Applied Optoelectronics, Inc.
AAOI Technology Communication Equipment
Applied Optoelectronics, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $455.7 million, up 82.8% from fiscal 2024. In the quarter to June 2026, revenue grew 86.4%, EPS fell 75.0%, free cash flow fell 191.6% and total debt rose 69.0%, each against the same quarter a year earlier.
Follow AAOI
Applied Optoelectronics, Inc. (AAOI) Beneish M-score
Applied Optoelectronics, Inc.'s Beneish M-score for fiscal 2025 is −0.51; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
Embed this chart
Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −0.51 | 1.80 |
| FY2024 | −2.30 | 1.09 |
| FY2023 | −3.40 | (0.53) |
| FY2022 | −2.86 | (0.16) |
| FY2021 | −2.70 | (0.24) |
| FY2020 | −2.46 | 0.49 |
| FY2019 | −2.95 | 0.00 |
| FY2018 | −2.96 | (0.49) |
| FY2017 | −2.47 | (0.27) |
| FY2016 | −2.20 | (0.56) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.14 | — | 1.05 | |
| Gross margin index | 0.82 | — | 0.44 | |
| Asset quality index | 2.06 | — | 0.83 | |
| Sales growth index | 1.83 | — | 1.63 | |
| Depreciation index | 1.38 | — | 0.16 | |
| SG&A index | 0.75 | — | −0.13 | |
| Total accruals to total assets | 0.12 | — | 0.55 | |
| Leverage index | 0.59 | — | −0.19 | |
| Beneish M-score | Flagged by the model | −0.51 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| DGII Digi International Inc. compare | −2.9× |
| VSAT Viasat Inc. compare | −2.9× |
| ZBRA Zebra Technologies Corporation compare | −2.6× |
| BDC Belden Inc compare | −2.6× |
| EXTR Extreme Networks, Inc. compare | −2.5× |
| VIAV Viavi Solutions Inc. compare | −2.4× |
| AAOI Applied Optoelectronics, Inc. | −0.5× |
| ONDS Ondas Holdings Inc. compare | 2.0× |
| ASTS AST SpaceMobile, Inc. compare | 16.9× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI