Viavi Solutions Inc【VIAV】株式ニュース

VIAVI Announces Third Quarter Fiscal 2026 ResultsApril 29, 2026 4:15 PM
PR Newswire (US)

CHANDLER, Ariz., April 29, 2026 /PRNewswire/ -- VIAVI (NASDAQ: VIAV) today reported results for its fiscal third quarter ended March 28, 2026 with the following highlights.

Third QuarterNet revenue of $406.8 million, up $122.0 million or 42.8% year-over-yearGAAP operating margin of 6.1%, up 310 bps year-over-yearNon-GAAP operating margin of 21.0%, up 430 bps year-over-yearGAAP net income of $6.4 million, down $13.1 million or 67.2% year-over-yearNon-GAAP net income of $67.6 million, up $33.7 million or 99.4% year-over-year GAAP diluted earnings per share (EPS) of $0.03, down $0.06 or 66.7% year-over-yearNon-GAAP diluted EPS of $0.27, up $0.12 or 80.0% year-over-year"VIAVI's financial performance for the third quarter has exceeded our expectations, driven by strong growth in the data center and aerospace and defense end markets. We expect these end markets to continue to be strong drivers for the foreseeable future," said Oleg Khaykin, VIAVI's President and Chief Executive Officer.Financial Overview:The tables below (in millions, except percentage and per share data) provide comparisons of quarterly results to prior periods, including sequential quarterly and year-over-year changes. A full reconciliation between the GAAP and non-GAAP measures included in the tables is contained in this release under the section titled "Use of Non-GAAP (Adjusted) Financial Measures."Fiscal Third Quarter Ended March 28, 2026
GAAP Results
Q3
Q2
Q3
Change
FY 2026
FY 2026
FY 2025
Q/Q
Y/YNet revenue$      406.8
$      369.3
$      284.8
10.2 %
42.8 %Gross margin57.5 %
57.0 %
56.4 %
50 bps
110 bpsOperating margin6.1 %
3.1 %
3.0 %
300 bps
310 bpsIncome from operations$       24.8
$       11.4
$         8.5
117.5 %
191.8 %Net income (loss) per share0.03
(0.21)
0.09
114.3 %
(66.7) %

Non-GAAP Results
Q3
Q2
Q3
Change
FY 2026
FY 2026
FY 2025
Q/Q
Y/YGross margin62.2 %
61.8 %
60.0 %
40 bps
220 bpsOperating margin21.0 %
19.3 %
16.7 %
170 bps
430 bpsIncome from operations$       85.5
$       71.4
$       47.7
19.7 %
79.2 %Earnings per share 0.27
0.22
0.15
22.7 %
80.0 %

Net Revenue by Segment
Q3
Q2
Q3
Change
FY 2026
FY 2026
FY 2025
Q/Q
Y/YNetwork and Service Enablement$        321.5
$        291.5
$        208.2
10.3 %
54.4 %Optical Security and Performance Products85.3
77.8
76.6
9.6 %
11.4 %Total$        406.8
$        369.3
$        284.8
10.2 %
42.8 % Americas, Asia-Pacific and EMEA customers represented 44.9%, 31.5% and 23.6%, respectively, of total net revenue for the quarter ended March 28, 2026.As of March 28, 2026, the Company held $508.0 million in total cash, short-term investments and short-term restricted cash.As of March 28, 2026, the Company had $250.0 million aggregate principal amount of 0.625% Senior Convertible Notes, $400 million aggregate principal amount of 3.75% Senior Notes and $450.0 million aggregate principal amount of Term Loan B with a total net carrying value of $1,080.8 million.During the fiscal quarter ended March 28, 2026, the Company used $26.3 million of cash in operating activities. This is primarily due to a portion of the contingent consideration payment classified as an operating outflow.Business Outlook for the Fourth Quarter of Fiscal 2026 For the fourth quarter of fiscal 2026 ending June 27, 2026, the Company expects net revenue to be between $427 million to $437 million and non-GAAP EPS to be between $0.29 to $0.31.With respect to our expectations above, the Company has not reconciled GAAP net income (loss) per share to non-GAAP EPS in this press release because it is unable to provide a meaningful or accurate estimate of certain reconciling items described in the "Use of Non-GAAP (Adjusted) Financial Measures" section below and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of certain items, including certain charges related to restructuring, acquisition, integration and related charges. In addition, the Company believes such reconciliations would imply a degree of precision that may be confusing or misleading to investors.Conference CallThe Company will discuss these results and other related matters at 1:30 p.m. Pacific Time on April 29, 2026 in a live webcast, which will also be archived for replay on the Company's website at https://investor.viavisolutions.com. The Company will post supplementary slides outlining the Company's latest financial results on https://investor.viavisolutions.com under the "Quarterly Results" section concurrently with this earnings press release. This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at www.sec.gov.About VIAVI SolutionsVIAVI (NASDAQ: VIAVI) is a global leader in test and measurement and optical technologies. Our test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications. In addition, we develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include any expectation, anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, profitability targets, cash flow and other financial metrics, as well as the impact and duration of certain trends and market position and conditions, including market stabilization and recovery. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, the Company's ability to predict future financial performance continues to be difficult due to, among other things: (a) continuing general limited visibility across many of our product lines; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) consolidations in our industry and customer base; (d) competitive pressures; (e) unforeseen changes or deceleration in the demand for current and new products, technologies, services, delays or unforeseen events in the roll-out of new industry platforms or evolving technology such as 3D sensing and customer purchasing delays due to macroeconomic conditions, tightening of expenditures or as they assess or transition to such new technologies and/or architectures, all of which limit near-term demand visibility, and could negatively impact potential revenue; (f) continued decline of average selling prices across our businesses; (g) notable seasonality and a significant level of in-quarter book-and-ship business; (h) various product and manufacturing transfers, site consolidations, product discontinuances and restructuring and workforce reduction plans, including the number of employees impacted by a restructuring plan, the estimated expenses the Company will recognize, the timing of these payments and expenses, and anticipated cost savings associated with such plans; (i) challenges in execution of business strategy; (j) financial projections and expectations, including profitability of certain business units, synergies, benefits and other matters related to the acquisition of the high-speed ethernet, network security and channel emulation testing business of Spirent Communications plc; (k) challenges integrating the businesses the Company has acquired and realizing all of the expected benefits and savings; (l) supply chain and materials constraints and the ability of our suppliers and contract manufacturers to meet production and delivery requirements to our forecasted demand; (m) potential disruptions or delays to our manufacturing and operations due to climate conditions and natural disasters in the regions where we operate, such as wildfires, drought conditions and related water shortages in Arizona, as well as wildfires in Northern California and related blackouts and power outages in that region; (n) the uncertain and ongoing impact to our supply chain of geopolitical tensions, such as the ongoing conflict between Russia and Ukraine and the instability in the Middle East, evolving global trade and tariff negotiations and the uncertain tariff landscape, sanctions and other trade measures imposed by domestic and foreign governments, adverse actions and escalating tensions with foreign governments, including China, and the possibility of escalation of "trade wars," cyber-attacks, and retaliatory measures; (o) the impact of infectious disease outbreaks, epidemics, and pandemics on our financial results, revenues, customer demand, business operations and manufacturing and on the business operations of our customers, contract manufacturers and suppliers; and (p) inherent uncertainty related to global markets, including inflationary pressures, recessions, tightening monetary policy and liquidity, and the effect of such markets on demand for our products. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For more information on the risks and uncertainties associated with the Company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements contained in this press release are made as of the date thereof and the Company assumes no obligation to update such statements. We have not filed our Form 10-Q for the quarter ended March 28, 2026. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file the Form 10-Q.Contact InformationInvestors:
Vibhuti Nayar
408-404-6305
vibhuti.nayar @JEG-8624
amit.malhotra@viavisolutions.comThe following financial tables are presented in accordance with GAAP, unless otherwise specified.-SELECTED PRELIMINARY FINANCIAL DATA - VIAVI SOLUTIONS INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in millions, except per share data)(unaudited)PRELIMINARY

Three Months Ended
Nine Months Ended
March 28, 2026
March 29, 2025
March 28, 2026
March 29, 2025Net revenue$          406.8
$          284.8
$        1,075.2
$          793.8Cost of revenues159.7
118.0
429.1
323.5Amortization of acquired technologies13.0
6.1
32.4
12.7Gross profit234.1
160.7
613.7
457.6Operating expenses:

Research and development71.0
50.0
192.9
151.5Selling, general and administrative113.6
101.3
344.9
259.7Amortization of other intangibles7.4
1.2
15.2
3.3Restructuring and related charges (benefits) 17.3
(0.3)
16.9
0.9Total operating expenses209.3
152.2
569.9
415.4Income from operations24.8
8.5
43.8
42.2Interest and other income (expense), net3.3
2.2
(34.0)
9.3Interest expense(14.3)
(7.5)
(37.0)
(22.5) Income (loss) before income taxes and equity investment earnings13.8
3.2
(27.2)
29.0Provision for (benefit from) income taxes7.4
(16.3)
36.1
2.2Equity investment earnings—
—
0.2
—Net income (loss)$             6.4
$            19.5
$          (63.1)
$            26.8

Net income (loss) per share:

Basic$            0.03
$            0.09
$          (0.28)
$            0.12Diluted$            0.03
$            0.09
$          (0.28)
$            0.12

Shares used in per share calculations:

Basic232.0
222.6
226.2
222.2Diluted249.5
226.9
226.2
225.2
The preliminary financial statements are estimated based on our current information. VIAVI SOLUTIONS INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in millions, unaudited)PRELIMINARY

March 28, 2026
June 28, 2025ASSETS

Current assets:

Cash and cash equivalents$                499.0
$                423.6Short-term investments1.8
1.7Restricted cash7.2
3.7Accounts receivable, net320.3
261.0Inventories, net147.9
117.9Prepayments and other current assets77.5
77.3Total current assets1,053.7
885.2Property, plant and equipment, net222.5
231.9Goodwill, net701.8
595.7Intangibles, net398.0
131.6Deferred income taxes79.7
87.2Other non-current assets72.1
62.2Total assets$              2,527.8
$              1,993.8LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable$                 81.7
$                 68.8Accrued payroll and related expenses72.8
63.6Deferred revenue85.2
74.1Accrued expenses27.8
28.7Short-term debt244.5
246.2Other current liabilities140.5
108.3Total current liabilities652.5
589.7Long-term debt836.3
396.3Other non-current liabilities192.5
227.6Total liabilities1,681.3
1,213.6Total stockholders' equity846.5
780.2Total liabilities and stockholders' equity$              2,527.8
$              1,993.8
The preliminary financial statements are estimated based on our current information. VIAVI SOLUTIONS INC.REPORTABLE SEGMENT INFORMATION(in millions, unaudited)PRELIMINARY

Three Months Ended March 28, 2026

Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP MeasuresNet revenue$      321.5
$       85.3
$            —
$      406.8

Gross profit$      210.0
$       42.9
$        (18.8)
$      234.1Gross margin65.3 %
50.3 %

57.5 %

Operating income$       55.4
$       30.1
$        (60.7)
$       24.8Operating margin17.2 %
35.3 %

6.1 %

Three Months Ended March 29, 2025

Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP MeasuresNet revenue$      208.2
$       76.6
$            —
$      284.8

Gross profit$      131.3
$       39.5
$        (10.1)
$      160.7Gross margin63.1 %
51.6 %

56.4 %

Operating income$       21.7
$       26.0
$        (39.2)
$         8.5Operating margin10.4 %
33.9 %

3.0 %

Nine Months Ended March 28, 2026

Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP MeasuresNet revenue$     829.0
$     246.2
$           —
$   1,075.2

Gross profit$     534.7
$     125.9
$        (46.9)
$     613.7Gross margin64.5 %
51.1 %

57.1 %

Operating income $     117.1
$       86.9
$       (160.2)
$       43.8Operating margin14.1 %
35.3 %

