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Applied Optoelectronics, Inc.

AAOITechnologyNASDAQ

Communication Equipment

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Financials · Annual
Revenue
$455.7M
+82.8% YoY
Net Income
-$38.2M
+79.5% YoY
EBITDA
-$15.5M
+90.3% YoY
Free Cash Flow
-$445.6M

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About Applied Optoelectronics, Inc.

Applied Optoelectronics, Inc. engages in the design, manufacture, and sale of fiber-optic networking products in the United States, Taiwan, and China. Valued at $12.71B, AAOI is a large-cap name in its sector. The company offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, and distribution equipment, as well as amplifiers.

Key stats
Market Cap$12.71B
Fwd P/E33.20
EPS$-0.64
Beta3.76
52W Change+921.0%
ROE-6.1%
Analysis

Applied Optoelectronics, Inc. holds $439.7M in cash against $280.4M in total debt, giving it a net cash position. This means the company could theoretically pay off all its debt and still have cash remaining. Free cash flow is running at -$445.6M, which bears watching. Negative free cash flow can be acceptable during heavy investment periods but needs to improve over time. Return on equity stands at -6.1%, which is negative for the sector. ROE measures how effectively a company uses shareholder capital to generate profits. Revenue has grown from $222.8M (2022) to $455.7M (2025), reflecting a 105% increase over the period.

A beta of 3.76 means AAOI is more volatile than average. Investors should be prepared for wider price swings relative to broader indices. The company is burning cash at the operating level, which is not unusual for growth-phase companies but adds risk if it persists. These risk factors are not exhaustive — macroeconomic shifts, regulatory changes, and competitive dynamics can all influence Applied Optoelectronics, Inc.'s trajectory.

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