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AAOI

Applied Optoelectronics, Inc.

AAOI

Applied Optoelectronics, Inc. • NASDAQ
$26.78 ▲ 4.73% (+1.21)
Market Cap $1.83 B
52w High $44.50
52w Low $9.71
Dividend Yield 0%
P/E -7.74
Volume 3.59M
Outstanding Shares 68.28M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $118.63M ▲ $51.45M ▲ $-17.936M ▼ -15.119% ▼ $-0.28 ▼ $-10.119M ▼
Q2-2025 $102.952M ▲ $47.138M ▲ $-9.098M ▲ -8.837% ▲ $-0.16 ▲ $-1.88M ▲
Q1-2025 $99.859M ▼ $39.481M ▲ $-9.172M ▲ -9.185% ▲ $-0.18 ▲ $-2.513M ▲
Q4-2024 $100.271M ▲ $35.201M ▲ $-119.691M ▼ -119.368% ▼ $-2.6 ▼ $-112.579M ▼
Q3-2024 $65.151M $32.464M $-17.757M -27.255% $-0.42 $-10.824M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $136.961M ▲ $978.528M ▲ $419.443M ▲ $559.085M ▲
Q2-2025 $64.699M ▲ $796.85M ▲ $371.869M ▲ $424.981M ▲
Q1-2025 $51.144M ▼ $644.668M ▲ $335.655M ▲ $309.013M ▲
Q4-2024 $67.428M ▲ $547.032M ▲ $317.92M ▲ $229.112M ▲
Q3-2024 $34.124M $409.972M $197.886M $212.086M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-17.936M ▼ $-28.462M ▲ $-50.478M ▼ $152.255M ▲ $63.522M ▲ $-78.815M ▲
Q2-2025 $-9.098M ▲ $-65.474M ▼ $-38.893M ▼ $125.979M ▲ $20.384M ▲ $-90.953M ▼
Q1-2025 $-9.172M ▲ $-50.915M ▼ $-36.301M ▼ $70.014M ▼ $-12.322M ▼ $-79.369M ▼
Q4-2024 $-119.691M ▼ $-24.616M ▼ $-29.27M ▼ $89.711M ▲ $37.766M ▲ $-53.127M ▼
Q3-2024 $-17.757M $-14.44M $-9.271M $49.371M $25.249M $-20.498M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
CATV
CATV
 $60.00M ▲$60.00M ▲$60.00M ▲$70.00M ▲
Data Center
Data Center
 $80.00M ▲$30.00M ▼$40.00M ▲$40.00M ▲
Product and Service Other
Product and Service Other
 $0 ▲$0 ▲$0 ▲$0 ▲
Telecom
Telecom
 $10.00M ▲$0 ▼$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been fairly steady over the past several years, with only modest growth. The company is consistently generating a positive gross profit, which shows its products do carry some economic value. However, operating results remain in the red, and net losses have actually deepened in the most recent year. That suggests that while AAOI can sell its products, its overall cost base, including research, production, and overhead, still outweighs what it earns, and profitability is not yet in sight on a full-year basis.

Balance Sheet

Balance Sheet The balance sheet shows a business that is asset-heavy for its size and still investing in its platform. Cash has improved compared with earlier years, which offers a bit more breathing room, but debt has also crept higher, so leverage is something to watch. Equity has recovered somewhat after earlier erosion, yet cumulative losses mean the capital base is not especially thick. Overall, the balance sheet is workable but not robust, and it leaves limited room for major missteps or prolonged downturns without additional capital or improvements in earnings.

Cash Flow

Cash Flow The company has not been generating meaningful cash from its core operations; cash flow from the business has been negative for several years. Free cash flow is also consistently negative, reflecting a combination of operating losses and ongoing, though measured, investment in equipment and facilities. Capital spending itself is not extreme, but because the business is not self-funding, AAOI still depends on its cash reserves and outside financing to support growth and cover day-to-day needs. This keeps cash management and access to capital markets important risk factors.

Competitive Edge

Competitive Edge AAOI operates in a demanding corner of the semiconductor and optical components market, serving data centers and cable networks. Its main strategic edge is its vertically integrated model, where it designs and manufactures its own lasers and optical components instead of relying heavily on third parties. This can support better control over cost, quality, and speed of product development. The firm has meaningful relationships with large cloud and hyperscale customers and a solid niche in cable TV infrastructure. However, competition is fierce, with large, well-capitalized rivals in high-speed optics, and AAOI’s small size and ongoing losses limit its ability to absorb setbacks compared with bigger players.

Innovation and R&D

Innovation and R&D Innovation is a clear focus. AAOI is pushing into next-generation high‑speed optical modules used in AI and cloud data centers, including advanced 400G, 800G, and planned 1.6T products. Its expertise in laser fabrication and multiple production technologies gives it a technical depth that is not easy to replicate. The company is also leaning into industry shifts like linear pluggable optics and potential co‑packaged optics, which could be important for future data center architectures. The risk is that turning cutting‑edge prototypes into profitable, high‑volume products requires flawless execution, large upfront investment, and winning enough design slots with key customers, all while larger competitors chase the same opportunities.

Summary

AAOI combines a technically differentiated product strategy with a still-fragile financial profile. It has built real strengths in vertically integrated laser and optical technology and is targeting fast-growing areas like AI and cloud networking, while maintaining a more stable base in cable infrastructure. At the same time, it remains loss‑making, cash‑consumptive, and modestly leveraged, with only a moderate equity cushion. The story is one of a smaller, innovative player trying to scale up in a highly competitive market: upside depends on successful ramp‑up of new high‑speed products and margin improvement, while key risks revolve around execution, competition, and the company’s ability to sustain investment until profitability improves.

NEWS

November 25, 2025 · 4:15 PM UTC

Applied Optoelectronics to Present at the Raymond James 2025 TMT & Consumer Conference

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November 6, 2025 · 4:10 PM UTC

Applied Optoelectronics Reports Third Quarter 2025 Results

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November 4, 2025 · 4:10 PM UTC

Applied Optoelectronics Announces Equity Grants To Employees Under Inducement Plan

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October 28, 2025 · 7:00 AM UTC

AOI Announces Expansion in the City of Sugar Land

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October 16, 2025 · 4:15 PM UTC

Applied Optoelectronics Announces Date of Third Quarter 2025 Financial Results Conference Call

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