Companies /Technology

Applied Optoelectronics Inc

NASDAQ: AAOI Communication Equipment
$112.47
▼ $1.29 (−1.13%) today
Markets open · 2:08pm ET

Q2 2025 Earnings

Reported Aug 7, 2025, 12:11pm ET · SEC source
$-0.16
Miss −116.22%
EPS · est. $-0.07
$103.0M
Miss −2.70%
Revenue · est. $105.8M
+26.0%
Beating market
AAOI vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0+4%Aug 7Aug 8report 12:11pm ETearnings+0.9%−3.5%
−8%−4%0+4%Aug 7Aug 8earnings+0.9%−3.5%
AAOI −3.5%S&P 500 +0.9%
−5%0+5%Aug 7Aug 8report 12:11pm ETearnings+1.1%−3.2%
−5%0+5%Aug 7Aug 8earnings+1.1%−3.2%
AAOI −3.2%NASDAQ +1.1%
−10%−5%0+5%Aug 6Aug 15report 12:11pm ETearnings+2.1%+0.3%
−10%−5%0+5%Aug 6Aug 15earnings+2.1%+0.3%
AAOI +0.3%S&P 500 +2.1%
−10%−5%0+5%Aug 6Aug 15report 12:11pm ETearnings+1.7%+0.3%
−10%−5%0+5%Aug 6Aug 15earnings+1.7%+0.3%
AAOI +0.3%NASDAQ +1.7%
−3.31%
Day of report
−3.38%
Next session
+3.59%
One week
+28.39%
30 days

S&P 500 over the same 30 days: +2.36%.

Did AAOI Beat Earnings? Q2 2025 Results

Applied Optoelectronics delivered a sharply mixed second quarter, posting revenue of $102.95 million — up 137.9% year over year — while missing badly on the bottom line, with a GAAP loss of $0.16 per share against a consensus estimate of $0.08, a 100% shortfall that rattled investors even as the top-line growth told a different story. The revenue surge was fueled by a dramatic rebound in the company's CATV segment, which climbed to $56.02 million from just $5.82 million a year ago, alongside solid datacenter growth to $44.79 million. The earnings miss stemmed primarily from surging operating expenses, particularly R&D spending that jumped to $20.61 million as AOI pushed toward 800G transceiver qualification with a major hyperscale customer — an effort management believes is in its final stages, with meaningful shipments expected in the second half of 2025. A director's $405,700 insider purchase shortly after results underscored some confidence in the trajectory. Looking ahead, AOI guided Q3 revenue of $115 million to $127 million, with investors already watching <a href="https://247wallst.com/investing/2026/02/26/live-applied-optoelectronics-aaoi-reports-q4-earnings-tonight/">what comes next</a> as 800G ramp nears.

Key Takeaways
  • Strong CATV revenue growth from $5.8 million to $56.0 million year-over-year
  • Datacenter revenue growth from $34.4 million to $44.8 million year-over-year
  • GAAP gross margin expansion to 30.3% from 22.1% in Q2 2024
  • Diversified revenue streams across datacenter and CATV businesses

“We're pleased to deliver revenue and gross margin in line with our expectations. While EPS came in below our expectations primarily due to elevated operating expenses, the inherent strength of our business fundamentals was apparent with strong year-over-year top line growth and gross margin expansion.”

Applied Optoelectronics CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, AOI expects revenue in the range of $115 million to $127 million, non-GAAP gross margin of 29.5% to 31.0%, and non-GAAP net loss per share in the range of $0.10 to $0.03 using approximately 62.3 million shares. The company continues to believe it will produce meaningful shipments of 800G products sometime in the second half of 2025 and expects to exit 2025 with production capacity of over 100,000 units of 800G transceivers per month, with 40% produced in the US.

AAOI YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$40.0M$80.0M$43.3M$103.0MRevenue$9.6M$31.2MGross Profit$-11,482,786$-15,976,000Operating Income$-5,508,598$-9,098,000Net Income
$0$40.0M$80.0MRevenueGross ProfitOperating IncomeNet Income

AAOI Revenue by Segment

Datacenter$44.8M
CATV$56.0M
Telecom$1.9M
Other$202,000

Figures from SEC filings and company reports. Not investment advice.