What is Applied Optoelectronics, Inc.'s earnings per share (EPS)?

Applied Optoelectronics, Inc. (AAOI) reported diluted earnings per share of -$0.64 for fiscal year 2025. This represents a 85.8% 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.

Applied Optoelectronics, Inc. (AAOI) Financials

AAOI

FY2025 annual

Revenue $455.7M +82.8% YoY

Net Income -$38.2M +79.5% YoY

EPS (Diluted) -$0.64 +85.8% YoY

Free Cash Flow -$353.6M -213.1% YoY

Market Cap $9.3B as of Oct 10, 2026

Price / Sales 15.6x on $596.0M revenue, trailing 12 months to June 30, 2026

Price / Earnings n/m net loss, so no earnings multiple, trailing 12 months to June 30, 2026

Price / Book 5.6x on $1.7B equity, Q2 FY2026

A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 10, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period Q2 FY2026, ended Jun 30, 2026 Reported Aug 6, 2026 Currency USD FYE December

Newest figures come from the 10-Q for Q2 FY2026, filed Aug 6, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the AAOI SEC filings page.

Applied Optoelectronics, Inc. (AAOI) reported $455.7M in revenue for fiscal year 2025, up 82.8% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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).

Rhea AI AAOI FY2025 2026-10-03

Revenue and margins improved sharply in FY2025, but expansion consumed cash and depended heavily on new financing.

Profitability improved without a cash turnaround: better margins were outweighed by heavier investment as the business expanded. Operating cash flow was -$174M while capital spending reached $179M, showing that reported earnings improvement currently requires substantial reinvestment.

Revenue reached $455.7M in FY2025 and gross margin reached 30.0%, indicating the larger sales base carried better economics. Operating margin was still -12.0%, but it was materially less negative than FY2024's -28.4%, suggesting fixed operating costs absorbed more of the expansion.

Financing supplied $527.9M in FY2025, while long-term debt ended at $0. Shares outstanding rose from 49.7M to 75.2M, reinforcing that expansion was funded mainly through equity issuance rather than borrowing; the current ratio also improved to 2.6x, providing more short-term balance-sheet capacity.

Financial Health Signals

Financial Health Score 54/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Applied Optoelectronics, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability

Applied Optoelectronics, Inc. has an operating margin of -12.0%, meaning the company loses $12 on every $100 of revenue. This results in a profitability score of 30/100. This is up from -28.4% the prior year.

Growth

Applied Optoelectronics, Inc.'s revenue surged 82.8% year-over-year to $455.7M, reflecting rapid business expansion. This strong growth earns a score of 94/100.

Leverage

Applied Optoelectronics, Inc. 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 90/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

With a current ratio of 2.63, Applied Optoelectronics, Inc. holds $2.63 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 73/100.

Cash Flow

Applied Optoelectronics, Inc.'s operations used $174.4M of cash, and capex of $179.1M added to the outflow, for a free cash flow shortfall of $353.6M. This results in a cash flow score of 5/100.

Returns

Applied Optoelectronics, Inc. posts a -5.2% return on equity (ROE), meaning it loses $5 for every $100 of shareholders' equity. This results in a returns score of 31/100. This is up from -81.5% the prior year.

Altman Z-Score Safe

12.93

Applied Optoelectronics, Inc. scores 12.93, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($9.3B) relative to total liabilities ($434.5M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Neutral

4/9

Applied Optoelectronics, Inc. passes 4 of 9 financial strength tests. 1 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality No Cash Backing

N/A

Applied Optoelectronics, Inc. reported a net loss of $38.2M while operations used $174.4M of cash. With neither figure positive, the ratio between the two carries no quality signal.

Interest Coverage At Risk

N/A

Applied Optoelectronics, Inc. reported an operating loss of $54.6M against $3.5M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.

Key Financial Metrics

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Earnings & Revenue

Revenue

$191.9M

YoY+86.4%

QoQ+27.0%

5Y CAGR+28.8%

10Y CAGR+13.3%

Applied Optoelectronics, Inc. generated $191.9M in revenue in Q2 2026. This represents an increase of 86.4% from the same quarter a year earlier. Against the prior quarter it is up 27.0%.

EBITDA

-$14.2M

YoY-50.1%

QoQ-278.2%

Applied Optoelectronics, Inc.'s EBITDA was -$14.2M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 50.1% from the same quarter a year earlier. Against the prior quarter it is down 278.2%.

Net Income

-$22.8M

YoY-150.4%

QoQ-59.5%

Applied Optoelectronics, Inc. reported -$22.8M in net income in Q2 2026. This represents a decrease of 150.4% from the same quarter a year earlier. Against the prior quarter it is down 59.5%.

EPS (Diluted)

-$0.28

YoY-75.0%

QoQ-47.4%

Applied Optoelectronics, Inc. earned -$0.28 per diluted share (EPS) in Q2 2026. This represents a decrease of 75.0% from the same quarter a year earlier. Against the prior quarter it is down 47.4%.

Cash & Balance Sheet

Cash & Debt

$499.7M

YoY+672.4%

QoQ+13.7%

5Y CAGR+62.6%

10Y CAGR+28.0%

Applied Optoelectronics, Inc. held $499.7M in cash against $1.7M in long-term debt as of Q2 2026.

Shares Outstanding

85M

YoY+35.6%

QoQ+5.4%

5Y CAGR+25.5%

10Y CAGR+17.3%

Applied Optoelectronics, Inc. had 85M shares outstanding in Q2 2026. This represents an increase of 35.6% from the same quarter a year earlier. Against the prior quarter it is up 5.4%.

Free Cash Flow

Not reported for Q2 2026.

Dividends Per Share

Not reported for Q2 2026.

Margins & Returns

Gross Margin

27.7%

YoY-2.6pp

QoQ-1.3pp

5Y change+7.8pp

10Y change-3.6pp

Applied Optoelectronics, Inc.'s gross margin was 27.7% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is down 2.6 percentage points from the same quarter a year earlier. Against the prior quarter it is down 1.3 percentage points.

Operating Margin

-12.9%

YoY+2.6pp

QoQ-4.3pp

5Y change+12.3pp

10Y change-16.4pp

Applied Optoelectronics, Inc.'s operating margin was -12.9% in Q2 2026, reflecting core business profitability. This is up 2.6 percentage points from the same quarter a year earlier. Against the prior quarter it is down 4.3 percentage points.

Net Margin

-11.9%

YoY-3.0pp

QoQ-2.4pp

5Y change+3.3pp

10Y change-13.0pp

Applied Optoelectronics, Inc.'s net profit margin was -11.9% in Q2 2026, showing the share of revenue converted to profit. This is down 3.0 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.4 percentage points.

Return on Equity

-1.4%

YoY+0.8pp

QoQ-0.1pp

5Y change+1.6pp

10Y change-1.7pp

Applied Optoelectronics, Inc.'s ROE was -1.4% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 0.8 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.1 percentage points.

Capital Allocation

R&D Spending

$34.9M

YoY+69.2%

QoQ+35.9%

5Y CAGR+26.2%

10Y CAGR+16.1%

Applied Optoelectronics, Inc. invested $34.9M in research and development in Q2 2026. This represents an increase of 69.2% from the same quarter a year earlier. Against the prior quarter it is up 35.9%.

Share Buybacks

Not reported for Q2 2026.

Capital Expenditures

Not reported for Q2 2026.

AAOI Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

AAOI quarterly income statement

Metric	TTM	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Revenue	$596.0M	$455.7M+82.8%	$249.4M+14.6%	$217.6M-2.3%	$222.8M+5.3%	$211.6M-9.8%	$234.6M+22.9%	$190.9M-28.6%	$267.5M-30.0%	$382.3M+46.6%	$260.7M+37.3%	$189.9M+45.6%	$130.4M+66.3%	$78.4M+23.7%	$63.4M+32.6%	$47.8M
Cost of Revenue	$423.6M	$318.8M+70.0%	$187.6M+18.2%	$158.7M-16.1%	$189.2M+8.8%	$173.8M-5.6%	$184.1M+27.2%	$144.7M-19.5%	$179.7M-16.8%	$216.0M+24.3%	$173.8M+34.2%	$129.4M+50.2%	$86.2M+55.6%	$55.4M+24.5%	$44.5M+29.1%	$34.5M
Gross Profit	$172.3M	$136.9M+121.5%	$61.8M+4.9%	$58.9M+75.2%	$33.6M-10.8%	$37.7M-25.4%	$50.5M+9.4%	$46.2M-47.4%	$87.8M-47.2%	$166.3M+91.2%	$87.0M+43.8%	$60.5M+36.6%	$44.2M+92.1%	$23.0M+21.7%	$18.9M+41.6%	$13.4M
R&D Expenses	$107.6M	$85.5M+55.6%	$55.0M+52.8%	$36.0M-0.7%	$36.2M-12.1%	$41.2M-5.0%	$43.4M0.0%	$43.4M-13.0%	$49.9M+41.1%	$35.4M+11.3%	$31.8M+52.4%	$20.9M+30.6%	$16.0M+87.6%	$8.5M+12.0%	$7.6M+17.9%	$6.5M
SG&A Expenses	$97.5M	$75.7M+27.1%	$59.6M+12.0%	$53.2M+14.1%	$46.7M+10.1%	$42.4M+1.1%	$41.9M+1.0%	$41.5M+5.0%	$39.5M+12.0%	$35.3M+38.1%	$25.5M+29.1%	$19.8M+15.7%	$17.1M+60.8%	$10.6M+32.7%	$8.0M-2.8%	$8.2M
Operating Income	-$67.4M	-$54.6M+23.0%	-$70.9M-71.5%	-$41.3M+29.9%	-$59.0M-3.9%	-$56.8M-16.2%	-$48.8M-0.2%	-$48.7M-352.7%	-$10.8M-112.4%	$87.0M+277.7%	$23.0M+71.2%	$13.4M+161.8%	$5.1M+1773.6%	-$307K-271.5%	$179K+104.8%	-$3.7M
EBITDA	N/A	-$26.9M+46.5%	-$50.3M-140.2%	-$20.9M+41.6%	-$35.8M-14.0%	-$31.4M-30.2%	-$24.1M+2.5%	-$24.7M-230.7%	$18.9M-82.4%	$107.3M+188.5%	$37.2M+62.7%	$22.9M+102.3%	$11.3M+264.7%	$3.1M-0.7%	$3.1M+601.8%	-$622K
Interest Expense	$3.5M	$3.5M-48.8%	$6.8M-27.6%	$9.4M+49.2%	$6.3M+12.4%	$5.6M-0.3%	$5.6M+4.3%	$5.4M+388.7%	$1.1M+28.9%	$858K-50.0%	$1.7M+68.7%	$1.0M+212.3%	$326K-71.0%	$1.1M-18.5%	$1.4M+3.2%	$1.3M
Income Tax	-$6.1M	-$8.5M-423900.0%	$2K-77.8%	$9K+800.0%	$1K-50.0%	$2K-100.0%	$7.2M-50.7%	$14.7M+292.1%	-$7.6M-172.2%	$10.6M+203.4%	-$10.2M-2828.3%	$375K+88.4%	$199K	$0	$0	$0
Net Income	-$57.0M	-$38.2M+79.5%	-$186.7M-233.2%	-$56.0M+15.6%	-$66.4M-22.6%	-$54.2M+7.3%	-$58.5M+11.5%	-$66.0M-2977.8%	-$2.1M-102.9%	$74.0M+136.8%	$31.2M+189.4%	$10.8M+152.0%	$4.3M+404.6%	-$1.4M-48.8%	-$945K+82.3%	-$5.3M
EPS (Basic)	N/A	-$0.64+85.8%	-$4.50-157.1%	-$1.75+26.5%	-$2.38-18.4%	-$2.01+24.7%	-$2.67+19.3%	-$3.31-2909.1%	-$0.11-102.8%	$3.87+112.6%	$1.82+163.8%	$0.69+130.0%	$0.30+314.3%	-$0.14+96.1%	-$3.56	N/A
EPS (Diluted)	-$0.75	-$0.64+85.8%	-$4.50-157.1%	-$1.75+26.5%	-$2.38-18.4%	-$2.01+24.7%	-$2.67+19.3%	-$3.31-2909.1%	-$0.11-103.0%	$3.67+108.5%	$1.76+170.8%	$0.65+132.1%	$0.28	-$0.14	-$3.56	N/A
Diluted Shares (Avg)	N/A	60M+44.9%	42M+30.0%	32M+14.7%	28M+3.5%	27M+23.1%	22M+9.4%	20M+1.7%	20M-2.4%	20M+13.7%	18M+7.1%	17M+8.9%	15M	10M	265,576	N/A

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
Revenue	$191.9M+86.4%	$151.1M+51.4%	$134.3M+33.9%	$118.6M+82.1%	$103.0M+137.9%	$99.9M+145.5%	$100.3M+65.9%	$65.2M+4.2%
Cost of Revenue	$138.7M+93.2%	$107.2M+54.7%	$92.3M+29.1%	$85.4M+73.4%	$71.8M+113.0%	$69.3M+109.5%	$71.5M+84.2%	$49.2M+16.2%
Gross Profit	$53.2M+70.7%	$43.9M+43.8%	$41.9M+46.0%	$33.3M+109.0%	$31.2M+225.9%	$30.5M+302.4%	$28.7M+33.0%	$15.9M-21.1%
R&D Expenses	$34.9M+69.2%	$25.7M+44.1%	$25.8M+54.3%	$21.3M+58.4%	$20.6M+57.6%	$17.8M+52.1%	$16.7M+79.2%	$13.4M+42.0%
SG&A Expenses	$31.6M+71.7%	$24.9M+52.7%	$20.7M+39.9%	$20.3M+42.7%	$18.4M+9.4%	$16.3M+18.8%	$14.8M+10.9%	$14.2M-0.9%
Operating Income	-$24.7M-54.8%	-$13.0M-45.4%	-$11.5M-77.7%	-$18.2M-9.9%	-$16.0M+39.1%	-$8.9M+58.7%	-$6.5M-42.8%	-$16.5M-147.5%
EBITDA	-$14.2M-50.1%	-$3.8M-17.1%	-$3.4M-207.2%	-$10.8M+4.9%	-$9.5M+55.2%	-$3.2M+80.7%	-$1.1M-404.4%	-$11.3M-573.0%
Interest Expense	$927K+13.3%	$863K-7.6%	$843K-52.0%	$902K-47.0%	$818K-51.7%	$934K-44.3%	$1.8M-43.9%	$1.7M-14.4%
Income Tax	$1.3M	$1.0M	-$8.5M-423900.0%	$0	$0	$0	$2K+100.0%	$0
Net Income	-$22.8M-150.4%	-$14.3M-55.7%	-$2.0M+98.3%	-$17.9M-1.0%	-$9.1M+65.2%	-$9.2M+60.4%	-$119.7M-763.6%	-$17.8M-98.3%
EPS (Basic)	-$0.28-75.0%	-$0.19-5.6%	$0.00+100.0%	-$0.28+33.3%	-$0.16+75.8%	-$0.18+70.0%	-$2.82-683.3%	-$0.42-55.6%
EPS (Diluted)	-$0.28-75.0%	-$0.19-5.6%	$0.00+100.0%	-$0.28	-$0.16+75.8%	-$0.18+70.0%	-$2.82-683.3%	-$0.42-55.6%
Diluted Shares (Avg)	82M+43.7%	76M+51.8%	N/A	63M	57M+44.2%	50M+30.4%	N/A	42M+29.1%

