應用光電子公司第二季收入飆86%至1.919億美元 惟虧損擴大至2278萬美元

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 Table of Contents

​

​

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

​

FORM 10-Q​

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

​

For the quarterly period ended June 30, 2026

​

OR

​

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

​

For the transition period from __________ to __________

​

Commission File Number: 001-36083

​

Applied Optoelectronics, Inc.

(Exact name of registrant as specified in its charter)

​

 Delaware
 76-0533927
 

 (State or other jurisdiction of incorporation or organization)
 (I.R.S. Employer Identification No.)
 

​

13139 Jess Pirtle Blvd.

Sugar Land, TX 77478

(Address of principal executive offices)

​

(281) 295-1800

(Registrant’s telephone number)

​

 

Securities registered pursuant to Section 12(b) of the Act:

 

 Title of each class
 Trading Symbol(s)
 Trading Name of each exchange on which registered
 

 Common Stock, Par value $0.001
 AAOI
 NASDAQ Global Market
 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒    No ☐ 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes ☒    No ☐ 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

  
 Large accelerated filer
 ☒ Accelerated filer
 ☐

  
 Non-accelerated filer
 ☐ 
 Smaller reporting company
 ☐
 

  
    Emerging growth company
 ☐
 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                     ☐ 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                                       Yes ☐  No ☒

 

As of August 3, 2026, there were 84,569,237 shares of the registrant’s Common Stock outstanding.

 

 
 
 
 1
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

 
  
 

 
 Applied Optoelectronics, Inc.

 Table of Contents

 ​

 
 
 
  
  
 Page
 
 

 
 Part I. Financial Information
 
 

 
  
  
  
 
 

 
 Item 1.
 
 Condensed Consolidated Financial Statements (Unaudited)
 
 3
 
 

 
  
  
  
 
 

 
  
 Condensed Consolidated Balance Sheets as of June 30, 2026 (Unaudited) and December 31, 2025
 
 3
 
 

 
  
  
  
 
 

 
  
 Condensed Consolidated Statements of Operations for the Three and Six Months ended June 30, 2026 and 2025 (Unaudited)
 
 4
 
 

 
  
  
  
 
 

 
  
 Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months ended June 30, 2026 and 2025 (Unaudited)
 
 5
 
 

 
  
  
  
 
 

 
  
 Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months ended June 30, 2026 and 2025 (Unaudited)
 
 6
 
 

 
  
  
  
 
 

 
  
 Condensed Consolidated Statements of Cash Flows for the Six Months ended June 30, 2026 and 2025 (Unaudited)
 
 8
 
 

 
  
  
  
 
 

 
  
 Notes To Condensed Consolidated Financial Statements (Unaudited)
 
 9
 
 

 
  
  
  
 
 

 
 Item 2.
 
 Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
 23
 
 

 
  
  
  
 
 

 
 Item 3.
 
 Quantitative and Qualitative Disclosures About Market Risk
 
 32
 
 

 
  
  
  
 
 

 
 Item 4.
 
 Controls and Procedures
 
 32
 
 

 
  
  
  
 
 

 
 Part II. Other Information
 
 

 
  
  
  
 

 
 Item 1.
 
 Legal Proceedings
 
 33
 
 

 
  
  
  
 

 
 Item 1A.
 
 Risk Factors
 
 33
 
 

 
  
  
  
 

 
 Item 2.
 Unregistered Sales of Equity Securities and Use of Proceeds
 33
 

 
  
  
  
 

 
 Item 5.
 Other Information
 34
 

 
  
  
  
 

 
 Item 6.
 
