AAOI Technology

Applied Optoelectronics, Inc.

$63.97+2.35%

Price as of close on Nov 3, 2026 · Financials updated Oct 6, 2026

Basics

Sector: Technology
Industry: Communication Equipment
Country: United States
Market cap: 5.4B USD
Enterprise value: 6.1B USD
Full-time employees: 4,691

Overall health

Strength: growing faster than most peersgrowing faster than peers
Drawback: less profitable than most peersless profitable than peers
Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: its share price swings more than most peers’ (beta 3.84 vs a peer median of 0.87)bigger price swings (beta 3.84 vs peers 0.87)
About average: risk (debt, liquidity and share-price swings)risk

Ranks #1,166 of 1,612 technology companies (bottom 28%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 195% from December 2022 to August 2026.
Applied Optoelectronics had 195% more shares at August 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Applied Optoelectronics had 195% more shares at August 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.
Operating loss narrowing. Operating margin -12% in 2025, the smallest loss relative to revenue of the last 6 years.
Applied Optoelectronics still lost money on operations in 2025 (margin -12%), but that was its smallest operating loss relative to revenue in the 6 years of filings we have.
Investment surge. Capital spending 39% of revenue, up from 1.4% in 2022.
Applied Optoelectronics is spending 39% of revenue on facilities and equipment, up from 1.4% in 2022. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.
Growing fast, still losing money. Revenue grew faster than 95% of peers, at an operating loss.
Revenue grew faster than 95% of peers, but the business runs at an operating loss (margin -11%).

StockQuotient Score

39/ 100

Oct 5 39 → Nov 4 39

Valuation

Is the price right?

10/100

Weak

3/3 inputs reported · High confidence

Since last quarter: ▼ Weaker

Share count up 5.4% (existing holders diluted)

Valuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ Earnings yield
▼ EBITDA yield
▼ FCF yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield-1.1%

SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price30% base weight · Z-score -1.00Sector median: 0.0225 · MAD: 0.0225

EBITDA yield-0.6%

SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price50% base weight · Z-score -1.17Sector median: 0.0423 · MAD: 0.0361

Free cash flow yield-6.3%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingNegative (a loss or cash outflow), so it counts as zero whatever the share price20% base weight · Z-score -1.00Sector median: 0.0274 · MAD: 0.0274

Other data (not scored)

Book yield30.8%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3292 · MAD: 0.1754

Growth

Is it growing?

93/100

Strong

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 17.5%

Why

Stronger than most peers on:

▲ 3-yr revenue
▲ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growthUnavailable

Still loss-making, but the loss per share narrowed33% base weight · Z-score 0.30Sector median: 0.1108 · MAD: 0.3050

3-year revenue growth40.9%

SEC filings · 3 years to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score 3.42Sector median: 0.0483 · MAD: 0.0793

Revenue growth61.8%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score 4.89Sector median: 0.0853 · MAD: 0.1017

Profitability

Does it earn well?

16/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Operating margin
▼ ROA
▼ ROIC

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin-11.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -2.48Sector median: 0.0631 · MAD: 0.0710

Return on assets-2.5%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -1.49Sector median: 0.0293 · MAD: 0.0362

Return on invested capital-3.9%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -1.25Sector median: 0.0676 · MAD: 0.0857

Other data (not scored)

Gross margin28.9%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.3343 · MAD: 0.1632

Return on equity-3.4%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0753 · MAD: 0.0889

Risk

Debt, liquidity, price swings

Moderate

Moderate relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Mixed versus peers:

▲ Current ratio
▲ Debt / equity
▼ Beta

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta3.84

Yahoo Finance · 5-year monthly beta vs the marketOutlier capped at sector 5th/95th percentile33% base weight · Z-score -3.51Sector median: 0.8710 · MAD: 0.3700

Current ratio2.78×

SEC filings · latest balance sheetReported value33% base weight · Z-score 1.38Sector median: 1.8295 · MAD: 0.6848

Debt / equity0.11×

SEC filings · latest balance sheetReported value33% base weight · Z-score 0.60Sector median: 0.2495 · MAD: 0.2270

