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 datacenter product growth and major hyperscale customer wins for 800G and 1.6T products.

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 rose to 31.2% from 28.7% year-over-year; non-GAAP gross margin was 31.4%, above guidance.

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

• FY 2025 revenue rose 83% year-over-year to $456 million; GAAP gross margin improved to 30.0%.

• 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%.

• Non-GAAP net income for Q1 projected as a loss of $7 million to $0.3 million; EPS between a loss of $0.09 and break even.

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

• Sequential revenue growth anticipated in the first half of 2026, accelerating in the second half as new capacity comes online.