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Applied Optoelectronics

catalyst tomorrowNo base rate yet — AAOI has 0 graded prints on the record, and the bar is 3.Website
Ticker
AAOI
Beat
datacenters
Size
Public Company
Revenue
$192M
as of Jun 2026
Cash
$500M
as of Jun 2026
Burn
$22.8M/qtr
as of Jun 2026
Runway
~5.5yr at this rate
as of Jun 2026
Researched · Fresh
11 days ago

A real but sub-scale optical-transceiver share-gainer whose AI-data-center inflection is genuine — but the equity is priced as if it has already won a market that InnoLight, Coherent and Lumentum actually own, while it funds the build with relentless dilution and parks three-quarters of its receivables on one distributor (Digicomm) on stretched terms. The 2017 Amazon-loss crash is the template, not the exception.

Orbit · who it trades with and competes with
5 on the rings · 2 trade · 3 rival
8 mentions across our dossiers
Focus · Datacenters
Applied Optoelectronics
AAOI · public
No published house view
Trades with
Competes with
Next prints in its web
Links · 5 companies · 2 trade · 3 rival
“The Microsoft relationship is governed by Statements of Work (SOW No.1 Foundry, Dec 2022; SOW No.2 Design & Assembly, Jun 2023).”Microsoft · TRADE · from Applied Optoelectronics’s dossier
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Price

Weekly closes

AAOI · weekly close
69.05 USD+2.3%
Friday 30 Oct 2026 · last 52 Fridays 20.58–190.36
pick a pin
Every pin is a dated row
Solid: filed with the SEC, settled at FINRA, or a recorded split. Hollow: the scheduled print, past the last close, never a price.
Height is the close · the ribbon is the stored record, a missing week a missing point · a pin stands on its Friday
  1. Insiders sold, 90 days: 49,763 sh · 9 filings, Form 4 · 22 Oct 2026
  2. Short interest: 16,296,183 sh · 1.28 days to cover, FINRA · settled 15 Oct 2026
  3. Next print: in 1 days, Scheduled · 5 Nov 2026, scheduled
69.05USD+2.3%datacenters +1.3%AAOI · 112 weekly closes to 2026-10-30

Who is buying

Insiders sold, last 90 daysSEC Form 4 · newest 22 Oct 2026
9 filings · 49,763 shares
Shares sold shortFINRA · settled 15 Oct 2026
16,296,183 shares
Days to unwind the shortFINRA · settled 15 Oct 2026
1.28
see the whole series
Financials

The reported figures

Revenue · quarterly
$192M
latest, Q2 ’26 · 12 periods stored
Filed · primary
Q2 ’26
$192M USD
as of 30 Jun 2026
Source: sec.gov
Solid = filed (primary) · hollow dashed = estimate · a dashed floor tick is a period with no figure held · quarterly and annual never share an axis
Applied Optoelectronics, quarterly figures held, Q3 ’23 to Q2 ’26
PeriodAs ofRevenueOperating marginFree cash flowCapexCashShares outstandingGradingSource
Q3 ’2330 Sept 2023$62.5M USD-10.7% share of revenue-$16.8M USD$1.5M USD$21.9M USD35.5M sharesFiled · primarysec.gov
Q4 ’2331 Dec 2023$60.5M USD-7.5% share of revenue-$4.6M USD$6.2M USD$45.4M USD—Filed · primarysec.gov
Q1 ’2431 Mar 2024$40.7M USD-53.2% share of revenue-$34.2M USD$5.8M USD$8.4M USD38.9M sharesFiled · primarysec.gov
Q2 ’2430 Jun 2024$43.3M USD-60.7% share of revenue-$5.0M USD$3.0M USD$10.7M USD40.9M sharesFiled · primarysec.gov
Q3 ’2430 Sept 2024$65.2M USD-25.4% share of revenue-$20.7M USD$6.3M USD$34.1M USD45.1M sharesFiled · primarysec.gov
Q4 ’2431 Dec 2024$100M USD-6.5% share of revenue-$53.0M USD$28.4M USD$67.4M USD—Filed · primarysec.gov
Q1 ’2531 Mar 2025$99.9M USD-8.9% share of revenue-$79.3M USD$28.4M USD$51.1M USD55.5M sharesFiled · primarysec.gov
Q2 ’2530 Jun 2025$103M USD-15.5% share of revenue-$91.0M USD$25.5M USD$64.7M USD62.4M sharesFiled · primarysec.gov
Q3 ’2530 Sept 2025$119M USD-15.3% share of revenue-$78.7M USD$50.2M USD$137M USD68.3M sharesFiled · primarysec.gov
Q4 ’2531 Dec 2025$134M USD-8.6% share of revenue-$105M USD$75.0M USD$206M USD75.2M sharesFiled · primarysec.gov
Q1 ’2631 Mar 2026$151M USD-8.6% share of revenue-$144M USD$58.2M USD$440M USD80.2M sharesFiled · primarysec.gov
Q2 ’2630 Jun 2026$192M USD-12.9% share of revenue——$500M USD84.6M sharesFiled · primarysec.gov

