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Applied Optoelectronics AAOI Inventory valuation adjustments

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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
FCF margin-82.4%+129pp

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

Reported directly by Applied Optoelectronics in its filing.

Tagged under the XBRL concept us-gaap:InventoryLIFOReserveEffectOnIncomeNet.

The official record: Applied Optoelectronics’s 10-K, filed February 26, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Applied Optoelectronics's inventory valuation adjustments?
Applied Optoelectronics (AAOI) reported inventory valuation adjustments of $1.95M in Q4 2025.
How has Applied Optoelectronics's inventory valuation adjustments changed year-over-year?
Applied Optoelectronics's inventory valuation adjustments increased by 127.1% year-over-year, from $858.5K to $1.95M.
What is the long-term trend for Applied Optoelectronics's inventory valuation adjustments?
Over 2 years (2023 to 2025), Applied Optoelectronics's inventory valuation adjustments has grown at a -5.5% compound annual growth rate (CAGR), from $8.73M to $7.8M.
What does inventory valuation adjustments mean?
The adjustment to net income caused by using the LIFO inventory accounting method.
How do you interpret inventory valuation adjustments?
Fluctuations reflect changes in inventory costs and the impact of accounting policy choices on reported earnings.
How does inventory valuation adjustments compare across companies?
Only relevant for companies using LIFO; peers using FIFO will not report this specific adjustment.