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Factory Tour, November 2025 INVESTOR PRESENTATION Nasdaq: AAOI 1
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This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "could," "would," "target," "seek," "aim," "predicts," "think," "objectives," "optimistic," "new," "goal," "strategy," "potential," "is likely," "will," "expect," "plan" "project," "permit" or by other similar expressions that convey uncertainty of future events or outcomes. These statements include management’s beliefs and expectations related to our outlook for the fourth quarter of 2025. Such forward-looking statements reflect the views of management at the time such statements are made. These forward-looking statements involve risks and uncertainties, as well as assumptions and current expectations, which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include but are not limited to: reduction in the size or quantity of customer orders; change in demand for the company's products due to industry conditions; changes in manufacturing operations; volatility in manufacturing costs; delays in shipments of products; disruptions in the supply chain; change in the rate of design wins or the rate of customer acceptance of new products; the company's reliance on a small number of customers for a substantial portion of its revenues; potential pricing pressure; a decline in demand for our customers' products or their rate of deployment of their products; general conditions in the internet datacenter, cable television (CATV) broadband, telecom, or fiber-to-the-home (FTTH) markets; changes in the world economy (particularly in the United States and China); changes in the regulation and taxation of international trade, including the imposition of tariffs; changes in currency exchange rates; the negative effects of seasonality; and other risks and uncertainties described more fully in the company's documents filed with or furnished to the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025. More information about these and other risks that may impact the company's business are set forth in the "Risk Factors" section of the company's quarterly and annual reports on file with the Securities and Exchange Commission. You should not rely on forward-looking statements as predictions of future events. All forward-looking statements in this press release are based upon information available to us as of the date hereof, and qualified in their entirety by this cautionary statement. Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in the company's expectations. In addition, this presentation includes non-GAAP gross margin, non-GAAP net income (loss), adjusted EBITDA, and non-GAAP earnings per share, which eliminate the impact of items that we do not consider indicative of our overall operating performance. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation between our GAAP and non-GAAP measures, as well as a discussion of why we present non-GAAP financial measures are included in our earnings press release that is available on our website and the appendix of this presentation. Forward Looking Statements & Non- GAAP Financial Measures 2
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The information contained herein includes information provided by third-parties, such as market research firms. None of the Company, its affiliates or any third-parties that provided information to the Company (i) guarantee the accuracy, completeness, timeliness or availability of any information nor are they (ii) responsible for any error or omission (negligent or otherwise), regardless of the cause or the result obtained from the use of such content nor do they (iii) give any express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use, and they expressly disclaim any responsibility or liability for direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including lost income or profits and opportunity costs) in connection with the use of the information herein. Industry and Market Data 3
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INVESTMENT HIGHLIGHTS A Leader in Advanced Optics Dynamic Markets Marquee Customers Proprietary Manufacturing Diversifying Customer Base 4
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A leading provider of optical access products that enable the gigabit age 5
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What you are going to see today 7
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First Floor – Get an understanding of our chip production process and live chip testing Second Floor - Gown up to enter our transceiver production line to see our AOI-built automation equipment in operation 9
