Assay
Financial-condition grades for SEC filers
Company Report · as of Oct 9, 2026
|
| Applied Optoelectronics, Inc.AAOI · business equipment | |
|---|---|
| Grade |  Dfourth fifth of 497 graded peers; percentile 65.1, sampling error 2.2 points; lower is stronger |
| Rank | 324 of 497 |
| Profitability | Epercentile 84.7 |
| Solvency | B/Cpercentile 38.9 |
| Growth and financing | Bpercentile 37.6 |
| Reliability | 0.91 AUCfailure model, filers with $591M to $2.67B assets; 95% interval 0.88 to 0.94; 160 events, 2020 to 2025 |
| Peer failure rate | 1.01% a yearItem 1.03 bankruptcies, same asset band, 2012 to 2025 |
| Size band | $591M to $2.67B assetstotal assets $1.2B[1] |
| Standard universe | insiderevenue above $1M and assets above $10M[1-2] |
| Warnings | dilution · fortress balance sheetnot computable: distress |
| Inputs computable | 9 of 14 |
| Graded from | filings received through Feb 26, 2026225 days before the rescan; every figure keyed to the SEC receipt date |
| Last close | $106.672026-10-08; market equity $9.0B; iex feed |
| Price used in grade | None |
| Share price, twelve months to the rescansplit-adjusted close; a lollipop at every rescan carries the letter held then; baseline ticks are SEC receipt dates of the inputs; ranges and dragging scroll the full history | ||||||||||||||||||||||||||||||||||||||||||||||||
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Percentile at every rescan on file, Jan 21, 2012 to Oct 9, 2026; stronger toward the top. Hover for the date. Open this report as it stood on | ||||||||||||||||||||||||||||||||||||||||||||||||
Each date opens the report as it stood on that rescan. |
Business, in the company's words. Opening of Item 1 of the 10-K received Feb 26, 2026; the document on sec.gov.
Applied Optoelectronics, Inc. (the "Company" or "AOI") is a leading, vertically integrated provider of fiber-optic networking products, primarily for four networking end-markets: internet data center, cable television ("CATV"), telecommunications, ("telecom"), and fiber-to-the-home ("FTTH"). We design and manufacture a range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment. In designing products for our customers, we typically begin with the fundamental building blocks of lasers and laser components.
Warnings [top]
7 checks ran; none of them enters the letter. The checks are listed on the warnings screen.
The Fourteen Inputs [top]
Lower percentile is stronger. Source numbers open the SEC filing; a range that spans filings opens the sources table.
| Input | Percentile, 0 to 100 | Value | Source | Peer median | Percentile | Peers | Period end |
|---|---|---|---|---|---|---|---|
| Profitability, sleeve percentile 84.7 | |||||||
| Gross profitability | 11.7% | [1,7] | 28.5% | 80.1 | 558 | 2025-12-31 | |
| Return on invested capital | (11.9%) | [5-6,8-14] | 10.9% | 87.4 | 136 | 2025-12-31 | |
| Accruals ratio | 15.9% | [1,15-17] | (7.4%) | 95.6 | 621 | 2025-12-31 | |
| Gross margin stability, five years | 5.6 pts | [2,7,18-25] | 2.4 pts | 75.7 | 429 | 2025-12-31 | |
| Solvency, sleeve percentile 38.9 | |||||||
| Twelve-month failure probability | not computable | 0.05% | |||||
| latest liabilities, cash plus short-term investments, book equity, and shares are required | |||||||
| Altman Z double-prime | 2.44 | [1,8,11,26-29] | 2.18 | 41.8 | 566 | 2025-12-31 | |
| Net debt to EBITDA | not computable | 1.11x | |||||
| EBITDA must exceed $100,000 | |||||||
| Interest coverage | not computable | 3.77x | |||||
| latest aligned inputs end 2023-12-31; latest annual assets end 2025-12-31 | |||||||
| Current ratio | 2.63x | [26-27] | 2.02x | 35.9 | 666 | 2025-12-31 | |
| Growth and financing, sleeve percentile 37.6 | |||||||
| Revenue growth, three-year compound | 26.9% | [2,19,21,23] | 6.4% | 12.7 | 538 | 2025-12-31 | |
| Free cash flow growth, three-year compound | not computable | 17.2% | |||||
| current FCF must be positive and base FCF must exceed $100,000 | |||||||
| Reinvestment rate | not computable | 14.3% | |||||
| NOPAT must exceed $100,000 | |||||||
| Asset growth, three years | 42.0% | [1,17,30-31] | 5.0% | 7.3 | 563 | 2025-12-31 | |
| Net share issuance, one year | 51.5% | [3-4] | 0.5% | 92.9 | 407 | 2026-02-01 | |
Gross profitability. Revenue less cost of goods sold, over total assets.
