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Applied Optoelectronics AAOI Free cash flow margin

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Other financials

Income statement

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Revenue$151.1M+51.4%
Gross profit$15.9M-21.1%
Operating income-$16.5M-147%
Net income-$14.3M-55.7%
EPS (diluted)-$0.42-55.6%

Balance sheet

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Cash & equivalents$439.7M+760%
Total debt$115.1M+280%
Total equity$1.1B+258%
Total assets$1.6B+143%

Cash flow

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Operating cash flow-$85.4M-67.6%
CapEx$58.2M+105%
Free cash flow-$143.6M-81.0%

Valuation

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Market cap$12.99B+752%
Enterprise value$12.66B+732%
P/S25.6×+20.7×

Profitability

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Gross margin22.7%
Operating margin-24.5%
Net margin-8.5%-3.9pp

Returns & leverage

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Return on equity-6.1%-2.9pp
Debt / equity0.1×0.0×
Current ratio3.8×+1.9×

Where this comes from

Calculated from Applied Optoelectronics’s reported figures.

Based on trailing twelve months.

The official record: Applied Optoelectronics’s 10-Q, filed May 7, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Applied Optoelectronics's free cash flow margin?
Applied Optoelectronics (AAOI) reported free cash flow margin of -82.4% in Q1 2026.
How has Applied Optoelectronics's free cash flow margin changed year-over-year?
Applied Optoelectronics's free cash flow margin decreased by 61.0% year-over-year, from -51.2% to -82.4%.
What is the long-term trend for Applied Optoelectronics's free cash flow margin?
Over 5 years (2020 to 2025), Applied Optoelectronics's free cash flow margin has grown at a 24.9% compound annual growth rate (CAGR), from -25.5% to -77.6%.
What does free cash flow margin mean?
How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?
A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?
Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.