Overview

* Applied Optoelectronics ( AAOI ) Q3 revenue grows significantly yr/yr but slightly misses analyst expectations

* Adjusted net income for Q3 slightly beats analyst expectations

* Company progressing on 800G product qualification, expects shipments in Q4

Outlook

* Company expects Q4 2025 revenue between $125 mln and $140 mln

* Applied Optoelectronics ( AAOI ) anticipates Q4 non-GAAP gross margin of 29% to 31%

* Company forecasts Q4 non-GAAP net loss between $9.0 mln and $2.8 mln

Result Drivers

* CATV DEMAND - Strong demand for 1.8 GHz amplifier products led to record CATV revenue

* 800G QUALIFICATION - Co nearing final stages of 800G product qualification, expects shipments in Q4

* DATACENTER DELAYS - Datacenter revenue slightly below expectations due to shipping delays

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $118.60 $119.77

Revenue Miss* mln mln (6

Analysts

)

Q3 Slight -$5.40 -$5.45

Adjusted Beat* mln mln (5

Net Analysts

Income )

Q3 Net -$17.90

Income mln

Q3 Gross 28.00%

Margin

Q3 31.00%

Adjusted

Gross

Margin

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the electronic equipment & parts peer group is "buy"

* Wall Street's median 12-month price target for Applied Optoelectronics Inc ( AAOI ) is $32.00, about 1.5% above its November 5 closing price of $31.51

* The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 36 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)