Applied Optoelectronics (NASDAQ:AAOI) Updates Q4 2025 Earnings Guidance

Applied Optoelectronics (NASDAQ:AAOI) updated its fourth quarter 2025 earnings guidance on Thursday. The company provided earnings per share guidance of -0.130–0.040 for the period. The company issued revenue guidance of $125.0 million-$140.0 million, compared to the consensus revenue estimate of $144.3 million.

Applied Optoelectronics Stock Performance

NASDAQ:AAOI traded down $0.53 on Friday, hitting $28.57. The company’s stock had a trading volume of 10,100,015 shares, compared to its average volume of 5,352,074. The company has a current ratio of 2.11, a quick ratio of 1.47 and a debt-to-equity ratio of 0.36. The stock has a fifty day moving average of $29.44 and a two-hundred day moving average of $23.98. The firm has a market capitalization of $1.78 billion, a P/E ratio of -8.87 and a beta of 2.88. Applied Optoelectronics has a one year low of $9.71 and a one year high of $44.50.

Applied Optoelectronics (NASDAQ:AAOI) last released its quarterly earnings data on Thursday, November 6th. The semiconductor company reported ($0.09) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.01. The company had revenue of $118.63 million during the quarter, compared to analysts’ expectations of $119.77 million. Applied Optoelectronics had a negative return on equity of 8.70% and a negative net margin of 36.97%.The business’s revenue was up 82.1% on a year-over-year basis. During the same period last year, the firm posted ($0.21) earnings per share. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. Research analysts predict that Applied Optoelectronics will post -1.18 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research firms have commented on AAOI. Wall Street Zen downgraded shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a report on Saturday, August 9th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Wednesday, October 8th. B. Riley restated a “neutral” rating and set a $15.00 price objective (up from $13.00) on shares of Applied Optoelectronics in a research report on Friday, August 8th. Raymond James Financial boosted their price objective on Applied Optoelectronics from $18.00 to $25.00 and gave the stock an “outperform” rating in a report on Friday, August 8th. Finally, Northland Securities set a $30.00 target price on Applied Optoelectronics in a research note on Friday, August 8th. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Applied Optoelectronics currently has a consensus rating of “Hold” and a consensus price target of $27.20.

Insider Buying and Selling

In other news, Director Min-Chu (Mike) Chen bought 7,500 shares of the company’s stock in a transaction dated Wednesday, August 13th. The stock was bought at an average cost of $22.91 per share, for a total transaction of $171,825.00. Following the transaction, the director owned 22,500 shares of the company’s stock, valued at $515,475. This represents a 50.00% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Chih-Hsiang (Thompson) Lin purchased 8,850 shares of the business’s stock in a transaction dated Wednesday, August 13th. The shares were purchased at an average cost of $22.53 per share, with a total value of $199,390.50. Following the acquisition, the chief executive officer owned 1,652,165 shares in the company, valued at $37,223,277.45. This trade represents a 0.54% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 44,100 shares of company stock valued at $1,000,878 in the last ninety days. Insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Applied Optoelectronics by 10.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,579 shares of the semiconductor company’s stock worth $393,000 after purchasing an additional 2,415 shares during the last quarter. Cetera Investment Advisers bought a new stake in shares of Applied Optoelectronics during the 2nd quarter worth $377,000. New York State Common Retirement Fund lifted its position in shares of Applied Optoelectronics by 36.0% during the 2nd quarter. New York State Common Retirement Fund now owns 17,000 shares of the semiconductor company’s stock worth $437,000 after buying an additional 4,500 shares during the last quarter. Invesco Ltd. boosted its stake in Applied Optoelectronics by 50.0% in the second quarter. Invesco Ltd. now owns 60,817 shares of the semiconductor company’s stock valued at $1,562,000 after buying an additional 20,261 shares in the last quarter. Finally, First Trust Advisors LP bought a new position in Applied Optoelectronics in the second quarter valued at about $952,000. 61.72% of the stock is currently owned by institutional investors and hedge funds.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.