Applied Optoelectronics, Inc. · NASDAQ:AAOI
Applied Optoelectronics — Investor Presentation (February 2026)
33 slides from Applied Optoelectronics's investor presentation, February 2026
Slide 1: Investor Presentation Fourth Quarter 2025
INVESTOR PRESENTATION Fourth Quarter 2025 Nasdaq: AAOI 1
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forwar d Looking Statements & Non-GAAP Financial Measur es This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "estimate,"
Slide 3: Industry and Market Data
Industr y and Mar ket Data The information contained herein includes information provided by third-parties, such as market research firms. None of the Company, its affiliates or any third-parties that provided information to the Company (i) guarantee the accuracy, completeness, timeliness or availab
Slide 4: Investment Highlights
A Leader in Advanced Optics INVESTMENT HIGHLIGHTS Dynamic Markets Marquee Customers Proprietary Manufacturing Diversifying Customer Base 4
Slide 5: Executing on Our Manufacturing Expansion Plan
Executing on Our Manufacturing Expansion Plan AOI has expanded its production footprint across the U.S. and Taiwan to support the ramp-up of 800G transceivers and prepare for next-generation 1.6Tb products. AOI is positioned as one of the only U.S.-based suppliers of high-speed optical modules. Auto
Slide 6: Fourth Quarter Highlights and Outlook
Fourth Quarter Highlights and Outlook • Revenue of $134.3 million, in-line with our guidance range of $125 million to $140 million. • Results were driven by robust demand in both our CATV and datacenter businesses. Q4 2025 Revenue Breakdown • Datacenter revenue was $74.9 million, which was up 69% ye
Slide 7: Bandwidth Demand Drives Revenue
Bandwidth Demand Drives Revenue Devices $500 DATA CENTER $450 9%* CAGR $400 $350 Video CATV $300 $250 $200 Cloud Telecom $150 $100 $50 $0 Social FTTH 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ANNUAL REVENUE ($M) * CAGR calculated from 2015 through 2025. 7
Slide 8: Target Market Segments
Target Market Segments Data Center business • Anticipating Production for 100G, 400G, 800G and 1.6T Optics in 10M+pcs annual capacity with in-house lasers Text Placeholder Text Placeholder • NPO/OBO/ELSFP available for sampling CATV Broadband Access • Analog Laser components • CATV Transceivers DATA
Slide 9: Growth Expected in Datacenter Market
Growth Expected in Datacenter Market Total High-Speed (100G or greater) TRx Demand Projected at $55 Billion in 2029 TAM revenue for high -speed interface modules by data rate 70,000 60,000 50,000 Revenue ($m) 40,000 30,000 20,000 10,000 0 2024 2025 2026 2027 2028 2029 2030 100G 200G 400G 600G 800G 1
Slide 10: Global Operations - Headcount approx 4,800 Employees
Global Operations - Headcount approx 4,800 Employees LOCATION MANUFACTURING LOCATION MANUFACTURING Houston • Laser Chips Taipei • Transceivers • Transceivers • CATV 508 Employees • 349,450 sqft (2 facilities) 1,274 Employees • 755,690 sqft (3 facilities) LOCATION MANUFACTURING LOCATION R&D Ningbo •
Slide 11: AOI Expansion in Sugar Land, TX
AOI Expansion in Sugar Land, TX AOI Announced Expansion in Sugar Land, TX October 28, 2025, Applied Optoelectronics, Inc. (AOI) announced a $150 million U.S. expansion in Sugar Land, Text Placeholder Texas, including Text a new 210,000 sq. Placeholder ft. manufacturing facility focused on AI datacen
Slide 12: Manufacturing Automation
