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What were the key takeaways from Applied Optoelectronics's earnings call?

- **Record Revenue**: Q3 $118.6M (82% YoY), driven by CATV ($70.6M, +26% QoQ) and delayed 400G shipments ($6.6M to Q4).
- **800G Momentum**: Expect 10,000-20,000 units shipped in Q4, ramping to 150,000/month by mid-2026; 1.6T production begins mid-2026.
- **CATV Growth**: 2026 target of $300M+ via new MSO wins and QuantumLink software adoption.
- **U.S. Expansion**: 200,000/month transceiver capacity in Texas by mid-2026; in-house laser manufacturing (3" wafer, <10% China dependency).
- **Customer Commitments**: Major hyperscale customers provide $200M+ in potential orders; government incentives for U.S. production under discussion.

**【CEO Summary Section】**
- Recorded highest quarterly revenue of $118.6 million, driven by CATV segment growth (up 26% sequentially) and 400G transceiver shipments delayed to Q4. 
- CATV revenue reached $70.6 million, triple year-over-year, due to 1.8GHz amplifier demand from Charter and 6+ new MSO customers.
- Datacenter revenue ($43.9M) down 2% sequentially but 7% YoY growth; 100G products up 32% YoY, 400G down 65% YoY due to timing delays.
- Gross margin 31% (in line with guidance); expect gradual improvement as datacenter mix stabilizes.
- 800G qualifications nearing completion; expect meaningful shipments in Q4 and 1.6T production ramping mid-2026.

**【CFO Financial Commentary】**
- Q3 non-GAAP net loss $0.09 (vs. guidance of -$0.10 to -$0.13); gross margin 31% (vs. 29.5-31% guidance).
- Sequential revenue growth 15% ($103.1M to $118.6M); YoY growth 82%.
- Direct tariffs impacted Q3 income by $1.1M; <10% of 800G/1.6T components sourced from China.
- Q4 outlook: $125M-$140M revenue (10-20% sequential growth), gross margin 29-31%, non-GAAP loss $0.13 to -$0.04.
- 2025 CapEx $124.9M (vs. $120-150M guidance); 2026 expansion plans include 35,000/month 800G/1.6T capacity in Texas.

**【Q&A Highlights】**
- **CATV Outlook**: Q4 CATV revenue expected to moderate to $50-55M, but 2026 target of $300M+ achievable via new products (QuantumLink software, node solutions).
- **800G Progress**: Customer qualifications complete; expect 10,000-20,000 units shipped in Q4, ramping to 150,000/month by mid-2026.
- **Laser Supply Chain**: In-house 3" laser wafer production (4" in 2026); <10% of 800G/1.6T components from China.
- **Texas Expansion**: New 200,000/month transceiver facility under construction; 35,000/month 800G/1.6T capacity online late 2025.
- **Customer Commitments**: Major hyperscale customers provide $200M+ in potential orders; government incentives for U.S. production under discussion.

Applied Optoelectronics, Inc. (AAOI) Q3 2025 Earnings Call Transcript

Revenue

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AAOI

AAOI fundamentals

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