‘For the quarter, we posted revenue of $1.209 billion, which was above the high end of our guidance and non-GAAP EPS of $0.53, which was also above the high end of our guidance.’
— Chuck Mattera
03Detailed Report
COHR
Company COHR
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
Coherent Inc delivered a solid Q3 2024 performance with a 7% sequential revenue gain to $1.209 billion and a notable improvement in non-GAAP earnings per share (EPS) of $0.53, surpassing the high end of guidance. Operating cash flow reached $117 million, and the company reduced leverage by retiring $58 million of debt while refinancing the term loan B to improve interest margins. Management simultaneously reiterated a constructive long-term AI/datacom thesis, supported by a broadening 800G customer base and ongoing secular demand for AI-centered data center bandwidth. However, GAAP and non-GAAP margins were lagging plan in Q3, reflecting one-time or transitory margin headwinds, which the company expects to address through higher volume, mix benefits, and ongoing efficiency initiatives.
Key Performance Indicators
Revenue
Decreasing
1.21B
QoQ: 6.84% | YoY: -2.53%
Gross Profit
Decreasing
366.49M
30.32% margin
QoQ: 4.58% | YoY: -12.77%
Operating Income
Decreasing
33.84M
QoQ: 11.61% | YoY: -50.24%
Net Income
Decreasing
-13.19M
QoQ: 51.14% | YoY: -617.95%
EPS
Decreasing
-0.29
QoQ: 23.68% | YoY: -20.83%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $1.2089B (YoY -2.53%; QoQ +6.84%). Gross profit: $366.5M; gross margin 30.32%. Operating income: $33.84M; operating margin 2.80%. EBITDA: $186.57M. Net income: -$13.19M; net margin -1.09%; EPS: -$0.29 (diluted). GAAP vs non-GAAP: Q3 non-GAAP gross margin below prior guidance, but non-GAAP operating margin aligned with guidance. Cash from operations: $117.43M; capex: $93.24M; free cash flow: $24.19M. Balance sheet highlights: cash and cash equivalents $898.58M; total debt $4.334B; net debt $3.436B; total assets $14.520B; total stockholders’ equity $7.669B. Liquidity and leverage: current ratio 2.71; quick ratio 1.723; debt to capitalization 0.361; interest coverage 0.465. The company maintains a robust cash position but carries meaningful leverage with a sizable deferred revenue balance of $18.971B (non-current portion data and revenue recognition dynamics warrant ongoing scrutiny).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.21B
-2.53%
6.84%
Gross Profit
366.49M
-12.77%
4.58%
Operating Income
33.84M
-50.24%
11.61%
Net Income
-13.19M
-617.95%
51.14%
EPS
-0.29
-20.83%
23.68%
Key Financial Ratios
Gross Profit Margin
Fair
30.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
2.80%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.01%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.00%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
2.71
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Moderate
0.57
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Negative
-173.06x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
1.19x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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