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10 Automation Team: The goal is to develop the necessary automation equipment for production lines to simplify the manufacturing process, increase process uniformity and reduce the overall product cost. Distribution of automation technologies Mechanical Design Electrical Design Machine Vision Software Design Systems Integration • Mechanical design • Key component selection • Drawing Simulation Focus for Automation Equipment • Electrical Design • Key component selection • Electrical drawing • Underlying control procedures • HMI programs • MES database link • AI （Deep Learning） • Hardware solution design • Image analysis • AI （Deep Learning） • Mechanical commissioning • Software commissioning Die bond for optical devices Visual inspection Module Assembly Optical Coupling Module Testing Module Packaging Introduction of the AOI Automation Team and Capability
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AOI has expanded its production footprint across the U.S. and Taiwan to support the ramp-up of 800G transceivers and prepare for next-generation 1.6Tb products. AOI is positioned as one of the only U.S.-based suppliers of high-speed optical modules. Automated manufacturing capability enables AOI to manufacture anywhere in the world in a cost-effective way. Expansion aligns with AI infrastructure growth and onshoring trends among key hyperscale customers. Expect to capture premium share among North American datacenter customers. Building a long-term foundation for sustainable growth and profitability. Executing on Our Manufacturing Expansion Plan 11
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Q3 2025 Highlights and Q4 2025 Outlook • Revenue of $118.6 million, in-line with our guidance range. • Strength in CATV business more than offset our datacenter revenue, which came in a touch below our expectations, largely due to the timing of certain shipments at quarter end. • Datacenter revenue was $43.9 million, which was up 7% year-over-year and was down 2% sequentially • CATV revenue was a record $70.6 million, which more than tripled year-over-year, and was up 26% sequentially from a strong Q2 • Non-GAAP Gross Margin of 31.0% vs. 25.0% in Q3 2024, within our guidance range. • Continued to make progress on 800G products. We’re approaching what we believe are the final stages for securing 800G product qualification and continue to believe that we will produce meaningful shipments of 800G products in the fourth quarter of 2025. • Fourth Quarter 2025 Guidance • Revenue in the range of $125 million to $140 million. • Non-GAAP gross margin in the range of 29% to 31%. • Non-GAAP net income in the range of a loss of $9.0 million to a loss of $2.8 million, and non- GAAP income per share in the range of a loss of $0.13 to a loss of $0.04 using approximately 70.3 million shares. • To date this year, we have made a total of $124.9 million in capital investments and we are tracking at or above our CapEx projections we gave earlier this year of $120 million to $150 million in total CapEx. 60% 37% 3% 0% Q3 2025 Revenue Breakdown CATV Datacenter Telecom FTTH & Other 12
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Bandwidth Demand Drives Revenue Devices Video Cloud Social DATA CENTER CATV Telecom FTTH $0 $50 $100 $150 $200 $250 $300 $350 $400 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ANNUAL REVENUE ($M) CAGR7%* * CAGR calculated from 2014 through 2024. 13
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Four End-Markets With Strong Demand Drivers Datacenter Cable Television Telecommunications Fiber-to-the-Home • Increasing size and complexity of datacenters, driven by AI • Higher-speed interconnect - 1G to (10G/40G/100G/200G/400G/800G) • Continuous need to expand, refresh and replenish • DOCSIS 3.1+ & 4.0 upgrade cycle • International market opportunities • New opportunities for HFC nodes and optics • 5G LTE deployment • Backbone network for datacenter interconnect • Aging access networks in need of rebuild • 10/25/100 Gbps FTTH networks to replace 2.5Gbps • Telecom carriers need to fiberize to compete with CATV, new entrants • Greenfield economics and BEAD funding in US favor fiber deployment14
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Growth Expected in Datacenter Market • Source: High-Speed OC Forecast: 2024–20 – Omdia | Oct 2025 • Historical and future data is estimated, based upon a methodology developed by Omdia reseach - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2024 2025 2026 2027 2028 2029 2030 Revenue ($m) 100G 200G 400G 800G 1.6T High-speed (from 100G to 800G) optical modules by data rate Source: Omdia © 2025 Omdia Total High-Speed (100G or greater) Market to Exceed $35 Billion in 2030 15
