Slides
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Fiscal Q2 2026 Earnings Call Supplementary Slides January 28, 2026
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VIAVI//Public © 2025 Viavi Solutions Inc. 1 Cautionary Language Concerning Forward-Looking Statements This presentation contains forward-looking statements under Section 27A of the Securities Act of 1934. Forward-looking statements are all statements we make other than those dealing specifically with historical matters. These forward-looking statements include, among other things, financial guidance and our expectations regarding the acquired business. Please refer to the Company’s filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed on August 11, 2025 and our quarterly report on Form 10-Q filed October 30, 2025 for additional factors that could cause actual results to materially differ from current expectations. The forward-looking statements included in this presentation are valid only as of today’s date except where otherwise noted. Viavi Solutions Inc. undertakes no obligation to update these statements. This presentation and the Q&A that follows include non-GAAP financial measures which complement the Company’s preliminary consolidated GAAP financial statements. These non-GAAP financial measures are not intended to supersede or replace the Company’s preliminary GAAP financials. We provide a detailed reconciliation of preliminary GAAP results to the non-GAAP results in the Appendix to this presentation and in the “Preliminary Reconciliation of GAAP Measures to Non-GAAP Measures” schedule in our earnings release issued today. This earnings release is located in the Investor Relations section of our web site at https://investor.viavisolutions.com. Note: Amounts presented in all slides are on a continuing operations basis unless otherwise noted.
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2VIAVI//Public © 2025 Viavi Solutions Inc. 69.2% Y/Y 76.7% Y/Y 36.4% Y/Y Fiscal Q2 2026 Summary and Key Highlights (Amounts in $millions, except per share amounts, and other than revenue reflect non-GAAP) KEY METRICS HIGHLIGHTS ■ Revenue at the high end of the guidance range. ■ Non-GAAP Operating Margin and Non-GAAP EPS above the high end of the guidance range. ■ Generated operating cash flow of $42.5 million and free cash flow of $36.9 million in Q2FY26. ■ Incurred capex of $5.6 million. ■ No share repurchase during the quarter as we prioritized debt management. Revenue $369.3M Non-GAAP Operating Income $71.4M Non-GAAP Operating Margin 19.3% Non-GAAP EPS $0.22 440 bps Y/Y
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3VIAVI//Public © 2025 Viavi Solutions Inc. Capital Allocation Activities ■ 1.625% Convertible Notes due March 2026 ■ Successfully exchanged principal amount of ~$103.5M for 7.9M shares of VIAVI ‘s common stock at a price per share of $17.88. ■ Remaining principal amount of $49M to be repaid in cash on or about March 16, 2026 in line with maturity. Principal amount due will be paid in cash, associated premium will be settled in shares with with fractional shares paid in cash. ■ Prepaid $100M of the $600M of our Term Loan B on January 5, 2026.
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4VIAVI//Public © 2025 Viavi Solutions Inc. Fiscal 2026 Restructuring Plan ■ On January 23, 2026, we approved a restructuring and workforce reduction plan to improve operational efficiencies and better align workforce and resources with our current business needs and strategic priorities. ■ The plan includes global workforce reduction, facilities rationalization and asset write-offs. ■ Expect to impact ~5% of our global workforce. ■ Plan to be substantially completed by end of December 2026. ■ Estimate to incur ~$32M of restructuring charges ■ Includes ~$24M in cash expenditure related to employee severance and related costs. ■ Expect to incur majority of these charges by the end of June 2026. ■ Estimate ~$30M of annual cost savings once plan is substantially completed (end of December 2026) ■ Includes ~ $16M of synergies from our acquisition of Spirent’s product lines. ■ Intend to reinvest a portion of these savings within higher growth areas of our business.
