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LITELumentum

Technology · Communications Equipment · Nasdaq
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The 10-K against last year's

181 changes: 47 added, 44 removed, 87 reworded, 3 quiet changes

10-K Aug 17, 2026 vs Aug 19, 2025
Risk FactorsRedline ↓
16.3%
of the text changed · 20,793 words now
30.1%
of the text changed · 9,819 words now
Legal ProceedingsRedline ↓
34.0%
of the text changed · 1,058 words now
Accounting PoliciesRedline ↓
14.2%
of the text changed · 7,498 words now

10-K 0001628280-26-057358 (2026-08-17) vs 10-K 0001628280-25-040830 (2025-08-19)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

Risk Factors 229 words changed in this paragraph; it is 57% similar to last year's version.
U.S. regulatory activity, such as tariffs, export controls, and economic sanctions laws have in the past, and may in the future, materially limit our ability to make sales to customers in certain regions of the world, including China, and which have in the past, and may in the future, increase our costs and harm our results of operations and financial condition. Throughout 2025, 2025 and 2026, the U.S. imposed a series of tariffs on imported goods. While these These tariffs are were generally positioned to have the most significant impacts on goods originating from China, but nearly all countries worldwide are were impacted at levels ranging from 15% to stacked tariffs in excess of 100% in some cases. The While many of the tariffs and surcharges initially proposed were invalidated or expired, the tariff landscape continues to evolve daily and, as a result, the full impact of these current or future tariff measures on our business is uncertain. In addition to the geographic tariffs, U.S. government investigations are currently underway that may result in new tariffs on certain products, including semiconductors, computers, machines, and other products derivative of critical minerals. For example, on April 14, 2025, the Secretary of Commerce initiated an investigation under Section 232 of the Trade Expansion Act of 1962 to determine the effects on U.S. national security of imports of semiconductors, semiconductor manufacturing equipment, and their derivative products, including semiconductor substrates and bare wafers, legacy chips, leading-edge chips, microelectronics, and other components. Similarly, the U.S. government has initiated additional investigations that could result in tariffs or other trade restrictions affecting our operations, supply chain, customers, or markets. These include Section 232 investigations concerning processed critical minerals and their derivative products and robotics and industrial machinery, as well as Section 301 investigations concerning structural excess capacity and production in manufacturing sectors in certain foreign economies that have failed to adopt or effectively enforce forced labor prohibitions. Although these investigations are currently at different stages, they all may result in additional tariffs or trade restrictions, which could adversely impact our business. We may take actions to mitigate the impact of increases in tariffs and changes in trade policies, and any such actions could result in additional costs, manufacturing delays, or other difficulties, as well as additional risks, and may not be effective.

Source: Item 1A, 10-K 0001628280-26-057358 vs Item 1A, 10-K 0001628280-25-040830

MD&A 222 words changed in this paragraph; it is 46% similar to last year's version.
Cash provided by operating activities was $126.3 $751.4 million during the year ended June 28, 2025, 27, 2026, which reflects the net income loss of $25.9 $6,935.1 million and non-cash items of $414.9 $7,978.5 million, partially offset by $314.5 $292.0 million of changes in our operating assets and liabilities. Changes in operating assets and liabilities were primarily driven by an a $221.6 million increase in accounts payable of $69.2 million primarily due to higher inventory purchases and capital expenditures, an a $88.4 million increase in accrued payroll and related expenses of $22.0 million mainly driven by our accrual for employee cash incentive bonuses and related payroll taxes and payroll taxes related to stock-based compensation, offset by a decrease in income tax liabilities of $218.2 $43.4 million primarily due to income tax benefits during the year ended June 28, 2025, an increase in inventories of $71.3 million primarily due to inventory builds to support market demand, an increase in accounts receivable of $58.7 million driven by higher revenue, an increase of $35.1 million in prepayments and other current and non-current assets related mainly to value-added-tax receivables driven by higher recent capital expenditures and inventory purchases, and a decrease of $21.8 million in accrued expenses and other current and non-current liabilities driven by payment of the net settlement amount of the Oclaro merger litigation contractual liabilities and restructuring provision for warranty reserves, and a $47.9 million decrease in income tax liabilities primarily due to income tax payments, offset by a $270.4 million increase in accounts receivable mainly driven by higher revenue, a $228.4 million increase in inventories driven by builds to support market demand and a $96.2 million increase in prepayments and other current and non-current assets primarily driven by a $45.3 million increase in value-added-tax receivables related payments. to capital expenditures and inventory purchases, a $24.0 million inventory-related prepayments, and a $13.2 million increase in receivables from our contract manufacturers driven by increase manufacturing volume.