 Exhibits
 
 34
 
 

 
  
  
  
 

 
  
 Signatures
 
 36
 
 

 
 
 ​

  

 
 
 
 
 2
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

  

 

 
  
 

 Part I. Financial Information

 ​

 Item 1. Condensed Consolidated Financial Statements

 ​

 Applied Optoelectronics, Inc. and Subsidiaries

 CONDENSED CONSOLIDATED BALANCE SHEETS

 (Unaudited, in thousands)

 ​

  

 
    June 30,
    December 31,
  

   2026
    2025
  

 ASSETS
         

 Current assets
         

 Cash and cash equivalents
  $499,737  $206,140 

 Restricted cash
   9,021   9,895 

 Accounts receivable, net
   314,009   244,404 

 Inventories, net
   278,791   183,105 

 Prepaid expenses and other current assets
   88,316   32,183 

 Total current assets
   1,189,874   675,727 

 Property, plant and equipment, net
   697,086   376,050 

 Land use rights, net
   4,917   4,825 

 Operating right of use assets
   75,168   49,697 

 Intangible assets, net
   3,633   3,623 

 Deferred income tax assets
   6,469   7,616 

 Other assets, net
   324,045   50,885 

 TOTAL ASSETS
  $2,301,192  $1,168,423 

 LIABILITIES AND STOCKHOLDERS' EQUITY
         

 Current liabilities
         

 Accounts payable
  $286,088  $143,932 

 Bank acceptance payable
   33,940   33,363 

 Accrued liabilities
   46,939   42,491 

 Current lease liabilities - operating
   4,223   3,522 

 Current portion of long-term debt
   57,258   33,975 

 Total current liabilities
   428,448   257,283 

 Non-current lease liabilities - operating
   73,920   47,393 

 Non-current portion of long-term debt
   1,657   — 

 Convertible senior notes
   129,142   129,829 

 TOTAL LIABILITIES
   633,167   434,505 

 Commitments and contingencies (Note 18)
           

 Stockholders' equity:
         

 Preferred Stock; 5,000 shares authorized at $0.001 par value; no shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
   —   — 

 Common Stock; 120,000 shares authorized at $0.001 par value; 84,386 and 74,998 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
   84   75 

 Additional paid-in capital
   2,192,682   1,224,538 

 Accumulated other comprehensive income (loss)
   2,399   (617)

 Accumulated deficit
   (527,140)  (490,078)

 TOTAL STOCKHOLDERS' EQUITY
   1,668,025   733,918 

 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $2,301,192  $1,168,423 

 

 ​

 The accompanying notes are an integral part of these condensed consolidated financial statements.​

  

 
 
 
 
 3
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

  

 
  
 

 Applied Optoelectronics, Inc. and Subsidiaries

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 (Unaudited, in thousands, except per share data)

  

 
 
 
 
  
  
 Three months ended June 30,
 
  
  
 Six months ended June 30,
 
  
 

 
  
  
 2026
 
  
  
 2025
 
  
  
 2026
 
  
  
 2025
 
  
 

 
 Revenue, net
 
  
 $
 191,922
  
  
 $
 102,952
  
  
 $
 343,066
  
  
 $
 202,811
  
 

 
 Cost of goods sold
 
  
  
 138,715
  
  
  
 71,790
  
  
  
 245,943
  
  
  
 141,105
  
 

 
 Gross profit
 
  
  
 53,207
  
  
  
 31,162
  
  
  
 97,123
  
  
  
 61,706
  
 

 
 Operating expenses
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 Research and development
 
  
  
 34,871
  
  
  
 20,612
  
  
  
 60,527
  
  
  
 38,422
  
 

 
 Sales and marketing
 
  
  
 11,490
  
  
  
 8,135
  
  
  
 17,837
  
  
  
 13,492
  
 

 
 General and administrative
 
  
  
 31,573
  
  
  
 18,391
  
  
  
 56,477
  
  
  
 34,706
  
 

 
 Total operating expenses
 
  
  
 77,934
  
  
  
 47,138
  
  
  
 134,841
  
  
  
 86,620
  
 

 
 Loss from operations
 
  
  
 (24,727
 )
  
  
 (15,976
 )
  
  
 (37,718
 )
  
  
 (24,914
 )
 

 
 Other income (expense)
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 Interest income
 
  
  
 3,248
  
  
  
 286
  
  
  
 4,985
  
  
  
 511
  
 

 
 Interest expense
 
  
  
 (927
 )
  
  
 (818
 )
  
