aaoi20260331

aaoi20260331_10q.htm

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-36083

Applied Optoelectronics, Inc.

(Exact name of registrant as specified in its charter)

Delaware	76-0533927
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

13139 Jess Pirtle Blvd.

Sugar Land, TX 77478

(Address of principal executive offices)

(281) 295-1800

(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Trading Name of each exchange on which registered
Common Stock, Par value $0.001	AAOI	NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 5, 2026, there were 80,242,767 shares of the registrant’s Common Stock outstanding.

Table of Contents

Applied Optoelectronics, Inc.

Table of Contents

		Page
Part I. Financial Information

Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3

	Condensed Consolidated Balance Sheets as of March 31, 2026 (Unaudited) and December 31, 2025	3

	Condensed Consolidated Statements of Operations for the Three Months ended March 31, 2026 and 2025 (Unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months ended March 31, 2026 and 2025 (Unaudited)	5

	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months ended March 31, 2026 and 2025 (Unaudited)	6

	Condensed Consolidated Statements of Cash Flows for the Three Months ended March 31, 2026 and 2025 (Unaudited)	7

	Notes To Condensed Consolidated Financial Statements (Unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29

Item 4.	Controls and Procedures	29

Part II. Other Information

Item 1.	Legal Proceedings	30

Item 1A.	Risk Factors	30

Item 5.	Other Information	31

Item 6.	Exhibits	31

	Signatures	33

Table of Contents

Part I. Financial Information

Item 1. Condensed Consolidated Financial Statements

Applied Optoelectronics, Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	*March 31,*			*December 31,*
	*2026*			*2025*
ASSETS
Current assets
Cash and cash equivalents	$	439,705		$	206,140
Restricted cash		9,672			9,895
Accounts receivable, net		298,996			244,404
Inventories, net		206,246			183,105
Prepaid expenses and other current assets		37,958			32,183
Total current assets		992,577			675,727
Property, plant and equipment, net		419,003			376,050
Land use rights, net		4,871			4,825
Operating right of use assets		71,949			49,697
Intangible assets, net		3,614			3,623
Deferred income tax assets		6,682			7,616
Other assets, net		67,183			50,885
TOTAL ASSETS	$	1,565,879		$	1,168,423
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	148,160		$	143,932
Bank acceptance payable		35,766			33,363
Accrued liabilities		31,345			42,491
Current lease liabilities - operating		2,932			3,522
Current portion of long-term debt		41,225			33,975
Total current liabilities		259,428			257,283
Non-current lease liabilities - operating		70,983			47,393
Convertible senior notes		129,516			129,829
TOTAL LIABILITIES		459,927			434,505
Commitments and contingencies (Note 18)
Stockholders' equity:
Preferred Stock; 5,000 shares authorized at $0.001 par value; no shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively		—			—
Common Stock; 120,000 shares authorized at $0.001 par value; 78,971 and 74,998 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively		79			75
Additional paid-in capital		1,610,439			1,224,538
Accumulated other comprehensive income (loss)		(207	)		(617	)
Accumulated deficit		(504,359	)		(490,078	)
TOTAL STOCKHOLDERS' EQUITY		1,105,952			733,918
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,565,879		$	1,168,423

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Applied Optoelectronics, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

	*Three months ended March 31,*
	*2026*			*2025*
Revenue, net	$	151,144		$	99,859
Cost of goods sold		107,228			69,315
Gross profit		43,916			30,544
Operating expenses
Research and development		25,656			17,810
Sales and marketing		6,347			5,357
General and administrative		24,904			16,314
Total operating expenses		56,907			39,481
Loss from operations		(12,991	)		(8,937	)
Other income (expense)
Interest income		1,737			224
Interest expense		(863	)		(934	)
Other income (loss)		(1,115	)		475
Total other income (expense), net		(241	)		(235	)
Loss before income taxes		(13,232	)		(9,172	)
Income tax expense		(1,049	)		—
Net loss	$	(14,281	)	$	(9,172	)
Net loss per share
Basic	$	(0.19	)	$	(0.18	)
Diluted	$	(0.19	)	$	(0.18	)

Weighted average shares used to compute net loss per share:
Basic		75,980			50,041
Diluted		75,980			50,041

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Applied Optoelectronics, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in thousands)

	*Three months ended March 31,*
	*2026*			*2025*
Net loss	$	(14,281	)	$	(9,172	)
Gain (loss) on foreign currency translation adjustment		410			(207	)
Comprehensive loss	$	(13,871	)	$	(9,379	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Applied Optoelectronics, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Three Months ended March 31, 2026 and 2025

(Unaudited, in thousands, except for share amount)

								*Accumulated*
	*Common Stock*				*Additional*			*other*
	*Number*				*paid-in*			*comprehensive*			*Accumulated*			*Stockholders'*
	*of shares*		*Amount*		*capital*			*gain (loss)*			*deficit*			*equity*
December 31, 2025		74,998	$	75	$	1,224,538		$	(617	)	$	(490,078	)	$	733,918
Issuance of restricted stock, net of shares withheld for employee tax		219		—		(1,738	)		—			—			(1,738	)
Share-based compensation		—		—		4,391			—			—			4,391
Public offering of common stock, net		3,754		4		382,445			—			—			382,449
Warrants contra revenue		—		—		803			—			—			803
Foreign currency translation adjustment		—		—		—			410			—			410
Net loss		—		—		—			—			(14,281	)		(14,281	)
March 31, 2026

SEC Form 10-Q filed by Applied Optoelectronics Inc.