Luminar Q2 net loss narrows to $130.6 million; debt restructuring deal reached

Luminar Technologies Inc. said its second-quarter net loss shrunk slightly to $130.6 million.

The lidar supplier also announced on Aug. 6 a major debt restructuring agreement with investors.

The company's second-quarter net loss narrowed almost 8 percent from the $141.7 million loss it posted in the second quarter of 2023, Luminar said in a statement. The Orlando, Fla., company said it generated a 2 percent increase in revenue to $16.5 million.

During the second quarter, Luminar adjusted product design and scope for Iris Plus, a lidar product, with the lead customer, said CFO Tom Fennimore.

"This revision resulted in largely noncash accounting adjustments this quarter to both revenue and gross loss," Fennimore said during an investor call August 6. "Specifically, it resulted in a $4 million sequential decline in revenue."

The company also cited a $10 million contract loss contributing to its financial results for the quarter.

Luminar entered private negotiations with certain noteholders to exchange its existing convertible notes, the statement said.

"These noteholders will exchange, at a 35 percent discount, $422 million of convertible debt, due in 2026, into $274 million of new convertible senior secured notes maturing in January of 2030," Fennimore said.

The investors are also providing Luminar with $100 million of new capital in nonconvertible, nondilutive senior secured notes. Fennimore said this transaction was the "first and most important step" in improving the company's balance sheet. This was another part of a debt restructuring plan that included the layoff of 20 percent of Luminar's workforce in May 2024.

Shares in Luminar plunged 37 percent to 88 cents on Aug. 7. The shares traded up 4.5 percent to 92 cents in afternoon trading on Aug. 8.