  
 (1,790
 )
  
  
 (1,752
 )
 

 
 Other income (loss)
 
  
  
 914
  
  
  
 7,410
  
  
  
 (201
 )
  
  
 7,885
  
 

 
 Total other income (expense), net
 
  
  
 3,235
  
  
  
 6,878
  
  
  
 2,994
  
  
  
 6,644
  
 

 
 Loss before income taxes
 
  
  
 (21,492
 )
  
  
 (9,098
 )
  
  
 (34,724
 )
  
  
 (18,270
 )
 

 
 Income tax expense
 
  
  
 (1,289
 )
  
  
 —
  
  
  
 (2,338
 )
  
  
 —
  
 

 
 Net loss
 
  
 $
 (22,781
 )
  
 $
 (9,098
 )
  
 $
 (37,062
 )
  
 $
 (18,270
 )
 

 
 Net loss per share
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 Basic
 
  
 $
 (0.28
 )
  
 $
 (0.16
 )
  
 $
 (0.47
 )
  
 $
 (0.34
 )
 

 
 Diluted
 
  
 $
 (0.28
 )
  
 $
 (0.16
 )
  
 $
 (0.47
 )
  
 $
 (0.34
 )
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 Weighted average shares used to compute net loss per share:
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 Basic
 
  
  
 81,568
  
  
  
 56,772
  
  
  
 78,789
  
  
  
 53,426
  
 

 
 Diluted
 
  
  
 81,568
  
  
  
 56,772
  
  
  
 78,789
  
  
  
 53,426
  
 

 
 
 

 ​

 The accompanying notes are an integral part of these condensed consolidated financial statements.

 ​

 
 
 
 
 4
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

  

 
  
 

 Applied Optoelectronics, Inc. and Subsidiaries

 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

 (Unaudited, in thousands)

  

 
 
 
 
  
  
 Three months ended June 30,
 
  
  
 Six months ended June 30,
 
  
 

 
  
  
 2026
 
  
  
 2025
 
  
  
 2026
 
  
  
 2025
 
  
 

 
 Net loss
 
  
 $
 (22,781
 )
  
 $
 (9,098
 )
  
 $
 (37,062
 )
  
 $
 (18,270
 )
 

 
 Gain on foreign currency translation adjustment
 
  
  
 2,606
  
  
  
 3,868
  
  
  
 3,016
  
  
  
 3,661
  
 

 
 Comprehensive loss
 
  
 $
 (20,175
 )
  
 $
 (5,230
 )
  
 $
 (34,046
 )
  
 $
 (14,609
 )
 

 
 
 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.

  

 
 
 
 
 5
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

  

 
  
 

 Applied Optoelectronics, Inc. and Subsidiaries

 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 

 Three and Six Months ended June 30, 2026 and 2025

 (Unaudited, in thousands, except for share amount)

  

 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
 Accumulated
 
  
  
  
  
  
  
  
 

 
  
  
 Common Stock
 
  
  
 Additional
 
  
  
 other
 
  
  
  
  
  
  
  
 

 
  
  
 Number
 
  
  
  
  
  
 paid-in
 
  
  
 comprehensive
 
  
  
 Accumulated
 
  
  
 Stockholders'
 
  
 

 
  
  
 of shares
 
  
  
 Amount
 
  
  
 capital
 
  
  
 gain (loss)
 
  
  
 deficit
 
  
  
 equity
 
  
 

 
 March 31, 2026
 
  
  
 78,971
  
  
 $
 79
  
  
 $
 1,610,439
  
  
 $
 (207
 )
  
 $
 (504,359
 )
  
 $
 1,105,952
  
 

 
 Issuance of restricted stock, net of shares withheld for employee tax
 
  
  
 1,391
  
  
  
 1
  
  
  
 (69,426
 )
  
  
 —
  
  
  
 —
  
  
  
 (69,425
 )
 

 
 Share-based compensation
 
  
  
 —
  
  
  
 —
  
  
  
 4,863
  
  
  
 —
  
  
  
 —
  
  
  
 4,863
  
 

