HIGHOutside partyCustomer
96.6%
top ten customers
“10-K Item 1A: 'our top ten customers represented 96.6%, 95% and 92.7% of our revenue, respectively'”
AAOI · Concentration risk · 10-K extracted
Applied Optoelectronics (AAOI) concentration risks
Updated
The most significant concentration Applied Optoelectronics discloses is top ten customers at 96.6%, classified HIGH by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Source: Applied Optoelectronics’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
At a glance
Disclosed-size breakdown · 3 disclosed concentrations
HIGH2
MEDIUM1
LOW0
Disclosed concentrations
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
HIGHOutside partyCustomer
53.1%
Digicomm
“10-K Item 1A: 'In 2025, Digicomm represented 53.1% of our revenue and Microsoft represented 28.8% of our revenue'”
MEDIUMOutside partyCustomer
28.8%
Microsoft
“10-K Item 1A: 'In 2025, Digicomm represented 53.1% of our revenue and Microsoft represented 28.8% of our revenue'”
TrendMatrix Research · concentration synthesis
What these concentrations mean together
updated 2026-06-24The company carries acute, well-disclosed customer concentration. Its top ten customers accounted for 96.6% of revenue in the most recent year, an extremely high share by disclosed size, and the dependency is skewed toward two names: Digicomm at 53.1% of revenue and Microsoft at 28.8% of revenue. Together those two relationships approach the bulk of sales, so results are tightly levered to a small set of buyers. The character of all three exposures is dependency rather than structural — they reflect reliance on specific customers' order patterns, not a durable feature of the end-market — which means a single program loss, design-win shift, or inventory adjustment at Digicomm or Microsoft could swing revenue materially. There is no offsetting geographic or supplier disclosure to diversify the picture. On balance this is the dominant exposure in the profile: a high-share, customer-driven concentration where the top two relationships are the variables most worth monitoring quarter to quarter.
For the engine’s reasoning on AAOI’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
Industry peers · Communication Equipment
Peer concentration profile
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| DGII | Digi International Inc. | 2 | 1 | 1 | 4 |
| AAOI● | Applied Optoelectronics, Inc. | 2 | 1 | 0 | 3 |
| CSCO | Cisco Systems, Inc. | 1 | 0 | 0 | 1 |
| CIEN | Ciena Corporation | 0 | 2 | 2 | 4 |
| BDC | Belden Inc | 0 | 2 | 1 | 3 |
| ASTS | AST SpaceMobile, Inc. | 0 | 0 | 0 | 0 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.