Applied Optoelectronics(AAOI) - 2025 Q3 - Quarterly Results

Financial Performance - GAAP revenue for Q3 2025 was $118.6 million, a 81.9% increase from $65.2 million in Q3 2024 and a 15.6% increase from $103.0 million in Q2 2025[6] - Total revenue for Q3 2025 reached $118.63 million, a significant increase from $65.15 million in Q3 2024, representing an 82% year-over-year growth[20] - CATV segment revenue was $70.60 million in Q3 2025, compared to $20.95 million in Q3 2024, marking a 236% increase[20] - Datacenter revenue increased to $43.94 million in Q3 2025 from $40.95 million in Q3 2024, reflecting a 5% growth[20] Profitability Metrics - GAAP gross margin was 28.0%, compared to 24.4% in Q3 2024 and 30.3% in Q2 2025; non-GAAP gross margin was 31.0%, up from 25.0% in Q3 2024[6] - Total gross profit for Q3 2025 was $33.26 million, up from $15.92 million in Q3 2024, resulting in a gross margin improvement[20] - The company reported an adjusted EBITDA of $2.01 million for Q3 2025, compared to a loss of $7.69 million in Q3 2024[22] Net Loss - GAAP net loss was $17.9 million, or $0.28 per basic share, compared to a net loss of $17.8 million, or $0.42 per basic share in Q3 2024[6] - The net loss for Q3 2025 was $17.94 million, slightly higher than the net loss of $17.76 million in Q3 2024[20] - Non-GAAP net loss was $5.4 million, or $0.09 per basic share, an improvement from a non-GAAP net loss of $8.8 million, or $0.21 per basic share in Q3 2024[6] - Non-GAAP net loss for Q3 2025 was $5.40 million, compared to a non-GAAP net loss of $8.78 million in Q3 2024, showing improvement[22] Expenses - Operating expenses totaled $51.45 million in Q3 2025, compared to $32.46 million in Q3 2024, indicating a 58% increase[20] - Research and development expenses were $21.27 million in Q3 2025, up from $13.43 million in Q3 2024, a 58% increase[20] Future Outlook - The company expects Q4 2025 revenue to be in the range of $125 million to $140 million, with non-GAAP gross margin between 29% and 31%[10] - The company is nearing final stages of 800G product qualification with several customers, anticipating meaningful shipments in Q4 2025[3] Production and Capacity - Production capacity is expected to reach approximately 100,000 units of 800G transceivers per month by year-end, with 35% of production in the U.S.[3] Assets and Liabilities - Total current assets increased to $575.3 million as of September 30, 2025, compared to $301.3 million at the end of 2024[18] - Total liabilities rose to $419.4 million as of September 30, 2025, up from $317.9 million at the end of 2024[18] Demand and Market Performance - Strong demand in the CATV business led to the highest quarterly CATV revenue in the company's history, driven by orders for 1.8 GHz amplifier products[3]