Applied Optoelectronics Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.47%.
Did AAOI Beat Earnings? Q3 2025 Results
Applied Optoelectronics delivered a mixed third quarter, posting dramatic revenue growth that masked a deeper-than-expected bottom-line shortfall. Revenue surged 82.1% year-over-year to $118.63 million, powered by record CATV segment performance — where $70.60 million in quarterly revenue, fueled by strong demand for 1.8 GHz amplifier products, marked the highest CATV result in company history. Yet the earnings picture disappointed, with a non-GAAP loss of $0.09 per share falling well short of the $0.01 consensus estimate, a miss of 800%. The gap reflected ongoing investment in capacity expansion and R&D spending of $21.27 million, as well as a $5.55 million unrealized foreign exchange headwind. Datacenter revenue of $43.94 million came in slightly below internal expectations due to quarter-end shipping delays, though management signaled that its 800G transceiver qualification is nearing completion with several customers. For Q4, AOI guided revenue of $125 million to $140 million, with investors closely watching whether that 800G ramp materializes — a pivotal test the company faces as <a href="https://247wallst.com/investing/2026/02/26/live-applied-optoelectronics-aaoi-reports-q4-earnings-tonight/">its next earnings report</a> approaches.
- Record quarterly CATV revenue driven by strong demand for 1.8 GHz amplifier products
- Broad-based appeal of amplifiers and QuantumLink software across largest and new customers
- Improved gross margins both on GAAP and non-GAAP basis year-over-year
“We successfully delivered revenue, gross margin, and non-GAAP EPS in line with our expectations. We continued to see strong demand in our CATV business, driven by the continued ramp in orders for our 1.8 GHz amplifier products. We believe that the appeal of our amplifiers and QuantumLink software is broad-based, which was evident by the continued momentum we saw with our largest customer as well as new customers during the quarter, and which led to the highest quarterly CATV revenue in our Company's history.”
Applied Optoelectronics CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, AOI expects revenue of $125 million to $140 million, non-GAAP gross margin of 29% to 31%, and non-GAAP net loss of $9.0 million to $2.8 million (loss per share of $0.13 to $0.04 on approximately 70.3 million shares). The company expects to produce meaningful shipments of 800G products in Q4 and plans to exit the year with production capacity of approximately 100,000 units of 800G transceivers per month, with about 35% produced in the U.S.
AAOI YoY Financials
AAOI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.