Investment Thesis
Despite exceptional revenue growth of 16,154% YoY, Alpha & Omega is unprofitable with negative operating income, net loss, and deteriorating free cash flow, indicating growth is not translating to sustainable earnings. The company is burning cash with -$22.7M FCF despite strong liquidity, raising concerns about the quality and sustainability of this explosive growth trajectory.
AOSL Strengths
- Exceptional revenue growth of 16,154% YoY demonstrates significant market demand and business expansion
- Strong balance sheet with $1.0B in total assets, $818.8M stockholders' equity, and minimal debt ($2.1M long-term)
- Excellent liquidity position with 3.44x current ratio and $196.3M cash, providing runway to fund operations
AOSL Risks
- Severe profitability crisis: negative operating income (-5.3% margin), net losses (-4.5% margin), and negative ROE/ROA indicate fundamental business unprofitability
- Negative free cash flow of -$22.7M despite $2.1M operating cash flow reveals cash burn exceeds operations, unsustainable without equity or debt financing
- Growth quality concerns: massive YoY revenue increase (16,154%) is not credible as organic growth, suggesting accounting anomalies, acquisition, or unsustainable one-time factors
Key Metrics to Watch
- Reconcile the 16,154% revenue growth claim - verify if organic, acquisition-driven, or data error
- Operating cash flow sustainability and path to positive free cash flow
- Gross margin trend (22.5% current) and ability to achieve operating profitability at current revenue levels
AOSL Financial Metrics
AOSL Profitability Ratios
AOSL Balance Sheet & Liquidity
AOSL 5-Year Financial Trend
5-Year Trend Summary: ALPHA & OMEGA SEMICONDUCTOR Ltd's revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $0.42 reflects profitable operations.
AOSL Growth Metrics (YoY)
AOSL Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $162.3M | -$6.6M | $-0.23 |
| Q1 2026 | $181.9M | -$2.1M | $-0.07 |
| Q3 2025 | $150.1M | -$10.8M | $-0.30 |
| Q2 2025 | $165.3M | $2.9M | $0.10 |
| Q1 2025 | $180.6M | -$2.5M | $-0.09 |
| Q3 2024 | $132.6M | -$8.3M | $-0.30 |
| Q2 2024 | $165.3M | $2.9M | $0.10 |
| Q1 2024 | $180.6M | $5.8M | $0.19 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AOSL Capital Allocation
AOSL SEC Filings
Access official SEC EDGAR filings for ALPHA & OMEGA SEMICONDUCTOR Ltd (CIK: 0001387467)