Applied 2025 Q3 Earnings Revenue Surges 82% Despite Narrowed Losses

Applied Optoelectronics (AAOI) reported fiscal 2025 Q3 earnings on November 6, 2025, . , . , reflecting mixed market sentiment.

Revenue

CATV revenue drove growth, contributing significantly to the 82.1% year-over-year increase, while datacenter revenue faced delays impacting overall results. The company’s , including telecom and FTTH, partially offset datacenter underperformance. Sequentially, , highlighting strong demand in the CATV sector.

Earnings/Net Income

The narrowed loss per share indicates improved efficiency, though net losses widened slightly year-over-year.

Post-Earnings Price Action Review

The strategy of buying AAOI shares after its revenue raise announcement and holding for 30 days yielded a modest 5% gain, underperforming the S&P 500’s typical 2-3% returns. This lackluster performance underscores AAOI’s volatility and challenges in capitalizing on broader market momentum. Investors are advised to consider shorter holding periods or diversified strategies to mitigate risks.

CEO Commentary

CFO highlighted “exceptionally strong demand in the CATV business” and progress on 800G product qualifications. The company plans to expand U.S. . Murry noted that “inventory management system issues” at a hyperscale customer caused Q3 datacenter delays, but these were resolved. The tone was cautiously optimistic, emphasizing capacity scaling and customer diversification.

Guidance

The company expects Q4 revenue of $125–$140 million, , and anticipates a non-GAAP net loss. Management also aims to achieve 200,000 800G transceiver production capacity by mid-2026.

Additional News

1. Capacity Expansion: AAOI plans to boost U.S. production of 800G transceivers to 100,000 units/month by year-end, supported by Texas state and federal funding.

2. 800G Product Progress, .

3. Customer Diversification: Strong CATV revenue growth, driven by new software solutions and amplifier demand, is projected to exceed $300 million in 2026.