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5VIAVI//Public © 2025 Viavi Solutions Inc. Fiscal Q2 2026 NSE Highlights (Amounts in $millions and other than revenue reflect non-GAAP) NSE HIGHLIGHTS ■ Revenue at $291.5 million at the high end of our guidance range of $283-$293 million, up 45.8% Y/Y driven by ■ Acquisitions of Inertial Labs and Spirent products lines. ■ Strong demand for lab and production and field products mainly driven from the data center ecosystem. ■ Gross Margin at 64.7%, decreased 10 basis points Y/Y ■ Operating Margin at 15.6% above the high end of guidance range primarily driven by higher fall through. Revenue $291.5M Gross Margin 64.7% Operating Margin 15.6% The Company does not allocate stock-based compensation, acquisition-related charges, amortization of intangibles, restructuring, impairment of goodwill or other charges unrelated to core operating performance to its segments. All non-GAAP amounts are reconciled to the corresponding GAAP amounts at the entity level in the Appendix section. 45.8% Y/Y (10) bps Y/Y 690 bps Y/Y
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6VIAVI//Public © 2025 Viavi Solutions Inc. 9.7% Y/Y Fiscal Q2 2026 OSP Highlights (Amounts in $millions and other than revenue reflect non-GAAP) OSP HIGHLIGHTS ■ Revenue at $77.8 million, slightly above the guidance of ~$77 million and increased 9.7% Y/Y, primarily as a result of strength in Anti-Counterfeiting and other products. ■ Gross Margin at 50.8%, increased 20 basis points Y/Y ■ Operating Margin at 33.4%, marginally below guidance range of 33.5%-34.5% due to slightly higher variable costs. Revenue $77.8M Gross Margin 50.8% Operating Margin 33.4% 20 bps Y/Y 100 bps Y/Y The Company does not allocate stock-based compensation, acquisition-related charges, amortization of intangibles, restructuring, impairment of goodwill or other charges unrelated to core operating performance to its segments. All non-GAAP amounts are reconciled to the corresponding GAAP amounts at the entity level in the Appendix section.
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7VIAVI//Public © 2025 Viavi Solutions Inc. Fiscal Q3 2026 Business Outlook SEGMENT BUSINESS OUTLOOK Revenue VIAVI $386 million to $400 million NSE $304 million to $316 million OSP $82 million to $84 million Non-GAAP Operating Margin VIAVI 19.7%, plus or minus 50 bps NSE 15.5%, plus or minus 50 bps OSP 35.3%, plus or minus 50 bps Non-GAAP EPS $0.22 to $0.24 Non-GAAP Tax $9.0 million, plus or minus $0.5 million Non-GAAP Other (Income) & Expense $12.5 million Non-GAAP Share Count 245.0 million With respect to our business outlook above, the Company has not reconciled GAAP measures to non-GAAP measures presented above.
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8VIAVI//Public © 2025 Viavi Solutions Inc. DATE EVENT LOCATION Feb 26, 2026 Susquehanna's Fifteenth Annual Technology Conference New York, NY Mar 2 - 5,2026 Mobile World Conference Barcelona March 17, 2026 OFC Los Angeles Fiscal Q3 2026 Events
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Additional Financial Information
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10VIAVI//Public © 2025 Viavi Solutions Inc. Fiscal Q2 2026 Financial Highlights (Amounts in $millions, except per share amounts) FISCAL QUARTER Q2 2026 Q1 2026 Q2 2025 QOQ YOY GAAP Revenue NSE $291.5 $216.0 $199.9 35.0% 45.8% OSP $77.8 $83.1 $70.9 (6.4%) 9.7% Total $369.3 $299.1 $270.8 23.5% 36.4% Non-GAAP Gross Margin NSE 64.7% 63.0% 64.8% 170 bps (10 bps) OSP 50.8% 52.3% 50.6% (150 bps) 20 bps Total 61.8% 60.0% 61.1% 180 bps 70 bps Non-GAAP Operating Margin NSE 15.6% 7.5% 8.7% 810 bps 690 bps OSP 33.4% 37.1% 32.4% (370 bps) 100 bps Total 19.3% 15.7% 14.9% 360 bps 440 bps Non-GAAP Earnings Per Share $0.22 $0.15 $0.13 46.7% 69.2% GAAP Operating Cash Flow $42.5 $31.0 $44.7 37.1% (4.9%) All non-GAAP amounts are reconciled to the corresponding GAAP amounts in the Appendix section.