Applied Optoelectronics’s figures as the company reported them in its filings. Quarters are calendar quarters, so a company whose year ends in January shows each fiscal quarter under the calendar quarter it falls in. An empty slot is a quarter we hold no figure for.

Revenue · quarterlyQ3 ’23 – Q2 ’26
$192M+86% vs Q2 ’25

Q2 ’26 · as of Jun 2026

Revenue Q3 ’23: $62.5M, as of Sep 2023Revenue Q4 ’23: $60.5M, as of Dec 2023 (Q4 worked out from the annual total)Revenue Q1 ’24: $40.7M, as of Mar 2024Revenue Q2 ’24: $43.3M, as of Jun 2024Revenue Q3 ’24: $65.2M, as of Sep 2024Revenue Q4 ’24: $100M, as of Dec 2024 (Q4 worked out from the annual total)Revenue Q1 ’25: $99.9M, as of Mar 2025Revenue Q2 ’25: $103M, as of Jun 2025Revenue Q3 ’25: $119M, as of Sep 2025Revenue Q4 ’25: $134M, as of Dec 2025 (Q4 worked out from the annual total)Revenue Q1 ’26: $151M, as of Mar 2026Revenue Q2 ’26: $192M, as of Jun 2026

Lighter bars: Q4 worked out as the full-year total minus the three reported quarters.

Operating margin · quarterlyQ3 ’23 – Q2 ’26
-12.9%+2.6 pts vs Q2 ’25

Q2 ’26 · as of Jun 2026

Operating margin Q3 ’23: -10.7%, as of Sep 2023Operating margin Q4 ’23: -7.5%, as of Dec 2023 (Q4 worked out from the annual total)Operating margin Q1 ’24: -53.2%, as of Mar 2024Operating margin Q2 ’24: -60.7%, as of Jun 2024Operating margin Q3 ’24: -25.4%, as of Sep 2024Operating margin Q4 ’24: -6.5%, as of Dec 2024 (Q4 worked out from the annual total)Operating margin Q1 ’25: -8.9%, as of Mar 2025Operating margin Q2 ’25: -15.5%, as of Jun 2025Operating margin Q3 ’25: -15.3%, as of Sep 2025Operating margin Q4 ’25: -8.6%, as of Dec 2025 (Q4 worked out from the annual total)Operating margin Q1 ’26: -8.6%, as of Mar 2026Operating margin Q2 ’26: -12.9%, as of Jun 2026

Lighter bars: Q4 worked out as the full-year total minus the three reported quarters.

