Loss narrows. Applied Optoelectronics (NASDAQ: AAOI) reported a loss of $0.01 per share for Q4 2025, narrower than the expected loss of $0.11. Revenue reached $134.3 million for the quarter. Despite the improved bottom line, shares plunged 16.4% to $106.19 on volume of 15.0 million shares, suggesting investors focused on factors beyond the quarterly loss reduction.
Margins remain pressured. Gross margin came in at 31.2%, calculated from gross profit of $41.9 million on revenue of $134.3 million. Operating loss was $11.4 million. The company posted an adjusted net loss of $635,000 for the quarter. Management issued Q1 2026 revenue guidance of $150 million to $165 million, representing sequential growth.
Cash Position. The company ended the quarter with $216 million in cash. The sharp stock decline despite the narrower-than-expected loss points to investor concern over the cash consumption rate and elevated capex spending.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.