Accruals ratio. Net income less operating cash flow, over average assets; lower is stronger.
Gross margin stability, five years. Standard deviation of gross margin; lower is stronger.
Twelve-month failure probability. CHS model; lower is stronger.
Net debt to EBITDA. Lower is stronger.
Net share issuance, one year. Split-adjusted; lower is stronger.
Sleeves are equal-weighted; within a sleeve each computable input carries equal weight. Composite 0.078; sampling error 2.2 percentile points on 497 peers.
Among 497 Peers [top]
Composite score of every graded peer, smoothed. Vertical rules are the letter band edges at the 20th, 40th, 60th and 80th percentiles. Small dots are the six largest peers by market equity.
| Rank | Company | Percentile | Letter | Warnings |
|---|---|---|---|---|
| 319 | Nortech Systems Inc. (NSYS) Nortech Systems Inc. (NSYS) Dfourth fifth; percentile 64.1 Nasdaq · Electronic Components, NEC market equity $32.2M; last close $11.21 No active warnings; 9 of 14 inputs | 64.1 | D | |
| 320 | Caci International Inc. (CACI) Caci International Inc. (CACI) Dfourth fifth; percentile 64.3 NYSE · Services-Computer Integrated Systems Design market equity $13.2B; last close $599.39 No active warnings; 10 of 14 inputs | 64.3 | D | |
| 321 | Semtech Corp. (SMTC) Semtech Corp. (SMTC) Dfourth fifth; percentile 64.5 Nasdaq · Semiconductors & Related Devices market equity $17.5B; last close $187.40 No active warnings; 9 of 14 inputs | 64.5 | D | |
| 322 | Danaher Corp. (DHR) Danaher Corp. (DHR) Dfourth fifth; percentile 64.7 NYSE · Industrial Instruments For Measurement, Display, and Control market equity $152.9B; last close $217.31 No active warnings; 9 of 14 inputs | 64.7 | D | |
| 323 | N-able, Inc. (NABL) N-able, Inc. (NABL) Dfourth fifth; percentile 64.9 NYSE · Services-Prepackaged Software market equity $850.1M; last close $4.50 Warnings: late filer; 10 of 14 inputs | 64.9 | D | late filer |
| 324 | Applied Optoelectronics, Inc. (AAOI) Applied Optoelectronics, Inc. (AAOI) Dfourth fifth; percentile 65.1 Nasdaq · Semiconductors & Related Devices market equity $9.0B; last close $106.67 Warnings: dilution, fortress balance sheet; 9 of 14 inputs | 65.1 | D | dilution, fortress balance sheet |
| 325 | PubMatic, Inc. (PUBM) PubMatic, Inc. (PUBM) Dfourth fifth; percentile 65.3 Nasdaq · Services-Computer Programming, Data Processing, Etc. last close $18.70 No active warnings; 8 of 14 inputs | 65.3 | D | |
| 326 | Enovix Corp. (ENVX) Enovix Corp. (ENVX) Dfourth fifth; percentile 65.5 Nasdaq · Miscellaneous Electrical Machinery, Equipment & Supplies market equity $548.6M; last close $2.50 Warnings: short runway; 9 of 14 inputs | 65.5 | D | short runway |
| 327 | Shutterstock, Inc. (SSTK) Shutterstock, Inc. (SSTK) Dfourth fifth; percentile 65.7 NYSE · Services-Computer Processing & Data Preparation market equity $163.7M; last close $4.44 No active warnings; 10 of 14 inputs | 65.7 | D | |
| 328 | ON Semiconductor Corp. (ON) ON Semiconductor Corp. (ON) Dfourth fifth; percentile 65.9 Nasdaq · Semiconductors & Related Devices market equity $30.9B; last close $79.41 No active warnings; 13 of 14 inputs | 65.9 | D | |
| 329 | Teads Holding Co. (TEAD) Teads Holding Co. (TEAD) Dfourth fifth; percentile 66.1 Nasdaq · Services-Computer Programming, Data Processing, Etc. market equity $53.9M; last close $0.56 Warnings: distress; 9 of 14 inputs | 66.1 | D | distress |
| Peer policy | Letter | Percentile | Peers |
|---|---|---|---|
| all graded filers, equal sleeves | C/D | 60.4 | 2204 |
| sector peers, equal sleeves (the grade) | D | 65.1 | 497 |
| same exchange, equal sleeves | D | 61.4 | 1219 |
| sector peers, equal inputs | D | 76.8 | 497 |
Each letter is one fifth of the 497 graded peers, about 99 companies. A boundary letter (A/B, B/C, C/D, D/E) marks a percentile within one sampling error of a band edge.