 
 Public offering of common stock, net
 
  
  
 4,022
  
  
  
 4
  
  
  
 645,754
  
  
  
 —
  
  
  
 —
  
  
  
 645,758
  
 

 
 Convertible note to share
 
  
  
 2
  
  
  
 —
  
  
  
 80
  
  
  
 —
  
  
  
 —
  
  
  
 80
  
 

 
 Warrants contra revenue
 
  
  
 —
  
  
  
 —
  
  
  
 972
  
  
  
 —
  
  
  
 —
  
  
  
 972
  
 

 
 Foreign currency translation adjustment
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 2,606
  
  
  
 —
  
  
  
 2,606
  
 

 
 Net loss
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (22,781
 )
  
  
 (22,781
 )
 

 
 June 30, 2026
 
  
  
 84,386
  
  
 $
 84
  
  
 $
 2,192,682
  
  
 $
 2,399
  
  
 $
 (527,140
 )
  
 $
 1,668,025
  
 

 
 
 

  

 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
 Accumulated
 
  
  
  
  
  
  
  
 

 
  
  
 Common Stock
 
  
  
 Additional
 
  
  
 other
 
  
  
  
  
  
  
  
 

 
  
  
 Number
 
  
  
  
  
  
 paid-in
 
  
  
 comprehensive
 
  
  
 Accumulated
 
  
  
 Stockholders'
 
  
 

 
  
  
 of shares
 
  
  
 Amount
 
  
  
 capital
 
  
  
 gain (loss)
 
  
  
 deficit
 
  
  
 equity
 
  
 

 
 March 31, 2025
 
  
  
 53,212
  
  
 $
 53
  
  
 $
 772,738
  
  
 $
 (2,755
 )
  
 $
 (461,023
 )
  
 $
 309,013
  
 

 
 Issuance of restricted stock, net of shares withheld for employee tax
 
  
  
 842
  
  
  
 1
  
  
  
 (6,116
 )
  
  
 —
  
  
  
 —
  
  
  
 (6,115
 )
 

 
 Share-based compensation
 
  
  
 —
  
  
  
 —
  
  
  
 3,164
  
  
  
 —
  
  
  
 —
  
  
  
 3,164
  
 

 
 Public offering of common stock, net
 
  
  
 7,836
  
  
  
 8
  
  
  
 124,097
  
  
  
 —
  
  
  
 —
  
  
  
 124,105
  
 

 
 Warrants contra revenue
 
  
  
 —
  
  
  
 —
  
  
  
 44
  
  
  
 —
  
  
  
 —
  
  
  
 44
  
 

 
 Foreign currency translation adjustment
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 3,868
  
  
  
 —
  
  
  
 3,868
  
 

 
 Net loss
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (9,098
 )
  
  
 (9,098
 )
 

 
 June 30, 2025
 
  
  
 61,890
  
  
 $
 62
  
  
 $
 893,927
  
  
 $
 1,113
  
  
 $
 (470,121
 )
  
 $
 424,981
  
 

 
 
 

  

 
 
 
 
 6
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

  

 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 Accumulated
 
  
  
  
  
  
  
  
  
  
 

 
  
  
 Common Stock
 
  
  
 Additional
 
  
  
 other
 
  
  
  
  
  
  
  
  
  
 

 
  
  
 Number
 
  
  
  
  
  
  
 paid-in
 
  
  
 comprehensive
 
  
  
 Accumulated
 
  
  
 Stockholders'
 
  
 

 
  
  
 of shares
 
  
  
 Amount
 
  
  
 capital
 
  
  
 gain (loss)
 
  
  
 deficit
 
  
  
 equity
 
  
 

 
 December 31, 2025
 
  
  
 74,998
  
  
 $
 75
  
  
 $
 1,224,538
  
  
 $
 (617
 )
  
 $
 (490,078
 )
  
 $
 733,918
  
 

 
 Issuance of restricted stock, net of shares withheld for employee tax
 
  
  
 1,610
  
  
  
 1
  
  
  
 (71,164
 )
  
  
 —
  
  
  