MANUFACTURING Location-agnostic AUTOMATION Enhanced quality/reproducibilty Highly scalable CRITICAL D I F F E R E N T I AT O R Flexible platform (400G/800G/1.6T +) Rapid response to customer & market demand 12
Slide 13: Automated Production Roadmap Since FY2016
Automated Production Roadmap Since Y2016 Phase #1 since FY2016 Phase #1#1 Phase • Loading and unloading: Manual • Material transportation: Manual Phase #2 Phase Phase #2#2 • Loading and unloading: Manual (excluding module assembly) • Material transportation: Manual Phase #3 Lite Phase #3 lite • Load
Slide 14: AOI Self-Developed Technology: Automation Engineering Capabilities
Overview of AOI’s Automation Engineering Capabilities 1.Product Compatibility Design 2. Advanced Manufacturing Process AOI self- developed Product Platform technology High Precision Standard product platform to increase the flexibility of Highly integrated and automated process to increase the produ
Slide 15: Vertically Integrated for Faster TTM to Meet Demands of AI
Vertically Integrated for Faster TTM to Meet Demands of AI High Speed Optical Transceiver Manufacturing PCBA In house manufacturing Accelerating Light Engine Time to Market Design enables fast capacity From 2 years to In house PCBA to expansion and strong 9 months 100% in house laser support faster
Slide 16: AOI Automatic Production, Largely In-House Developed
AOI Automatic Production, Largely In-House Developed 1. Eutectic Process 9. FA Coupling Process 2. COS Inspection Process 10. Mechanical Assembly 3. W/B Process Process 4. D/B Process 11. Housing & Screw Assembly Process 5. Lens Coupling Process 6. Siph Chip Assembly Process 12. TRX Testing Process
Slide 17: Automation Revolution: End-to-End Optics Production
Automation Revolution: End-to-End Optics Production Conventional Production Line Modern Automated Production Line Labor-intensive and manual operation Highly automated line with minimal operator involvement • Traceability MES Captures Full Process and Inspection upgrade • Yield Improvement 3~5% Huma
Slide 18: Results
Results Automated Production is Largely Location-Agnostic, Minimizing Supply-Chain Risks for Customers Reduced Manufacturing Cycle Time by More Than 35% DPPM (Defective Parts Per Decreased Labor Hours by Million) << 50 for Multi-Lane 90%+ Single Mode 800G TRx 18
Slide 19: Capacity Ramp Plan for AI Datacenter Transceivers and CPO
Capacity Ramp Plan for AI Datacenter Transceivers and CPO Q2- 2026 Q4-2026 Q2-2027 Q4-2027 100G QSFP28 NRZ Optics 140K/ Month 140K/ Month 140K/ Month 140K/ Month 400G QSFP-DD PAM4 Optics 140K/ Month 210K/ Month 310K/ Month 310K/ Month 400G/ 200G /100G Active Optic Cable 35K/ Month 35K/ Month 45K/ Mo
Slide 20: Product Roadmap for Datacenter and AI Deployment
Product Roadmap for Datacenter and AI Deployment GPU Switch Data Products 26Q1 26Q2 26Q3 26Q4 27Q1 27Q2 Modulator Rate 1.6T OSFP 2xSR4 α β VCSEL 1.6T OSFP 2xDR4/2xFR4 β Spectrum-X 1.6T OSFP 2xDR4 RTLR α β TH6 800 200G/ GB200 GB300 Lane SiPho 800G OSFP DR4/FR4 (4:4) β GX200 Spectrum-X 1600 6.4T NPO/O
Slide 21: Automation Can Be Leveraged in Other Businesses as Volume Ramps
Automation Can Be Leveraged In-House Automation Team Enables New in Other Businesses as Volume Manufacturing Models for High-Volume, Scalable Production Ramps DATA CENTER CATV Telecom FTTH SUBSYSTEM EQUIPMENT MODULES/TRANSCEIVERS OPTICAL PACKAGED DEVICES OPTICAL SUBASSEMBLY CHIPS PROCESSED WAFER EPI
Slide 22: Financial Review