4.1 %

Nine Months Ended March 29, 2025

Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP MeasuresNet revenue$     567.5
$     226.3
$           —
$     793.8

Gross profit$     357.9
$     119.0
$        (19.3)
$     457.6Gross margin63.1 %
52.6 %

57.6 %

Operating income $       31.8
$       80.2
$        (69.8)
$       42.2Operating margin5.6 %
35.4 %

5.3 %
(1) See Reconciliation of GAAP Measures from Continuing Operations to Non-GAAP Measures below for details of Other Items.
The preliminary financial schedules are estimated based on our current information.Use of Non-GAAP (Adjusted) Financial MeasuresThe Company provides non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP EPS financial measures as supplemental information regarding the Company's operational performance and believes providing this additional information allows investors to see Company results through the eyes of management, to evaluate more clearly and consistently the Company's core operational performance and expenses and evaluate the efficacy of the methodology used by management to measure such performance. The Company uses the measures disclosed in this release to evaluate the Company's historical and prospective financial performance, as well as its performance relative to its competitors. Specifically, management uses these items to further its own understanding of the Company's core operating performance, which the Company believes represents its performance in the ordinary, ongoing and customary course of its operations. Accordingly, management excludes from core operating performance items such as those relating to certain purchase price accounting adjustments, amortization of acquisition related intangibles, amortization expense related to acquisition related inventory step-up, stock-based compensation, legal settlements, restructuring, changes in fair value of contingent consideration liabilities, certain investing and acquisition related expenses and other activities and income tax expenses or benefits that management believes are not reflective of such ordinary, ongoing and core operating activities. The non-GAAP adjustments are outlined below. Cost of revenues, costs of research and development and costs of selling, general and administrative: The Company's GAAP presentation of gross margin and operating expenses may include (i) additional depreciation and amortization from changes in estimated useful life and the write-down of certain property, plant and equipment and intangibles, (ii) charges such as severance, benefits and outplacement costs related to restructuring plans with a specific and defined term, (iii) costs for facilities not required for ongoing operations, and costs related to the relocation of certain equipment from these facilities and/or contract manufacturer facilities, (iv) stock-based compensation, (v) amortization expense related to acquired intangibles, (vi) amortization expense related to acquisition related inventory step-up, (vii) changes in fair value of contingent consideration liabilities, (viii) acquisition related transaction and integration costs related to acquired entities, (ix) significant legal settlements and other contingencies and (x) other charges unrelated to our core operating performance comprised mainly of other costs and contingencies unrelated to current and future operations, including transformational initiatives such as the implementation of simplified automated processes, site consolidations, and reorganizations. The Company excludes these items in calculating non-GAAP operating margin, non-GAAP net income and non-GAAP EPS.Non-cash interest expense and other expense: The Company excludes certain expenses, including loss on debt extinguishment, accretion of debt discount, and other non-cash activities that management believes are not reflective of such ordinary, ongoing and core operating activities, when calculating non-GAAP net income and non-GAAP EPS.Income tax expense or benefit: The Company excludes certain non-cash tax expense or benefit items, such as (i) the utilization of net operating losses (NOLs) where valuation allowances were released, (ii) intra-period tax allocation benefit and (iii) the tax effect for amortization of non-tax deductible intangible assets, in calculating non-GAAP net income and non-GAAP EPS.Non-GAAP financial measures are not in accordance with, preferable to, or an alternative for, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to non-GAAP operating income is operating income. The GAAP measure most directly comparable to non-GAAP operating margin is operating margin. The GAAP measure most directly comparable to non-GAAP net income is net income. The GAAP measure most directly comparable to non-GAAP EPS is earnings per share.VIAVI SOLUTIONS INC.RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONSTO NON-GAAP MEASURES(in millions, except per share data)(unaudited)PRELIMINARY
The following tables reconcile GAAP measures to non-GAAP measures:

Three Months Ended
Nine Months Ended
March 28, 2026
March 29, 2025
March 28, 2026
March 29, 2025
Gross
Profit
Gross
Margin
Gross
Profit
Gross
Margin
Gross
Profit
Gross
Margin
Gross
Profit
Gross
MarginGAAP measures $   234.1
57.5 %
$   160.7
56.4 %
$   613.7
57.1 %
$   457.6
57.6 %Stock-based compensation1.1
0.3 %
2.0
0.7 %
3.2
0.3 %
4.5
0.6 %Other charges unrelated to core operating performance (1)3.8
1.0 %
0.3
0.1 %
5.2
0.5 %
0.4
0.1 %Amortization of acquisition related inventory step-up0.9
0.2 %
1.7
0.6 %
6.1
0.5 %
1.7
0.2 %Amortization of intangibles13.0
3.2 %
6.1
2.2 %
32.4
3.0 %
12.7
1.6 %Total related to Cost of Revenues18.8
4.7 %
10.1
3.6 %
46.9
4.3 %
19.3
2.5 %Non-GAAP measures $   252.9
62.2 %
$   170.8
60.0 %
$   660.6
61.4 %
$   476.9
60.1 %

Three Months Ended
Nine Months Ended
March 28, 2026
March 29, 2025
March 28, 2026
March 29, 2025
Operating
Income
Operating
Margin
Operating
Income
Operating
Margin
Operating
Income
Operating
Margin
Operating
Income
Operating
MarginGAAP measures$    24.8
6.1 %
$     8.5
3.0 %
$    43.8
4.1 %
$    42.2
5.3 %Stock-based compensation13.9
3.4 %
14.1
4.9 %
41.2
3.8 %
40.5
5.1 %Change in fair value of contingent liability2.6
0.6 %
2.5
0.9 %
24.3
2.3 %
(4.9)
(0.6) %Acquisition and integration related charges0.7
0.2 %
13.3
4.7 %
12.4
1.1 %
16.7
2.1 %Other charges unrelated to core operating performance (2)4.9
1.2 %
0.6
0.2 %
11.7
1.1 %
0.2
— %Amortization of acquisition related inventory step-up0.9
0.2 %
1.7
0.6 %
6.1
0.6 %
1.7
0.2 %Amortization of intangibles20.4
5.0 %
7.3
2.5 %
47.6
4.4 %
16.0
2.0 %Restructuring and related charges (benefits) 17.3
4.3 %
(0.3)
(0.1) %
16.9
1.6 %
0.9
0.1 %Litigation settlement —
— %
—
— %
—
— %
(1.3)
(0.1) %Total related to Cost of Revenues and Operating Expenses60.7
14.9 %
39.2
13.7 %
160.2
14.9 %
69.8
8.8 %Non-GAAP measures$    85.5
21.0 %
$    47.7
16.7 %
$   204.0
19.0 %
$   112.0
14.1 %

