AXT, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results
FREMONT, Calif.--( BUSINESS WIRE)--AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor wafer substrates, today reported financial results for the fourth quarter and fiscal year ended December 31, 2025.
Management Qualitative Comments
“While we are disappointed that we didn’t receive as many export permits in Q4 as we had hoped, we are pleased to report that we have received some permits to date in 2026 and believe we are in a strong position to achieve sequential revenue growth in Q1, driven primarily by growth in indium phosphide for the AI infrastructure build-out,” said Morris Young, chief executive officer. “As we enter 2026 as a foundational supplier to this multi-year growth cycle, we are notably broadening our customer base to include Tier-1 companies to which we have previously had limited exposure. We are also on track to double our indium phosphide manufacturing capacity this year and have a strong balance sheet to support our continued business expansion.”
Fourth Quarter 2025 Results
Fiscal Year 2025 Results (January 1 to December 31, 2025)
STAR Market Listing Update
On January 10, 2022, AXT announced that Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), its subsidiary in Beijing, China, submitted to the Shanghai Stock Exchange (the “SSE”) its application to list its shares in an initial public offering (the “IPO”) on the SSE’s Sci-Tech innovAtion boaRd (the “STAR Market”) and the application was accepted for review. Subsequently, Tongmei responded to several rounds of questions received from the SSE. On July 12, 2022, the SSE approved the listing of Tongmei’s shares in an IPO on the STAR Market. On August 1, 2022, the China Securities Regulatory Commission (the “CSRC”) accepted for review Tongmei’s IPO application. The STAR Market IPO remains subject to review and approval by the CSRC and other authorities. The process of going public on the STAR Market includes several periods of review and, therefore, is a lengthy process. Subject to review and approval by the CSRC and other authorities, Tongmei hopes to accomplish this goal in the coming months. AXT has posted a brief summary of the plan and the process on its website at http://www.axt.com.
Conference Call
The company will host a conference call to discuss these results today at 1:30 p.m. PT. The conference call can be accessed at (800) 715-9871 (passcode 4378083). The call will also be simulcast at www.axt.com. Replays will be available at (800) 770-2030 (Playback ID: 4378083 followed by # key) until February 26, 2026. Financial and statistical information to be discussed in the call will be available on the company’s website immediately prior to commencement of the call. Additional investor information can be accessed at http://www.axt.com or by calling the company’s Investor Relations Department at (510) 438-4700.
About AXT, Inc.
AXT is a material science company that develops and manufactures high-performance compound and single element semiconductor substrate wafers comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). The company’s substrate wafers are used when a typical silicon substrate wafer cannot meet the performance requirements of a semiconductor or optoelectronic device. End markets include 5G infrastructure, data center connectivity (silicon photonics), passive optical networks, LED lighting, lasers, sensors, power amplifiers for wireless devices and satellite solar cells. AXT’s worldwide headquarters are in Fremont, California where the company maintains sales, administration and customer service functions. AXT has its Asia headquarters in Beijing, China and manufacturing facilities in three separate locations in China. In addition, as part of its supply chain strategy, the company has partial ownership in ten companies in China producing raw materials for its manufacturing process. For more information, see AXT’s website at http://www.axt.com.
Safe Harbor Statement
The foregoing paragraphs contain forward-looking statements within the meaning of the Federal securities laws, including, for example, statements regarding the timing and completion of the proposed listing of shares of Tongmei on the STAR Market. Additional examples of forward-looking statements include statements regarding the market demand for our products, our product mix, our growth prospects and opportunities for continued business expansion, including technology trends, new applications and the ramping of Tier-1 customers, our market opportunity, our ability to lead our industry, our relocation, our expectations with respect to our business prospects and financial results, including our gross margin performance, and our development of larger diameter substrates that we believe will enable the next generation of technology innovation across a number of end-markets. These forward-looking statements are based upon assumptions that are subject to uncertainties and factors relating to the company’s operations and business environment, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. These uncertainties and factors include but are not limited to: the requests for redemptions by private equity funds in China of investments in Tongmei, the administrative challenges in satisfying the requirements of various government agencies in China in connection with the listing of shares of Tongmei on the STAR Market, continued open access to companies to list shares on the STAR Market, investor enthusiasm for new listings of shares on the STAR Market and geopolitical tensions between China and the United States. Additional uncertainties and factors include, but are not limited to: the timing and receipt of significant orders; the cancellation of orders and return of product; emerging applications using chips or devices fabricated on our substrates; end-user acceptance of products containing chips or devices fabricated on our substrates; our ability to bring new products to market; product announcements by our competitors; the ability to control costs and improve efficiency; the ability to utilize our manufacturing capacity; product yields and their impact on gross margins; the relocation of manufacturing lines and ramping of production; possible factory shutdowns as a result of air pollution in China or COVID-19; COVID-19 or other outbreaks of a contagious disease; tariffs and other trade war issues; the financial performance of our partially owned supply chain companies; policies and regulations in China; and other factors as set forth in the company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q and other filings made with the Securities and Exchange Commission. Each of these factors is difficult to predict and many are beyond the company’s control. The company does not undertake any obligation to update any forward-looking statement, as a result of new information, future events or otherwise.