Free cash flow · quarterlyQ3 ’23 – Q2 ’26
-$144M

Q1 ’26 · as of Mar 2026

Free cash flow Q3 ’23: -$16.8M, as of Sep 2023Free cash flow Q4 ’23: -$4.6M, as of Dec 2023 (Q4 worked out from the annual total)Free cash flow Q1 ’24: -$34.2M, as of Mar 2024Free cash flow Q2 ’24: -$5.0M, as of Jun 2024Free cash flow Q3 ’24: -$20.7M, as of Sep 2024Free cash flow Q4 ’24: -$53.0M, as of Dec 2024 (Q4 worked out from the annual total)Free cash flow Q1 ’25: -$79.3M, as of Mar 2025Free cash flow Q2 ’25: -$91.0M, as of Jun 2025Free cash flow Q3 ’25: -$78.7M, as of Sep 2025Free cash flow Q4 ’25: -$105M, as of Dec 2025 (Q4 worked out from the annual total)Free cash flow Q1 ’26: -$144M, as of Mar 2026

Lighter bars: Q4 worked out as the full-year total minus the three reported quarters.

Operating cash flow minus capital spending.

Cash · quarterlyQ3 ’23 – Q2 ’26
$500M

Q2 ’26 · as of Jun 2026

Cash Q3 ’23: $21.9M, as of Sep 2023Cash Q4 ’23: $45.4M, as of Dec 2023Cash Q1 ’24: $8.4M, as of Mar 2024Cash Q2 ’24: $10.7M, as of Jun 2024Cash Q3 ’24: $34.1M, as of Sep 2024Cash Q4 ’24: $67.4M, as of Dec 2024Cash Q1 ’25: $51.1M, as of Mar 2025Cash Q2 ’25: $64.7M, as of Jun 2025Cash Q3 ’25: $137M, as of Sep 2025Cash Q4 ’25: $206M, as of Dec 2025Cash Q1 ’26: $440M, as of Mar 2026Cash Q2 ’26: $500M, as of Jun 2026Debt Q3 ’23: $31.3M, as of Sep 2023Debt Q4 ’23: $23.2M, as of Dec 2023Debt Q1 ’24: $24.1M, as of Mar 2024Debt Q2 ’24: $22.5M, as of Jun 2024Debt Q3 ’24: $29.5M, as of Sep 2024Debt Q4 ’24: $26.7M, as of Dec 2024Debt Q1 ’25: $22.1M, as of Mar 2025Debt Q4 ’25: $34.0M, as of Dec 2025

CashDebt

Shares outstanding · quarterlyQ3 ’23 – Q2 ’26
84.6M+138% since Q3 ’23

Q2 ’26 · as of Jun 2026

Shares outstanding Q3 ’23: 35.5M, as of Sep 2023Shares outstanding Q1 ’24: 38.9M, as of Mar 2024Shares outstanding Q2 ’24: 40.9M, as of Jun 2024Shares outstanding Q3 ’24: 45.1M, as of Sep 2024Shares outstanding Q1 ’25: 55.5M, as of Mar 2025Shares outstanding Q2 ’25: 62.4M, as of Jun 2025Shares outstanding Q3 ’25: 68.3M, as of Sep 2025Shares outstanding Q4 ’25: 75.2M, as of Dec 2025Shares outstanding Q1 ’26: 80.2M, as of Mar 2026Shares outstanding Q2 ’26: 84.6M, as of Jun 2026

A rising count is dilution: each existing share owns less of the company.

