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Earnings analysis · 10-Q

AAOI earnings analysis

Filed May 7, 2026 · Our reading of the company's report

The latest report

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…

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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.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

32% Gross margin Operating margin Aug 2021 May 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $71 Operating expenses $38 Left as operating profit $-9

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Aug 2021 May 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$-0.07
Segment
Data Center
Segment
CATV
Segment
Telecom
Segment
FTTH

What stood out

  • 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.

What to watch

  • 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.

Management's outlook

Management expects demand trends to continue, with Q2 revenue guidance of $180M to $198M.

Earlier filings 4

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 itself. Analysis can contain errors; check the source document for full context.