AAOI Balance Sheet

AAOI quarterly balance sheet

Metric	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Total Assets	$1.2B+113.6%	$547.0M+40.6%	$389.2M-4.7%	$408.3M-10.2%	$454.5M-5.5%	$480.8M+3.0%	$466.8M0.0%	$466.8M+3.1%	$452.9M+40.5%	$322.3M+17.9%	$273.5M+48.9%	$183.7M+65.4%	$111.1M+68.9%	$65.7M	N/A
Current Assets	$675.7M+124.3%	$301.3M+74.5%	$172.6M-5.8%	$183.2M-5.6%	$194.1M-7.2%	$209.2M+8.5%	$192.8M-0.8%	$194.3M-15.4%	$229.7M+45.8%	$157.6M+2.4%	$153.9M+35.9%	$113.2M+45.3%	$77.9M+98.6%	$39.2M	N/A
Cash & Equivalents	$206.1M+205.7%	$67.4M+48.6%	$45.4M+83.8%	$24.7M-28.8%	$34.7M-20.2%	$43.4M-27.6%	$60.0M+7.8%	$55.6M-32.9%	$82.9M+65.1%	$50.2M+78.9%	$28.1M-12.7%	$32.2M+46.2%	$22.0M+105.2%	$10.7M+506.8%	$1.8M
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0-100.0%	$36K-18.2%	$44K-99.4%	$7.9M-3.7%	$8.2M+2.7%	$8.0M	$0	$0
Inventory	$183.1M+107.8%	$88.1M+38.0%	$63.9M-19.8%	$79.7M-13.9%	$92.5M-16.2%	$110.4M+29.8%	$85.0M-8.8%	$93.3M+23.1%	$75.8M+46.2%	$51.8M-21.8%	$66.2M+96.1%	$33.8M+72.3%	$19.6M+57.0%	$12.5M	N/A
Accounts Receivable	$244.4M+109.2%	$116.8M+143.0%	$48.1M-21.4%	$61.2M+27.6%	$47.9M+11.4%	$43.0M+24.2%	$34.7M+13.5%	$30.5M-49.0%	$59.9M+20.3%	$49.8M+28.3%	$38.8M+22.7%	$31.6M+43.0%	$22.1M+63.3%	$13.5M	N/A
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$434.5M+36.7%	$317.9M+82.4%	$174.3M-22.0%	$223.6M+11.9%	$199.9M-1.5%	$202.9M+5.1%	$193.0M+40.1%	$137.7M+15.1%	$119.7M+26.1%	$94.9M-12.2%	$108.1M+57.4%	$68.7M+43.1%	$48.0M+38.1%	$34.7M	N/A
Current Liabilities	$257.3M+51.3%	$170.1M+82.2%	$93.4M-32.6%	$138.6M+27.2%	$109.0M+5.6%	$103.1M+12.9%	$91.4M+18.0%	$77.4M+9.5%	$70.7M+17.9%	$60.0M-19.0%	$74.1M+52.4%	$48.6M+24.4%	$39.1M+52.7%	$25.6M	N/A
Non-Current Liabilities	$177.2M+19.9%	$147.9M+82.6%	$81.0M-4.8%	$85.0M-6.5%	$90.9M-8.9%	$99.8M-1.9%	$101.7M+68.5%	$60.3M+23.2%	$49.0M+40.1%	$35.0M+2.8%	$34.0M+69.5%	$20.1M+124.8%	$8.9M-2.6%	$9.2M	N/A
Long-Term Debt	$0-100.0%	$4.3M	$0	$0-100.0%	$5.0M-64.0%	$13.9M-16.0%	$16.6M-72.6%	$60.3M+23.2%	$49.0M+40.1%	$35.0M+2.8%	$34.0M+78.4%	$19.1M-27.0%	$26.1M	N/A	N/A
Total Equity	$733.9M+220.3%	$229.1M+6.6%	$214.9M+16.4%	$184.7M-27.5%	$254.6M-8.4%	$277.9M+1.5%	$273.8M-16.8%	$329.1M-1.3%	$333.3M+46.6%	$227.4M+37.5%	$165.4M+43.8%	$115.0M+82.3%	$63.1M+103.4%	$31.0M+50.0%	$20.7M
Retained Earnings	-$490.1M-8.5%	-$451.9M-70.4%	-$265.1M-26.8%	-$209.1M-46.5%	-$142.7M-61.2%	-$88.5M-194.5%	-$30.1M-183.5%	$36.0M-5.6%	$38.1M+203.0%	-$37.0M+45.8%	-$68.2M+13.7%	-$79.0M+5.1%	-$83.3M-1.7%	-$81.9M	N/A

