APPLIED OPTOELECTRONICS, INC.

Applied Optoelectronics, Inc.'s wholly-owned subsidiary, Global Technology, Inc., entered into a new one-year credit line agreement with Shanghai Pudong Development Bank Co., Ltd. The agreement provides up to RMB 500,000,000, effectively doubling the previous facility of RMB 250,000,000. This increased financing is intended to support Global Technology's working capital needs and general business operations. The credit line is secured by real property and offers various financing arrangements including working capital, fixed asset loans, and bank acceptance bills.

Applied Optoelectronics, Inc. shareholders approved the 2026 Equity Incentive Plan at the Annual Meeting, authorizing an additional 2,500,000 shares of common stock for issuance. This new plan replaces the Amended and Restated 2021 and 2013 Equity Incentive Plans. Shareholders also elected two Class I Directors, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor, and approved executive compensation on an advisory basis.

Applied Optoelectronics, Inc. entered into an Equity Distribution Agreement with Raymond James & Associates, Inc. and Needham & Company, LLC. This agreement allows the company to issue and sell shares of its common stock with an aggregate offering price of up to $600 million through "at the market" offerings. The sales agents will receive a 2% commission on gross sales, and the company has no obligation to sell any shares.

Applied Optoelectronics, Inc. entered into three separate lease agreements for industrial buildings in Houston, Texas, totaling approximately 736,216 rentable square feet. These leases, intended for manufacturing, warehouse, and office use, have an initial term of 123 months and include a three-month rent abatement period. The agreements also grant the company an option to purchase all three properties for an aggregate price of $102.25 million.

Applied Optoelectronics Inc. announced a partnership with Mediacom to accelerate the upgrade and expansion of Mediacom's fiber and coax network infrastructure. Mediacom aims to upgrade 1 million homes by the end of 2026 using DOCSIS 4.0 technology and fiber expansion. AOI will serve as the primary vendor, supplying key broadband networking products including QuantumLink™ software and Quantum18™ 1.8GHz amplifiers and line extenders, with support from its distribution partner Digicomm International.

Applied Optoelectronics, Inc. announced the dismissal of Grant Thornton LLP as its independent registered public accounting firm, effective May 4, 2026, following a competitive selection process. Concurrently, the company appointed PricewaterhouseCoopers LLP (PwC) for the fiscal year ending December 31, 2026. Grant Thornton's prior reports had no adverse opinions, and there were no disagreements on accounting matters, with a previously identified material weakness having been remediated.

Applied Optoelectronics, Inc. announced that its Compensation Committee granted inducement awards for 299 shares of common stock to two new employees on May 4, 2026. These awards were made under the company's 2023 Equity Inducement Plan, which is specifically designed for new hires as a material inducement to their employment. The awards are restricted stock units that will vest over a four-year period, contingent on the employees' continued service.

Applied Optoelectronics reported a significant increase in Q1 2026 revenue, up 51.4% to $151.1 million, primarily driven by strong growth in Data Center revenue. Despite the revenue growth, the company's net loss widened to $14.3 million, or $(0.19) per share. The quarter also saw substantial financing activity, including a $382.4 million common stock offering, and new lease agreements for manufacturing and office facilities.

Applied Optoelectronics reported record first quarter 2026 GAAP revenue of $151.1 million, marking its fourth consecutive quarter of record revenue, driven by strong demand in datacenter and CATV businesses. The company successfully completed its first volume shipment of 800G products to a large hyperscale customer and expanded its manufacturing capacity to nearly 100,000 units of 800G transceivers per month. For Q2 2026, the company expects revenue between $180 million and $198 million, anticipating a strong volume ramp of 800G products and sequential revenue growth throughout the year.

Applied Optoelectronics reported record fourth consecutive quarter revenue of $151.1 million for Q1 2026, an increase from $99.9 million in Q1 2025, driven by strong demand in datacenter and CATV businesses. The company posted a GAAP net loss of $14.3 million, or $0.19 per basic share, and a non-GAAP net loss of $4.9 million, or $0.07 per basic share. Management highlighted strong customer engagement for 800G and 1.6 Tb products, with the first volume shipment of 800G products completed, and anticipates sequential revenue growth throughout the year, with significant growth expected in Q3 as additional capacity comes online. For Q2 2026, the company forecasts revenue between $180 million and $198 million.