Three Months Ended
Nine Months Ended
March 28, 2026
March 29, 2025
March 28, 2026
March 29, 2025
Net Income
Diluted
EPS
Net Income
Diluted
EPS
Net (Loss)
Income
Diluted
EPS
Net
Income
Diluted
EPSGAAP measures$     6.4
$    0.03
$    19.5
$    0.09
$   (63.1)
$   (0.28)
$    26.8
$    0.12Items reconciling GAAP Net Income (Loss) and EPS to Non-GAAP Net Income and EPS:

Stock-based compensation13.9
0.06
14.1
0.06
41.2
0.17
40.5
0.18Change in fair value of contingent liability2.6
0.01
2.5
0.01
24.3
0.11
(4.9)
(0.02)Acquisition and integration related charges0.7
—
13.3
0.06
12.4
0.05
16.7
0.08Other charges unrelated to core operating performance (2)4.9
0.02
0.6
—
11.7
0.05
0.2
—Amortization of acquisition related inventory step-up0.9
—
1.7
0.01
6.1
0.03
1.7
0.01Amortization of intangibles20.4
0.08
7.3
0.03
47.6
0.20
16.0
0.07Restructuring and related charges (benefits) 17.3
0.07
(0.3)
—
16.9
0.07
0.9
—   Litigation settlement —
—
—
—
—
—
(1.3)
(0.01)Non-cash interest expense and other expense (3)2.4
0.01
1.3
0.01
46.6
0.20
3.5
0.02(Benefits from) provision for income taxes(1.9)
(0.01)
(26.1)
(0.12)
8.5
0.04
(24.4)
(0.11)   Total related to Net Income and EPS61.2
0.24
14.4
0.06
215.3
0.92
48.9
0.22Non-GAAP measures $    67.6
$    0.27
$    33.9
$    0.15
$   152.2
$    0.64
$    75.7
$    0.34Shares used in per share calculation for Non-GAAP EPS

249.5

226.9

236.9

225.2
Note: Certain totals may not add due to rounding.(1) Included in the three months ended March 28, 2026 are charges of $3.6 million charges related to the write off of property, plant and equipment and other charges unrelated to core operating performance.(2) Included in the three months ended March 28, 2026 are charges of $3.9 million related to the write off of property, plant and equipment, $0.3 million of accelerated depreciation and other charges unrelated to core operating performance. In addition, included in the nine months ended March 28, 2026 are $3.5 million of losses on disposal of long-lived assets, $2.1 million charge for restoration services for a VIAVI facility impacted by a fire and other charges unrelated to core operating performance. Included in the nine months ended March 29, 2025 is a gain of $0.9 million on the sale of assets previously classified as held for sale and other charges unrelated to core operating performance.(3) The Company incurred losses of $3.7 million and $46.2 million for the three and nine months ended March 28, 2026, respectively, in connection with the extinguishment of certain 1.625% Senior Convertible Notes and prepayments of the Term Loan B.The preliminary financial schedules are estimated based on our current information. VIAVI SOLUTIONS INC.RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONSTO ADJUSTED EBITDA(in millions, unaudited)PRELIMINARY

Three Months Ended
Nine Months Ended
March 28, 2026
March 29, 2025
March 28, 2026
March 29, 2025GAAP Net income (loss) $              6.4
$            19.5
$           (63.1)
$            26.8Interest and other (income) expense, net (1)(3.3)
(2.2)
34.0
(9.3)Interest expense14.3
7.5
37.0
22.5Provision for (benefit from) income taxes7.4
(16.3)
36.1
2.2Equity investment earnings—
—
(0.2)
—Depreciation10.3
9.3
30.1
28.8Amortization20.4
7.3
47.6
16.0EBITDA55.5
25.1
121.5
87.0Restructuring and related charges (benefits) 17.3
(0.3)
16.9
0.9Stock-based compensation13.9
14.1
41.2
40.5Change in fair value of contingent liability2.6
2.5
24.3
(4.9)Acquisition and integration related charges0.7
13.3
12.4
16.7Other charges (benefits) unrelated to core operating performance (2)4.6
0.6
11.3
(1.3)Amortization of acquisition related inventory step-up0.9
1.7
6.1
1.7Adjusted EBITDA$            95.5
$            57.0
$           233.7
$           140.6
Note: Certain totals may not add due to rounding.(1) The Company incurred losses of $3.7 million and $46.2 million for the three and nine months ended March 28, 2026, respectively, in connection with the extinguishment of certain 1.625% Senior Convertible Notes and prepayments of the Term Loan B.(2) Included in the three months ended March 28, 2026 are charges of $3.9 million related to the write off of property, plant and equipment and other charges unrelated to core operating performance. In addition, included in the nine months ended March 28, 2026 are $3.5 million of losses on disposal of long-lived assets, $2.1 million charge for restoration services for a VIAVI facility impacted by a fire and other charges unrelated to core operating performance. Included in the nine months ended March 29, 2025 is a gain of $0.9 million on the sale of assets previously classified as held for sale and other charges unrelated to core operating performance.
The preliminary financial schedules are estimated based on our current information.