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11VIAVI//Public © 2025 Viavi Solutions Inc. Revenue by Business Segment and Geographic Region (Amounts in $millions) FISCAL QUARTER Q2 2026 Q1 2026 Q2 2025 QOQ YOY Segment Mix NSE $291.5 78.9% $216.0 72.2% $199.9 73.8% 35.0% 45.8% OSP $77.8 21.1% $83.1 27.8% $70.9 26.2% (6.4%) 9.7% Total $369.3 100.0% $299.1 100.0% $270.8 100.0% 23.5% 36.4% Region Mix Americas $170.9 46.3% $128.8 43.1% $116.1 42.9% 32.7% 47.2% Asia-Pacific $108.1 29.3% $92.1 30.8% $93.6 34.6% 17.4% 15.5% EMEA $90.3 24.4% $78.2 26.1% $61.1 22.5% 15.5% 47.8% Total $369.3 100.0% $299.1 100.0% $270.8 100.0% 23.5% 36.4%
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12VIAVI//Public © 2025 Viavi Solutions Inc. (1) Includes cash and cash-equivalents, short-term investments and short-term restricted cash. (2) Carrying value equals outstanding principal amount less the unamortized debt issuance costs and discount costs. Face amount for short-term debt is $53.5 million related to the 2026 1.625% Convertible Notes and Term Loan B. (3) Carrying value equals outstanding principal amount less the unamortized debt issuance costs. Face amount for long-term debt is $1,245.5 million related to the 2029 3.75% High-Yield Notes and 2031 0.625% Convertible Notes and Term Loan B. FISCAL QUARTER Q2 2026 Total Cash Balance (1) $772.1 Short-term Debt (Carrying Value) (2) $53.4 Long-term Debt (Carrying Value) (3) $1,221.7 GAAP Cash from Operations $42.5 Balance Sheet Highlights (Amounts in $millions)
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13VIAVI//Public © 2025 Viavi Solutions Inc. Term Notes Summary 2026 SENIOR CONVERTIBLE NOTES 2029 HIGH-YIELD NOTES 2031 SENIOR CONVERTIBLE NOTES TERM LOAN B Issue Size $250.0M $400.0M $250.0M $600.0M Current Outstanding * $49.0M $400.0M $250.0M $600.0M** Coupon 1.625% 3.75% 0.625% SOFR + 250 bps*** Final Maturity 3/15/2026 10/1/2029 3/1/2031 10/16/2032 Put Date N/A N/A N/A N/A Call Date 3/20/2025 10/1/2024 9/6/2028 N/A Call / Put Price (%) 100% N/A 100% N/A Conversion Price $13.19 N/A $13.79 N/A Shares Underlying * 3.7M N/A 18.1M N/A Settlement Par in Cash; Balance in stock & cash Par in Cash Par in Cash; Balance in stock & cash Par in Cash * As of December 27, 2025 ** $100.0M prepaid on January 5, 2026 *** The spread steps down from 250 bps to 225 bps when first lien leverage ratio is less than or equal to 0.9.
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14VIAVI//Public © 2025 Viavi Solutions Inc. FISCAL QUARTER Q2 2026 Q1 2026 Q2 2025 QOQ YOY GAAP Revenue $369.3 $299.1 $270.8 23.5% 36.4% Non-GAAP Gross Margin 61.8% 60.0% 61.1% 180 bps 70 bps Non-GAAP Operating Expenses $156.7 $132.5 $125.0 18.3% 25.4% Non-GAAP Operating Profit $71.4 $47.1 $40.4 51.6% 76.7% Non-GAAP Operating Margin 19.3% 15.7% 14.9% 360 bps 440 bps Non-GAAP Net Income $51.5 $33.1 $29.4 55.6% 75.2% Non-GAAP EPS $0.22 $0.15 $0.13 $0.07 $0.09 Income Statement (Amounts in $millions, except per share amounts) All non-GAAP amounts are reconciled to the corresponding GAAP amounts in the Appendix section.
