Applied Optoelectronics Inc ( (AAOI) ) has released its Q3 earnings. Here is a breakdown of the information Applied Optoelectronics Inc presented to its investors.
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Applied Optoelectronics, Inc. (AOI) is a prominent developer and manufacturer of advanced optical and HFC networking products, catering to AI datacenters, CATV, and broadband fiber access networks globally, with facilities in the U.S., Taiwan, and China.
In its third quarter of 2025, AOI reported financial results that aligned with expectations, highlighting strong demand in its CATV business, particularly for its 1.8 GHz amplifier products. The company also noted progress in securing 800G product qualifications, anticipating significant shipments in the upcoming quarter.
Key financial metrics for the quarter included a GAAP revenue of $118.6 million, a significant increase from $65.2 million in the same quarter of 2024. The GAAP gross margin was reported at 28.0%, while the non-GAAP gross margin was 31.0%. Despite a GAAP net loss of $17.9 million, the non-GAAP net loss was reduced to $5.4 million, showcasing an improvement from previous quarters.
AOI’s strategic focus on increasing production capacity, particularly in the U.S., aims to establish the largest domestic facility for high-speed, AI-focused datacenter transceivers. The company expects to achieve a production capacity of 100,000 units of 800G transceivers per month by year-end, with 35% of production occurring in the U.S.
Looking ahead, AOI projects fourth-quarter revenue between $125 million and $140 million, with a non-GAAP gross margin ranging from 29% to 31%. The company remains optimistic about its growth trajectory, driven by robust demand and strategic expansions.