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16 AOI Global Operations Locations MANUFACTURING R&D Houston, TX • Laser Chips • LD Packaging • Transceivers • Factory 1: 139,450 sq. ft. • Factory 2: 209,665 sq. ft.458 Employees* Location MANUFACTURING R&D Taipei, Taiwan • Transceivers • LD Packaging • Factory 1: 268,797 sq. ft. • Factory 2: 83,994 sq. ft. 1,137 Employees* Location MANUFACTURING R&D Ningbo, China • Transceivers • LD, PD Packaging • CATV Equipment • Factory 1: 460,920 sq. ft. • Factory 2: 744,884 sq. ft.2,945 Employees* Locations R&D R&D Atlanta, GA • CATV Amplifiers & Nodes • QuantumLink Remote Management • 36,000 sq. ft.62 Employees* Locations San Jose, CA • Datacenter Customer Support6 Employees* *As of 10/31/2025
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MANUFACTURING AUTOMATION CRITICAL DIFFERENTIATOR Location-agnostic Enhanced quality/reproducibilty Highly scalable Flexible platform (400G/800G/1.6T +) Rapid response to customer & market demand 17
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18 Automated Production Roadmap Since Y2016 Phase #1 Phase #2 Phase #3 Phase #2 • Loading and unloading: Manual (excluding module assembly) • Material transportation: Manual Phase #3 Lite • Loading & unloading: Automated via magazine • Material transportation: Manual via magazine Phase #1 Phase #2 Phase #3 lite Phase #3 Phase #3 • Loading & unloading: Automated via magazine • Material transportation: Automated via magazine Phase #1 since FY2016 • Loading and unloading: Manual • Material transportation: Manual
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AOI self- developed technology Unique Conveyor System 1.Product C ompatibility D esign 3. Online Inspection 4. In - Process Material Handling Product Platform 2. Advanced Manufacturing Process High Precision Overview of AOI’s Automation Engineering Capabilities Standard product platform to increase the flexibility of the production automation system. Highly integrated and automated process to increase production precision and efficiency Huge 9-year dataset for training neural networks on fused dataset combining imagery and test data Standardized magazine and fixture design integrated throughout the production process to achieve reliable automated in-process material transport. 5. Efficient Test System Proprietary technology increases test station throughput by 20x. *1.6T testing under development Trained AI Neural Networks for In-Process Inspection400G/800G/(1.6T*) GUI Test System 19
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20 Other Key Process ： 14. L/W Process 15. Laser Soldering Process 16. AWG Coupling 17. Box Sealing Process AOI Automatic Production, Largely In-House Developed 1. Eutectic Process 4. D/B Process 5. Lens Coupling Process 6. Siph Chip Assembly Process 9. FA Coupling Process 10. Mechanical Assembly Process 11. Housing & Screw Assembly Process 12. TRX Testing Process 13. Packaging Line 3. W/B Process 2. COS Inspection Process 7. Adhesive dispensing Process 8. Baseplate Assembly AOI in - house designed equipment, developed between 2016 and 2025
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DPPM (Defective Parts Per Million) << 50 for Multi-Lane Single Mode 800G TRx Reduced Manufacturing Cycle Time by More Than 35% Decreased Labor Hours by 85%+ Results Automated Production is Largely Location-Agnostic, Minimizing Supply-Chain Risks for Customers 21
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Production Capacity Targets 22 Expect to exit this year with total production capacity of around 100,000 units of 800G transceivers per month and to double capacity (200,000 pieces per month) by mid-2026 for both 800G and 1.6T transceivers, with the majority produced in Texas Multi-Phase Capacity Addition Plan Sugar Land, Texas • Expect to exit this year with production capacity of 35,000 units of 800G transceivers per month • Signed an agreement to lease an additional building in Sugar Land, TX. • Will begin construction on this new facility later this year and scale production towards the middle to end of next year to achieve 2026 targets. Asia • Expect to exit this year with production capacity of 65,000 units of 800G transceivers per month • Two manufacturing sites in Taipei, Taiwan with an additional one under construction