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Applied Optoelectronics

Is Applied Optoelectronics getting weaker?: Its latest SEC filing (Aug 6, 2026) got weaker in some ways: share count up 5.4%. Its overall score is unchanged at 39/100 since Oct 28, 2026.
How is Applied Optoelectronics valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 10/100 against 1,711 technology peers. Earnings yield -1.1% vs a peer median of 2.2% (weaker than 100% of peers).Earnings yield -1.1% vs peers 2.2% (weaker than 100% of peers).
Is Applied Optoelectronics growing?: Yes, faster than most of its peers. Growth scores 93/100 against 1,711 technology peers. 3-year revenue growth 40.9% vs a peer median of 4.8% (stronger than 95% of peers).3-year revenue growth 40.9% vs peers 4.8% (stronger than 95% of peers).
How profitable is Applied Optoelectronics?: Less profitable than most of its peers. Profitability scores 16/100 against 1,711 technology peers. Operating margin -11.3% vs a peer median of 6.3% (weaker than 87% of peers).Operating margin -11.3% vs peers 6.3% (weaker than 87% of peers).
How risky is Applied Optoelectronics?: Moderate risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Current ratio 2.78× vs a peer median of 1.83× (stronger than 72% of peers).Current ratio 2.78× vs peers 1.83× (stronger than 72% of peers). Beta 3.84 vs a peer median of 0.87 (weaker than 100% of peers).Beta 3.84 vs peers 0.87 (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 6, 2026 · compared with the quarter ended Mar 31, 2026

Got weaker

Share count up 5.4% (existing holders diluted)

Worth watching: Applied Optoelectronics is in the bottom fifth of its sector on profitability. From 2021 to 2025, 63% of companies in that position posted a loss over the following year, against 4% for the top fifth.

	Previous quarter	Latest quarter	Change
Revenue (12 months)	507.0M USD	596.0M USD	+17.5%
Net income (12 months)	−43.3M USD	−57.0M USD	+31.6%
Operating margin	-11.6%	-11.3%	+0.3 pts
Free cash flow (12 months)	−417.9M USD	−340.8M USD	−18.4%
Debt	170.7M USD	188.1M USD	+10.1%
Cash	439.7M USD	499.7M USD	+13.7%
Shares outstanding	80.2M	84.6M	+5.4%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Sector: Technology · 320 companies

Valuations in Technology are above their usual range since 2016.

70% of months since 2016 were valued lower than now.
37% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +5% and earnings +25% (medians): earnings grew faster than prices.
Median price-to-sales is +68% vs the whole market, against a usual +58%.

2016Shaded: most expensive fifth of its range2026

Shown for Technology: too few Communication Equipment companies have a long enough history of their own.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	17.8%	15.1%	27.1%	24.8%	30.0%	▲ 5.3 pts
Operating margin	-26.8%	-26.5%	-19.0%	-28.4%	-12.0%	▲ 16 pts
Net margin	-25.6%	-29.8%	-25.8%	-74.9%	-8.4%	▲ 66 pts
Return on assets (ROA)	-11.9%	-16.3%	-14.4%	-34.1%	-3.3%	▲ 31 pts
Return on equity (ROE)	-21.3%	-36.0%	-26.1%	-81.5%	-5.2%	▲ 76 pts
Free cash flow margin	-9.3%	-7.7%	-7.8%	-45.3%	-77.6%	▼ 32 pts
Current ratio	1.78×	1.32×	1.85×	1.77×	2.63×	▲ 48%
Quick ratio	0.93×	0.75×	1.16×	1.25×	1.91×	▲ 53%
Debt to equity	0.52×	0.74×	0.46×	0.70×	0.22×	▼ 68%
Interest coverage	-10.10×	-9.34×	-4.39×	-10.39×	-15.61×	▼ 50%

AAOI price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: growing faster than most peersgrowing faster than peers

Drawback: less profitable than most peersless profitable than peers

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: its share price swings more than most peers’ (beta 3.84 vs a peer median of 0.87)bigger price swings (beta 3.84 vs peers 0.87)

About average: risk (debt, liquidity and share-price swings)risk

Ranks #1,166 of 1,612 technology companies (bottom 28%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 195% from December 2022 to August 2026.