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
Total Assets	$2.3B+188.8%	$1.6B+142.9%	$1.2B+113.6%	$978.5M+138.7%	$796.9M+129.0%	$644.7M+83.7%	$547.0M+40.6%	$410.0M+9.7%
Current Assets	$1.2B+159.6%	$992.6M+176.6%	$675.7M+124.3%	$575.3M+205.4%	$458.3M+244.7%	$358.8M+168.5%	$301.3M+74.5%	$188.4M+14.6%
Cash & Equivalents	$499.7M+672.4%	$439.7M+759.7%	$206.1M+205.7%	$137.0M+301.4%	$64.7M+507.3%	$51.1M+506.5%	$67.4M+48.6%	$34.1M+55.5%
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Inventory	$278.8M+100.8%	$206.2M+101.6%	$183.1M+107.8%	$170.2M+164.4%	$138.9M+155.6%	$102.3M+88.3%	$88.1M+38.0%	$64.4M-4.7%
Accounts Receivable	$314.0M+48.5%	$299.0M+74.7%	$244.4M+109.2%	$224.0M+198.1%	$211.5M+266.7%	$171.1M+197.7%	$116.8M+143.0%	$75.2M+23.7%
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Total Liabilities	$633.2M+70.3%	$459.9M+37.0%	$434.5M+36.7%	$419.4M+112.0%	$371.9M+130.2%	$335.7M+116.3%	$317.9M+82.4%	$197.9M+1.3%
Current Liabilities	$428.4M+97.6%	$259.4M+35.8%	$257.3M+51.3%	$249.1M+112.8%	$216.8M+167.9%	$191.0M+156.0%	$170.1M+82.2%	$117.1M-37.8%
Non-Current Liabilities	$204.7M+32.1%	$200.5M+38.6%	$177.2M+19.9%	$170.3M+110.8%	$155.0M+92.3%	$144.6M+79.5%	$147.9M+82.6%	$80.8M+1023.4%
Long-Term Debt	$1.7M	$0-100.0%	$0-100.0%	$0	$0	$1.8M-58.0%	$4.3M	$0
Total Equity	$1.7B+292.5%	$1.1B+257.9%	$733.9M+220.3%	$559.1M+163.6%	$425.0M+127.9%	$309.0M+57.9%	$229.1M+6.6%	$212.1M+18.9%
Retained Earnings	-$527.1M-12.1%	-$504.4M-9.4%	-$490.1M-8.5%	-$488.1M-46.9%	-$470.1M-49.5%	-$461.0M-59.9%	-$451.9M-70.4%	-$332.2M-32.2%

Not reported in any period shown, so not listed: Goodwill.

