Applied Optoelec Financials
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
Applied Optoelec has an operating margin of -28.4%, meaning the company retains $-28 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is down from -19.0% the prior year.
Applied Optoelec's revenue grew 14.6% year-over-year to $249.4M, a solid pace of expansion. This earns a growth score of 70/100.
Applied Optoelec carries a low D/E ratio of 0.00, meaning only $0.00 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
Applied Optoelec's current ratio of 1.77 indicates adequate short-term liquidity, earning a score of 51/100. The company can meet its near-term obligations, though with limited headroom.
While Applied Optoelec generated -$69.5M in operating cash flow, capex of $43.4M consumed most of it, leaving -$112.9M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Applied Optoelec passes 1 of 9 financial strength tests. 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.
For every $1 of reported earnings, Applied Optoelec generates $0.37 in operating cash flow (-$69.5M OCF vs -$186.7M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Applied Optoelec earns $-10.4 in operating income for every $1 of interest expense (-$70.9M vs $6.8M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
This page shows Applied Optoelec (AAOI) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Applied Optoelec generated $249.4M in revenue in fiscal year 2024. This represents an increase of 14.6% from the prior year.
Applied Optoelec's EBITDA was -$50.3M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 140.2% from the prior year.
Applied Optoelec generated -$112.9M in free cash flow in fiscal year 2024, representing cash available after capex. This represents a decrease of 564.0% from the prior year.
Applied Optoelec reported -$186.7M in net income in fiscal year 2024. This represents a decrease of 233.2% from the prior year.
Applied Optoelec earned $-4.50 per diluted share (EPS) in fiscal year 2024. This represents a decrease of 157.1% from the prior year.
Applied Optoelec held $67.4M in cash against $0 in long-term debt as of fiscal year 2024.
Applied Optoelec had 49M shares outstanding in fiscal year 2024. This represents an increase of 29.5% from the prior year.
Applied Optoelec's gross margin was 24.8% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is down 2.3 percentage points from the prior year.
Applied Optoelec's operating margin was -28.4% in fiscal year 2024, reflecting core business profitability. This is down 9.4 percentage points from the prior year.
Applied Optoelec's net profit margin was -74.9% in fiscal year 2024, showing the share of revenue converted to profit. This is down 49.1 percentage points from the prior year.
Applied Optoelec invested $55.0M in research and development in fiscal year 2024. This represents an increase of 52.8% from the prior year.
Applied Optoelec invested $43.4M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents an increase of 378.1% from the prior year.
AAOI Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $118.6M+15.2% | $103.0M+3.1% | $99.9M-0.4% | $100.3M+131.7% | $43.3M+6.4% | $40.7M-32.7% | $60.5M-3.3% | $62.5M |
| Cost of Revenue | $85.4M+18.9% | $71.8M+3.6% | $69.3M-3.1% | $71.5M+112.2% | $33.7M+1.9% | $33.1M-14.8% | $38.8M-8.3% | $42.4M |
| Gross Profit | $33.3M+6.7% | $31.2M+2.0% | $30.5M+6.3% | $28.7M+200.5% | $9.6M+26.0% | $7.6M-64.9% | $21.6M+7.1% | $20.2M |
| R&D Expenses | $21.3M+3.2% | $20.6M+15.7% | $17.8M+6.4% | $16.7M+28.0% | $13.1M+11.7% | $11.7M+25.4% | $9.3M-1.2% | $9.5M |
| SG&A Expenses | $20.3M+10.5% | $18.4M+12.7% | $16.3M+10.1% | $14.8M-11.9% | $16.8M+22.5% | $13.7M+2.8% | $13.4M-7.0% | $14.4M |
