Applied Optoelectronics Inc. (AAOI) reported fourth‑quarter 2025 revenue of $134.3 million, a 34% year‑over‑year increase driven by a 69% jump in data‑center transceiver sales and a near‑tripling of CATV revenue to $245 million. The company’s total revenue of $456 million for 2025 represents an 83% rise from the prior year, with data‑center revenue up 32% to $196 million and CATV revenue nearly tripling to $245 million, underscoring robust demand across its core segments.
The non‑GAAP loss per share was $0.01, a $0.11 beat over the consensus estimate of $-0.12. The strong earnings performance was largely attributable to disciplined cost management and a higher‑margin product mix, particularly the data‑center transceivers that have higher pricing power than legacy products.
Gross margin expanded to 31.4% on a non‑GAAP basis, up from 28.9% a year earlier, while GAAP gross margin rose to 31.2% from 28.7%. The margin lift reflects the shift toward higher‑margin data‑center transceivers and a favorable product mix, as well as operational efficiencies achieved during the quarter.
Management guidance for the first quarter of 2026 projects revenue of $150 million to $165 million, exceeding analyst consensus of $145.6 million to $145.7 million. The upside guidance signals confidence in the ramp‑up of 800G and 1.6T transceiver production, which the company expects to become the primary driver of data‑center revenue.
"We are pleased to deliver record fourth quarter results that were in line with or better than our expectations, and which capped off the strongest year in our company's history," said Dr. Thompson Lin, CEO. "Our results were driven by broad‑based demand in both our CATV and datacenter businesses. We have considerable momentum entering 2026, and we believe we are well positioned to accelerate our growth this year." Dr. Stefan Murry, CFO, added, "We generated significant revenue growth while expanding our gross margins this year. We made tangible progress during the quarter on expanding our manufacturing capacity, which is a critical step as we prepare for higher‑volume production of our next‑generation datacenter products. We believe we are well positioned for sustained growth and the capital investments underway are expected to fundamentally strengthen the company as we execute on the strong demand we see."
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