Detailed financial statements for Applied Optoelectronics, Inc. (AAOI): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
Applied Optoelectronics, Inc. (AAOI) is a global technology firm specializing in the creation, production, and distribution of fiber-optic networking solutions. Its extensive product catalog features optical modules, a range of laser components, subassemblies, transceivers, and complete turn-key systems. The company also supplies critical infrastructure hardware such as headend, node, and distribution equipment.
Analysis Summary
Applied Optoelectronics, Inc. reported revenue of $455.7M in the most recent fiscal year, growing at a 5-year CAGR of 14.2%.
Trailing-twelve-month margins: gross margin 28.9%, operating margin -11.3%, net margin -9.6%.
At the current price of $96.74, AAOI has negative trailing earnings (P/E not meaningful) and an ROE of -5.61%. Market capitalisation stands at $7.8B.
Balance sheet quality for AAOI: current ratio of 2.6, net cash position of $48.7M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|
| Revenue | $260.7M | $382.3M | $267.5M | $190.9M | $234.6M | $211.6M | $222.8M | $217.6M | $249.4M | $455.7M |
| Cost of Revenue | $173.8M | $216.0M | $179.7M | $144.7M | $184.1M | $173.8M | $189.2M | $158.7M | $187.6M | $318.8M |
| Gross Profit | $87.0M | $166.3M | $87.8M | $46.2M | $50.5M | $37.7M | $33.6M | $58.9M | $61.8M | $136.9M |
| Research & Development | $31.8M | $35.4M | $49.9M | $43.4M | $43.4M | $41.2M | $36.2M | $36.0M | $55.0M | $85.5M |
| Selling, General & Admin | $32.2M | $44.0M | $48.6M | $51.5M | $56.0M | $53.3M | $56.4M | $64.3M | $77.8M | $106.0M |
| Operating Expenses | $63.9M | $79.3M | $98.5M | $94.9M | $99.4M | $94.5M | $92.6M | $100.3M | $132.7M | $191.5M |
| Operating Income | $23.0M | $87.0M | -$10.8M | -$48.7M | -$48.8M | -$56.8M | -$59.0M | -$41.3M | -$70.9M | -$54.6M |
| EBITDA | $36.9M | $105.8M | $21.0M | -$22.0M | -$20.9M | -$23.2M | -$36.9M | -$26.2M | -$159.3M | -$15.5M |
| Interest Expense | $1.7M | $858000 | $1.1M | $5.4M | $5.6M | $5.6M | $6.3M | $9.4M | $6.8M | $3.5M |
| Pre-tax Income | $21.0M | $84.5M | -$9.8M | -$51.4M | -$51.2M | -$54.2M | -$66.4M | -$56.0M | -$186.7M | -$46.7M |
| Income Tax | -$10.2M | $10.6M | -$7.6M | $14.7M | $7.2M | $2000 | $1000 | $9000 | $2000 | -$8.5M |
| Net Income | $31.2M | $74.0M | -$2.1M | -$66.0M | -$58.5M | -$54.2M | -$66.4M | -$56.0M | -$186.7M | -$38.2M |
| EPS | $1.82 | $3.87 | $-0.11 | $-3.31 | $-2.67 | $-2.01 | $-2.38 | $-1.75 | $-4.50 | $-0.64 |
| EPS (Diluted) | $1.76 | $3.67 | $-0.11 | $-3.31 | $-2.67 | $-2.01 | $-2.38 | $-1.75 | $-4.50 | $-0.64 |
| Shares Outstanding (Diluted) | $17.7M | $20.1M | $19.6M | $20.0M | $21.9M | $26.9M | $27.8M | $31.9M | $41.5M | $60.2M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|
| Revenue | $118.6M | $134.3M | $151.1M | $191.9M |
| Gross Profit | $33.3M | $41.9M | $43.9M | $53.2M |
| Operating Income | -$18.2M | -$11.5M | -$13.0M | -$24.7M |
| EBITDA | -$10.1M | -$1.4M | -$3.1M | -$20.6M |
| Net Income | -$17.9M | -$2.0M | -$14.3M | -$22.8M |
| EPS | $-0.28 | $-0.03 | $-0.19 | $-0.28 |
