AAOI APPLIED OPTOELECTRONICS, INC.

Overview and Growth

Fiscal 2025 results for APPLIED OPTOELECTRONICS, INC. combined $455.71M of revenue with net loss of $38.23M and an operating cash outflow of $174.43M. At $455.71M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 82.8% from $249.37M in fiscal 2024, increasing the company’s operating scale. Diluted earnings per share were -$0.64, translating the period’s attributable earnings into the amount reported for each diluted share. The company employed $1.17B of total assets, the balance-sheet base supporting its current operating and cash-flow results. Asset turnover was 0.39x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $136.91M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 30.0% of revenue, showing how much of the top line remained after direct costs. The company recorded an operating loss of $54.60M after the reported operating expense base. The operating loss equaled 12.0% of revenue, showing the scale of the operating deficit relative to sales. After all below-operating-line items, the company recorded a net loss of $38.23M for the fiscal year. The net loss equaled 8.4% of revenue, showing the bottom-line deficit relative to the company’s sales base. Before income taxes, the company recorded a loss of $46.70M, bridging the operating result to the final net loss. Measured against revenue, the pretax deficit represented 10.2%. An income-tax benefit of $8.48M improved the final result relative to pretax income or loss. The net loss equaled 5.2% of period-end equity, showing the deficit relative to book capital. The net loss equaled 3.3% of period-end assets, showing the deficit relative to the asset base.

Liquidity and Capital Structure

The company held $1.17B of assets against $434.50M of liabilities and $733.92M of equity, revealing how the asset base was financed. The near-term balance sheet paired $675.73M of current assets with $257.28M of current liabilities at the reporting date. Current assets covered current liabilities by 2.63x, leaving a positive buffer for near-term obligations. The company held $206.14M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 80.1% of current liabilities, showing how much near-term coverage came from cash alone. Borrowings totaled $33.98M, adding a fixed financing obligation alongside the company’s equity capital. Against book equity, debt measured 0.05x, placing the company’s financial leverage in clear balance-sheet terms. The debt-to-assets relationship was 2.9%, comparing borrowing with the total asset balance. The liabilities-to-assets relationship was 37.2%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 17.6%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 113.6% from $547.03M in fiscal 2024, leaving current total assets higher year over year. Book equity was 220.3% higher than fiscal 2024 equity of $229.11M, showing how shareholder capital changed year over year. Cash and equivalents were 205.7% higher than fiscal 2024 cash of $67.43M, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Operating activities used $174.43M of cash, resulting in an operating cash outflow for the year. Capital spending of $179.15M added to the period’s operating cash use, reinforcing the overall cash deficit after investment for the year. Operating cash flow and capital spending combined to leave a $353.58M cash deficit after capital spending. Free-cash-flow margin was -77.6%, reflecting a cash deficit equal to 77.6% of revenue after capital spending. The free-cash-flow deficit equaled 30.3% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.