What the Price Implies [top]
Market measures at the 2026-10-08 close. None enters the grade. Percentile among graded peers with the same measure.
| Measure | Value | Peer median | Percentile | Reading |
|---|---|---|---|---|
| Twelve-month price change, skipping the latest month | 315.3% | 2.2% | 99 | hotter than 99 of 100 peers |
| Distance from 52-week high | (52.5%) | (30.0%) | 23 | closer to its high than 23 of 100 peers |
| EBIT to enterprise value | (0.6%) | 1.5% | 31 | pricier than 69 of 100 peers |
| Free cash flow yield | (3.9%) | 2.7% | 19 | pricier than 81 of 100 peers |
| Book value to price | 0.19 | 0.23 | 41 | pricier than 59 of 100 peers |
| Sales to price | 0.05 | 0.30 | 8 | pricier than 92 of 100 peers |
| Composite equity issuance, five years | 115.3% | 3.9% | 94 | more equity-funded than 94 of 100 peers |
| Relative strength against the sector, log excess return | 1.14 | (0.26) | 99 | ahead of 99 of 100 peers |
Inputs: market equity $9.0B; EBIT -$54.6M; free cash flow -$353.6M; book equity $1.7B; sales $455.7M; debt $34.0M; cash $499.7M[32].
Diagnostics [top]
Diagnostics do not feed the grade.
| Piotroski F-score: 5 of 9, period end 2025-12-31 | ||
|---|---|---|
| Return on assets above zero | (7.0%) | ✗ fail[15,17] |
| Operating cash flow above zero | -$174.4M | ✗ fail[16] |
| Return on assets improved | 41.0 pts | ✓ pass[15,17,30,33] |
| Operating cash flow exceeds net income | -$136.2M | ✗ fail[15-16] |
| Long-term leverage fell | (0.9 pts) | ✓ pass[1,17,30,34-35] |
| Current ratio improved | 85.5 pts | ✓ pass[26-27,36-37] |
| No new shares issued | 51.5% | ✗ fail[3-4] |
| Gross margin improved | 5.3 pts | ✓ pass[2,7,18-19] |
| Asset turnover improved | 19.2 pts | ✓ pass[2,17,19,30] |
| Cash, filings, liquidity | |
|---|---|
| Cash and equivalents | $499.7M[38] |
| Operating cash flow, four quarters | -$131.8M[16,38-42] |
| Months of runway | 45.5 |
| Late filings, two years | 0 |
| NT 10-K or NT 10-Q | |
| Days since last periodic filing | 64 |
| 10-Q received Aug 6, 2026 | |
| Median daily dollar volume | $933.8M |
| 63 sessions | |
| Days since newest grade input | 225 |
Downloads [top]
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Sources [top]
Every citation on this page. Filing opens the SEC index page for that submission; viewer opens the SEC interactive data for the same filing; series opens the SEC XBRL API record for that tag and company.
