"Revenue in Q4 increased by approximately 9%, both sequentially and year-over-year, driven primarily by strong growth in our datacom transceivers for AI data-centric deployments."
— Jim Anderson
03Detailed Report
COHR
Company COHR
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
Coherent Inc reported QQ4 2024 revenue of $1.314 billion, up 8.7% sequentially and 9.1% year-over-year, driven primarily by strength in the datacom transceiver business related to AI data-center deployments. Non-GAAP gross margin expanded to 37.2% (+135 bp QoQ), while GAAP gross margin rose to 32.9% (+255 bp) as the company resolved transitory margin pressures from Q3. Despite top-line strength and margin improvement, the quarter produced a GAAP net loss of about $79.9 million (EPS -$0.52) with a negative net income margin (~-6.1%), reflecting ongoing structural costs and tax dynamics. Cash generation remained solid: operating cash flow of $162 million and free cash flow of approximately $62 million in Q4, while total debt ended the period around $4.30 billion with unrestricted cash near $926 million. Management signaled a strategic portfolio review to reallocate capital to growth and profit engines, with explicit plans to divest noncore assets and accelerate deleveraging. The company plans to host an Investor and Analyst Meeting to articulate targets, including a longer-term gross margin framework and growth model. In the near term, management sees resilient datacom demand, continued softness in telecom and certain industrial end markets, and ongoing emphasis on pricing discipline and cost-improvement initiatives to push gross margins higher over time.
Key Performance Indicators
Revenue
Increasing
1.31B
QoQ: 8.73% | YoY: 9.07%
Gross Profit
Increasing
431.94M
32.86% margin
QoQ: 17.86% | YoY: 25.80%
Operating Income
Increasing
77.32M
QoQ: 128.51% | YoY: 314.00%
Net Income
Increasing
-79.85M
QoQ: -505.54% | YoY: 55.20%
EPS
Increasing
-0.52
QoQ: -79.31% | YoY: 59.38%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $1.314B (+8.7% QoQ; +9.1% YoY). Gross margin (GAAP) 32.9% (+255bp QoQ; +437bp YoY); Gross margin (non-GAAP) 37.2% (+135bp QoQ; +132bp YoY). Operating margin (GAAP) 4.8% (+296bp QoQ; +~?) ; Operating margin (non-GAAP) 17.0% (+191bp QoQ; +162bp YoY). Net income (GAAP) -$79.9M; EPS (GAAP) -$0.52; Net income margin -6.08%. EPS (non-GAAP) $0.61; Free cash flow $62.4M. Operating cash flow $162.3M; Capex $99.9M. Cash at end of period $927M; Total debt $4.303B; Net debt $3.378B. Backlog and orders: datacom growth and 800G ramp cited; 1.6T samples delivered and ramp expected in 2025.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.31B
9.07%
8.73%
Gross Profit
431.94M
25.80%
17.86%
Operating Income
77.32M
314.00%
128.51%
Net Income
-79.85M
55.20%
-505.54%
EPS
-0.52
59.38%
-79.31%
Key Financial Ratios
Gross Profit Margin
Fair
32.90%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
5.88%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Weak
-0.06%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.01%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
2.72
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
-34.75x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
1.47x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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