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Applied Optoelectronics (AAOI) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Applied Optoelectronics
NasdaqGM•Technology•Communication Equipment
$105.17+7.11(0.07%)After hours
Market Cap
$8.00B
P/S
13.4x
P/B
4.8x

Applied Optoelectronics, Inc. engages in the design, manufacture, and sale of fiber-optic networking products in the United States, Taiwan, and China. The company offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, and distribution equipment, as well as amplifiers. It sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.

B

How this company scores

GoodMetricSide Score: 60/100

Strongest: Growth (20/25); weakest: Cash & Earnings Quality (9/25).

Profitability12/25
Growth20/25
Balance Sheet & Red Flags19/25
Cash & Earnings Quality9/25
Strengths
Growing revenueLow leverageCash-backed earningsProfit converts from growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 13.4x5y range 1.7x – 13.4x
P/S 13.4x · above its 20-quarter median

Currently above its 20-quarter median.

P/B · 4.8x5y range 1.4x – 6.6x
P/B 4.8x · above its 20-quarter median

Currently above its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

Free cash flow has been negative in 7 of the last 8 quarters — earnings are not translating to cash.

Price & Volume
Market Cap $8.00B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$595.97M
7Q
Q. Revenue
$191.92M
5Q
TTM EBITDA
$-67.41M
4Q
TTM Op. Income
$-67.41M
4Q
Q. Op. Income
$-24.73M
2Q
TTM Net Income
$-57.02M
2Q
Q. Net Income
$-22.78M
2Q
EPS
$-0.28
75%
Shares Out.
$81.57M
2Q
$595.97M in TTM revenue grew 61.8% YoY, reaching $191.92M last quarter. TTM EBITDA of $-67.41M and TTM operating income of $-67.41M show growth is flowing through to the bottom line. However, net income is negative at $57.02M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
27.7%
2Q
EBITDA Margin
-12.9%
2Q
Op. Margin
-12.9%
2Q
Net Margin
-11.9%
2Q
Op. margin of -12.9% is up 2.6% YoY — cost efficiency is improving. Net margin at -11.9% and gross margin of 27.7% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
N/A
P/S Ratio
13.4x
3Q
P/B Ratio
4.8x
40%
P/S of 13.4x and P/B of 4.8x. P/S is high, meaning growth expectations are priced in.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$2.30B
7Q
Cash
$499.74M
5Q
Long-Term Debt
$1.66M
94%
Book Value
$1.67B
7Q
D/E Ratio
0.0
99%
Debt/EBITDA
N/A
With $2.30B in assets and $1.66M in long-term debt, D/E is 0.0and book value is $1.67B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 99% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$11.57M
118%
TTM Free Cash Flow
$-315.32M
29%
FCF Margin
-52.9%
20%
FCF / Net Income
5.5
253%
TTM FCF of $-315.32M on $11.57M in operating cash flow. The FCF / Net Income ratio of 5.5x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is down 29% — an improving trend.

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Cash Burn

Red Flag

The last 7 consecutive quarters had negative FCF — the company is burning cash and may need external funding.

Share Dilution

Red Flag

Shares outstanding increased 92.8% — significant dilution, likely from stock compensation or capital raises.