| # | Concept | XBRL tag | Value | Period end | Received | Form | Links |
|---|---|---|---|---|---|---|---|
| 1 | assets | us-gaap:Assets | $1.2B | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 2 | revenue | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | $455.7M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 3 | shares outstanding | dei:EntityCommonStockSharesOutstanding | 75,198,817 | 2026-02-01 | 2026-02-26 | 10-K | filing · viewer · series |
| 4 | shares outstanding | dei:EntityCommonStockSharesOutstanding | 49,651,482 | 2025-02-24 | 2025-02-28 | 10-K | filing · viewer · series |
| 5 | cash | us-gaap:CashAndCashEquivalentsAtCarryingValue | $206.1M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 6 | total debt | us-gaap:LongTermDebt | $34.0M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 7 | gross profit | us-gaap:GrossProfit | $136.9M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 8 | operating income | us-gaap:OperatingIncomeLoss | -$54.6M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 9 | pretax income | us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest | -$46.7M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 10 | income tax | us-gaap:IncomeTaxExpenseBenefit | -$8.5M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 11 | book equity | us-gaap:StockholdersEquity | $733.9M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 12 | total debt | us-gaap:LongTermDebt | $26.7M | 2024-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 13 | book equity | us-gaap:StockholdersEquity | $229.1M | 2024-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 14 | cash | us-gaap:CashAndCashEquivalentsAtCarryingValue | $67.4M | 2024-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 15 | net income | us-gaap:NetIncomeLoss | -$38.2M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 16 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | -$174.4M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 17 | assets | us-gaap:Assets | $547.0M | 2024-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 18 | gross profit | us-gaap:GrossProfit | $61.8M | 2024-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 19 | revenue | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | $249.4M | 2024-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 20 | gross profit | us-gaap:GrossProfit | $58.9M | 2023-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 21 | revenue | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | $217.6M | 2023-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 22 | gross profit | us-gaap:GrossProfit | $33.6M | 2022-12-31 | 2025-02-28 | 10-K | filing · viewer · series |
| 23 | revenue | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | $222.8M | 2022-12-31 | 2025-02-28 | 10-K | filing · viewer · series |
| 24 | gross profit | us-gaap:GrossProfit | $37.7M | 2021-12-31 | 2024-02-23 | 10-K | filing · viewer · series |
| 25 | revenue | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | $211.6M | 2021-12-31 | 2024-02-23 | 10-K | filing · viewer · series |
| 26 | current assets | us-gaap:AssetsCurrent | $675.7M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 27 | current liabilities | us-gaap:LiabilitiesCurrent | $257.3M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 28 | retained earnings | us-gaap:RetainedEarningsAccumulatedDeficit | -$490.1M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 29 | liabilities | us-gaap:Liabilities | $434.5M | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 30 | assets | us-gaap:Assets | $389.2M | 2023-12-31 | 2025-02-28 | 10-K | filing · viewer · series |
| 31 | assets | us-gaap:Assets | $408.3M | 2022-12-31 | 2024-02-23 | 10-K | filing · viewer · series |
| 32 | shares outstanding | dei:EntityCommonStockSharesOutstanding | 84,569,237 | 2026-08-03 | 2026-08-06 | 10-Q | filing · viewer · series |
| 33 | net income | us-gaap:NetIncomeLoss | -$186.7M | 2024-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 34 | long term debt | us-gaap:LongTermDebtNoncurrent | $0 | 2025-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 35 | long term debt | us-gaap:LongTermDebtNoncurrent | $4.3M | 2024-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 36 | current assets | us-gaap:AssetsCurrent | $301.3M | 2024-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 37 | current liabilities | us-gaap:LiabilitiesCurrent | $170.1M | 2024-12-31 | 2026-02-26 | 10-K | filing · viewer · series |
| 38 | cash | us-gaap:CashAndCashEquivalentsAtCarryingValue | $499.7M | 2026-06-30 | 2026-08-06 | 10-Q | filing · viewer · series |
| 39 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | -$73.8M | 2026-06-30 | 2026-08-06 | 10-Q | filing · viewer · series |
| 40 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | -$85.4M | 2026-03-31 | 2026-05-07 | 10-Q | filing · viewer · series |
| 41 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | -$144.9M | 2025-09-30 | 2025-11-06 | 10-Q | filing · viewer · series |
| 42 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | -$116.4M | 2025-06-30 | 2026-08-06 | 10-Q | filing · viewer · series |
Limitations [top]
Grade boundary. Percentile 65.1 is 5.1 points from the nearest band edge; sampling error is 2.2 points.
Peer group. Sector assignment from four-digit SIC codes, hand-tuned and published. The grade under three alternative peer policies is tabled above.
Size. Within a sector the letter tracks size. Among graded filers in the smallest asset band, 72% grade E and 0% grade A; in the largest, 13% grade E and 21% grade A. Universe as of Oct 9, 2026.
Failure model. filings 2012-01-01 to 2019-12-31 fit, filings 2020-01-01 to 2025-12-31 test; status post hoc pending confirmation. pre-registered on 2026 filings once their 12-month outcome windows close; supported if the paired per-quintile gain over the pooled model has a lower bound above 0.05.
Input validity. Revenue or total assets at or below $100,000 sets the degenerate-inputs flag. An input whose denominator is at or below $100,000 is left not computable rather than ranked.
Returns. No input on this page has a post-2015 confidence interval on returns that excludes zero. The grade ranks reported financial condition and is not a return forecast.
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