Applied Optoelectronics Inc ( (AAOI) ) has released its Q2 earnings. Here is a breakdown of the information Applied Optoelectronics Inc presented to its investors.
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Applied Optoelectronics, Inc. is a leading developer and manufacturer of advanced optical and Hybrid Fiber-Coax (HFC) networking products, serving key markets such as AI datacenters, CATV, and broadband fiber access networks globally. The company is headquartered in Sugar Land, Texas, with additional facilities in Taiwan and China.
In its second quarter of 2025, Applied Optoelectronics reported revenue and gross margin that aligned with expectations, despite a net loss due to increased operating expenses. The company highlighted significant year-over-year revenue growth and gross margin improvement, driven by strategic investments in research and development and sales, general, and administrative expenses.
Key financial metrics for the quarter included a GAAP revenue of $103.0 million, a significant increase from $43.3 million in the same quarter of 2024. The GAAP gross margin improved to 30.3% from 22.1% a year earlier. However, the company reported a GAAP net loss of $9.1 million, or $0.16 per share, which was an improvement from the $26.1 million loss in the second quarter of 2024. The company is making strides in its datacenter and CATV businesses, with ongoing efforts to qualify 800G products and expand production capacity.
Looking ahead, Applied Optoelectronics anticipates third-quarter revenue between $115 million and $127 million, with a non-GAAP gross margin ranging from 29.5% to 31.0%. The company remains focused on scaling its production capabilities and enhancing its manufacturing resilience, positioning itself for long-term success.