AAOI Cash Flow Statement

AAOI quarterly cash flow statement

Metric	TTM	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Operating Cash Flow	-$131.8M	-$174.4M-150.9%	-$69.5M-776.9%	-$7.9M+43.5%	-$14.0M-20.4%	-$11.6M+73.5%	-$44.0M-2409.1%	-$1.8M-112.5%	$14.0M-83.4%	$84.3M+47.6%	$57.1M+475.4%	-$15.2M-278.3%	$8.5M+237.8%	-$6.2M-1629.1%	-$358K+91.3%	-$4.1M
Depreciation & Amortization	N/A	$27.7M+34.1%	$20.6M+1.1%	$20.4M-12.0%	$23.2M-8.5%	$25.4M+2.6%	$24.7M+3.0%	$24.0M-19.1%	$29.7M+45.7%	$20.4M+43.6%	$14.2M+50.6%	$9.4M+52.8%	$6.2M+81.1%	$3.4M+15.8%	$2.9M-5.5%	$3.1M
Stock-Based Compensation	N/A	$11.7M-20.8%	$14.8M+24.5%	$11.9M+23.8%	$9.6M-20.8%	$12.1M-7.1%	$13.0M+10.5%	$11.8M+6.2%	$11.1M+42.7%	$7.8M+103.4%	$3.8M+80.8%	$2.1M+2.9%	$2.1M+92.8%	$1.1M+564.0%	$161K-71.4%	$563K
Capital Expenditures	N/A	$179.1M+312.7%	$43.4M+378.1%	$9.1M+182.8%	$3.2M-59.8%	$8.0M-49.5%	$15.8M-45.1%	$28.8M-59.9%	$71.9M+7.3%	$67.0M+35.4%	$49.4M-13.4%	$57.1M+38.8%	$41.1M+328.4%	$9.6M	N/A	N/A
Free Cash Flow	N/A	-$353.6M-213.1%	-$112.9M-564.0%	-$17.0M+1.3%	-$17.2M+12.2%	-$19.6M+67.2%	-$59.8M-95.8%	-$30.5M+47.2%	-$57.8M-433.9%	$17.3M+126.0%	$7.7M+110.6%	-$72.3M-121.8%	-$32.6M-106.5%	-$15.8M	N/A	N/A
Investing Cash Flow	-$769.1M	-$210.6M-315.4%	-$50.7M-243.5%	-$14.8M-285.0%	-$3.8M+63.6%	-$10.5M+45.5%	-$19.3M+39.8%	-$32.1M+58.0%	-$76.5M-9.1%	-$70.2M-68.9%	-$41.5M+32.6%	-$61.6M	N/A	N/A	N/A	N/A
Financing Cash Flow	$1.3B	$527.9M+271.3%	$142.2M+250.4%	$40.6M+277.4%	$10.8M-23.7%	$14.1M-70.3%	$47.4M+11.4%	$42.6M+22.4%	$34.8M+90.8%	$18.2M+1002.4%	$1.7M-97.9%	$77.5M	N/A	N/A	N/A	N/A

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
Operating Cash Flow	$11.6M+117.7%	-$85.4M-67.6%	-$29.6M-20.2%	-$28.5M-97.1%	-$65.5M-3191.8%	-$50.9M-78.8%	-$24.6M-1688.1%	-$14.4M+5.9%
Depreciation & Amortization	$10.5M+61.5%	$9.2M+61.2%	$8.2M+53.2%	$7.4M+42.3%	$6.5M+27.5%	$5.7M+14.6%	$5.4M+8.7%	$5.2M+4.0%
Stock-Based Compensation	$4.9M+53.7%	$4.4M+71.4%	N/A	$3.1M+5.9%	$3.2M-47.8%	$2.6M-9.8%	N/A	$2.9M-9.0%
Capital Expenditures	N/A	$58.2M+105.1%	$75.0M+164.4%	$50.2M+699.1%	$25.5M+755.6%	$28.4M+392.8%	$28.4M+360.4%	$6.3M+332.2%
Free Cash Flow	N/A	-$143.6M-81.0%	-$104.6M-97.4%	-$78.7M-279.7%	-$91.0M-1731.1%	-$79.3M-131.6%	-$53.0M-1048.6%	-$20.7M-23.4%
Investing Cash Flow	-$565.6M-1354.3%	-$68.1M-87.6%	-$84.9M-190.2%	-$50.5M-444.5%	-$38.9M-852.3%	-$36.3M-349.7%	-$29.3M-204.8%	-$9.3M-185.4%
Financing Cash Flow	$591.0M+369.1%	$389.3M+456.0%	$179.7M+100.3%	$152.3M+208.4%	$126.0M+2690.9%	$70.0M+5041.0%	$89.7M+186.6%	$49.4M+134.4%

Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.