Latest filing: sec.gov

The record

What happened

What happened
DateTypeWhat happenedSource
2026-10-30filingSC 13G: Vanguard Capital Management reports 5.09% stakeVanguard Capital Management reports 4,305,787 shares, 5.09% of class; sole dispositive power 4,305,787; sole voting 652,746. Event date 30 Sep 2026.agent:company-events · SEC EDGAR SC 13G
2026-10-26filingForm 4 cluster: 5 insiders, 22 Oct 2026 tax-withholding share surrender at $77.325 insiders filed Form 4 on 22 Oct 2026: code F, shares surrendered to issuer for tax withholding on RSU vesting at $77.32; 33,563 shares in total.agent:company-events · SEC EDGAR Form 4
2026-10-24editorial noteSources added: 0 → 8The dossier's cited-link count grew from 0 to 8 (deep-dive-2026-06-20.md → deep-dive-2026-10-24.md).dossier
2026-10-24editorial noteMargin figure revised: 30.0% → 27.7%Margin moved from 30.0% (deep-dive-2026-06-20.md) to 27.7% (deep-dive-2026-10-24.md).dossier
2026-10-24editorial noteRevenue figure revised: $455.7M → $191.9MRevenue moved from $455.7M (deep-dive-2026-06-20.md) to $191.9M (deep-dive-2026-10-24.md).dossier
2026-09-15contract8-K: Ningbo factory lease, 10-year term, annual rent RMB 6,896,124Subsidiary Global Technology, Inc. entered a 10-year lease (16 Sep 2026 to 15 Sep 2036) for about 38,311.8 sq m in Ningbo, China; annual rent RMB 6,896,124, rising 3% every three years from lease year 3.agent:company-events · SEC EDGAR 8-K
dossier age
11 days
researched 24 Oct 2026 · ring fills at 180
pick a section
Each column is a section of the dossier
Its height is how many times the section names a filing: 14 mentions across 2 sections. A dashed foot names none.
Primary sources
0 of 2 sections name no filing · Enter steps through them
  1. The dossier: Refresh delta (since 2026-06-20), 546 words, 12 filing mentions
  2. The dossier: What held, 71 words, 2 filing mentions
Research

The Applied Optoelectronics dossier

The verdict

A real but sub-scale optical-transceiver share-gainer whose AI-data-center inflection is genuine — but the equity is priced as if it has already won a market that InnoLight, Coherent and Lumentum actually own, while it funds the build with relentless dilution and parks three-quarters of its receivables on one distributor (Digicomm) on stretched terms. The 2017 Amazon-loss crash is the template, not the exception.

Primary sources

SEC filings

Source documents — open to read in full

Refresh delta (since 2026-06-20)

