How does Applied Optoelectronics (AAOI) make money?

Applied Optoelectronics (AAOI) generates revenue primarily from CATV, which accounted for 48.8% of total revenue in TTM through Q1 2026. The company reported $507M in revenue and converted -8.5% of it into net profit, equivalent to roughly -$43.3M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Applied Optoelectronics (AAOI)?

Applied Optoelectronics (AAOI) reported a gross profit margin of 29.6% in TTM through Q1 2026, equivalent to $150M in gross profit on $507M in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Applied Optoelectronics (AAOI)?

Applied Optoelectronics (AAOI) reported an operating profit margin of -11.6% in TTM through Q1 2026, equivalent to -$58.7M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Applied Optoelectronics (AAOI)?

Applied Optoelectronics (AAOI) reported a net profit margin of -8.5% in TTM through Q1 2026, equivalent to -$43.3M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Applied Optoelectronics (AAOI) profitable?

Applied Optoelectronics (AAOI) reported a net loss of $43.3M for TTM through Q1 2026, a net profit margin of -8.5%. Combined operating expenses, interest, and income taxes exceeded revenue, so the period closed in the red on a reported basis.

How much does Applied Optoelectronics (AAOI) invest in research and development?

Applied Optoelectronics (AAOI) invested $93.4M in research and development during TTM through Q1 2026, roughly 18.4% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Applied Optoelectronics (AAOI) spend on capital expenditures?

Applied Optoelectronics (AAOI) spent $30M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 5.9% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Applied Optoelectronics (AAOI) generate?

Applied Optoelectronics (AAOI) generated -$239M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of -47.1%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What are the main business segments of Applied Optoelectronics (AAOI)?

Applied Optoelectronics (AAOI) reports revenue across 4 reportable product segments, led by CATV at 48.8% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Applied Optoelectronics (AAOI) generate most of its revenue?

CHINA is the largest geographic market for Applied Optoelectronics (AAOI), accounting for 59.9% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Applied Optoelectronics Makes Money: 2026 Visual Revenue Map

Applied Optoelectronics (AAOI) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 7, 2026).

Applied Optoelectronics (AAOI) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Applied Optoelectronics (AAOI), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
CATV	$248M	48.8%
Data Center	$245M	48.4%
Telecom	$13.4M	2.6%
Product and Service, Other	$894K	0.2%
Total	$507M	100%

CATV$248M
Data Center$245M
Telecom$13.4M
Product and Service, Other$894K
Total$507M

Applied Optoelectronics (AAOI) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Applied Optoelectronics (AAOI), TTM through Q1 2026
Region	Revenue (USD)	% of total
CHINA	$304M	59.9%
TAIWAN	$184M	36.3%
UNITED STATES	$19.1M	3.8%
Total	$507M	100%

CHINA
TAIWAN
UNITED STATES
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Applied Optoelectronics (AAOI) reports revenue across 4 reportable product segments; the largest segment was CATV at 48.8%, followed by Data Center (48.4%) and Telecom (2.6%). Geographically, CHINA accounted for 59.9% of revenue, followed by TAIWAN (36.3%) and UNITED STATES (3.8%).

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