Applied Optoelectronics (0HGV.L) reported QQ1 2025 revenue of $99.86 million, representing a substantial year-over-year increase of 145.5% versus QQ1 2024, reflecting a transitioning mix and higher volumes from a prior-year trough. The gross profit of $30.54 million yielded a gross margin of 30.6%, with gross margin expansion supporting a narrowing of operating losses relative to the year-ago period. The company posted an operating loss of $8.94 million and a net loss of $9.17 million for the quarter, corresponding to negative earnings per share of −$0.18. While the top line grew meaningfully YoY, the quarter remained cash-flow negative on an operating basis, with cash from operating activities of −$50.92 million and a negative free cash flow of −$79.37 million driven primarily by working capital consumption (notably accounts receivable) and capital expenditures. The balance sheet remains levered but shows a solid asset base with total liabilities of $335.66 million against total stockholders’ equity of $309.01 million and a net debt position of $113.35 million after accounting for $51.14 million of cash and cash equivalents. The company’s liquidity ratios (current 1.88x, quick 1.34x, cash ratio 0.27x) indicate reasonable near-term liquidity, but the ongoing cash burn and working-capital intensity warrant close monitoring. Management commentary was not provided in the dataset, limiting the ability to quote direct guidance or qualitative signals from the earnings call. Overall, the QQ1 results portray a company with meaningful revenue growth and improved margins, but with near-term cash-flow headwinds and leverage that require prudent operational and capital-allocation discipline to sustain a path toward profitability and stronger cash generation. Investors should focus on (i) the trajectory of revenue growth and mix, (ii) working-capital normalization, (iii) capacity utilization and cost controls, and (iv) any cadence in backlog or product mix shifts that could drive margin expansion in the coming quarters.