Applied Optoelectronics, Inc. Q4 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Applied Optoelectronics, Inc. (AOI) Q4 & Full Year 2025 Earnings Summary

Financial Highlights (Q4 2025 vs. Q4 2024 / Sequential)

  • Total revenue: $134.3M (+34% YoY, +13% QoQ), within guidance of $125-140M.
  • Non-GAAP gross margin: 31.4% (above guidance of 29-31%; +2.5 pts YoY from 28.9%, +0.4 pts QoQ from 31%).
  • Non-GAAP net loss: $0.6M or $0.01 per share (better than guidance of $2.8-9M loss or $0.04-0.13 loss per share; improved from $1M loss or $0.02 per share YoY).
  • GAAP net loss: $2M or $0.03 per share (vs. $119.7M or $2.60 per share YoY).

Full Year 2025 vs. 2024

  • Total revenue: Record $456M (+83% YoY).
  • Data center revenue: $196M (+32% YoY).
  • CATV revenue: $245M (nearly tripled YoY).
  • Top 10 customers: 96% of revenue (vs. 97% in 2024); three customers >10% each (one CATV at 39%, two data center at 31% and 21%).

Segment Performance (Q4 2025)

  • Data Center: $74.9M (+69% YoY, +70% QoQ). 100G sales +54% YoY; 400G sales +141% YoY. Mix: 51% 100G, 41% 200G/400G, 8% 10G/40G.
  • CATV: $54M (+3% YoY, -24% QoQ from record Q3; in line with $50-55M guidance). Strong 1.8 GHz amplifier shipments to largest customer; momentum from new MSO customers.
  • Telecom/Other: $5.1M (+45% YoY, +37% QoQ).

Key Business Updates

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Operator: Good afternoon. I will be your conference operator on today's call. At this time, I would like to welcome everyone to Applied Optoelectronics, Inc.'s fourth quarter and full year 2025 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. To withdraw a question, please press star, then 2. Please also note that this call is being recorded today. I will now turn the call over to Lindsay Savarese, Investor Relations for Applied Optoelectronics, Inc. Ms. Savarese, you may begin. Lindsay Savarese: Thank you. I am Lindsay Savarese, Investor Relations for Applied Optoelectronics, Inc. I am pleased to welcome you to Applied Optoelectronics, Inc.'s fourth quarter and full year 2025 financial results conference call. After the market closed today, Applied Optoelectronics, Inc. issued a press release announcing its fourth quarter and full year 2025 financial results and provided its outlook for 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 Applied Optoelectronics, Inc. website and will be archived for one year. Joining us on today's call is Dr. Thompson Lin, Applied Optoelectronics, Inc.'s Founder, Chairman, and CEO, and Dr. Stefan Murry, Applied Optoelectronics, Inc.'s Chief Financial Officer and Chief Strategy Of
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