Executive Summary
Applied Optoelectronics (0HGV.L) reported QQ4 2024 revenue of $100.27 million, up 65.9% year over year and 53.9% quarter over quarter, reflecting strong top-line demand for fiber-optic networking products in data centers and telecom applications. Despite the revenue growth, the quarter delivered a substantial net loss of $119.69 million and an EBITDA recession of $113.62 million, driven largely by sizable non-operating charges that overshadow operating performance. The company posted an operating loss of $6.47 million and a gross margin of about 28.65%, indicating that cost structure and non-cash items weighed on profitability. The balance sheet shows a solid cash position (cash and equivalents of $67.4 million) and a moderate leverage profile (total debt of $190.86 million; net debt of $123.43 million), with a financing push contributing $89.71 million in net cash from financing activities during QQ4. Cash flow from operations was negative at $24.62 million, and free cash flow declined to negative $53.13 million, underscoring ongoing working-capital and capex dynamics. The company remains profitable on a revenue basis but continues to face near-term profitability headwinds, requiring close attention to operating leverage, non-operating items, and the ability to convert revenue growth into sustainable earnings. Management commentary is not included in the provided transcript data, so {quote-based guidance} is not reflected here; investors should monitor any future earnings call remarks for cadence on cost control, product mix, and margin recovery potential.
Key Performance Indicators
QoQ: 60.89% | YoY:-42.81%
QoQ: -574.05% | YoY:-763.70%
QoQ: -519.05% | YoY:-584.21%
Key Insights
Revenue: $100.27M (Q4 2024); YoY +65.9%, QoQ +53.9% (four-quarter comparison confirms growth momentum). Gross Profit: $28.73M; Gross Margin: 28.65% (YoY +32.98%, QoQ +80.49%). Operating Income: -$6.47M; Operating Margin: -6.45% (YoY -42.81%, QoQ +60.89%). Net Income: -$119.69M; Net Margin: -1.19% (YoY -763.70%, QoQ -574.05%). EBITDA: -$113.62M; EBITDA Margin: -113.31% (large negative figure driven by non-operating items). EPS: -$2.60; Diluted EPS: -$2.60 (YoY -584.21%, QoQ -519.05%). Cash Flow: ...
Financial Highlights
Revenue: $100.27M (Q4 2024); YoY +65.9%, QoQ +53.9% (four-quarter comparison confirms growth momentum). Gross Profit: $28.73M; Gross Margin: 28.65% (YoY +32.98%, QoQ +80.49%). Operating Income: -$6.47M; Operating Margin: -6.45% (YoY -42.81%, QoQ +60.89%). Net Income: -$119.69M; Net Margin: -1.19% (YoY -763.70%, QoQ -574.05%). EBITDA: -$113.62M; EBITDA Margin: -113.31% (large negative figure driven by non-operating items). EPS: -$2.60; Diluted EPS: -$2.60 (YoY -584.21%, QoQ -519.05%). Cash Flow: CFO -$24.62M; Free Cash Flow -$53.13M; Net change in cash +$37.77M aided by financing activities. Balance Sheet: Cash & equivalents $67.43M; Total debt $190.86M; Net debt $123.43M; Total assets $547.03M; Total stockholders’ equity $229.11M. Liquidity Ratios: Current ratio 1.77; Quick ratio 1.25; Cash ratio 0.47. Valuation: P/B 7.49; P/S 17.12; EV/EBITDA negative; P/E negative. Significant deterioration in earnings despite revenue growth points to margin realization challenges and non-cash charges dominating the period.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
100.27M |
65.87% |
53.91% |
| Gross Profit |
28.73M |
32.98% |
80.49% |
| Operating Income |
-6.47M |
-42.81% |
60.89% |
| Net Income |
-119.69M |
-763.70% |
-574.05% |
| EPS |
-2.60 |
-584.21% |
-519.05% |
Key Financial Ratios
operatingProfitMargin
-6.46%
operatingCashFlowPerShare
$-0.53
freeCashFlowPerShare
$-1.15
Management Commentary
Transcript data not provided in the supplied materials. No management quotes or theme-based transcript highlights are available. If a transcript becomes available, key themes to extract would include: strategy (product mix and pricing), operations (cost controls, supply chain, and manufacturing efficiency), market conditions (demand trends in data centers and telecom), and capital allocation (R&D focus, capex plans, and financing strategy).
Forward Guidance
Explicit management forward guidance is not included in the provided data. Given the QQ4 2024 results, potential guidance considerations for investors include: (i) margin recovery trajectory should management outline a path to stabilize or expand gross and operating margins, (ii) cost-control initiatives or economies of scale that could reduce operating expenses as revenue grows, and (iii) capital allocation and debt-reduction plans to improve leverage and cash generation. Industry trends in fiber-optic networking for data centers and telecom infrastructure remain a key driver; if demand remains robust and product mix shifts toward higher-margin offerings, there could be an earnings upside. Investors should monitor management commentary on cost optimization, non-operating expense line items (to assess ongoing volatility), and any targeted milestones for profitability restoration or balance-sheet improvement.