View original content to download multimedia:https://www.prnewswire.com/news-releases/viavi-announces-third-quarter-fiscal-2026-results-302757519.htmlSOURCE VIAVI Financials

Original: VIAVI Announces Third Quarter Fiscal 2026 Results

VIAVI Announces Second Quarter Fiscal 2026 ResultsJanuary 28, 2026 4:15 PM
PR Newswire (US)

CHANDLER, Ariz., Jan. 28, 2026 /PRNewswire/ -- VIAVI (NASDAQ: VIAV) today reported results for its fiscal second quarter ended December 27, 2025 with the following highlights.

Second QuarterNet revenue of $369.3 million, up $98.5 million or 36.4% year-over-yearGAAP operating margin of 3.1%, down 510 bps year-over-yearNon-GAAP operating margin of 19.3%, up 440 bps year-over-yearGAAP net loss of $48.1 million, down $57.2 million or 628.6% year-over-yearNon-GAAP net income of $51.5 million, up $22.1 million or 75.2% year-over-year GAAP diluted earnings per share (EPS) of $(0.21), down $0.25 or 625.0% year-over-yearNon-GAAP diluted EPS of $0.22, up $0.09 or 69.2% year-over-year"VIAVI's performance for the second quarter came in at the high end of our guidance, driven by strength across most of our end markets. We expect the strong momentum and demand in the data center ecosystem and aerospace and defense applications to continue driving our anticipated growth this calendar year," said Oleg Khaykin, VIAVI's President and Chief Executive Officer.Financial Overview:The tables below (in millions, except percentage and per share data) provide comparisons of quarterly results to prior periods, including sequential quarterly and year-over-year changes. A full reconciliation between the GAAP and non-GAAP measures included in the tables is contained in this release under the section titled "Use of Non-GAAP (Adjusted) Financial Measures."Fiscal Second Quarter Ended December 27, 2025
GAAP Results
Q2
Q1
Q2
Change
FY 2026
FY 2026
FY 2025
Q/Q
Y/YNet revenue$         369.3
$         299.1
$         270.8
23.5 %
36.4 %Gross margin57.0 %
56.5 %
59.4 %
50 bps
(240) bpsOperating margin3.1 %
2.5 %
8.2 %
60 bps
(510) bpsIncome from operations$           11.4
$             7.6
$           22.2
50.0 %
(48.6) %Net (loss) income per share(0.21)
(0.10)
0.04
(110.0) %
(625.0) %

Non-GAAP Results
Q2
Q1
Q2
Change
FY 2026
FY 2026
FY 2025
Q/Q
Y/YGross margin61.8 %
60.0 %
61.1 %
180 bps
70 bpsOperating margin19.3 %
15.7 %
14.9 %
360 bps
440 bpsIncome from operations$           71.4
$           47.1
$           40.4
51.6 %
76.7 %Earnings per share 0.22
0.15
0.13
46.7 %
69.2 %

Net Revenue by Segment
Q2
Q1
Q2
Change
FY 2026
FY 2026
FY 2025
Q/Q
Y/YNetwork and Service Enablement$            291.5
$            216.0
$            199.9
35.0 %
45.8 %Optical Security and Performance Products77.8
83.1
70.9
(6.4) %
9.7 %Total$            369.3
$            299.1
$            270.8
23.5 %
36.4 %  Americas, Asia-Pacific and EMEA customers represented 46.3%, 29.3% and 24.4%, respectively, of total net revenue for the quarter ended December 27, 2025.As of December 27, 2025, the Company held $772.1 million in total cash, short-term investments and short-term restricted cash.As of December 27, 2025, the Company had $49.0 million aggregate principal amount of 1.625% Senior Convertible Notes, $250.0 million aggregate principal amount of 0.625% Senior Convertible Notes, $400 million aggregate principal amount of 3.75% Senior Notes and $600.0 million aggregate principal amount of Term Loan B with a total net carrying value of $1,275.1 million.During the fiscal quarter ended December 27, 2025, the Company generated $42.5 million of cash flows from operations.Restructuring PlanOn January 23, 2026, the Company approved a restructuring plan (the "Plan") to improve operational efficiencies, better align the Company's workforce with current business needs and strategic growth opportunities and includes integration of recently acquired businesses. The Plan includes a global workforce reduction, facilities rationalization and asset write-offs.The Company expects approximately 5% of its global workforce to be affected. The Company estimates it will incur total charges of approximately $32 million in connection with the Plan, including approximately $24 million in cash expenditures, primarily related to employee severance and related costs. The Company expects to recognize the majority of these charges by the end of June 2026 with the Plan substantially completed by the end of calendar 2026. The Company anticipates the Plan to result in approximately $30 million in annualized cost savings upon completion.The amount and timing of the financial impact may differ from the initial estimates provided.Business Outlook for the Third Quarter of Fiscal 2026 For the third quarter of fiscal 2026 ending March 28, 2026, the Company expects net revenue to be between $386 million to $400 million and non-GAAP EPS to be between $0.22 to $0.24.With respect to our expectations above, the Company has not reconciled GAAP net (loss) income per share to non-GAAP EPS in this press release because it is unable to provide a meaningful or accurate estimate of certain reconciling items described in the "Use of Non-GAAP (Adjusted) Financial Measures" section below and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of certain items, including certain charges related to restructuring, acquisition, integration and related charges. In addition, the Company believes such reconciliations would imply a degree of precision that may be confusing or misleading to investors.Conference CallThe Company will discuss these results and other related matters at 1:30 p.m. Pacific Time on January 28, 2026 in a live webcast, which will also be archived for replay on the Company's website at https://investor.viavisolutions.com. The Company will post supplementary slides outlining the Company's latest financial results on https://investor.viavisolutions.com under the "Quarterly Results" section concurrently with this earnings press release. This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at www.sec.gov.About VIAVI SolutionsVIAVI (NASDAQ: VIAV) is a global leader in test and measurement and optical technologies. Our test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications. In addition, we develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include any expectation, anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, profitability targets, cash flow and other financial metrics, as well as the impact and duration of certain trends and market position and conditions, including market stabilization and recovery. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, the Company's ability to predict future financial performance continues to be difficult due to, among other things: (a) continuing general limited visibility across many of our product lines; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) consolidations in our industry and customer base; (d) competitive pressures; (e) unforeseen changes or deceleration in the demand for current and new products, technologies, services, delays or unforeseen events in the roll-out of new industry platforms or evolving technology such as 3D sensing and customer purchasing delays due to macroeconomic conditions, tightening of expenditures or as they assess or transition to such new technologies and/or architectures, all of which limit near-term demand visibility, and could negatively impact potential revenue; (f) continued decline of average selling prices across our businesses; (g) notable seasonality and a significant level of in-quarter book-and-ship business; (h) various product and manufacturing transfers, site consolidations, product discontinuances and restructuring and workforce reduction plans, including the number of employees impacted by a restructuring plan, the estimated expenses the Company will recognize, the timing of these payments and expenses, and anticipated cost savings associated with such plans; (i) challenges in execution of business strategy; (j) financial projections and expectations, including profitability of certain business units, synergies, benefits and other matters related to the acquisition of the high-speed ethernet, network security and channel emulation testing business of Spirent Communications plc; (k) challenges integrating the businesses the Company has acquired and realizing all of the expected benefits and savings; (l) supply chain and materials constraints and the ability of our suppliers and contract manufacturers to meet production and delivery requirements to our forecasted demand; (m) potential disruptions or delays to our manufacturing and operations due to climate conditions and natural disasters in the regions where we operate, such as wildfires, drought conditions and related water shortages in Arizona, as well as wildfires in Northern California and related blackouts and power outages in that region; (n) the uncertain and ongoing impact to our supply chain of geopolitical tensions, such as the ongoing conflict between Russia and Ukraine and the instability in the Middle East, evolving global trade and tariff negotiations and the uncertain tariff landscape, sanctions and other trade measures imposed by domestic and foreign governments, adverse actions and escalating tensions with foreign governments, including China, and the possibility of escalation of "trade wars," cyber-attacks, and retaliatory measures; (o) the impact of infectious disease outbreaks, epidemics, and pandemics on our financial results, revenues, customer demand, business operations and manufacturing and on the business operations of our customers, contract manufacturers and suppliers; and (p) inherent uncertainty related to global markets, including inflationary pressures, recessions, tightening monetary policy and liquidity, and the effect of such markets on demand for our products. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For more information on the risks and uncertainties associated with the Company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements contained in this press release are made as of the date thereof and the Company assumes no obligation to update such statements. We have not filed our Form 10-Q for the quarter ended December 27, 2025. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file the Form 10-Q.Contact InformationInvestors:
Vibhuti Nayar
408-404-6305
vibhuti.nayar @JEG-8624
amit.malhotra@viavisolutions.comThe following financial tables are presented in accordance with GAAP, unless otherwise specified.-SELECTED PRELIMINARY FINANCIAL DATA -VIAVI SOLUTIONS INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in millions, except per share data)(unaudited)PRELIMINARY

