AAOI earnings analysis
What we found in AAOI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Applied Optoelectronics reported Q1 2026 results with a revenue of $151.1 million, representing a significant increase of 51.4% year-over-year, but missing the consensus estimate of $155.1 million. The company posted a net loss of $14.3 million, with an EPS of -$0.07, falling short of the estimated -$0.06 per share.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth Y/Y
- Revenue increased by $51.3 million, or 51.4%, from $99.9M in Q1 2025 to $151.1M.
- Data Center Segment Surge
- Data Center revenue soared 154.0%, contributing $81.4M, up from $32.0M in Q1 2025.
- Cash Reserves Strong
- Cash, cash equivalents and restricted cash totaled $449.4 million as of March 31, 2026.
- Increased Costs Offset Margin
- Despite higher revenue, gross margin decreased to 29.1% from 30.6% due to rising costs.
- Operating Expenses Rise
- Total operating expenses increased by 44.1% to $56.9 million, impacting net income negatively.
- Investments in Capacity Expansion
- $58.2 million in capital expenditures for capacity expansion, indicating commitment to future growth.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Continued Net Losses
- Net loss increased by 55.7% year-over-year to $14.3 million.
- Heavy Customer Concentration
- 74.5% of accounts receivable tied to Digicomm, presenting a risk of significant revenue loss.
- Supply Chain Vulnerability
- Trade tensions and tariffs could disrupt supply chains, impacting product delivery and costs.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.07
- Gross margin
- 29.1%
- Operating margin
- -8.6%
- Segment
- Data Center
- Segment
- CATV
- Segment
- Telecom
- Segment
- FTTH
What they said about what is next.
Management expects demand trends to continue, with Q2 revenue guidance of $180M to $198M.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 26, 2026
- Applied Optoelectronics reported strong top-line growth in 2025 with revenue of $455.7 million (up from $249.4M in 2024) and gross margin expanding to 30.0% in 2025 (from 24.8% in 2024). The company emphasizes a…
- 10-Q · November 7, 2024
- Applied Optoelectronics reported quarterly revenue of $65,151,000 (up from $62,547,000 year‑over‑year) but profitability deteriorated: gross profit fell to $15,917,000 and the company recorded a GAAP net loss of…
- 10-Q · November 9, 2023
- Q3 2023 results showed revenue improvement and margin recovery but the company remains loss-making with weakening short-term liquidity. Revenue increased to $62,547,000 and gross margin expanded to 32.3%, narrowing…
- 10-Q · August 4, 2022
- Applied Optoelectronics reported Q2 revenue of $52,299,000, down from $54,189,000 a year earlier, with gross profit falling to $8,628,000 and net loss widening to $14,456,000 (GAAP EPS $(0.52)). Management remains…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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