Applied Optoelectronics, Inc. (AAOI)
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-11-04
$46.89-20.89%
Close 2026-11-05 · 1-day change
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-11-04
QuarterlyIQ Insights · AAOI
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-11-04.
The screen ranks AAOI against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated weak grew net income 47% of the time over the next year (vs 59% for the rest of the cohort, n=6380).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 0% of the last 1 guided quarters · -8.1% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
“During Q2, we continued to make solid progress on our production capacity ramp, particularly for our 800G and 1.6Tb products.
Stated in 2 of 2 supplied quarters. Management reported: “Further, we saw a strong volume ramp of our 800G products, which more than doubled sequentially,” said Dr. Thompson Lin, AOI’s Founder, President and Chief Executive Officer.”
““During Q2, we continued to make solid progress on our production capacity ramp, particularly for our 800G and 1.6Tb products.”
““We continued to make progress on increasing our production capacity in both our U.S. and Taiwan locations, exiting Q1 with total manufacturing capacity of nearly 100,000 units of 800G transceivers p…”
We’re working hard to expand our capacity, and we continue to anticipate steady sequential revenue growth this year.”
Stated in 2 of 2 supplied quarters. Management reported: “We delivered record revenue for our fifth consecutive quarter and achieved an important milestone as we returned to non-GAAP profitability in the quarter.” Revenue was $191.922 million in 2026-Q2.
“We’re working hard to expand our capacity, and we continue to anticipate steady sequential revenue growth this year.””
We delivered record revenue for our fifth consecutive quarter and achieved an important milestone as we returned to non-GAAP profitability in the quarter.
Stated in 2 of 2 supplied quarters. Management reported: “|| · | Non-GAAP net income was $5.5 million, or $0.06 per diluted share, compared with non-GAAP net loss of $8.8 million, or $0.16 per basic share in the second quarter of 2025, and a non-GAAP net loss of $4.9 million, or $0.07 per basic share in the first quarter of 2026.”
“We delivered record revenue for our fifth consecutive quarter and achieved an important milestone as we returned to non-GAAP profitability in the quarter.”
|| · | Non-GAAP gross margin in the range of 29% to 30.5%.
Stated in 2 of 2 supplied quarters. Management reported: “Non-GAAP gross margin was 29.8%, compared with 30.4% in the second quarter of 2025 and 29.2% in the first quarter of 2026.”
“|| · | Non-GAAP gross margin in the range of 29% to 30.5%.”
“· Non-GAAP gross margin in the range of 29% to 30%.”
Further, we have recently nearly doubled our Houston-area footprint through a combination of real estate acquisitions and leases to increase our capacity and support our future growth.
Stated in 1 of 2 supplied quarters. Management reported: “Further, we have recently nearly doubled our Houston-area footprint through a combination of real estate acquisitions and leases to increase our capacity and support our future growth.”
“Further, we have recently nearly doubled our Houston-area footprint through a combination of real estate acquisitions and leases to increase our capacity and support our future growth.”
Over the trailing year it converted 2.70x of net income into operating cash flow.
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, Fed net liquidity, real (inflation-adjusted) rates, long-term interest rates (low R² over the window).
62 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Information Technology names rated volatile grew net income 52% of the time over the next year (vs 57% for the rest of the cohort, n=6008).
Not investment advice. As of 2026-11-04.
“Looking ahead, we continue to anticipate a strong volume ramp of our 800G products starting in Q2 and we anticipate sequential revenue growth throughout this year, with significantly larger growth ex…”
“· Non-GAAP net loss was $4.9 million, or $0.07 per basic share, compared with non-GAAP net loss of $0.9 million, or $0.02 per basic share in the first quarter of 2025, and a non-GAAP net loss of $0.6…”