Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 138

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 138
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 nine months ended September 30, 2025 and 2024, CATV increased $155.6 million, or 438.4%. The increases were due to the recovery in market demand for our products, which is being driven by the beginning of a major network upgrade project by a major North American MSO customer. 

For the three months ended September 30, 2025 and 2024, our top ten customers represented 98% and 96% of our revenue, respectively. For the nines months ended September 30, 2025 and 2024, our top ten customers represented 97% and 94% of our revenue, respectively. We believe that diversifying our customer base is critical for our future success, since reliance on a small number of key customers makes our ability to forecast future results dependent upon the accuracy of the forecasts we receive from those key customers. We continue to prioritize new customer acquisition and growth of diverse revenue streams.

Cost of goods sold and gross margin

​

      Three months ended September 30, 

      2025 

      2024 

      Change 

      % of 

      % of 

      Amount 

      Revenue 

      Amount 

      Revenue 

      Amount 

      % 

      (in thousands, except percentages) 

      Cost of goods sold 
      
     $
     85,367

     72.0
     %
      
     $
     49,234

     75.6
     %
      
     $
     36,133

     73.4
     %

      Gross profit 

     33,263

     28.0
     %

     15,917

     24.4
     %

     17,346

     109.0
     %

      Nine months ended September 30, 

      2025 

      2024 

      Change 

      % of 

      % of 

      Amount 

      Revenue 

      Amount 

      Revenue 

      Amount 

     %

      (in thousands, except percentages) 

      Cost of goods sold 
      
     $
     226,472

     70.5
     %
      
     $
     116,023

     77.8
     %
      
     $
     110,449

     95.2
     %

      Gross margin 

     94,969

     29.5
     %

     33