| Operating Income | -$18.2M-13.8% | -$16.0M-78.8% | -$8.9M-38.1% | -$6.5M+75.3% | -$26.2M-21.2% | -$21.6M-377.7% | -$4.5M+32.2% | -$6.7M |
| Interest Expense | $902K+10.3% | $818K-12.4% | $934K-46.8% | $1.8M+3.7% | $1.7M+1.0% | $1.7M-46.4% | $3.1M+57.2% | $2.0M |
| Income Tax | $0 | $0 | $0-100.0% | $2K | $0 | $0-100.0% | $1K | $0 |
| Net Income | -$17.9M-97.1% | -$9.1M+0.8% | -$9.2M+92.3% | -$119.7M-358.3% | -$26.1M-12.7% | -$23.2M-67.2% | -$13.9M-54.8% | -$9.0M |
| EPS (Diluted) | $-0.28-75.0% | $-0.16+11.1% | $-0.18+93.6% | $-2.82-327.3% | $-0.66-10.0% | $-0.60-71.4% | $-0.35-29.6% | $-0.27 |
AAOI Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $978.5M+22.8% | $796.9M+23.6% | $644.7M+17.8% | $547.0M+57.2% | $348.0M-0.8% | $350.9M-9.8% | $389.2M+4.1% | $373.8M |
| Current Assets | $575.3M+25.5% | $458.3M+27.7% | $358.8M+19.1% | $301.3M+126.6% | $133.0M-0.5% | $133.6M-22.6% | $172.6M+5.0% | $164.4M |
| Cash & Equivalents | $137.0M+111.7% | $64.7M+26.5% | $51.1M-24.2% | $67.4M+532.9% | $10.7M+26.3% | $8.4M-81.4% | $45.4M+106.8% | $21.9M |
| Inventory | $170.2M+22.6% | $138.9M+35.7% | $102.3M+16.1% | $88.1M+62.2% | $54.3M0.0% | $54.3M-14.9% | $63.9M-5.4% | $67.5M |
| Accounts Receivable | $224.0M+5.9% | $211.5M+23.6% | $171.1M+46.5% | $116.8M+102.6% | $57.7M+0.3% | $57.5M+19.6% | $48.1M-20.9% | $60.8M |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $419.4M+12.8% | $371.9M+10.8% | $335.7M+5.6% | $317.9M+96.8% | $161.5M+4.1% | $155.2M-11.0% | $174.3M-10.8% | $195.4M |
| Current Liabilities | $249.1M+14.9% | $216.8M+13.5% | $191.0M+12.3% | $170.1M+110.1% | $80.9M+8.5% | $74.6M-20.1% | $93.4M-50.4% | $188.2M |
| Long-Term Debt | $0 | $0-100.0% | $1.8M | $0 | $0-100.0% | $4.3M | $0 | $0 |
| Total Equity | $559.1M+31.6% | $425.0M+37.5% | $309.0M+34.9% | $229.1M+22.9% | $186.5M-4.7% | $195.7M-8.9% | $214.9M+20.5% | $178.4M |
| Retained Earnings | -$488.1M-3.8% | -$470.1M-2.0% | -$461.0M-2.0% | -$451.9M-43.7% | -$314.4M-9.1% | -$288.3M-8.7% | -$265.1M-5.5% | -$251.3M |
AAOI Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$28.5M+56.5% | -$65.5M-28.6% | -$50.9M-106.8% | -$24.6M-1137.6% | -$2.0M+93.0% | -$28.5M-1937.5% | $1.6M+110.1% | -$15.3M |
| Capital Expenditures | $50.2M+97.2% | $25.5M-10.3% | $28.4M0.0% | $28.4M+853.0% | $3.0M-48.3% | $5.8M-6.5% | $6.2M+323.6% | $1.5M |
| Free Cash Flow | -$78.7M+13.5% | -$91.0M-14.7% | -$79.3M-49.6% | -$53.0M-966.9% | -$5.0M+85.5% | -$34.2M-642.1% | -$4.6M+72.5% | -$16.8M |
| Investing Cash Flow | -$50.5M-29.8% | -$38.9M-7.1% | -$36.3M-24.0% | -$29.3M-616.7% | -$4.1M+49.4% | -$8.1M+15.9% | -$9.6M-195.7% | -$3.2M |
| Financing Cash Flow | $152.3M+20.9% | $126.0M+79.9% | $70.0M-22.0% | $89.7M+1887.4% | $4.5M+418.6% | -$1.4M-104.5% | $31.3M+48.6% | $21.1M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
AAOI Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.0%-2.2pp | 30.3%-0.3pp | 30.6%+1.9pp | 28.6%+6.5pp | 22.1%+3.4pp | 18.7%-17.1pp | 35.7%+3.5pp | 32.3% |
| Operating Margin | -15.3%+0.2pp | -15.5%-6.6pp | -8.9%-2.5pp | -6.5%+54.2pp | -60.7%-7.4pp | -53.2%-45.7pp | -7.5%+3.2pp | -10.7% |
| Net Margin | -15.1%-6.3pp | -8.8%+0.3pp | -9.2%+110.2pp | -119.4%-59.0pp | -60.4%-3.4pp | -57.0%-34.1pp | -22.9%-8.6pp | -14.3% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | -1.8%-0.7pp | -1.1%+0.3pp | -1.4%+20.5pp | -21.9%-14.4pp | -7.5%-0.9pp | -6.6%-3.0pp | -3.6%-1.2pp | -2.4% |
| Current Ratio | 2.31+0.2 | 2.11+0.2 | 1.88+0.1 | 1.77+0.1 | 1.64-0.1 | 1.79-0.1 | 1.85+1.0 | 0.87 |
| Debt-to-Equity | 0.000.0 | 0.000.0 | 0.010.0 | 0.000.0 | 0.00-0.0 | 0.02+0.0 | 0.000.0 | 0.00 |
| FCF Margin | -66.3%+22.0pp | -88.3%-8.9pp | -79.4%-26.6pp | -52.8%-41.4pp | -11.5%+72.7pp | -84.2%-76.6pp | -7.6%+19.2pp | -26.9% |
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Frequently Asked Questions
What is Applied Optoelec's annual revenue?