 —
  
  
  
 (71,163
 )
 

 
 Share-based compensation
 
  
  
 —
  
  
  
 —
  
  
  
 9,254
  
  
  
 —
  
  
  
 —
  
  
  
 9,254
  
 

 
 Public offering of common stock, net
 
  
  
 7,776
  
  
  
 8
  
  
  
 1,028,199
  
  
  
 —
  
  
  
 —
  
  
  
 1,028,207
  
 

 
 Convertible note to share
 
  
  
 2
  
  
  
 —
  
  
  
 80
  
  
  
 —
  
  
  
 —
  
  
  
 80
  
 

 
 Warrants contra revenue
 
  
  
 —
  
  
  
 —
  
  
  
 1,775
  
  
  
 —
  
  
  
 —
  
  
  
 1,775
  
 

 
 Foreign currency translation adjustment
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 3,016
  
  
  
 —
  
  
  
 3,016
  
 

 
 Net loss
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (37,062
 )
  
  
 (37,062
 )
 

 
 June 30, 2026
 
  
  
 84,386
  
  
 $
 84
  
  
 $
 2,192,682
  
  
 $
 2,399
  
  
 $
 (527,140
 )
  
 $
 1,668,025
  
 

 
 
 

  

 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 Accumulated
 
  
  
  
  
  
  
  
  
  
 

 
  
  
 Common Stock
 
  
  
 Additional
 
  
  
 other
 
  
  
  
  
  
  
  
  
  
 

 
  
  
 Number
 
  
  
  
  
  
  
 paid-in
 
  
  
 comprehensive
 
  
  
 Retained
 
  
  
 Stockholders'
 
  
 

 
  
  
 of shares
 
  
  
 Amount
 
  
  
 capital
 
  
  
 gain (loss)
 
  
  
 earnings
 
  
  
 equity
 
  
 

 
 December 31, 2024
 
  
  
 49,393
  
  
 $
 49
  
  
 $
 683,462
  
  
 $
 (2,548
 )
  
 $
 (451,851
 )
  
 $
 229,112
  
 

 
 Issuance of restricted stock, net of shares withheld for employee tax
 
  
  
 1,125
  
  
  
 1
  
  
  
 (7,802
 )
  
  
 —
  
  
  
 —
  
  
  
 (7,801
 )
 

 
 Share-based compensation
 
  
  
 —
  
  
  
 —
  
  
  
 5,726
  
  
  
 —
  
  
  
 —
  
  
  
 5,726
  
 

 
 Public offering of common stock, net
 
  
  
 11,372
  
  
  
 12
  
  
  
 195,758
  
  
  
 —
  
  
  
 —
  
  
  
 195,770
  
 

 
 Warrants contra revenue
 
  
  
 —
  
  
  
 —
  
  
  
 16,783
  
  
  
 —
  
  
  
 —
  
  
  
 16,783
  
 

 
 Foreign currency translation adjustment
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 3,661
  
  
  
 —
  
  
  
 3,661
  
 

 
 Net loss
 
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 —
  
  
  
 (18,270
 )
  
  
 (18,270
 )
 

 
 June 30, 2025
 
  
  
 61,890
  
  
 $
 62
  
  
 $
 893,927
  
  
 $
 1,113
  
  
 $
 (470,121
 )
  
 $
 424,981
  
 

 
 
 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.

  

 
 
 
 
 7
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

  

 
  
 

 Applied Optoelectronics, Inc. and Subsidiaries

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (Unaudited, in thousands)

 ​

 
 
 
 
  
  
 Six months ended June 30,
 
  
 

 
  
  
 2026
 
  
  
 2025
 
  
 

 
 Operating activities:
 
  
  
  
  
  
  
 

 
 Net loss
 
  
 $
 (37,062
 )
  
 $
 (18,270
 )
 

 
 Adjustments to reconcile net loss to net cash used in operating activities:
 
  
  
  
  
  
  
  
 

 
 Allowance for bad debt
 
  
  
 49
  
  
  
 1
  
 