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15VIAVI//Public © 2025 Viavi Solutions Inc. GAAP Income Statement (Amounts in $millions, except per share amounts) UNAUDITED Q2 2026 Q1 2026 Q2 2025 QOQ YOYGAAP INCOME STATEMENT Net revenue $ 369.3 $ 299.1 $ 270.8 23.5 % 36.4 % Cost of revenues 146.2 123.2 106.7 18.7 % 37.0 % Amortization of acquired technologies 12.5 6.9 3.3 81.2 % 278.8 % Total cost of revenues 158.7 130.1 110.0 22.0 % 44.3 % Gross profit 210.6 169.0 160.8 24.6 % 31.0 % Operating expenses: Research and development 65.9 56.0 52.1 17.7 % 26.5 % Selling, general and administrative 127.1 104.2 84.3 22.0 % 50.8 % Amortization of other intangibles 6.3 1.5 1.0 320.0 % 530.0 % Restructuring and related (benefits) charges (0.1) (0.3) 1.2 (66.7) % (108.3) % Total operating expenses 199.2 161.4 138.6 23.4 % 43.7 % Income from operations 11.4 7.6 22.2 50.0 % (48.6) % Interest income and other (expense) income (34.8) (2.5) 3.9 1292.0 % (992.3) % Interest expense (15.3) (7.4) (7.5) 106.8 % 104.0 % (Loss) Income before income taxes and equity investment earnings (38.7) (2.3) 18.6 1582.6 % (308.1) % Provision for Income Taxes 9.7 19.0 9.5 (48.9) % 2.1 % Equity investment earnings (losses) 0.3 (0.1) — (400.0) % NM Net (loss) income $ (48.1) $ (21.4) $ 9.1 124.8 % 628.6 % Net (loss) income per share, basic $ (0.21) $ (0.10) $ 0.04 110.0 % (625.0) % Net (loss) income per share, diluted $ (0.21) $ (0.10) $ 0.04 110.0 % (625.0) % Shares used in per-share calculation (basic) 223.9 222.9 222.0 0.4 % 0.9 % Shares used in per-share calculation (diluted) 223.9 222.9 224.8 0.4 % (0.4) % UNAUDITED Q2 2026 Q1 2026 Q2 2025 QOQ YOY% TOTAL GAAP REVENUE Gross margin 57.0 % 56.5 % 59.4 % 50 bps (240 bps) Research and development 17.8 % 18.7 % 19.2 % (90 bps) (140 bps) Selling, general and administrative 34.4 % 34.8 % 31.1 % (40 bps) 330 bps Total operating expenses 53.9 % 54.0 % 51.2 % (10 bps) 270 bps Operating margin 3.1 % 2.5 % 8.2 % 60 bps (510 bps) NM - Percentage change considered not meaningful
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16VIAVI//Public © 2025 Viavi Solutions Inc. Non-GAAP Income Statement (Amounts in $millions, except per share amounts) UNAUDITED Q2 2026 Q1 2026 Q2 2025 QoQ YoYNON-GAAP INCOME STATEMENT Net revenue $ 369.3 $ 299.1 $ 270.8 23.5 % 36.4 % Cost of revenues 141.2 119.5 105.4 18.2 % 34.0 % Gross profit 228.1 179.6 165.4 27.0 % 37.9 % Operating expenses: Research and development 60.8 53.5 49.8 13.6 % 22.1 % Selling, general and administrative 95.9 79.0 75.2 21.4 % 27.5 % Total operating expenses 156.7 132.5 125.0 18.3 % 25.4 % Income from operations 71.4 47.1 40.4 51.6 % 76.7 % Interest and other expense, net (10.7) (5.1) (2.5) 109.8 % 328.0 % Income before income taxes and equity investment earnings (losses) 60.7 42.0 37.9 44.5 % 60.2 % Provision for income tax 9.5 8.8 8.5 8.0 % 11.8 % Equity investment