AAOI Nasdaq Earnings call
Applied Optoelectronics, Inc. (AAOI) · Q2 2026 results
Share price: $55.86 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 7 May 2026
Net loss widened on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Loss widened
Net income vs Q1 2026
Outlook given
Net income -22.8M vs -14.3M
Revenue +27.0%
Net income -22.8M vs -9.1M in Q2 2025 and -14.3M last quarter.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Guidance
AAOI expects CATV revenue between $100 million and $110 million in Q3 and projects generating over $325 million in total revenue looking further…
Valuation
Reverse DCF. Free cash flow from the last full fiscal year, grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
Valuation unavailable: free cash flow and profit were negative in the last full year and on average over the last three, so there is nothing to discount.
Current price
$55.86
close of 2026-11-11
Revenue growth, 3 years
+26.9% a year
compound annual rate (CAGR)
Free cash flow 2023
−$0.0B
Free cash flow 2024
−$0.1B
Free cash flow 2025
−$0.4B
Read between the lines
-
Figure
AAOI still expects roughly $1.1 billion in 2026 revenue, keeping its full-year sales outlook unchanged.
Source quote
“We continue to believe our 2026 revenue will be around $1.1 billion this year.”
-
Guidance
The company expects to ramp production starting later this year and into 2027 to reach a volume of approximately 400 thousand pieces per month.
Source quote
“We have very limited production of these modules now, but we anticipate ramping production later this year and into 2027 ultimately culminating in about 400 thousand pieces per month.”
-
Fading
The company reported that the actual number from the customer is bigger and demand could be higher than that figure, indicating a need for accelerating customer demand.
Source quote
“The actual number from the customer is bigger, and actually what The actual demand could be even higher than this number, but that is the best we can do.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Our total revenue was a record $192 million which increased 86% year over year and increased 27% sequentially off a strong Q1 and was in line with our guidance range...”
“We believe that in the future, CPO will continue to drive increased demand for high power lasers and we plan to continue to expand our laser manufacturing capacity in Texas...”
“We generated our 5th consecutive quarter of record revenue and we achieved an important milestone as we return to non-GAAP profitability in the quarter.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 191.9M | 151.1M | +27.0% | 103.0M | +86.4% |
| Gross profit | 53.2M | 43.9M | +21.2% | 31.2M | +70.7% |
| Operating income | -24.7M | -13.0M | Loss widened | -16.0M | Loss widened |
| Net income | -22.8M | -14.3M | Loss widened | -9.1M | Loss widened |
| EPS | -0.28 | -0.19 | Loss widened | -0.16 | Loss widened |
| P/E | 12-mo loss | 12-mo loss | — | 12-mo loss | — |
Topics
Most discussed now
- During the quarter, Applied Optoelectronics saw continued robust customer engagement around its 800G and 1.6T products, in line with its...
- Applied Optoelectronics is pleased to deliver solid second quarter results in line with or better than its expectations.
- New Especially know, AOI making its own laser, and Applied Optoelectronics is maybe the only 1 company commit to really invest heavily...
- Pretty broad based interest among customers
- In the short term, the gross margin improvement for sure, the most important factor is the percentage of 1.6T transceiver.
Faded since Q1 2026
- Fading Applied Optoelectronics saw equipment delivery could take 21 to 24 months for you to start to deliver lasers to the customer.
- Fading The fact that Applied Optoelectronics has its own in‑house laser manufacturing capability is one of its key advantages.
Latest announcements
Official filings, newest first.
- Material agreement; New financial obligation · SEC 8-K
- Material agreement · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Material agreement; Director or officer change · SEC 8-K
- Material agreement · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K