 
 Inventory reserve adjustment
 
  
  
 1,133
  
  
  
 3,728
  
 

 
 Depreciation and amortization
 
  
  
 19,729
  
  
  
 12,125
  
 

 
 Amortization of debt issuance costs and premium
 
  
  
 (511
 )
  
  
 (505
 )
 

 
 Deferred tax asset
 
  
  
 1,374
  
  
  
 —
  
 

 
 Loss on disposal of assets
 
  
  
 244
  
  
  
 9
  
 

 
 Share-based compensation
 
  
  
 9,254
  
  
  
 5,726
  
 

 
 Warrants contra revenue
 
  
  
 2,130
  
  
  
 53
  
 

 
 Unrealized foreign exchange loss (gain)
 
  
  
 532
  
  
  
 (5,229
 )
 

 
 Changes in operating assets and liabilities:
 
  
  
  
  
  
  
  
  
 

 
 Accounts receivable, trade
 
  
  
 (69,649
 )
  
  
 (94,652
 )
 

 
 Inventories, net
 
  
  
 (94,092
 )
  
  
 (51,048
 )
 

 
 Other current assets
 
  
  
 (56,009
 )
  
  
 (1,472
 )
 

 
 Operating right of use asset
 
  
  
 (26,043
 )
  
  
 (11,204
 )
 

 
 Accounts payable
 
  
  
 142,156
  
  
  
 27,993
  
 

 
 Accrued liabilities
 
  
  
 5,169
  
  
  
 5,127
  
 

 
 Lease liability
 
  
  
 27,815
  
  
  
 11,229
  
 

 
 Net cash used in operating activities
 
  
  
 (73,781
 )
  
  
 (116,389
 )
 

 
 Investing activities:
 
  
  
  
  
  
  
  
  
 

 
 Purchase of property, plant and equipment
 
  
  
 (335,132
 )
  
  
 (53,868
 )
 

 
 Proceeds from disposal of equipment
 
  
  
 3
  
  
  
 —
  
 

 
 Prepayment for equipment and others
 
  
  
 (289,744
 )
  
  
 (21,181
 )
 

 
 Purchase of intangible assets
 
  
  
 (259
 )
  
  
 (145
 )
 

 
 Purchase of land
 
  
  
 (8,581
 )
  
  
 —
  
 

 
 Net cash used in investing activities
 
  
  
 (633,713
 )
  
  
 (75,194
 )
 

 
 Financing activities:
 
  
  
  
  
  
  
  
  
 

 
 Proceeds from issuance of notes payable and long-term debt
 
  
  
 1,653
  
  
  
 —
  
 

 
 Proceeds from line of credit borrowings
 
  
  
 46,906
  
  
  
 22,111
  
 

 
 Repayments of line of credit borrowings
 
  
  
 (24,733
 )
  
  
 (26,708
 )
 

 
 Changes in ADPI
 
  
  
 80
  
  
  
 —
  
 

 
 Proceeds from bank acceptance payable
 
  
  
 68,639
  
  
  
 55,517
  
 

 
 Repayments of bank acceptance payable
 
  
  
 (69,215
 )
  
  
 (42,820
 )
 

 
 Payments of tax withholding on behalf of employees related to share-based compensation
 
  
  
 (71,163
 )
  
  
 (7,821
 )
 

 
 Payment on convertible notes
 
  
  
 (95
 )
  
  
 (56
 )
 

 
 Proceeds from common stock offering, net
 
  
  
 1,028,207
  
  
  
 195,770
  
 

 
 Net cash provided by financing activities
 
  
  
 980,279
  
  
  
 195,993
  
 

 
 Effect of exchange rate changes on cash
 
  
  
 19,938
  
  
  
 3,652
  
 

 
 Net increase in cash, cash equivalents and restricted cash
 
  
  
 292,723
  
  
  
 8,062
  
 

 
 Cash, cash equivalents and restricted cash at beginning of period
 
  
  
 216,035
  
  
  
 79,133
  
 

 
 Cash, cash equivalents and restricted cash at end of period
 
  
 $
 508,758
  
  
 $
 87,195
  
 

