Applied Optoelectronics Reports Third Quarter 2025 Results

Core Insights - Applied Optoelectronics, Inc. (AOI) reported strong financial results for Q3 2025, with revenue and gross margin meeting expectations, driven by high demand in the CATV business and significant orders for 1.8 GHz amplifier products [2][6] - The company is nearing completion of 800G product qualification and anticipates meaningful shipments in Q4 2025 [2] - Despite strong CATV performance, datacenter revenue fell slightly below expectations due to shipment delays [2] Financial Performance - GAAP revenue for Q3 2025 was $118.6 million, a significant increase from $65.2 million in Q3 2024 and $103.0 million in Q2 2025 [6] - GAAP gross margin was 28.0%, up from 24.4% in Q3 2024 but down from 30.3% in Q2 2025; non-GAAP gross margin was 31.0%, compared to 25.0% in Q3 2024 and 30.4% in Q2 2025 [6] - GAAP net loss was $17.9 million, or $0.28 per share, compared to a net loss of $17.8 million, or $0.42 per share in Q3 2024, and a net loss of $9.1 million, or $0.16 per share in Q2 2025 [6] Business Outlook - For Q4 2025, AOI expects revenue in the range of $125 million to $140 million, with non-GAAP gross margin between 29% and 31% [7] - Non-GAAP net loss is projected to be between $9.0 million and $2.8 million, translating to a loss per share of $0.13 to $0.04 [7] Operational Developments - The company is expanding production capacity in the U.S. and Taiwan, with plans to reach a monthly production capacity of approximately 100,000 units of 800G transceivers by year-end, with 35% of production in the U.S. [2] - AOI continues to secure new customers and maintain momentum with existing large customers, contributing to record CATV revenue [2] Market Position - AOI is recognized as a leading developer and manufacturer of advanced optical and HFC networking products, serving tier-one customers across various sectors including cloud computing, CATV broadband, telecom, and FTTH markets [14]