RewordedRisk Factors
Additionally, instability in the global credit and banking markets, the impact of uncertainty regarding inflation, trade wars, disputes and the effects of heightened, scheduled, or proposed tariffs, banking instability, capital expenditure reductions, unemployment, stock market volatility, the instability in the armed conflicts and geopolitical environment tensions in many parts of the world (including as a result of the on-going Russia-Ukraine war, ongoing conflicts in the Middle East, including the U.S.-Iran war, political and territorial conflicts in the Western Hemisphere, the conflict between Cambodia and Thailand, and China-Taiwan relations), the current economic challenges in China, China and the U.S., including global economic ramifications of Chinese and U.S. economic difficulties, and other disruptions may continue to put pressure on global economic conditions.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedRisk Factors
Furthermore, imposition of new or additional tariffs or new or revised export, export or import or doing-business regulations, including trade sanctions, or non-tariff barriers to doing business could cause a decrease in the demand for, demand, from customers or sales of our products to customers end-users located in China or other customers selling to Chinese end users or China, increase the cost for our products, or promote competition from Chinese optical and photonics companies, which would directly adversely impact our business and results of operations.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedRisk Factors
For example, China imposed new export control measures affecting exports of rare earth metals and other critical minerals, limiting our ability to access these materials. materials, which may limit our ability to produce products, increase our selling and/or manufacturing costs, decrease margins, reduce the competitiveness of our products, reduce customer demand for our products, or inhibit our ability to sell products or purchase necessary equipment and supplies.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedRisk Factors
Following our entry into the First Supplemental Indenture, dated as of September 25, 2024, Pursuant to the 2026 Indenture and terms of our irrevocable settlement method elections made on September 25, 2024 with respect to the 2028 Notes and 2029 Notes, convertible notes, if the convertible notes are converted by holders, we are required to satisfy our conversion obligation with respect to the convertible notes by delivering cash equal to the principal amount of such converted convertible notes and cash, shares of common stock, or a combination of cash and shares of common stock, at our election, with respect to any conversion value in excess thereof.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedRisk Factors
Further, certain of our suppliers are located in China, which exposes us to risks associated with Chinese laws and regulations and U.S. laws, regulations and policies with respect to China, such as those related to import export controls, tariffs and export policies, the recent imposition of higher U.S. tariffs on many products from China, retaliatory actions taken by the U.S. and China in response to actions taken by the other, measures, and risks related to taxation and the treatment of intellectual property.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedRisk Factors
Our failure Any actual or perceived alleged failure to comply with any of the foregoing legal and regulatory requirements, applicable laws or regulations or other actual or asserted obligations relating to privacy, data protection or cybersecurity such matters could result in increased costs for our products, monetary penalties, damage to our reputation, reputation and market position, government inquiries, subpoenas, investigations and other legal proceedings, legal claims, demands and litigation and other obligations and liabilities.
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RewordedRisk Factors
We However, we have not registered our trademarks in every country in which we sell or distribute our products, operate, and thus others third parties may be able to use the same identical or confusingly similar marks in countries jurisdictions where we do our trademarks are not have trademark registrations. registered or enforceable.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedRisk Factors
Laws and regulations relating to privacy, data protection and cybersecurity cybersecurity, and their interpretation and enforcement, continue to evolve in various jurisdictions, with existing laws and regulations subject to new and differing interpretations and new laws and regulations being proposed and adopted. jurisdictions.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedRisk Factors
As a result of shipping disruptions, we have experienced among other things, increased costs to ship products and delays in receiving components and any disruption Any similar disruptions in the future would likely adversely affect our operating results and financial condition.