| EPS (Diluted) | $-0.28 | $-0.03 | $-0.19 | $-0.28 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|
| Cash & Equivalents | $50.2M | $82.9M | $55.6M | $60.0M | $43.4M | $34.7M | $24.7M | $45.4M | $67.4M | $216.0M |
| Short-term Investments | $44000 | $36000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $49.8M | $59.9M | $30.5M | $34.7M | $43.4M | $56.1M | $61.5M | $48.3M | $116.8M | $244.4M |
| Inventory | $51.8M | $75.8M | $93.3M | $85.0M | $110.4M | $92.5M | $79.7M | $63.9M | $88.1M | $183.1M |
| Total Current Assets | $157.6M | $229.7M | $194.3M | $192.8M | $209.2M | $194.1M | $183.2M | $172.6M | $301.3M | $675.7M |
| Property, Plant & Equipment | $144.1M | $197.9M | $234.2M | $256.3M | $260.8M | $250.2M | $215.8M | $205.3M | $228.9M | $425.7M |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | $4.8M | $4.8M | $9.8M | $9.7M | $9.9M | $9.7M | $8.9M | $8.7M | $3.7M | $3.6M |
| Total Assets | $322.3M | $453.0M | $466.8M | $466.8M | $480.8M | $454.5M | $408.3M | $389.2M | $547.0M | $1.17B |
| Accounts Payable | $36.4M | $43.6M | $29.9M | $32.8M | $29.5M | $34.4M | $47.8M | $32.9M | $105.0M | $143.9M |
| Short-term Debt | $8.2M | $559000 | $28.2M | $39.7M | $54.1M | $57.9M | $69.4M | $39.0M | $41.6M | $37.5M |
| Total Current Liabilities | $60.0M | $70.7M | $77.4M | $91.4M | $103.1M | $109.0M | $138.6M | $93.4M | $170.1M | $257.3M |
| Long-term Debt | $35.0M | $49.0M | $60.3M | $93.6M | $91.8M | $83.7M | $79.5M | $76.2M | $138.8M | $129.8M |
| Total Liabilities | $94.9M | $119.7M | $137.7M | $193.0M | $202.9M | $199.9M | $223.6M | $174.3M | $317.9M | $434.5M |
| Retained Earnings | -$37.0M | $38.1M | $36.0M | -$30.1M | -$88.5M | -$142.7M | -$209.1M | -$265.1M | -$451.9M | -$490.1M |
| Total Equity | $227.4M | $333.3M | $329.1M | $273.8M | $277.9M | $254.6M | $184.7M | $214.9M | $229.1M | $733.9M |
| Total Debt | $43.1M | $49.6M | $88.5M | $142.3M | $154.9M | $149.9M | $155.5M | $121.1M | $190.9M | $167.3M |
| Net Debt | -$8.9M | -$33.4M | $32.9M | $82.4M | $111.5M | $115.2M | $130.8M | $75.7M | $123.4M | -$48.7M |
| Working Capital | $97.6M | $159.0M | $116.9M | $101.4M | $106.0M | $85.1M | $44.6M | $79.2M | $131.2M | $418.4M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|
| Cash & Equivalents | $137.0M | $216.0M | $449.4M | $499.7M |
| Total Assets | $978.5M | $1.17B | $1.57B | $2.30B |
| Total Liabilities | $419.4M | $434.5M | $459.9M | $633.2M |
| Total Equity | $559.1M | $733.9M | $1.11B | $1.67B |
| Total Debt | $235.2M | $167.3M | $173.7M | $264.5M |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|
| Net Income | $31.2M | $74.0M | -$2.1M | -$66.0M | -$58.5M | -$54.2M | -$66.4M | -$56.0M | -$186.7M | -$38.2M |
| Depreciation & Amortization | $14.2M | $20.4M | $29.7M | $24.0M | $24.7M | $25.4M | $23.2M | $20.4M | $20.6M | $27.7M |
| Stock-based Compensation | $3.8M | $7.8M | $11.1M | $11.8M | $13.0M | $12.1M | $9.6M | $11.9M | $14.8M | $11.7M |
| Change in Working Capital | $16.4M | -$20.1M | -$22.3M | $6.5M | -$34.4M | $6.0M | $11.9M | $6.1M | -$35.9M | -$175.9M |
| Operating Cash Flow | $57.1M | $84.3M | $14.0M | -$1.8M | -$44.0M | -$11.6M | -$14.0M | -$7.9M | -$69.5M | -$174.4M |
