Lumentum Holdings Inc at Barclays Global Technology Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : <_ALACRA_META_ABSTRACT>So it's been some crazy times of late. You've seen an unprecedented demand in AI kind of come into the market. You guys have talked about certain areas in your portfolio in which things have gotten tight. So maybe start with like a mark-to-market. Where are you seeing tightness? Is this across the portfolio? And then maybe how long do you think that dynamic lasts?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : And in this type of dynamic, how do conversations change with your customers? Because to get that much assurity on supply, obviously, there's an economic ask that you'll have for them as well. So how is this impacting pricing broadly? And then maybe talk about the time line, LTAs, contractual agreements. Are you seeing those that exist for 6 months, 1 year, 1.5 years? How are you seeing those?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : So how does that work with the ability to only supply some customers? Is it the guys that are willing to sign up for a longer period of time, they get supply first? Is it the guys that are more strategic? Because when we were on the road a couple of months ago, you guys talked about like you guys are the ones that are going to allow larger customers to be able to have product or not, right? So how do you go about choosing who's getting supply?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : So why don't we go into some of the product verticals. So on EMLs, in particular, you've talked about a 40% capacity increase over the next couple of quarters. How is that progressing? You have a facility in Thailand. How is that coming along? Should we expect that to be pulled forward given how quickly the market is kind of growing?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : So it sounds like it's not a particular tool that's got you short. It's just -- it's multiple tools.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Okay. In the same vein, you've kind of talked about allocating for either EML or SiPho modules. I think that, that's been an important kind of distinction as well. Maybe talk about why you would choose to put capacity towards one versus the other. And then what's your current view on your directing of capacity?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : How fungible is that capacity? Let's just say customer demand profile changes or you internally decide that you want to split that dynamic a little bit differently. If you wanted to take capacity going towards EML and move that to SiPho, what's the timeframe that you could get that done in?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : So let's just say, if we move towards 1.6T, I'd love to hear your opinion on. Do you think that the world moves more towards silicon photonics versus EML at 1.6T? And do you feel like because your existing footprint is so fungible, like you could move your capacity very quickly to address that? So yeah, just general thoughts on technology for 1.6T and --

Question: Thomas O'Malley - Barclays Services Corp - Analyst : In prior generations, you've also seen VCSELs take share as time has gone along, generally lower cost option. Is that a reality at 800G? Is the performance good enough to get there? Do you think people move in that direction? And then same question for 1.6T. You kind of talked about SiPho in that way, right, where it takes share over time. Is that the same way you think that VCSELs will be at 800G?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Got it. less of a factor. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:15PM, LITE.OQ - Lumentum Holdings Inc at Barclays Global Technology Conference

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Got it. Maybe switching gears to another vertical, and I do want to come back to kind of RO scale architecture and solutions to that. But why don't we start with just OCS. So I think on the last earnings call, you guys talked about OCS going from kind of single-digit millions to something around $100 million per quarter by December of '26. If you listen throughout the quarter, you guys have kind of been incrementally more positive there. Could you talk to why you're more positive? Are you seeing more customer engagement? Is it a broadening of customers or kind of a deepening of your existing customers? And maybe just from a technical perspective, I get a question a lot of times, like is this replacing packet switching? Is this existing alongside packet switching? Maybe spend a little time explaining where this fits in.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Outside of the customer who kind of evangelize this technology, is there a lot of greenfield expansion where you're seeing new data centers get deployed and customers are saying, I'm going to deploy optical switching along with packet switching in tandem. Are you seeing OCS kind of eradicate some spend that you would need on traditional packet switching? I guess that's the question that people ask a lot times, like should I be worried about players in the traditional packet switching environment because OCS is coming on? Like how would you -- LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:15PM, LITE.OQ - Lumentum Holdings Inc at Barclays Global Technology Conference

Question: Thomas O'Malley - Barclays Services Corp - Analyst : And so will that business as well, OCS be limited by supply like your other business? You kind of started saying, we see constraints across our entire portfolio. Like you are starting from a very low number, getting to a moderately sized number there. That is in that same camp, right, where you are limited by constraints?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Got it. Switching gears to CPO. It sounds like late '26 is kind of the timeframe where you'll see scale out technology at first, which is revenue towards you guys there. When you look at like volume of switches that are moving to CPO, do you expect a significant volume transition in late '26, early '27? Or is that something closer towards the end of the decade?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Yeah, 40% to 50% is a pretty large number going into that '28 timeframe. I guess if you're already at that adoption rate with that large first customer, what is the barrier to moving to scale-up architectures? Because I think the idea that we've heard as an industry is scale-up is where most of the benefit comes. It's just it will take a little bit longer. What's gating you from getting into scale-up architectures and systems?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Got you. All right. Broadly into 2026, you're getting, I would say, more substantial 1.6T volumes. 800G, I think you said before, is still supposed to be the largest node in the market for next year. Could you give us some view on what you think total port count looks like next year or just optical ports in general for 2026?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : So that's largely the hyperscalers.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Got it. And then your customer exposure within that vertical, like Cloud Light was well understood to be kind of a Google provider very early on. In terms of like the diversification and your scale, like do you still feel like you have a very good position at that customer versus where you were --

Question: Thomas O'Malley - Barclays Services Corp - Analyst : When you look at those three big customers, longer term, looking to get to kind of $1 billion business or so, what are the biggest challenges in getting from where you are today? Is it manufacturing? Is it yields? Like where is the hang up? Because I would assume that today, if those customers could get more modules from you, they would happily do so. Where is the hang up?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Because historically, I remember at the 400G transition and then early 800G a hyperscaler would qualify two, three, four modules, and then there would really be very little requalification process, right? What was set, was set from that point forward, you got nothing. Now, if you have supply and you go rebid that project, are they like welcome in? Has that dynamic changed?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Helpful. So in the last quarter, you look at all your large new opportunities in the data center, you have switching, you've got your module business, you've got your laser business. It was surprising where you saw a lot of your upside was actually in the telco business, where you saw like more broad telco strength. Could you maybe point out where you're seeing that strength? Is this just the ZR, ZR+ market actually starting to come to fruition? Or is it a certain subsector of component that's going in there?

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Well, things sound fantastic across the board. Thank you very much for joining me.