Applied Optoelectronics (AAOI) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and full-year 2025 results, driven by robust demand in CATV and data center segments, capping the strongest year in company history.

• Expanded manufacturing capacity to support next-generation data center product growth and entered 2026 with strong momentum.

Financial highlights

• Q4 2025 revenue reached $134.3 million, up 34% year-over-year and 13% sequentially, in line with guidance.

• Q4 2025 GAAP gross margin was 31.2%, non-GAAP gross margin was 31.4%, both above prior year; Q4 non-GAAP loss per share was $0.01.

• Q4 2025 GAAP net loss was $2 million ($0.03/share), a significant improvement from $119.7 million loss in Q4 2024.

• FY 2025 revenue rose 83% year-over-year to $456 million; CATV revenue nearly tripled to $245 million, data center revenue up 32% to $196 million.

• Ended Q4 with $216 million in cash equivalents and $67.3 million in debt (excluding convertible debt).

Outlook and guidance

• Q1 2026 revenue expected between $150 million and $165 million, with non-GAAP gross margin of 29%-31%.

• Q1 2026 non-GAAP net loss expected between $7 million and $0.3 million, or $0.09 loss per share to breakeven.

• 2026 revenue projected to exceed $1 billion with non-GAAP operating profit over $120 million, limited by production capacity, not demand.

• Sequential revenue growth expected in the first two quarters, with acceleration in the second half as new capacity comes online.