AAOI Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

AAOI quarterly financial ratios

Metric	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K	FY1110-K
Gross Margin	30.0%+5.3pp	24.8%-2.3pp	27.1%+12.0pp	15.1%-2.7pp	17.8%-3.7pp	21.5%-2.7pp	24.2%-8.6pp	32.8%-10.7pp	43.5%+10.1pp	33.4%+1.5pp	31.8%-2.1pp	33.9%+4.6pp	29.4%-0.5pp	29.8%+1.9pp	28.0%
Operating Margin	-12.0%+16.5pp	-28.4%-9.4pp	-19.0%+7.5pp	-26.5%+0.4pp	-26.8%-6.0pp	-20.8%+4.7pp	-25.5%-21.5pp	-4.0%-26.8pp	22.7%+13.9pp	8.8%+1.8pp	7.1%+3.1pp	3.9%+4.3pp	-0.4%-0.7pp	0.3%+8.1pp	-7.8%
Net Margin	-8.4%+66.5pp	-74.9%-49.1pp	-25.8%+4.0pp	-29.8%-4.2pp	-25.6%-0.7pp	-24.9%+9.7pp	-34.6%-33.8pp	-0.8%-20.1pp	19.3%+7.4pp	12.0%+6.3pp	5.7%+2.4pp	3.3%+5.1pp	-1.8%-0.3pp	-1.5%+9.7pp	-11.1%
Return on Equity	-5.2%+76.3pp	-81.5%-55.4pp	-26.1%+9.9pp	-35.9%-14.7pp	-21.3%-0.3pp	-21.0%+3.1pp	-24.1%-23.5pp	-0.7%-22.8pp	22.2%+8.4pp	13.7%+7.2pp	6.5%+2.8pp	3.7%+5.9pp	-2.2%+0.8pp	-3.0%+22.7pp	-25.8%
Return on Assets	-3.3%+30.9pp	-34.1%-19.7pp	-14.4%+1.9pp	-16.3%-4.3pp	-11.9%+0.2pp	-12.2%+2.0pp	-14.1%-13.7pp	-0.5%-16.8pp	16.3%+6.6pp	9.7%+5.7pp	4.0%+1.6pp	2.3%+3.6pp	-1.3%+0.2pp	-1.4%	N/A
Current Ratio	2.63+0.9x	1.77-0.1x	1.85+0.5x	1.32-0.5x	1.78-0.2x	2.03-0.1x	2.11-0.4x	2.51-0.7x	3.25+0.6x	2.63+0.5x	2.08-0.3x	2.33+0.3x	2.00+0.5x	1.53	N/A
Debt-to-Equity	0.000.0x	0.020.0x	0.000.0x	0.000.0x	0.020.0x	0.050.0x	0.06-0.1x	0.180.0x	0.150.0x	0.15-0.1x	0.210.0x	0.17-0.2x	0.41-0.7x	1.12	N/A
Asset Turnover	0.39-0.1x	0.46-0.1x	0.560.0x	0.55+0.1x	0.470.0x	0.49+0.1x	0.41-0.2x	0.57-0.3x	0.840.0x	0.81+0.1x	0.690.0x	0.710.0x	0.71-0.3x	0.96	N/A
FCF Margin	-77.6%-32.3pp	-45.3%-37.5pp	-7.8%-0.1pp	-7.7%+1.6pp	-9.3%+16.2pp	-25.5%-9.5pp	-16.0%+5.6pp	-21.6%-26.2pp	4.5%+1.6pp	2.9%+41.0pp	-38.1%-13.1pp	-25.0%-4.9pp	-20.1%	N/A	N/A

Metric	Q2'2610-Q	Q1'2610-Q	Q4'2510-Q	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q	Q4'2410-K	Q3'2410-Q
Gross Margin	27.7%-2.6pp	29.1%-1.5pp	31.2%+2.6pp	28.0%+3.6pp	30.3%+8.2pp	30.6%+11.9pp	28.6%-7.1pp	24.4%-7.8pp
Operating Margin	-12.9%+2.6pp	-8.6%+0.4pp	-8.6%-2.1pp	-15.3%+10.1pp	-15.5%+45.1pp	-8.9%+44.3pp	-6.5%+1.0pp	-25.4%-14.7pp
Net Margin	-11.9%-3.0pp	-9.4%-0.3pp	-1.5%	-15.1%+12.1pp	-8.8%+51.5pp	-9.2%+47.8pp	-119.4%	-27.3%-13.0pp
Return on Equity	-1.4%+0.8pp	-1.3%+1.7pp	-0.3%+52.0pp	-3.2%+5.2pp	-2.1%+11.9pp	-3.0%+8.9pp	-52.2%-45.8pp	-8.4%-3.3pp
Return on Assets	-1.0%+0.1pp	-0.9%+0.5pp	-0.2%+21.7pp	-1.8%+2.5pp	-1.1%+6.4pp	-1.4%+5.2pp	-21.9%-18.3pp	-4.3%-1.9pp
Current Ratio	2.78+0.7x	3.83+1.9x	2.63+0.9x	2.31+0.7x	2.11+0.5x	1.88+0.1x	1.77-0.1x	1.61+0.7x
Debt-to-Equity	0.000.0x	0.000.0x	0.000.0x	0.000.0x	0.000.0x	0.010.0x	0.020.0x	0.000.0x
Asset Turnover	0.080.0x	0.10-0.1x	0.11-0.1x	0.120.0x	0.130.0x	0.150.0x	0.180.0x	0.160.0x
FCF Margin	N/A	-95.0%-15.6pp	-77.9%-25.1pp	-66.3%-34.5pp	-88.3%-76.9pp	-79.4%+4.8pp	-52.8%-45.2pp	-31.8%-5.0pp

Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Net Margin.

Similar Companies

Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.

Company	Fiscal year	Revenue	Net income	Net margin	Market cap	Health score
Applied Optoelectronics, Inc. AAOI	FY2025	$455.7M	-$38.2M	-8.4%	$9.3B	54/100
Digi International Inc DGII	FY2025	$430.2M	$40.8M	9.5%	$2.8B	53/100
Harmonic Inc HLIT	FY2025	$360.5M	$1.2M	0.3%	$1.2B	63/100
ADTRAN Holdings, Inc. ADTN	FY2025	$1.1B	-$45.7M	-4.2%	$610.3M	27/100
NETGEAR, Inc. NTGR	FY2025	$699.6M	-$18.0M	-2.6%	$630.6M	42/100

Where Applied Optoelectronics, Inc. Ranks

Frequently Asked Questions

What is Applied Optoelectronics, Inc.'s annual revenue?

