Applied Optoelectronics Posts 34% Revenue Growth to $134.3M, Net Loss Narrows
In Q4 2025 Applied Optoelectronics posted revenue of $134.3 million, up 34% year-over-year, and saw GAAP gross margin climb to 31.2%. The company narrowed its GAAP net loss to $2.0 million from $119.7 million a year earlier and guided Q1 2026 revenue at $150–165 million.
1. Q4 Financial Results
Applied Optoelectronics reported Q4 2025 revenue of $134.3 million, up from $100.3 million in Q4 2024 and 13% sequential growth. GAAP gross margin rose to 31.2% from 28.7% a year earlier while non-GAAP gross margin reached 31.4%. The quarter’s GAAP net loss was $2.0 million, or $0.03 per share, versus a $119.7 million loss, or $2.60 per share, in Q4 2024, and a $17.9 million loss in Q3 2025. Non-GAAP net loss amounted to $0.6 million, or $0.01 per share.
2. Fiscal 2025 Highlights
Full-year 2025 sales climbed to $455.7 million from $249.4 million in 2024, with a GAAP gross margin of 30.0%. The company reported a GAAP net loss of $38.2 million, or $0.64 per share, reflecting substantial revenue growth alongside ongoing investment in capacity and R&D.
3. Q1 2026 Guidance
Management expects Q1 2026 revenue between $150 million and $165 million, with non-GAAP gross margins forecast at 29%–31%, driven by continued strength in core markets and customer deployments.
4. Demand Drivers and Product Lines
The company designs and manufactures optical communication products such as laser diodes, photodiodes, modules and circuitry for CATV, datacenter, fiber-to-the-home, point-to-point communications and wireless applications, with management citing robust demand in CATV and datacenter segments.