earnings (losses) 0.3 (0.1) — (400.0) % NM Net income $ 51.5 $ 33.1 $ 29.4 55.6 % 75.2 % Net income per share, basic $ 0.23 $ 0.15 $ 0.13 53.3 % 76.9 % Net income per share, diluted $ 0.22 $ 0.15 $ 0.13 46.7 % 69.2 % Shares used in per-share calculation (basic) 223.9 222.9 222.0 0.4 % 0.9 % Shares used in per-share calculation (diluted) 233.4 227.9 224.8 2.4 % 3.8 % UNAUDITED Q2 2026 Q1 2026 Q2 2025 QoQ YoY% TOTAL REVENUE Gross margin 61.8 % 60.0 % 61.1 % 180 bps 70 bps Research and development 16.5 % 17.9 % 18.4 % (140 bps) (190 bps) Selling, general and administrative 26.0 % 26.4 % 27.8 % (40 bps) (180 bps) Total operating expenses 42.4 % 44.3 % 46.2 % (190 bps) (380 bps) Operating margin 19.3 % 15.7 % 14.9 % 360 bps 440 bps NM - Percentage change considered not meaningful
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Appendix
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18VIAVI//Public © 2025 Viavi Solutions Inc. Reconciliation of GAAP Measures to Non-GAAP Measures (Amounts in $millions) UNAUDITED Q2 2026 Q1 2026 Q2 2025 QOQ YOYGross Profit - GAAP to Non-GAAP Reconciliation GAAP segment gross profit $ 210.6 $ 169.0 $ 160.8 24.6 % 31.0 % Stock-based compensation 1.1 1.0 1.3 10.0 % (15.4) % Amortization of intangibles 12.5 6.9 3.3 81.2 % 278.8 % Other charges unrelated to core operating performance (1) 1.3 0.1 — 1200.0 % NM Amortization of acquisition related inventory step-up 2.6 2.6 — — % NM Non-GAAP gross profit $ 228.1 $ 179.6 $ 165.4 27.0 % 37.9 % UNAUDITED Q2 2026 Q1 2026 Q2 2025 QOQ YOYOperating Income - GAAP to Non-GAAP Reconciliation GAAP operating income $ 11.4 $ 7.6 $ 22.2 50.0 % (48.6) % Stock-based compensation 13.9 13.4 13.7 3.7 % 1.5 % Amortization of intangibles 18.8 8.4 4.3 123.8 % 337.2 % Change in fair value of contingent liability 10.8 10.9 (3.9) (0.9) % (376.9) % Acquisition and integration related charges 7.8 3.9 2.8 100.0 % 178.6 % Other charges unrelated to core operating performance (1) 6.2 0.6 0.1 933.3 % 6100.0 % Amortization of acquisition related inventory step-up 2.6 2.6 — — % NM Restructuring and related (benefits) charges (0.1) (0.3) 1.2 (66.7) % (108.3) % Non-GAAP operating income $ 71.4 $ 47.1 $ 40.4 51.6 % 76.7 % UNAUDITED Q2 2026 Q1 2026 Q2 2025 QOQ YOYNet Income GAAP to Non-GAAP Reconciliation GAAP net (loss) income $ (48.1) $ (21.4) $ 9.1 124.8 % (628.6) % Stock-based compensation 13.9 13.4 13.7 3.7 % 1.5 % Amortization of intangibles 18.8 8.4 4.3 123.8 % 337.2 % Restructuring and related (benefits) charges (0.1) (0.3) 1.2 (66.7) % (108.3) % Change in fair value of contingent liability 10.8 10.9 (3.9) (0.9) % (376.9) % Acquisition and integration related charges 7.8 3.9 2.8 100.0 % 178.6 % Other charges unrelated to core operating performance (1) 6.2 0.6 0.1 933.3 % 6100.0 % Amortization of acquisition related inventory step-up 2.6 2.6 — — % NM Non-cash interest expense 39.4 4.8 1.1 720.8 % 3481.8 % Income Taxes 0.2 10.2 1.0 (98.0) % (80.0) % Non-GAAP net income $ 51.5 $ 33.1 $ 29.4 55.6 % 75.2 % (1) Other charges consists of legal settlements, transformational initiatives, intangible impairment and net losses related to long-lived assets. NM - Percentage change considered not meaningful