Applied Optoelectronics, Inc. (AAOI) reported $455.7M in total revenue for fiscal year 2025. This represents a 82.8% 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 Optoelectronics, Inc.'s revenue growing?

Applied Optoelectronics, Inc. (AAOI) revenue grew by 82.8% year-over-year, from $249.4M to $455.7M in fiscal year 2025.

Is Applied Optoelectronics, Inc. profitable?

No, Applied Optoelectronics, Inc. (AAOI) reported a net income of -$38.2M in fiscal year 2025, with a net profit margin of -8.4%.

What is Applied Optoelectronics, Inc.'s EBITDA?

Applied Optoelectronics, Inc. (AAOI) had EBITDA of -$26.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Applied Optoelectronics, Inc. have?

As of fiscal year 2025, Applied Optoelectronics, Inc. (AAOI) had $206.1M in cash and equivalents against $0 in long-term debt.

What is Applied Optoelectronics, Inc.'s gross margin?

Applied Optoelectronics, Inc. (AAOI) had a gross margin of 30.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Applied Optoelectronics, Inc.'s operating margin?

Applied Optoelectronics, Inc. (AAOI) had an operating margin of -12.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Applied Optoelectronics, Inc.'s net profit margin?

Applied Optoelectronics, Inc. (AAOI) had a net profit margin of -8.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Applied Optoelectronics, Inc.'s return on equity (ROE)?

Applied Optoelectronics, Inc. (AAOI) has a return on equity of -5.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Applied Optoelectronics, Inc.'s free cash flow?

Applied Optoelectronics, Inc. (AAOI) recorded an outflow of $353.6M in free cash flow during fiscal year 2025. This represents a -213.1% 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 Optoelectronics, Inc.'s operating cash flow?

Applied Optoelectronics, Inc. (AAOI) recorded an outflow of $174.4M in operating cash flow during fiscal year 2025, representing cash used by core business activities.

What are Applied Optoelectronics, Inc.'s total assets?

Applied Optoelectronics, Inc. (AAOI) had $1.2B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Applied Optoelectronics, Inc.'s capital expenditures?

Applied Optoelectronics, Inc. (AAOI) invested $179.1M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Applied Optoelectronics, Inc. spend on research and development?

Applied Optoelectronics, Inc. (AAOI) invested $85.5M in research and development during fiscal year 2025.

How many shares does Applied Optoelectronics, Inc. have outstanding?

Applied Optoelectronics, Inc. (AAOI) had 75M shares outstanding as of fiscal year 2025.

What is Applied Optoelectronics, Inc.'s current ratio?

Applied Optoelectronics, Inc. (AAOI) had a current ratio of 2.63 as of fiscal year 2025, which is generally considered healthy.

What is Applied Optoelectronics, Inc.'s debt-to-equity ratio?

Applied Optoelectronics, Inc. (AAOI) had a debt-to-equity ratio of 0.00 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Applied Optoelectronics, Inc.'s return on assets (ROA)?

Applied Optoelectronics, Inc. (AAOI) had a return on assets of -3.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Applied Optoelectronics, Inc.'s P/E ratio?

Applied Optoelectronics, Inc. (AAOI) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to June 30, 2026). The market capitalization is $9.3B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Applied Optoelectronics, Inc.'s price-to-sales ratio?

Applied Optoelectronics, Inc. (AAOI) trades at 15.6x sales, its market capitalization divided by revenue of $596.0M revenue, trailing 12 months to June 30, 2026. The market capitalization is $9.3B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

How does Applied Optoelectronics, Inc.'s liquidity compare with its operating cash outflow?

At the end of fiscal year 2025, Applied Optoelectronics, Inc. (AAOI) held $206.1M in cash, cash equivalents and investments, and reported an operating cash outflow of $174.4M over that year. Dividing the one by the other, the reported balance equals about 14 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.

What is Applied Optoelectronics, Inc.'s Altman Z-Score?

Applied Optoelectronics, Inc. (AAOI) has an Altman Z-Score of 12.93, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Applied Optoelectronics, Inc.'s Piotroski F-Score?

Applied Optoelectronics, Inc. (AAOI) has a Piotroski F-Score of 4 out of 9, indicating neutral 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 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Applied Optoelectronics, Inc.'s earnings high quality?

Applied Optoelectronics, Inc. (AAOI) reported a net loss of $38.2M while operations used $174.4M of cash. With neither figure positive, the ratio between the two carries no quality signal. 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 Optoelectronics, Inc. cover its interest payments?

Applied Optoelectronics, Inc. (AAOI) reported an operating loss of $54.6M against $3.5M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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 Optoelectronics, Inc.?

Applied Optoelectronics, Inc. (AAOI) scores 54 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.