Lidar maker Luminar declares bankruptcy; Quantum Computing to buy subsidiary

Luminar Technologies Inc. yesterday said that it has voluntarily initiated Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. The company has also agreed to sell its Luminar Semiconductors Inc. subsidiary to Quantum Computing Inc. for $110 million.

“These transactions provide Luminar with the best opportunity to maximize value for all of its stakeholders,” stated Paul Ricci, CEO of Luminar. “Over the past six months, we have taken meaningful steps to drive operational discipline, streamline our cost structure, and sharpen our strategic direction, but our legacy debt obligations and the pace of industry adoption have challenged our ability to operate the business in a sustainable way.”

“After a comprehensive review of our alternatives, the board determined that a court-supervised sale process is the best path forward,” he added. “As we navigate this process, our top priority is to continue delivering the same quality, reliability and service our customers have come to expect from us.”

Founded in 2012 by then-17-year-old Austin Russell, Luminar built sensors from the chip level up using the 1550nm wavelength, increasing the resolution, range, and reaction time for autonomous vehicles. The Orlando, Fla.-based company said it developed proprietary lidar hardware, software, semiconductor, and photonics technologies in-house to meet the performance demands and scalability requirements for transport, security, and other industrial applications.

Luminar was a bright point in the lidar landscape

In 2019, Luminar raised $100 million. In 2020, it entered a deal with special-purpose acquisition company (SPAC) Gores Metropoulos Inc. and raised $170 million. Luminar was valued at about $3.4 billion at that time.

In 2023, the company expanded its offerings to include 3D mapping software and continued to ride high.

While Tesla Inc. has focused on vision-based advanced driver-assistance systems (ADAS) and autonomy, it became one of Luminar’s biggest customers, reportedly contributing more than $2 million, or over 10%, of its first-quarter 2024 revenue.

Disputes hit earnings

In May 2025, Russell was ousted as CEO after an ethics inquiry by an audit committee of the company’s board of directors. He then tried to buy the company back.

In September, Luminar entered forbearance proceedings. In November, Volvo terminated its contract with the company, deciding against putting its lidar sensors in Volvo EX90 or ES90 model cars because the lidar supplier allegedly did not meet its commitments. Luminar said it was about $505.7 million in debt.

Despite its Q3 2025 revenue being up 21% year over year for a total of $18.7 million, the company reported declining profit and income, with operating expenses of $66.6 million for the quarter. It suspended its guidance for the fiscal year ending Dec. 31, 2025.

LSI operations to continue despite bankruptcy proceedings

Luminar Technologies said it has entered Chapter 11 with the support of about 91.3% of its first lien noteholders and approximately 85.9% of its second lien noteholders. That ad hoc group will facilitate the sales of its LiDARCo business and the equity of the Luminar Semiconductors Inc. (LSI) subsidiary using $25 million cash on hand.

“LSI is not a debtor in Luminar’s Chapter 11 cases and its operations are expected to be unaffected,” said the company. The Quantum Computing Inc. (QCi) purchase of LSI is subject to better offers under Section 363 of the Bankruptcy Code. Luminar will be auctioning its lidar business and LSI equity to the highest bidder next month.

During the Chapter 11 cases, Luminar said it expects to continue operating and working with its suppliers and partners to minimize disruptions and maintain delivery of its lidar hardware and software. The company has has filed a number of customary “first day motions” to continue paying its employees and honor commitments to customers, vendors, and partners.

More information about Luminar’s bankruptcy proceedings is available from its claims agent, Omni Agent Solutions. The company said it is still “analyzing and evaluating potential strategic alternatives and initiatives to improve liquidity.”