Financial Review 22
Slide 23: Financial Performance
Financial Performance ANNUAL REVENUE BY END MARKET CATV Data Center FTTH & Other $455.7 $249.4 $235.1 * $222.8 $211.6 $217.6 $190.9 2019 2020 2021 2022 2023 2024 2025 YOY GROWTH (29)% 23% (10)% 5% (2)% 15% 83% * Reflects a $449 thousand credit issued to a customer, which is adjusted out of our non-G
Slide 24: Recent Financial Performance
Recent Financial Performance QUARTERLY REVENUE BY END MARKET $157.5* $134.3 $118.6 $100.3 $103.0 $99.9 $65.1 $43.3 $40.7 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Q126 CATV Datacenter FTTH, Telecom, and Other * Reflects midpoint of Q1 2026 guidance of $150 million to $165 million provided in Q4 2025 e
Slide 25: Q4/25 Results
$ Q4/25 IN MILLIONS EXCEPT % TOTAL REVENUE $ 134.3 CATV $ 54.0 DATACENTER $ 74.9 TELECOM $ 5.1 Q4/25 Results GROSS MARGIN 31.4% NON-GAAP* OPERATING LOSS $ 7.1 NET LOSS $ 2.0 CASH** $ 216.0 *Please refer to the Safe Harbor statement on the use of Non-GAAP metrics, as well as the attached GAAP-non-GAA
Slide 26: Balance Sheet Highlights
Balance Sheet Highlights IN MILLIONS 12/31/2023 12/31/2024 12/31/2025 CASH(1) $56 $79 $216 WORKING CAPITAL(2) $79 $131 $418 PROPERTY, PLANT & $200 $219 $376 EQUIPMENT, NET TOTAL ASSETS $389 $547 $1,168 TOTAL DEBT(3) $39 $46 $67 STOCKHOLDERS’ EQUITY $215 $229 $734 (1) Cash: Cash, cash equivalents, sh
Slide 27: Investment Summary
A leader In Advanced Optics Focus on fast growing markets including hyperscale datacenters INVESTMENT Marquee global customers SUMMARY Extensive internally developed technology Manufacturing expertise creates differentiation & enhances margin Operating model provides significant leverage 27
Slide 28: Appendix
APPENDIX 28
Slide 29: Management Team
MANAGEMENT TEAM Dr. Thompson Lin Dr. Stefan Murry FOUNDER, PRESIDENT & CEO CFO & CSO 28+ YEARS 28+ YEARS David Kuo Dr. Fred Chang Joshua Yeh GENERAL COUNSEL & CHIEF ASIA GM COMPLIANCE OFFICER COMPONENT BU HEAD 19+ YEARS 16+ YEARS 23+ YEARS Dr. Alex Anselm SEMICONDUCTOR PRODUCTS Todd McCrum DIVISION
Slide 30: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures We provide non-GAAP gross margin, non-GAAP net income (loss), non-GAAP earnings (loss) per share, and non-GAAP Adjusted EBITDA to eliminate the impact of items that we do not consider indicative of our overall operating performance. To arrive a
Slide 31: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES A reconciliation of our GAAP net income (loss), GAAP total gross profit, GAAP earnings (loss), and GAAP earnings (loss) per share for Q4 2025 and FY 2025 to our non-GAAP net income (loss), non-GAAP total gross profit, Adjusted EBITDA, and earnings (loss) per share, respec
Slide 32: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION [GAAP to Non-GAAP Reconciliation in tousands) Protiminary Unauditd som 20204 302024 _sazom _cvaia 10025 202028 30.205 402025 __cv2IS (GAAP total goss rere Te S88 TS BT SAGO «SOS 31,1 «BZD «ATSB “Sharedseed corpensatlon expense noi 3 oa 7 7 se Nenrecurng expense 6 2 = os 2 ° “
Slide 33: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION [Applied optoelectronics, ne. ‘GAAP to Non-GAAP Reconciliation Un thousands) Pretiminary Unaudited jos zor saz saute creas taza 20025 30.2025 42m CRIS ‘cAAPnetincome (ose) 23,170) (26,115) (A757) 110.602) (19872) (97 .BB)_ 17.998) aR) 48.228) ‘Sharesbased compensation expense
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