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19VIAVI//Public © 2025 Viavi Solutions Inc. Financial Information by Segment (Amounts in $millions and other than revenue reflect non-GAAP) UNAUDITED Q2 2026 Q1 2026 Q2 2025 QOQ YOYSEGMENT RESULTS ($ in millions) Net revenue: Network and Service Enablement 291.5 216.0 199.9 35.0 % 45.8 % Optical Securities and Performance Products 77.8 83.1 70.9 (6.4) % 9.7 % Total net revenue $ 369.3 $ 299.1 $ 270.8 23.5 % 36.4 % Gross profit Network and Service Enablement 188.6 136.1 129.5 38.6 % 45.6 % Optical Securities and Performance Products 39.5 43.5 35.9 (9.2) % 10.0 % Total segment gross profit $ 228.1 $ 179.6 $ 165.4 27.0 % 37.9 % Operating income Network and Service Enablement $ 45.4 $ 16.3 $ 17.4 178.5 % 160.9 % Optical Securities and Performance Products 26.0 30.8 23.0 (15.6) % 13.0 % Total segment operating income $ 71.4 $ 47.1 $ 40.4 51.6 % 76.7 % UNAUDITED Q2 2026 Q1 2026 Q2 2025 QOQ YOYREVENUE BY SEGMENT (%) Network and Service Enablement 78.9 % 72.2 % 73.8 % 670 bps 510 bps Optical Securities and Performance Products 21.1 % 27.8 % 26.2 % (670 bps) (510 bps) The Company does not allocate stock-based compensation, acquisition-related charges, amortization of intangibles, restructuring, impairment of goodwill or other charges unrelated to core operating performance to its segments. All non-GAAP amounts are reconciled to the corresponding GAAP amounts at the entity level in the Appendix section.
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20VIAVI//Public © 2025 Viavi Solutions Inc. Condensed Balance Sheet (Amounts in $millions) UNAUDITED Q4 2025 Q2 2026BALANCE SHEET (in millions) ASSETS Current assets: Cash and cash equivalents $ 423.6 $ 765.5 Short-term investments 1.7 1.9 Restricted cash 3.7 4.7 Accounts receivable, net 261.0 284.6 Inventories, net 117.9 141.0 Prepayments and other current assets 77.3 80.9 Total current assets 885.2 1,278.6 Property, plant and equipment, net 231.9 227.4 Goodwill, net 595.7 704.4 Intangibles, net 131.6 418.6 Deferred income taxes 87.2 78.5 Other non-current assets 62.2 70.3 Total assets $ 1,993.8 $ 2,777.8 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 68.8 $ 91.4 Accrued payroll and related expenses 63.6 80.1 Deferred revenue 74.1 83.6 Accrued expenses 28.7 24.5 Short-term debt 246.2 53.4 Other current liabilities 108.3 156.6 Total current liabilities 589.7 489.6 Long-term debt 396.3 1,221.7 Other non-current liabilities 227.6 232.2 Total stockholders’ equity 780.2 834.3 Total liabilities and stockholders’ equity $ 1,993.8 $ 2,777.8