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RewordedRisk Factors
In May 2023, the Cyberspace Administration of China has also banned the sale of products from Micron Technology that it deems to certain entities in China and stated that such products pose significant security risks to China's critical information and infrastructure supply chain and national security.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
Cash from financing activities of $41.8 $1,556.9 million during the year ended June 28, 2025, 27, 2026, was attributable to $76.5 $1,999.7 million of net proceeds from the issuance of Series A Convertible Preferred Stock, $1,254.7 million of net proceeds from the issuance of our 2032 Notes, $47.9 million of proceeds from Japan SMBC term loans and $16.1 $17.1 million of proceeds from employee stock plans, offset by $843.1 million of payments for the partial repurchase of the 2026 Notes, $520.0 million of payments for Notes conversions, $281.0 million of tax payments related to the net share settlement of restricted stock units stock, $102.0 million of $41.7 million, $8.1 payments for the 2032 Capped Call Options, $14.0 million of principal payments on term loans loans, and payment $2.4 million of payments for an intangible asset acquisition holdback of $1.0 million. financing costs related to our revolving credit facility.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
Payments due Total Less than 1 year More than 1 year Contractual Obligations Asset retirement obligations $ 7.1 9.0 $ — $ 7.1 9.0 Operating lease liabilities, including imputed interest (1) 37.6 12.7 24.9 36.0 14.6 21.4 Pension plan contributions (2) 2.0 1.8 $ 2.0 1.8 — Purchase obligations (3) 837.6 781.4 56.2 2,354.4 2,112.5 241.9 Term loans - principal (4) 67.0 10.6 56.4 92.8 52.3 40.5 Term loans - interest (4) 1.7 0.6 1.1 1.2 0.7 0.5 Convertible notes - principal (5) 2,514.7 — 2,514.7 1,554.3 54.8 1,499.5 Convertible notes - interest (5) 61.6 18.7 42.9 30.6 5.4 25.2 Others 14.9 6.9 8.0 Total $ 3,529.3 4,095.0 $ 826.0 2,249.0 $ 2,703.3 1,846.0
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
If (1) Since the closing price of our stock exceeds $90.40 (130% was at least 130% of the applicable conversion price for each series of $69.54) Notes for 20 of the last 30 trading days of any future quarter, the 2029 our fiscal year 2026, all of our Notes would become remain convertible at the option of the holders during the subsequent first quarter of fiscal quarter and the debt component would be reclassified to current liabilities. year 2027.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
Research and development 11.8 18.5 22.2 17.4 Selling, general and administrative 12.1 21.2 22.9 19.7 Restructuring and related charges 0.4 1.4 5.3 1.6 Gain on sale of facility — (2.1) — — Total operating expenses 24.3 38.9 50.4 38.7 Loss Income (loss) from operations 17.4 (10.9) (31.9) (6.5) Interest expense (1.3) (2.5) (2.0) Other (expense) income, net 1.8 4.6 2.8 Loss before income taxes (10.5) (29.8) (5.7) Income tax (benefit) provision (12.0) 10.4 1.7 Net income (loss) 1.6% (40.2)% (7.4)% net:
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
Net revenue increased by $285.8 $1,369.0 million, or 21.0%, 83.2%, during fiscal year 2025 as 2026 compared to fiscal year 2024, due to a $325.9 2025, driven by $889.3 million increase in Cloud & Networking net revenue offset by Components products and a $40.1 $479.7 million decrease increase in Industrial Tech net revenue. Systems products.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
As of June 28, 2025, the Company had $40.6 million in principal amount outstanding on our SMBC Term Loan, of which the The short-term portion of $4.4 million the Japan Term Loans is recorded as current liabilities while the long-term portion of $36.2 million is recorded as long-term debt in the Company’s our consolidated balance sheets.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
However, during beginning in the first quarter of fiscal year 2025, network equipment manufacturers continued to normalize normalized inventory levels levels; and since then, we saw have seen increasing demand from AI and cloud customers as they continue to expand their data centers. centers, driven in part by the continued advances in cloud and AI infrastructure.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
We In considering the need for valuation allowance, we consider future growth, forecasted earnings, earnings including future taxable income, the mix of earnings in the jurisdictions in which we operate, historical earnings, earnings including historical earnings adjusted for non-recurring items, taxable income in prior years, if carry-back is permitted under the law, and prudent and feasible tax planning strategies in determining the need for a valuation allowance. strategies.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
Changes to these estimates or a change estimates, including changes in judgment regarding the realizability of deferred tax assets and the need for or release of valuation allowances, may have a material impact on our tax provision provision, net income, and effective tax rate in a future period.
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
Contract balances Balance sheet location June 27, 2026 June 28, 2025 June 29, 2024 Change Percentage Change Accounts receivable, net Accounts receivable, net $520.3 $250.0 $194.7 $55.3 28.4% $270.3 108.1% Deferred revenue and customer deposits Other current liabilities $15.4 $0.7 $0.6 $0.1 16.7% $14.7 n/a Deferred revenue and customer deposits Other non-current liabilities $1.4 $— $1.4 n/a
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
Cloud & Networking 85.8% 79.8% 74.8% Industrial Tech 14.2 20.2 25.2 Components 66.5 % 67.9 % 60.5% Systems 33.5 32.1 39.5 Net revenue 100.0 100.0 100.0 Cost of sales 55.7 67.0 75.3 63.0 Amortization of acquired developed intangibles 2.6 5.0 6.2 4.8 Gross profit 41.7 28.0 18.5 32.2 Operating expenses:
Read it in 10-K 2026-08-17 at sec.gov ↗
RewordedMD&A
If Conversely, if we later determine that it is more likely than not that all or a portion of the net deferred tax assets would will be realized, we would reverse the applicable portion of the previously provided established valuation allowance as an adjustment to earnings at such time. allowance.
Read it in 10-K 2026-08-17 at sec.gov ↗