Executive Summary
Applied Optoelectronics (0HGV.L) reported QQ1 2025 revenue of $99.86 million, representing a substantial year-over-year increase of 145.5% versus QQ1 2024, reflecting a transitioning mix and higher volumes from a prior-year trough. The gross profit of $30.54 million yielded a gross margin of 30.6%, with gross margin expansion supporting a narrowing of operating losses relative to the year-ago period. The company posted an operating loss of $8.94 million and a net loss of $9.17 million for the quarter, corresponding to negative earnings per share of −$0.18. While the top line grew meaningfully YoY, the quarter remained cash-flow negative on an operating basis, with cash from operating activities of −$50.92 million and a negative free cash flow of −$79.37 million driven primarily by working capital consumption (notably accounts receivable) and capital expenditures. The balance sheet remains levered but shows a solid asset base with total liabilities of $335.66 million against total stockholders’ equity of $309.01 million and a net debt position of $113.35 million after accounting for $51.14 million of cash and cash equivalents. The company’s liquidity ratios (current 1.88x, quick 1.34x, cash ratio 0.27x) indicate reasonable near-term liquidity, but the ongoing cash burn and working-capital intensity warrant close monitoring. Management commentary was not provided in the dataset, limiting the ability to quote direct guidance or qualitative signals from the earnings call. Overall, the QQ1 results portray a company with meaningful revenue growth and improved margins, but with near-term cash-flow headwinds and leverage that require prudent operational and capital-allocation discipline to sustain a path toward profitability and stronger cash generation. Investors should focus on (i) the trajectory of revenue growth and mix, (ii) working-capital normalization, (iii) capacity utilization and cost controls, and (iv) any cadence in backlog or product mix shifts that could drive margin expansion in the coming quarters.
Key Performance Indicators
QoQ: -0.41% | YoY:145.52%
QoQ: -38.09% | YoY:58.71%
Key Insights
Revenue: $99.86m (YoY +145.5%, QoQ -0.41%)
Gross Profit: $30.54m (Gross Margin 30.6%)
Operating Income: −$8.94m (Operating Margin −8.95%)
Net Income: −$9.17m (Net Margin −9.18%)
EPS (Diluted): −$0.18
Weighted Avg Shares: 50.04m
Cash Flow: Operating cash flow −$50.92m; Capex −$28.45m; Free cash flow −$79.37m
Cash and equivalents: $51.14m on balance sheet; Net debt: $113.35m
Liquidity: Current ratio 1.88x, Quick ratio 1.34x, Cash ratio 0.27x
Debt: Total debt $164.50m; Long-term deb...
Financial Highlights
Revenue: $99.86m (YoY +145.5%, QoQ -0.41%)
Gross Profit: $30.54m (Gross Margin 30.6%)
Operating Income: −$8.94m (Operating Margin −8.95%)
Net Income: −$9.17m (Net Margin −9.18%)
EPS (Diluted): −$0.18
Weighted Avg Shares: 50.04m
Cash Flow: Operating cash flow −$50.92m; Capex −$28.45m; Free cash flow −$79.37m
Cash and equivalents: $51.14m on balance sheet; Net debt: $113.35m
Liquidity: Current ratio 1.88x, Quick ratio 1.34x, Cash ratio 0.27x
Debt: Total debt $164.50m; Long-term debt $151.45m; Debt to assets 0.255; Debt to equity 0.532
Valuation proxies: P/B 2.49x; P/S 7.69x; P/E negative; FCF-related metrics negative
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
99.86M |
145.52% |
-0.41% |
| Gross Profit |
30.54M |
307.74% |
6.32% |
| Operating Income |
-8.94M |
58.71% |
-38.09% |
| Net Income |
-9.17M |
60.41% |
92.34% |
| EPS |
-0.18 |
70.00% |
93.08% |
Key Financial Ratios
operatingProfitMargin
-8.95%
operatingCashFlowPerShare
$-1.02
freeCashFlowPerShare
$-1.59
priceEarningsRatio
-20.94
Management Commentary
Note: Earnings call transcript data is not provided in the dataset. As a result, there are no management quotes or explicit guidance to cite. The analysis below reflects available financial data and implied trends from the quarter and year-ago period.
Forward Guidance
No explicit forward guidance was provided in the supplied data. Given the QQ1 2025 results, a cautious outlook is warranted. Potential drivers of improvement include stabilization of working capital, continued revenue growth from fiber-optic networking products, and potential margin benefits from product mix shifts and capacity utilization improvements. Key factors investors should monitor are: (1) backlog evolution and order cadence, (2) customer concentration and receivables aging, (3) progress on cost containment and supply chain efficiency, (4) capital expenditure plans and rate of depreciation, and (5) competitive dynamics in the semiconductor/optoelectronics ecosystem. Management commentary, if any, would likely address these areas and any outlook for a potential return to positive operating cash flow.