| Capital Expenditure | -$50.0M | -$70.3M | -$77.2M | -$32.1M | -$19.6M | -$10.7M | -$4.2M | -$9.7M | -$43.4M | -$179.1M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $5000 |
| Stock Repurchased | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $7.1M | $13.9M | -$63.2M | -$33.9M | -$63.6M | -$22.3M | -$18.3M | -$17.6M | -$112.9M | -$353.6M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|
| Operating Cash Flow | -$28.5M | -$29.6M | -$85.4M | $11.6M |
| Capital Expenditure | -$50.4M | $104.0M | -$58.2M | -$276.9M |
| Free Cash Flow | -$78.8M | $74.5M | -$143.6M | -$265.3M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | -$17.2M | -$8.8M | $4.4M | $4.9M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|
| Revenue Growth (YoY) | | +46.6% | -30.0% | -28.6% | +22.9% | -9.8% | +5.3% | -2.3% | +14.6% | +82.8% |
| Net Income Growth (YoY) | | +136.8% | -102.9% | -2977.8% | +11.5% | +7.3% | -22.6% | +15.6% | -233.2% | +79.5% |
| EPS Growth (YoY) | | +112.6% | -102.8% | -2909.1% | +19.3% | +24.7% | -18.4% | +26.5% | -157.1% | +85.8% |
| Shares Change (YoY) | | +13.7% | -2.4% | +1.7% | +9.4% | +23.1% | +3.5% | +14.7% | +30.0% | +44.9% |
| FCF Growth (YoY) | | +96.0% | -553.3% | +46.4% | -87.7% | +64.9% | +18.1% | +3.6% | -541.8% | -213.1% |
| Gross Margin | 33.4% | 43.5% | 32.8% | 24.2% | 21.5% | 17.8% | 15.1% | 27.1% | 24.8% | 30.0% |
| Operating Margin | 8.8% | 22.7% | -4.0% | -25.5% | -20.8% | -26.8% | -26.5% | -19.0% | -28.4% | -12.0% |
| EBITDA Margin | 14.2% | 27.7% | 7.9% | -11.5% | -8.9% | -11.0% | -16.5% | -12.0% | -63.9% | -3.4% |
| Net Margin | 12.0% | 19.3% | -0.8% | -34.6% | -24.9% | -25.6% | -29.8% | -25.8% | -74.9% | -8.4% |
| FCF Margin | 2.7% | 3.6% | -23.6% | -17.7% | -27.1% | -10.5% | -8.2% | -8.1% | -45.3% | -77.6% |
| Effective Tax Rate | -48.7% | 12.5% | 78.1% | -28.5% | -14.1% | -0.0% | -0.0% | -0.0% | -0.0% | 18.1% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|
| FCF Per Share | $0.40 | $0.69 | $-3.22 | $-1.70 | $-2.91 | $-0.83 | $-0.66 | $-0.55 | $-2.72 | $-5.87 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $17.2M | $19.1M | $19.6M | $20.0M | $21.9M | $26.9M | $27.8M | $31.9M | $41.5M | $60.2M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | -5.61% |
| Return on Invested Capital | -3.15% |
| Return on Assets | -2.48% |
| Gross Margin | 28.92% |
| Operating Margin | -11.31% |
| Net Margin | -9.57% |
Financial Health
| Debt / Equity | 0.16 |
| Current Ratio | 2.78 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 2.98 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|
| P/E | 12.88 | 9.77 | -140.27 | -3.59 | -3.19 | -2.56 | -0.79 | -11.04 | -8.19 | -54.47 |
| P/B | 1.77 | 2.17 | 0.92 | 0.87 | 0.67 | 0.54 | 0.28 | 2.87 | 6.68 | 2.86 |
| P/S | 1.55 | 1.89 | 1.13 | 1.24 | 0.79 | 0.65 | 0.24 | 2.84 | 6.14 | 4.60 |
| Gross Margin | 33.4% | 43.5% | 32.8% | 24.2% | 21.5% | 17.8% | 15.1% | 27.1% | 24.8% | 30.0% |
| Operating Margin | 8.8% | 22.7% | -4.0% | -25.5% | -20.8% | -26.8% | -26.5% | -19.0% | -28.4% | -12.0% |
| Net Margin | 12.0% | 19.3% | -0.8% | -34.6% | -24.9% | -25.6% | -29.8% | -25.8% | -74.9% | -8.4% |