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Technology Roadmap Flip Chip Optics Flip Chip DSP Wire Bond Optics Flip Chip DSP 100G/Lane 200G/Lane 400G/Lane 800G OSFP DR8 (Beta: 2025/09) 800G OSFP 2xFR4 (Beta: 2025/10) 1.6T OSFP 2xDR4/2xFR4 (3nm) (Alpha: 2025/Q4, Beta: 2026/Q2) 6.4T NPO/OBO + ELSFP (Alpha: 2026/Q1, Beta: 2026/Q3) Si/TFLN/TFLN + SiN Silicon TFLN TFLN + SiN InP Modulator Material Timeline 1.6T OSFP DR4 (8:4) (Alpha: 2026/Q1) 3.2T OSFP 2xDR4 (Alpha: 2027/Q1) 1.6T OSFP 2xDR4/2xFR4 (3nm) (Alpha: 2025/Q4, Beta: 2026/Q1) 800G OSFP DR4/FR4 (4:4) (5nm) (Alpha: 2025/Q4, Beta: 2026/Q1) 800G OSFP FR4 (8:4) (5nm) (Alpha: 2025/Q4, Beta: 2026/Q2) 800G OSFP FR4 (8:4) (3nm) (Alpha: 2026/Q1, Beta: 2026/Q3) 2025H2 2026 2027H1 Product Roadmap 23
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Automation Can Be Leveraged in Other Businesses as Volume Ramps In-House Automation Team Enables New Manufacturing Models for High-Volume, Scalable Production SUBSYSTEM EQUIPMENT MODULES/TRANSCEIVERS OPTICAL PACKAGED DEVICES OPTICAL SUBASSEMBLY CHIPS PROCESSED WAFER EPITAXY WAFER DATA CENTER CATV Telecom FTTH 24
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Financial Review 25
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Financial Performance ANNUAL REVENUE BY END MARKET * Reflects a $900 thousand credit issued to a customer, which is adjusted out of our non- GAAP revenue in Q4/2018. All other revenue is on a GAAP basis. ** Reflects a $449 thousand credit issued to a customer, which is adjusted out of our non- GAAP revenue in Q4/2020. All other revenue is on a GAAP basis. $268.4 $190.9 $235.1 $211.6 $222.8 $217.6 $249.4 2018 2019 2020 2021 2022 2023 2024 CATV Data Center FTTH & Other (30)% (29)% 23% (10)% 5% (2)% 15% YOY GROWTH * ** 26
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1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 CATV Datacenter FTTH, Telecom, and Other Recent Financial Performance QUARTERLY REVENUE BY END MARKET * Reflects midpoint of Q4 2025 guidance of $125 million to $140 million provided in Q3 2025 earnings press release on 11/6/25 $40.7 $43.3 $65.1 $103.0$100.3 $99.9 $132.5* $118.6 27
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Q3/25 Results NON-GAAP* $ IN MILLIONS EXCEPT % Q3/25 TOTAL REVENUE $ 118.6 CATV $ 70.6 DATACENTER $ 43.9 TELECOM $ 3.7 GROSS MARGIN 31.0% OPERATING LOSS $ 10.3 NET LOSS $ 5.4 CASH** $ 150.7 *Please refer to the Safe Harbor statement on the use of Non- GAAP metrics, as well as the attached GAAP -non-GAAP reconciliation. ** Cash: Cash, cash equivalents, short-term investments, and restricted cash. 28
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Balance Sheet Highlights IN MILLIONS 9/30/2023 9/30/2024 9/30/2025 CASH(1) $31 $41 $151 WORKING CAPITAL(2) $(24) $71 $326 PROPERTY, PLANT & EQUIPMENT, NET $194 $205 $310 TOTAL ASSETS $374 $410 $979 TOTAL DEBT(3) $46 $39 $62 STOCKHOLDERS’ EQUITY $178 $212 $559 (1) Cash: Cash, cash equivalents, short-term investments, and restricted cash. (2) Working Capital: Total current assets less total current liabilities. (3) Total Debt: Short-term loans, notes and bank acceptances payable and total long-term debt. Convertible notes outstanding are expected to be settled in common stock, not cash, so are excluded from total debt. 29
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INVESTMENT SUMMARY A leader In Advanced Optics Focus on fast growing markets including hyperscale datacenters Marquee global customers Extensive internally developed technology Manufacturing expertise creates differentiation & enhances margin Operating model provides significant leverage 30
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APPENDIX 31
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MANAGEMENT TEAM Dr. Fred Chang COMPONENT BU HEAD 23+ YEARS Joshua Yeh ASIA GM 19+ YEARS Dr. Alex Anselm SEMICONDUCTOR PRODUCTS DIVISION HEAD 25+ YEARS David Kuo GENERAL COUNSEL & CHIEF COMPLIANCE OFFICER 16+ YEARS Dr. Thompson Lin FOUNDER, PRESIDENT & CEO 28+ YEARS Dr. Stefan Murry CFO & CSO 28+ YEARS Todd McCrum BROADBAND ACCESS GM 2+ YEARS 32