  1. Q2 results. GAAP revenue $191.9M, against $103.0M in Q2 2025 and $151.1M in Q1 2026. GAAP gross margin 27.7% (30.3% a year earlier; 29.1% in Q1); non-GAAP 29.8% (30.4%; 29.2%). GAAP net loss $22.8M, or $0.28 per basic share (Q2 2025: $9.1M, $0.16; Q1 2026: $14.3M, $0.19). Non-GAAP net income $5.5M, or $0.06 per diluted share, against a non-GAAP net loss of $8.8M a year earlier and $4.9M in Q1. [sec.gov: Form 8-KA filing for something that happened between reports and matters enough to tell shareholders now. filed 2026-08-06, exhibit 99.1, https://www.sec.gov/Archives/edgar/data/1158114/000168316826006055/aaoi_ex9901.htm; quarter ended 2026-06-30]
  2. Capacity and demand statements. Management said 800G volume more than doubled sequentially, that total manufacturing capacity is approaching 200,000 units a month, that it expects to be able to produce about 650,000 pieces of 800G and 1.6T products a month by the end of 2026, and that demand will outpace capacity through mid-2027. [sec.gov: 8-K filed 2026-08-06, exhibit 99.1, same URL]
  3. Q3 2026 guidance. Revenue $255M to $290M; non-GAAP gross margin 29% to 30.5%; non-GAAP net income $10.1M to $24.0M, or $0.11 to $0.26 per share on about 92.8M shares. [sec.gov: 8-K filed 2026-08-06, exhibit 99.1, same URL]
  4. Liquidity. Cash, cash equivalents and restricted cash $508.8M at 2026-06-30, up about $292.7M from 2025-12-31. Loans (excluding convertible notes) $58.9M, with $106.5M of available borrowing capacity on existing credit lines. [sec.gov: Form 10-QThe quarterly version of the annual report. Lighter, and not audited. filed 2026-08-06, https://www.sec.gov/Archives/edgar/data/1158114/000143774926026278/aaoi20260630_10q.htm]
  5. Shares and the new at-the-market programme. 84,569,237 common shares outstanding at 2026-08-03. On 2026-08-21 the company signed an equity distribution agreement with Raymond James and Needham for up to $600 million of common stock at the market. [sec.gov: 10-Q filed 2026-08-06, same URL as item 4; 8-K filed 2026-08-21, https://www.sec.gov/Archives/edgar/data/1158114/000110465926099688/tm2623389d2_8k.htm]
  6. Capacity build-out contracts. On 2026-06-25 the company signed a design-build agreement for its OMD 3 (FAB4) cleanroom project in Houston, about 195,591 square feet of ISO Class 6 cleanroom plus office and shipping space, at a total contract amount of about $94.1M, with liquidated damages capped at $4.9M and schedule incentives of up to $6.0M. On 2026-08-31 it signed two 120-month leases for Buildings 4 and 5 in the Houston industrial park, to be built by the landlord with substantial completion expected about 16 months after the leases. On 2026-09-04 it bought the Houston property at 16851 Blue Ridge Commerce Dr., Building 3 (about 8.858 acres and a building of about 153,928 rentable square feet) for $26,783,472 in cash, exercising a purchase option from a February 2026 lease. On 2026-09-10 a subsidiary leased a building of about 38,311.8 square meters in Ningbo, China, for ten years from 2026-09-16 at RMB 6,896,124 a year, with a three-month rent-free renovation period and 3% increases every three years from the third lease year. [sec.gov: 8-K filed 2026-07-01, https://www.sec.gov/Archives/edgar/data/1158114/000168316826005221/aaoi_8k.htm; 8-K filed 2026-09-01, https://www.sec.gov/Archives/edgar/data/1158114/000168316826006862/aaoi_8k.htm; 8-K filed 2026-09-10, https://www.sec.gov/Archives/edgar/data/1158114/000168316826007057/aaoi_8k.htm; 8-K filed 2026-09-15, https://www.sec.gov/Archives/edgar/data/1158114/000168316826007160/aaoi_8k.htm]
  7. Indemnification. On 2026-08-18 the board adopted an updated form of indemnification agreement for directors and certain executive officers. [sec.gov: 8-K filed 2026-08-24, https://www.sec.gov/Archives/edgar/data/1158114/000168316826006693/aaoi_8k.htm]
  8. Where the new filings meet the carried view (stated as fact, no line changed). The carried open item reconciles Market capitalisationThe share price multiplied by the number of shares. What the market says the equity is worth. using "~80.2M sh"; the 10-Q cover shows 84,569,237 shares at 2026-08-03, and the Q3 guidance uses about 92.8M shares. This delta has no price, so no market capitalisation is restated. The carried seed's price figures rest on market data this delta does not refresh.

What held

  • Revenue growth continued for a fifth consecutive record quarter, and the company returned to non-GAAP profitability while GAAP stayed in a loss. [sec.gov: 8-K filed 2026-08-06, exhibit 99.1]
  • The company continues to fund capacity expansion in the United States and China (items 6). [sec.gov: 8-Ks of 2026-07-01 to 2026-09-15]
  • It continues to rely on equity-market access: a new $600M at-the-market programme followed the quarter. [sec.gov: 8-K filed 2026-08-21]

How our view changed

2 dossiers

Every dossier we have written on Applied Optoelectronics, newest first.

  1. current

    A real but sub-scale optical-transceiver share-gainer whose AI-data-center inflection is genuine

  2. A real but sub-scale optical-transceiver share-gainer whose AI-data-center inflection is genuine

Research trail

The research around Applied Optoelectronics

Covered in the Knowledge Base

Datacenters & Digital Infrastructure

Company details

IndustryCloud Computing
SizePublic Company
WebsiteVisit Applied Optoelectronics

Others in datacenters

5 names

Where Applied Optoelectronics sits against the other names we cover on this beat. Each line is that company’s verdict, not a summary of it.