AXT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
Revenue
$
23,041
$
25,105
$
88,326
$
99,361
Cost of revenue
18,215
20,697
77,084
75,525
Gross profit
4,826
4,408
11,242
23,836
Operating expenses:
Selling, general and administrative
6,266
6,440
24,169
24,096
Research and development
2,393
4,133
9,049
14,543
Total operating expenses
8,659
10,573
33,218
38,639
Loss from operations
(3,833
)
(6,165
)
(21,976
)
(14,803
)
Interest expense, net
(391
)
(318
)
(1,257
)
(1,340
)
Equity in income of unconsolidated joint ventures
173
944
765
3,439
Other income (expense), net
713
(5
)
924
2,047
Loss before provision for income taxes
(3,338
)
(5,544
)
(21,544
)
(10,657
)
Provision for income taxes
501
113
1,658
1,134
Net loss
(3,839
)
(5,657
)
(23,202
)
(11,791
)
Less: Net loss attributable to noncontrolling interests and redeemable noncontrolling interests
291
569
1,942
167
Net loss attributable to AXT, Inc.
$
(3,548
)
$
(5,088
)
$
(21,260
)
$
(11,624
)
Net loss attributable to AXT, Inc. per common share:
Basic
$
(0.08
)
$
(0.12
)
$
(0.49
)
$
(0.27
)
Diluted
$
(0.08
)
$
(0.12
)
$
(0.49
)
$
(0.27
)
Weighted-average number of common shares outstanding:
Basic
44,719
43,381
43,933
43,154
Diluted
44,719
43,381
43,933
43,154
AXT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
December 31,
December 31,
2025
2024
ASSETS
Current assets:
Cash and cash equivalents
$
120,266
$
22,833
Restricted cash
8,100
10,978
Accounts receivable, net
26,849
25,640
Inventories
81,651
85,077
Prepaid expenses and other current assets
9,690
13,744
Total current assets
246,556
158,272
Property, plant and equipment, net
161,860
159,721
Operating lease right-of-use assets
1,982
2,479
Other assets
23,353
18,842
Total assets
$
433,751
$
339,314
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
12,947
$
12,356
Accrued liabilities
14,798
14,556
Short-term loans
62,796
47,264
Total current liabilities
90,541
74,176
Noncurrent operating lease liabilities
1,441
1,977
Other long-term liabilities
7,138
8,253
Total liabilities
99,120
84,406
Redeemable noncontrolling interests
38,056
38,577
Stockholders’ equity:
Preferred stock
3,532
3,532
Common stock
55
45
Additional paid-in capital
339,922
241,514
Accumulated deficit
(64,924
)
(43,664
)
Accumulated other comprehensive loss
(5,295
)
(8,657
)
Total AXT, Inc. stockholders’ equity
273,290
192,770
Noncontrolling interests
23,285
23,561
Total stockholders’ equity
296,575
216,331
Total liabilities, redeemable noncontrolling interests and stockholders’ equity
$
433,751
$
339,314
AXT, INC.
Reconciliation of Statements of Operations Under GAAP and Non-GAAP
(Unaudited, in thousands)
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
GAAP gross profit
$
4,826
$
4,408
$
11,242
$
23,836
Stock-based compensation expense
130
76
289
322
Non-GAAP gross profit
$
4,956
$
4,484
$
11,531
$
24,158
GAAP operating expenses
$
8,659
$
10,573
$
33,218
$
38,639
Stock-based compensation expense
1,145
677
3,003
2,775
Non-GAAP operating expenses
$
7,514
$
9,896
$
30,215
$
35,864
GAAP loss from operations
$
(3,833
)
$
(6,165
)
$
(21,976
)
$
(14,803
)
Stock-based compensation expense
1,275
753
3,292
3,097
Non-GAAP loss from operations
$
(2,558
)
$
(5,412
)
$
(18,684
)
$
(11,706
)
GAAP net loss
$
(3,548
)
$
(5,088
)
$
(21,260
)
$
(11,624
)
Stock-based compensation expense
1,275
753
3,292
3,097
Non-GAAP net loss
$
(2,273
)
$
(4,335
)
$
(17,968
)
$
(8,527
)
GAAP net loss per diluted share
$
(0.08
)
$
(0.12
)
$
(0.49
)
$
(0.27
)
Stock-based compensation expense per diluted share
$
0.03
$
0.02
$
0.07
$
0.07
Non-GAAP net loss per diluted share
$
(0.05
)
$
(0.10
)
$
(0.41
)
$
(0.20
)
Shares used to compute diluted net income per share
44,719
43,381
43,933
43,154