 
 Supplemental disclosure of cash flow information:
 
  
  
  
  
  
  
  
  
 

 
 Cash paid for:
 
  
  
  
  
  
  
  
  
 

 
 Interest, net of amounts capitalized
 
  
 $
 1,942
  
  
 $
 274
  
 

 
 Income taxes
 
  
  
 (3
 )
  
  
 —
  
 

 
 Non-cash investing and financing activities:
 
  
  
  
  
  
  
  
  
 

 
 Net change in accounts payable related to property and equipment additions
 
  
 $
 770
  
  
 $
 1,405
  
 

 
 Net change in deposits and prepaid for equipment related to property and equipment additions
 
  
  
 (1,405
 )
  
  
 (17,484
 )
 

 
 Non-cash operating and financing activities:
 
  
  
  
  
  
  
  
  
 

 
 Warrant issued and vested to customer
 
  
 $
 1,775
  
  
 $
 16,739
  
 

 
 
 

 ​

 The accompanying notes are an integral part of these condensed consolidated financial statements.

  

 
 
 
 
 8
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

  

 Applied Optoelectronics, Inc. and Subsidiaries

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 (Unaudited)

 
  
 

 
 Note 1.   Description of Business​

 ​

 Business Overview

 ​

 Applied Optoelectronics, Inc. ("AOI" or the "Company") is a Delaware corporation. The Company is a leading, vertically integrated provider of fiber-optic networking products, primarily for four networking end-markets: internet and AI data centers, cable television ("CATV"), telecommunications ("telecom") and fiber-to-the-home ("FTTH"). The Company designs and manufactures a wide range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment.

 ​

 The Company has manufacturing and research and development facilities located in the U.S., Taiwan and China. In the U.S., at its corporate headquarters and manufacturing facilities in Sugar Land, Texas, the Company primarily manufactures lasers and laser components as well as certain of its data center transceivers and performs research and development activities for laser component and optical module products and certain data center transceiver products. In addition, the Company has a research and development facility in Duluth, Georgia. The Company operates in Taipei, Taiwan and Ningbo, China through its wholly-owned subsidiary Prime World International Holdings, Ltd. ("Prime World", incorporated in the British Virgin Islands). Prime World operates a branch in Taipei, Taiwan, which primarily manufactures certain of its data center transceivers and certain CATV systems and equipment and performs research and development activities for the transceiver products. Prime World is the parent of Global Technology, Inc. ("Global", incorporated in the People’s Republic of China). Through Global, the Company primarily manufactures certain of its data center transceiver products, including subassemblies, as well as CATV systems and equipment, and performs research and development activities for CATV and certain data center transceiver products.

 ​

 Interim Financial Statements

 ​

 The accompanying unaudited condensed consolidated financial statements of the Company as of  June 30, 2026 and  December 31, 2025 and for the three and six months ended June 30, 2026 and June 30, 2025, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim information and with the instructions on Form 10-Q and Rule 10-01 of Regulation S-X pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). In accordance with those rules and regulations, the Company has omitted certain information and notes required by GAAP for annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, necessary for the fair statement of the Company’s financial position and results of operations for the periods presented. The year-end condensed balance sheet data was derived from audited financial statements. These condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K ("Annual Report") for the fiscal year ended December 31, 2025. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results expected for the entire fiscal year. All significant inter-company accounts and transactions have been eliminated.

 ​

 Use of Estimates

 ​

 The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates in the consolidated financial statements and accompanying notes. Significant estimates and assumptions that impact these financial statements and the accompanying notes relate to, among other things, revenue recognition, allowance for credit losses, inventory reserve, valuation of long-lived assets, service and product warranty costs, share-based compensation expense, estimated useful lives of tangible and intangible assets, and taxes.

  

 
 
 
 
 9
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 
    
 
 
  
 

 
 Note 2.  Significant Accounting Policies

 ​

 There have been no changes in the Company’s significant accounting policies for the three and six months ended June 30, 2026, as compared to the significant accounting pol