Applied Optoelectronics, Inc. reported record fourth quarter revenue of $134.3 million, up from $100.3 million in Q4 2024 and $118.6 million in Q3 2025. The company cited broad-based demand across its CATV and datacenter segments as drivers of growth. For the full year 2025, revenue reached $455.7 million, compared to $249.4 million in 2024, marking the strongest year in the company’s history.
Fourth quarter GAAP gross margin increased to 31.2%, compared to 28.7% a year earlier and 28.0% in the prior quarter. Non-GAAP gross margin reached 31.4%. GAAP net loss narrowed to $2.0 million, or $0.03 per basic share, compared to a $119.7 million loss in Q4 2024 and a $17.9 million loss in Q3 2025. For full year 2025, GAAP gross margin improved to 30.0% from 24.8% in 2024, while GAAP net loss declined to $38.2 million from $186.7 million in the prior year.
AOI also highlighted progress in expanding manufacturing capacity to support higher-volume production of next-generation datacenter products. For the first quarter of 2026, the company expects revenue between $150 million and $165 million, non-GAAP gross margin between 29% and 31%, and non-GAAP net income ranging from a loss of $7.0 million to a loss of $0.3 million, or a loss of $0.09 per share to breakeven, based on approximately 76.4 million shares outstanding.
• Q4 2025 GAAP revenue: $134.3 million (vs. $100.3M in Q4 2024)
• Q4 2025 GAAP gross margin: 31.2% (vs. 28.7% in Q4 2024)
• Q4 2025 GAAP net loss: $2.0 million, or $0.03 per share
• FY 2025 GAAP revenue: $455.7 million (vs. $249.4M in 2024)
• FY 2025 GAAP gross margin: 30.0% (vs. 24.8% in 2024)
• FY 2025 GAAP net loss: $38.2 million (vs. $186.7M loss in 2024)
• Q1 2026 outlook: Revenue $150M–$165M; non-GAAP gross margin 29%–31%
Dr. Thompson Lin, Founder, President and CEO, said, “We are pleased to deliver record fourth quarter results that were in line with or better than our expectations, and which capped off the strongest year in our company’s history.”
🌐 Analysis: AOI’s revenue acceleration reflects sustained demand for optical components tied to datacenter expansion and broadband network upgrades. The company’s margin expansion and capacity investments position it to participate in higher-speed datacenter interconnect cycles, where competitors are also scaling production to meet AI-driven infrastructure demand.