Applied Optoelec (AAOI) reported $249.4M in total revenue for fiscal year 2024. This represents a 14.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Applied Optoelec's revenue growing?
Applied Optoelec (AAOI) revenue grew by 14.6% year-over-year, from $217.6M to $249.4M in fiscal year 2024.
Is Applied Optoelec profitable?
No, Applied Optoelec (AAOI) reported a net income of -$186.7M in fiscal year 2024, with a net profit margin of -74.9%.
What is Applied Optoelec's earnings per share (EPS)?
Applied Optoelec (AAOI) reported diluted earnings per share of $-4.50 for fiscal year 2024. This represents a -157.1% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Applied Optoelec's EBITDA?
Applied Optoelec (AAOI) had EBITDA of -$50.3M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Applied Optoelec have?
As of fiscal year 2024, Applied Optoelec (AAOI) had $67.4M in cash and equivalents against $0 in long-term debt.
What is Applied Optoelec's gross margin?
Applied Optoelec (AAOI) had a gross margin of 24.8% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Applied Optoelec's operating margin?
Applied Optoelec (AAOI) had an operating margin of -28.4% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Applied Optoelec's net profit margin?
Applied Optoelec (AAOI) had a net profit margin of -74.9% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is Applied Optoelec's free cash flow?
Applied Optoelec (AAOI) generated -$112.9M in free cash flow during fiscal year 2024. This represents a -564.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Applied Optoelec's operating cash flow?
Applied Optoelec (AAOI) generated -$69.5M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Applied Optoelec's total assets?
Applied Optoelec (AAOI) had $547.0M in total assets as of fiscal year 2024, including both current and long-term assets.
What are Applied Optoelec's capital expenditures?
Applied Optoelec (AAOI) invested $43.4M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does Applied Optoelec spend on research and development?
Applied Optoelec (AAOI) invested $55.0M in research and development during fiscal year 2024.
How many shares does Applied Optoelec have outstanding?
Applied Optoelec (AAOI) had 49M shares outstanding as of fiscal year 2024.
What is Applied Optoelec's current ratio?
Applied Optoelec (AAOI) had a current ratio of 1.77 as of fiscal year 2024, which is generally considered healthy.
What is Applied Optoelec's debt-to-equity ratio?
Applied Optoelec (AAOI) had a debt-to-equity ratio of 0.00 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Applied Optoelec's return on assets (ROA)?
Applied Optoelec (AAOI) had a return on assets of -34.1% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Applied Optoelec's cash runway?
Based on fiscal year 2024 data, Applied Optoelec (AAOI) had $67.4M in cash against an annual operating cash burn of $69.5M. This gives an estimated cash runway of approximately 12 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Applied Optoelec's Piotroski F-Score?
Applied Optoelec (AAOI) has a Piotroski F-Score of 1 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Applied Optoelec's earnings high quality?
Applied Optoelec (AAOI) has an earnings quality ratio of 0.37x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Applied Optoelec cover its interest payments?
Applied Optoelec (AAOI) has an interest coverage ratio of -10.4x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Applied Optoelec?
Applied Optoelec (AAOI) scores 44 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.