Source: Item 7, 10-K 0001628280-26-057358 vs Item 7, 10-K 0001628280-25-040830

Accounting Policies 113 words changed in this paragraph; it is 38% similar to last year's version.
During the third quarter of fiscal year 2026, we completed a reorganization of our business units, which resulted in changes to our reporting unit structure. As a result of this reorganization, we performed an interim qualitative assessment of goodwill for our reporting units. In performing the assessment, we evaluated relevant events and circumstances, including changes in the composition of reporting units, financial performance, and other entity-specific and macroeconomic factors. Based on the impairment analysis performed this assessment along with a qualitative assessment done in the fourth quarter of each fiscal year presented, 2026, it was not more likely than not that the fair value of each any of our reporting units substantially exceeded the was less than its carrying value; as such, our annual qualitative assessment did not indicate that a more detailed quantitative analysis was necessary. Accordingly, no goodwill impairment charge was recognized during fiscal year 2026.

Source: Item 8, Note 1 – Description of Business and Summary of Significant Accounting Policies, 10-K 0001628280-26-057358 vs Item 8, Note 1 – Description of Business and Summary of Significant Accounting Policies, 10-K 0001628280-25-040830

Legal Proceedings 25 words changed in this paragraph; it is 91% similar to last year's version.
We depend on a limited number of contract manufacturers, subcontractors and suppliers for raw materials, packages and standard components. We generally purchase these single or limited source products through standard purchase orders or one-year supply agreements and have no significant long-term guaranteed supply agreements with these vendors. While we seek to maintain a sufficient safety stock of such products and maintain on-going communications with our suppliers to guard against interruptions or cessation of supply, our business and results of operations could be adversely affected by a stoppage or delay of supply, substitution of more expensive or less reliable products, receipt of defective parts or contaminated materials, increases in the price of such supplies, or our inability to obtain reduced pricing from our suppliers in response to competitive pressures. In addition, the imposition of tariffs on certain imported goods and materials may increase our costs and place upward pressure on the cost of sales.

Source: Item 3, via Note 16 – Commitments and Contingencies, 10-K 0001628280-26-057358 vs Item 3, via Note 16 – Commitments and Contingencies, 10-K 0001628280-25-040830

Every change, by type

Sentences and paragraphs added, removed or reworded

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
The United Kingdom government European Commission has adopted legislation providing for targeted amendments to United Kingdom data protection law that has caused United Kingdom data protection laws and regulations to deviate from the GDPR in certain respects and that may impact the European Commission’s an adequacy determination regarding the United Kingdom data protection regime that generally has permitted personal data to be transferred between the European Economic Area (“EEA”) and the United Kingdom. Kingdom, which it has extended through December 2031.

Read it in 10-K 2026-08-17 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
Further, a A breach or failure of our information technology infrastructure systems, or those of our third-party service providers, could result in the unauthorized access to, or misappropriation of of, our intellectual property, trade secrets, or confidential business plans or trade secrets. information.

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.

Read it in 10-K 2026-08-17 at sec.gov ↗

Show the other 16
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.

Read it in 10-K 2026-08-17 at sec.gov ↗

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 ↗

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