Applied Optoelectronics, Inc. Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Applied Optoelectronics (AOI) Q2 2026 Earnings Summary

Key Financial Results

  • Revenue: $191.9 million (record 5th consecutive quarter) — +86% YoY vs Q2 2025; +27% sequentially vs Q1 2026. In line with guidance of $180–198 million.
  • Non-GAAP Gross Margin: 29.8% — in line with guidance of 29–30%; vs 29.2% in Q1 2026; vs 30.4% in Q2 2025.
  • Non-GAAP Net Income / EPS: $5.5 million / $0.06 per diluted share — above guidance range of ($2.5M loss) to $2.8M income / ($0.03) to $0.03 EPS. Returned to non-GAAP profitability.
  • GAAP Net Loss: $22.8 million / ($0.28) per basic share vs $9.1 million / ($0.16) in Q2 2025.
  • Cash & Equivalents + Short-term Investments + Restricted Cash: $508.8 million (vs $449.4 million at end of Q1 2026).
  • Inventory: $278.8 million (vs $206.2 million at end of Q1 2026) — driven by raw material ramp for capacity expansion.

Segment Performance

  • Data Center (56% of revenue): $107.7 million — +140.4% YoY; +32.3% sequentially. 800G revenue $12.8 million (11.9% of data center) — >10x YoY and >2x sequentially. 400G revenue $48.4 million (45% of data center) — >4x YoY and +27.4% sequentially. 100G revenue +31.3% YoY.
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Operator: Good afternoon. I will be your conference operator. At this time, I would like to welcome everyone to Applied Optoelectronics Second Quarter 26 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. And then also please note that this call is being recorded. I would now like to turn the conference over to Lindsay Grant Savarese, Investor Relations for AOI. Ms. Savarese, you may begin. Lindsay Grant Savarese: Thank you. I am Lindsay Savarese, investor relations for Applied Optoelectronics. I am pleased to welcome you to AOI's second quarter 2026 financial results conference call. After the market closed today, AOI issued a press release announcing its second quarter 2026 financial results and provided its outlook for the third quarter of 2026. The release is also available on the company's website at ao-inc.com. This call is being recorded and webcast live. A link to the recording can be found on the Investor Relations section of the AOI website and will be archived for 1 year. Joining us on today's call is Dr. Thompson Lin, AOI's founder, chairman, and CEO, Dr. Stefan J. Murry, AOI's chief financial officer and chief strategy officer. Thompson will give an overview of AOI's Q2 results, and Stefan will provide financial details and the outlook for the third quarter of 2026. A question-and-answer session will follow our prepared remarks. Before we begin, I
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