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Non-GAAP Financial Measures We provide non-GAAP gross margin, non-GAAP net income (loss), non-GAAP earnings per share, and non-GAAP Adjusted EBITDA to eliminate the impact of items that we do not consider indicative of our overall operating performance. To arrive at our non-GAAP gross margin, we exclude stock-based compensation and related expenses, expenses associated with discontinued products, and non-recurring (income) expenses, if any, from our GAAP gross margin. To arrive at our non-GAAP net income (loss), we exclude all amortization of intangible assets, stock-based compensation expense, non-recurring expenses, unrealized foreign exchange loss (gain), losses from the disposal of idle assets, if any, non-GAAP tax benefit (expenses), and losses from the disposal of idle assets, if any, from our GAAP net income (loss). Included in our non-recurring expenses in Q3 2025 and Q3 2024 are employee severance expenses (if any), legal expenses associated with litigation and certain legal and advisory expenses associated with purchase termination or patent protection (if any). Also included in our non-recurring expenses in Q3 2024, but not in Q3 2025, is management's estimate on the loss of aged account receivables. Moreover, in our non-recurring expenses in Q3 2025, but not in Q3, 2024, there is an early termination of factory lease related cost incurred. In computing our non-GAAP income tax benefit (expense), we have applied an estimate of our annual effective income tax rate and applied it to our net income before income taxes. Our non-GAAP Adjusted EBITDA is calculated by excluding depreciation expense, non-GAAP tax benefit (expense), and interest (income) expense, as well as the items excluded from non-GAAP net income (loss), from our GAAP net loss. Our non-GAAP diluted net loss per share is calculated by dividing our non-GAAP net loss by the fully diluted share count (for periods in which non-GAAP net income is positive) or basic share count (for periods in which our non-GAAP net income is negative). We believe that our non-GAAP measures are useful to investors in evaluating our operating performance for the following reasons: • We believe that elimination of items such as amortization of intangible assets, stock-based compensation expense, non-recurring revenue and expenses, losses from the disposal of idle assets, unrealized foreign exchange gain or loss, and depreciation on certain equipment undergoing reconfiguration is appropriate because treatment of these items may vary for reasons unrelated to our overall operating performance; • We believe that elimination of expenses associated with discontinued products, including depreciation and inventory obsolescence is appropriate because these expenses are not indicative of our ongoing operations; • We believe that estimating non-GAAP income taxes allows comparison with prior periods and provides additional information regarding the generation of potential future deferred tax assets; • We believe that non-GAAP measures provide better comparability with our past financial performance, period-to-period results and with our peer companies, many of which also use similar non-GAAP financial measures; and • We anticipate that investors and securities analysts will utilize non-GAAP measures as a supplement to GAAP measures to evaluate our overall operating performance. NON- GAAP FINANCIAL MEASURES 33
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A reconciliation of our GAAP net income (loss), GAAP total gross profit, GAAP earnings (loss), and GAAP earnings (loss) per share for Q3 2025 and first three quarters of 2025 to our non-GAAP net income (loss), non-GAAP total gross profit, Adjusted EBITDA, and earnings (loss) per share, respectively, is provided below, together with corresponding reconciliations for Q3 2024 and first three quarters of 2024. Non-GAAP measures should not be considered as an alternative to gross profit, net income (loss), earnings (loss) per share, or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such other non-GAAP measures in the same manner. We have not reconciled the non-GAAP measures included in our guidance to the appropriate GAAP financial measures because the GAAP measures are not readily determinable on a forward-looking basis. GAAP measures that impact our non-GAAP financial measures may include stock-based compensation expense, non-recurring expenses, amortization of intangible assets, unrealized exchange loss (gain), asset impairment charges, loss (gain) from disposal of idle assets, and changes in the fair value of our convertible notes. These GAAP measures cannot be reasonably predicted and may directly impact our non-GAAP gross margin, our non-GAAP net income and our non-GAAP fully-diluted earnings per share, although changes with respect to certain of these measures may offset other changes. In addition, certain of these measures are out of our control. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort. NON- GAAP FINANCIAL MEASURES 34
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NON- GAAP RECONCILIATION 35
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NON- GAAP RECONCILIATION 36