Applied Optoelectronics had 195% more shares at August 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Applied Optoelectronics had 195% more shares at August 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

Operating loss narrowing. Operating margin -12% in 2025, the smallest loss relative to revenue of the last 6 years.

Applied Optoelectronics still lost money on operations in 2025 (margin -12%), but that was its smallest operating loss relative to revenue in the 6 years of filings we have.

Investment surge. Capital spending 39% of revenue, up from 1.4% in 2022.

Applied Optoelectronics is spending 39% of revenue on facilities and equipment, up from 1.4% in 2022. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.

Growing fast, still losing money. Revenue grew faster than 95% of peers, at an operating loss.

Revenue grew faster than 95% of peers, but the business runs at an operating loss (margin -11%).

Questions investors ask about Applied Optoelectronics

Is Applied Optoelectronics getting weaker?

Its latest SEC filing (Aug 6, 2026) got weaker in some ways: share count up 5.4%. Its overall score is unchanged at 39/100 since Oct 28, 2026.

How is Applied Optoelectronics valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 10/100 against 1,711 technology peers. Earnings yield -1.1% vs a peer median of 2.2% (weaker than 100% of peers).Earnings yield -1.1% vs peers 2.2% (weaker than 100% of peers).

Is Applied Optoelectronics growing?

Yes, faster than most of its peers. Growth scores 93/100 against 1,711 technology peers. 3-year revenue growth 40.9% vs a peer median of 4.8% (stronger than 95% of peers).3-year revenue growth 40.9% vs peers 4.8% (stronger than 95% of peers).

How profitable is Applied Optoelectronics?

Less profitable than most of its peers. Profitability scores 16/100 against 1,711 technology peers. Operating margin -11.3% vs a peer median of 6.3% (weaker than 87% of peers).Operating margin -11.3% vs peers 6.3% (weaker than 87% of peers).

How risky is Applied Optoelectronics?

Moderate risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Current ratio 2.78× vs a peer median of 1.83× (stronger than 72% of peers).Current ratio 2.78× vs peers 1.83× (stronger than 72% of peers). Beta 3.84 vs a peer median of 0.87 (weaker than 100% of peers).Beta 3.84 vs peers 0.87 (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

507.0M USD

596.0M USD

+17.5%

Net income (12 months)

−43.3M USD

−57.0M USD

+31.6%

Operating margin

-11.6%

-11.3%

+0.3 pts

Free cash flow (12 months)

−417.9M USD

−340.8M USD

−18.4%

Debt

170.7M USD

188.1M USD

+10.1%

Cash

439.7M USD

499.7M USD

+13.7%

Shares outstanding

80.2M

84.6M

+5.4%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

17.8%

15.1%

27.1%

24.8%

30.0%

▲ 5.3 pts

Operating margin

-26.8%

-26.5%

-19.0%

-28.4%

-12.0%

▲ 16 pts

Net margin

-25.6%

-29.8%

-25.8%

-74.9%

-8.4%

▲ 66 pts

Return on assets (ROA)

-11.9%

-16.3%

-14.4%

-34.1%

-3.3%

▲ 31 pts

Return on equity (ROE)

-21.3%

-36.0%

-26.1%

-81.5%

-5.2%

▲ 76 pts

Free cash flow margin

-9.3%

-7.7%

-7.8%

-45.3%

-77.6%

▼ 32 pts

Current ratio

1.78×

1.32×

1.85×

1.77×

2.63×

▲ 48%

Quick ratio

0.93×

0.75×

1.16×

1.25×

1.91×

▲ 53%

Debt to equity

0.52×

0.74×

0.46×

0.70×

0.22×

▼ 68%

Interest coverage

-10.10×

-9.34×

-4.39×

-10.39×

-15.61×

▼ 50%