Three Months Ended
Six Months Ended
December 27,
2025
December 28,
2024
December 27,
2025
December 28,
2024Net revenue$                369.3
$                270.8
$                668.4
$                509.0Cost of revenues146.2
106.7
269.4
205.5Amortization of acquired technologies12.5
3.3
19.4
6.6Gross profit210.6
160.8
379.6
296.9Operating expenses:

Research and development65.9
52.1
121.9
101.5Selling, general and administrative127.1
84.3
231.3
158.4Amortization of other intangibles6.3
1.0
7.8
2.1Restructuring and related (benefits) charges(0.1)
1.2
(0.4)
1.2Total operating expenses199.2
138.6
360.6
263.2Income from operations11.4
22.2
19.0
33.7Interest and other (expense) income, net(34.8)
3.9
(37.3)
7.1Interest expense(15.3)
(7.5)
(22.7)
(15.0)(Loss) income before income taxes and equity investment earnings(38.7)
18.6
(41.0)
25.8Provision for income taxes9.7
9.5
28.7
18.5Equity investment earnings0.3
—
0.2
—Net (loss) income$                (48.1)
$                    9.1
$                (69.5)
$                    7.3

Net (loss) income per share:

Basic$                (0.21)
$                  0.04
$                (0.31)
$                  0.03Diluted$                (0.21)
$                  0.04
$                (0.31)
$                  0.03

Shares used in per share calculations:

Basic223.9
222.0
223.4
222.0Diluted223.9
224.8
223.4
224.4
The preliminary financial statements are estimated based on our current information. VIAVI SOLUTIONS INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in millions, unaudited)PRELIMINARY

December 27, 2025
June 28, 2025ASSETS

Current assets:

Cash and cash equivalents$                         765.5
$                         423.6Short-term investments1.9
1.7Restricted cash4.7
3.7Accounts receivable, net284.6
261.0Inventories, net141.0
117.9Prepayments and other current assets80.9
77.3Total current assets1,278.6
885.2Property, plant and equipment, net227.4
231.9Goodwill, net704.4
595.7Intangibles, net418.6
131.6Deferred income taxes78.5
87.2Other non-current assets70.3
62.2Total assets$                     2,777.8
$                     1,993.8LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable$                           91.4
$                           68.8Accrued payroll and related expenses80.1
63.6Deferred revenue83.6
74.1Accrued expenses24.5
28.7Short-term debt53.4
246.2Other current liabilities156.6
108.3Total current liabilities489.6
589.7Long-term debt1,221.7
396.3Other non-current liabilities232.2
227.6Total liabilities1,943.5
1,213.6Total stockholders' equity834.3
780.2Total liabilities and stockholders' equity$                     2,777.8
$                     1,993.8
The preliminary financial statements are estimated based on our current information. VIAVI SOLUTIONS INC.REPORTABLE SEGMENT INFORMATION(in millions, unaudited)PRELIMINARY

Three Months Ended December 27, 2025

Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP MeasuresNet revenue$         291.5
$           77.8
$                  —
$         369.3

Gross profit$         188.6
$           39.5
$             (17.5)
$         210.6Gross margin64.7 %
50.8 %

57.0 %

Operating income$           45.4
$           26.0
$             (60.0)
$           11.4Operating margin15.6 %
33.4 %

