Applied Optoelectronics

Liquidity is solid on paper following significant 2025 capital raises: cash, cash equivalents and restricted cash were 216.0 million dollars at year end, while the principal on the 2030 convertible notes totals 125 million dollars and other notes payable due within 12 months were 34 million dollars.

Net cash is positive if one treats bank acceptance notes as trade finance, but core operating cash burn was heavy in 2025 as working capital and inventory built ahead of ramps. The 2.75 percent convert due 2030 is modestly dilutive but low cost, and bank credit lines in Asia add flexibility.

The balance sheet can likely fund 2026 capacity plans, yet sustained negative free cash flow would quickly erode the cushion.