3.1 %

Three Months Ended December 28, 2024

Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP MeasuresNet revenue$         199.9
$           70.9
$                  —
$         270.8

Gross profit$         129.5
$           35.9
$               (4.6)
$         160.8Gross margin64.8 %
50.6 %

59.4 %

Operating income$           17.4
$           23.0
$             (18.2)
$           22.2Operating margin8.7 %
32.4 %

8.2 %

Six Months Ended December 27, 2025

Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP MeasuresNet revenue$        507.5
$        160.9
$                  —
$        668.4

Gross profit$        324.7
$           83.0
$            (28.1)
$        379.6Gross margin64.0 %
51.6 %

56.8 %

Operating income $           61.7
$           56.8
$            (99.5)
$           19.0Operating margin12.2 %
35.3 %

2.8 %

Six Months Ended December 28, 2024

Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP MeasuresNet revenue$        359.3
$        149.7
$                  —
$        509.0

Gross profit$        226.6
$           79.5
$               (9.2)
$        296.9Gross margin63.1 %
53.1 %

58.3 %

Operating income $           10.1
$           54.2
$            (30.6)
$           33.7Operating margin2.8 %
36.2 %

6.6 %
(1) See Reconciliation of GAAP Measures from Continuing Operations to Non-GAAP Measures below for details of Other Items.
The preliminary financial schedules are estimated based on our current information.Use of Non-GAAP (Adjusted) Financial MeasuresThe Company provides non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP EPS financial measures as supplemental information regarding the Company's operational performance and believes providing this additional information allows investors to see Company results through the eyes of management, and better to evaluate more clearly and consistently the Company's core operational performance and expenses and evaluate the efficacy of the methodology used by management to measure such performance. The Company uses the measures disclosed in this release to evaluate the Company's historical and prospective financial performance, as well as its performance relative to its competitors. Specifically, management uses these items to further its own understanding of the Company's core operating performance, which the Company believes represents its performance in the ordinary, ongoing and customary course of its operations. Accordingly, management excludes from core operating performance items such as those relating to certain purchase price accounting adjustments, amortization of acquisition related intangibles, amortization expense related to acquisition related inventory step-up, stock-based compensation, legal settlements, restructuring, changes in fair value of contingent consideration liabilities, certain investing and acquisition related expenses and other activities and income tax expenses or benefits that management believes are not reflective of such ordinary, ongoing and core operating activities. The non-GAAP adjustments are outlined below. Cost of revenues, costs of research and development and costs of selling, general and administrative: The Company's GAAP presentation of gross margin and operating expenses may include (i) additional depreciation and amortization from changes in estimated useful life and the write-down of certain property, plant and equipment and intangibles, (ii) charges such as severance, benefits and outplacement costs related to restructuring plans with a specific and defined term, (iii) costs for facilities not required for ongoing operations, and costs related to the relocation of certain equipment from these facilities and/or contract manufacturer facilities, (iv) stock-based compensation, (v) amortization expense related to acquired intangibles, (vi) amortization expense related to acquisition related inventory step-up, (vii) changes in fair value of contingent consideration liabilities, (viii) acquisition related transaction and integration costs related to acquired entities, (ix) significant legal settlements and other contingencies and (x) other charges unrelated to our core operating performance comprised mainly of other costs and contingencies unrelated to current and future operations, including transformational initiatives such as the implementation of simplified automated processes, site consolidations, and reorganizations. The Company excludes these items in calculating non-GAAP operating margin, non-GAAP net income and non-GAAP EPS.Non-cash interest expense and other expense: The Company excludes certain expenses, including loss on debt extinguishment, accretion of debt discount, and other non-cash activities that management believes are not reflective of such ordinary, ongoing and core operating activities, when calculating non-GAAP net income and non-GAAP EPS.Income tax expense or benefit: The Company excludes certain non-cash tax expense or benefit items, such as (i) the utilization of net operating losses (NOLs) where valuation allowances were released, (ii) intra-period tax allocation benefit and (iii) the tax effect for amortization of non-tax deductible intangible assets, in calculating non-GAAP net income and non-GAAP EPS.Non-GAAP financial measures are not in accordance with, preferable to, or an alternative for, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to non-GAAP operating income is operating income. The GAAP measure most directly comparable to non-GAAP operating margin is operating margin. The GAAP measure most directly comparable to non-GAAP net income is net income. The GAAP measure most directly comparable to non-GAAP EPS is earnings per share.VIAVI SOLUTIONS INC.RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONSTO NON-GAAP MEASURES(in millions, except per share data)(unaudited)PRELIMINARYThe following tables reconcile GAAP measures to non-GAAP measures:

Three Months Ended
Six Months Ended
December 27, 2025
December 28, 2024
December 27, 2025
December 28, 2024
Gross
Profit
Gross Margin
Gross
Profit
Gross Margin
Gross
Profit
Gross Margin
Gross
Profit
Gross MarginGAAP measures $    210.6
57.0 %
$    160.8
59.4 %
$    379.6
56.8 %
$    296.9
58.3 %Stock-based compensation1.1
0.3 %
1.3
0.5 %
2.1
0.3 %
2.5
0.5 %Other charges unrelated to core operating performance 1.3
0.4 %
—
— %
1.4
0.2 %
0.1
— %Amortization of acquisition related inventory step-up2.6
0.7 %
—
— %
5.2
0.8 %
—
— %Amortization of intangibles12.5
3.4 %
3.3
1.2 %
19.4
2.9 %
6.6
1.3 %Total related to Cost of Revenues17.5
4.8 %
4.6
1.7 %
28.1
4.2 %
9.2
1.8 %Non-GAAP measures $    228.1
61.8 %
$    165.4
61.1 %
$    407.7
61.0 %
$    306.1
60.1 %

Three Months Ended
Six Months Ended
December 27, 2025
December 28, 2024
December 27, 2025
December 28, 2024
Operating Income
Operating Margin
Operating Income
Operating Margin
Operating Income
Operating Margin
Operating Income
Operating MarginGAAP measures$      11.4
3.1 %
$      22.2
8.2 %
$      19.0
2.8 %
$      33.7
6.6 %Stock-based compensation13.9
3.7 %
13.7
5.1 %
27.3
4.1 %
26.4
5.2 %Change in fair value of contingent liability10.8
2.9 %
(3.9)
(1.4) %
21.7
3.2 %
(7.4)
(1.4) %Acquisition and integration related charges7.8
2.1 %
2.8
1.0 %
11.7
1.8 %
3.4
0.7 %Other charges (benefits) unrelated to core operating performance (1)6.2
1.7 %
0.1
— %
6.8
1.0 %
(0.4)
(0.1) %Amortization of acquisition related inventory step-up2.6
0.7 %
—
— %
5.2
0.8 %
—
— %Amortization of intangibles18.8
5.1 %
4.3
1.6 %
27.2
4.1 %
8.7
1.7 %Restructuring and related (benefits) charges(0.1)
— %
1.2
0.4 %
(0.4)
(0.1) %
1.2
0.2 %Litigation settlement —
— %
—
— %
—
— %
(1.3)
(0.3) %Total related to Cost of Revenues and Operating Expenses60.0
16.2 %
18.2
6.7 %
99.5
14.9 %
30.6
6.0 %Non-GAAP measures$      71.4
19.3 %
$      40.4
14.9 %
$    118.5
17.7 %
$      64.3
12.6 %

Three Months Ended
Six Months Ended
December 27, 2025
December 28, 2024
December 27, 2025
December 28, 2024
Net (Loss) Income
Diluted EPS
Net Income
Diluted EPS
Net (Loss) Income
Diluted EPS
Net Income
Diluted EPSGAAP measures$     (48.1)
$     (0.21)
$        9.1
$      0.04
$     (69.5)
$     (0.31)
$        7.3
$      0.03Items reconciling GAAP Net Loss (Income) and EPS to Non-GAAP Net Income and EPS:

Stock-based compensation13.9
0.06
13.7
0.06
27.3
0.12
26.4
0.12Change in fair value of contingent liability10.8
0.05
(3.9)
(0.02)
21.7
0.10
(7.4)
(0.03)Acquisition and integration related charges7.8
0.03
2.8
0.01
11.7
0.05
3.4
0.02Other charges (benefits) unrelated to core operating performance (1)6.2
0.03
0.1
—
6.8
0.03
(0.4)
(0.01)Amortization of acquisition related inventory step-up2.6
0.01
—
—
5.2
0.02
—
—Amortization of intangibles18.8
0.08
4.3
0.02
27.2
0.12
8.7
0.04Restructuring and related (benefits) charges(0.1)
—
1.2
0.01
(0.4)
—
1.2
0.01   Litigation settlement —
—
—
—
—
—
(1.3)
(0.01)Non-cash interest expense and other expense (2)39.4
0.17
1.1
0.01
44.2
0.19
2.2
0.01Provision for income taxes0.2
—
1.0
—
10.4
0.05
1.7
0.01   Total related to Net Income and EPS99.6
0.43
20.3
0.09
154.1
0.68
34.5
0.16Non-GAAP measures $      51.5
$      0.22
$      29.4
$      0.13
$      84.6
$      0.37
$      41.8
$      0.19Shares used in per share calculation for Non-GAAP EPS

233.4

224.8

230.7

224.4
Note: Certain totals may not add due to rounding.(1) Included in the three and six months ended December 27, 2025 is $3.5 million of losses on disposal of long-lived assets, $2.1 million charge for restoration services for a VIAVI facility impacted by a fire and other charges unrelated to core operating performance. Included in the six months ended December 28, 2024 is a gain of $0.9 million on the sale of assets previously classified as held for sale and other charges unrelated to core operating performance of $0.5 million. (2) The Company incurred losses of $38.7 million and $42.5 million for the three and six months ended December 27, 2025, respectively, in connection with the extinguishment of certain 1.625% Senior Convertible Notes. The preliminary financial schedules are estimated based on our current information. VIAVI SOLUTIONS INC.RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONSTO ADJUSTED EBITDA(in millions, unaudited)PRELIMINARY

Three Months Ended
Six Months Ended
December 27,
2025
December 28,
2024
December 27,
2025
December 28,
2024GAAP Net (loss) income$                 (48.1)
$                     9.1
$                 (69.5)
$                     7.3Interest and other expense (income), net (1)34.8
(3.9)
37.3
(7.1)Interest expense15.3
7.5
22.7
15.0Provision for income taxes9.7
9.5
28.7
18.5Equity investment earnings(0.3)
—
(0.2)
—Depreciation10.0
9.8
19.8
19.5Amortization18.8
4.3
27.2
8.7EBITDA40.2
36.3
66.0
61.9Restructuring and related (benefits) charges(0.1)
1.2
(0.4)
1.2Stock-based compensation13.9
13.7
27.3
26.4Change in fair value of contingent liability10.8
(3.9)
21.7
(7.4)Acquisition and integration related charges7.8
2.8
11.7
3.4Other charges (benefits) unrelated to core operating performance (2)6.2
—
6.7
(1.9)Amortization of acquisition related inventory step-up2.6
—
5.2
—Adjusted EBITDA$                   81.4
$                   50.1
$                 138.2
$                   83.6
Note: Certain totals may not add due to rounding.(1) The Company incurred losses of $38.7 million and $42.5 million for the three and six months ended December 27, 2025, respectively, in connection with the extinguishment of certain 1.625% Senior Convertible Notes. (2) Included in the three and six months ended December 27, 2025 is $3.5 million of losses on disposal of long-lived assets, $2.1 million charge for restoration services for a VIAVI facility impacted by a fire and other charges unrelated to core operating performance. Included in the six months ended December 28, 2024 is a gain on litigation settlement of $1.3 million, a gain on the sale of assets previously classified as held for sale of $0.9 million and other charges unrelated to core operating performance of $0.3 million. The preliminary financial schedules are estimated based on our current information.

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Original: VIAVI Announces Second Quarter Fiscal 2026 Results