AXT, Inc. Announces First Quarter 2026 Financial Results

AXT, Inc. Announces First Quarter 2026 Financial Results FREMONT, Calif.--( BUSINESS WIRE)--AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor wafer substrates, today reported financial results for the first quarter, ended March 31, 2026.

Management Qualitative Comments

“This is an incredibly exciting time for AXT,” said Morris Young, chief executive officer. “Last week we completed a capital raise for $632.5 million in support of Tongmei’s indium phosphide capacity expansion as well as R&D investment in new products like 6-inch indium phosphide. Indium phosphide substrates are a key ingredient in high-speed optical data transmission required in AI focused data centers. Thanks goes to our investors who are helping us address the strong demand we are seeing. As the market continues to grow, capacity will become a critical enabler. Longer-term capacity planning is one of the most important discussions we are having today with customers and major supply chain players in our space. The message we have for them is this: AXT is stepping up. We believe we are in the best position to support and enable our industry in meeting the current and future needs.”

First Quarter 2026 Results

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 https://investors.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 (833) 461-5787 (passcode 619252830). The call will also be simulcast at www.axt.com. The webcast will be available at http://www.axt.com until April 30, 2027. Additional investor information can be accessed at http://www.axt.com.

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 https://investors.axt.com.

Safe Harbor Statement

This press release contains certain statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, for example, our plans and ability to step up by adding manufacturing capacity and to enable our industry to meet future demands and needs for our indium phosphide wafer substrates. Statements relating to our expectations regarding the receipt of export permits for our indium phosphide substrates, results of operations, market and customer demand for our products, our ability to expand our markets or increase sales, emerging applications using chips or devices fabricated on our substrates, including the use of indium phosphide wafer substrates in artificial intelligence (“AI”) applications, product yields and gross margins, expense levels, our investments in capital projects, ramping production at our sites, our ability to utilize or increase our manufacturing capacity, and our belief that we have adequate cash and investments to meet our needs are also forward-looking statements. Additionally, statements regarding completing steps in connection with the proposed listing of shares of Tongmei on the Shanghai Stock Exchange’s Sci-Tech innovAtion boaRd (the “STAR Market”), being accepted to list shares of Tongmei on the STAR Market, the timing and completion of such listing of shares of Tongmei on the STAR Market are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “potentially,” “likely,” and similar expressions and variations thereof are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These statements appear in this press release and elsewhere, include statements regarding the intent, belief or current expectations of our management that are subject to known and unknown risks, uncertainties and assumptions which could cause actual results to differ materially from those expressed or implied in the forward-looking statement. These risks, uncertainties and assumptions include, but are not limited to, the receipt of export permits for our indium phosphide substrates, the withdrawal, cancellations or requests for redemptions by private equity funds in China of their investments in Tongmei, the administrative challenges in satisfying the requirements of various government agencies in China in connection with the investments in Tongmei and 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, geopolitical tensions between China and the United States, and other factors described and captioned “Risk Factors” 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. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

AXT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

Three Months Ended

March 31,

2026

2025

Revenue

26,924

19,356

Cost of revenue

18,946

20,597

Gross profit (loss)

7,978

(1,241

)

Operating expenses:

Selling, general and administrative

6,551

5,916

Research and development

3,012

3,118

Total operating expenses

9,563

9,034

Loss from operations

(1,585

)

(10,275

)

Interest income (expense), net

101

(269

)

Equity in income of unconsolidated joint ventures

353

248

Other income, net

354

Loss before provision for income taxes

(1,055

)

(9,942

)

Provision for income taxes

430

Net loss

(1,485

)

(10,016

)

Less: Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests

(135

)

1,218

Net loss attributable to AXT, Inc.

(1,620

)

(8,798

)

Net loss attributable to AXT, Inc. per common share:

Basic

(0.03

)

(0.20

)

Diluted

(0.03

)

(0.20

)

Weighted-average number of common shares outstanding:

Basic

53,319

43,554

Diluted

53,319

43,554

AXT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

March 31,

December 31,

2026

2025

ASSETS

Current assets:

Cash and cash equivalents

41,769

120,266

Restricted cash

16,100

8,100

Short-term investments

65,375

—

Accounts receivable, net

32,016

26,849

Inventories

90,168

81,651

Prepaid expenses and other current assets

8,347

9,690

Total current assets

253,775

246,556

Property, plant and equipment, net

164,622

161,860

Operating lease right-of-use assets

1,854

1,982

Other assets

24,347

23,353

Total assets

444,598

433,751

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

16,141

12,947

Accrued liabilities

12,864

14,798

Short-term loans

68,871

62,796

Total current liabilities

97,876

90,541

Noncurrent operating lease liabilities

1,309

1,441

Other long-term liabilities

8,447

7,138

Total liabilities

107,632

99,120

Redeemable noncontrolling interests

38,516

38,056

Stockholders’ equity:

Preferred stock

3,532

Common stock

Additional paid-in capital

342,434

339,922

Accumulated deficit

(66,544

)

(64,924

)

Accumulated other comprehensive loss

(4,604

)

(5,295

)

Total AXT, Inc. stockholders’ equity

274,874

273,290

Noncontrolling interests

23,576

23,285

Total stockholders’ equity

298,450

296,575

Total liabilities, redeemable noncontrolling interests and stockholders’ equity

444,598

433,751

AXT, INC.

Reconciliation of Statements of Operations Under GAAP and Non-GAAP

(Unaudited, in thousands)

Three Months Ended

March 31,

2026

2025

GAAP gross profit (loss)

7,978

(1,241

)

Stock-based compensation expense

Non-GAAP gross profit (loss)

8,043

(1,178

)

GAAP operating expenses

9,563

9,034

Stock-based compensation expense

970

583

Non-GAAP operating expenses

8,593

8,451

GAAP loss from operations

(1,585

)

(10,275

)

Stock-based compensation expense

1,035

646

Non-GAAP loss from operations

(550

)

(9,629

)

GAAP net loss

(1,620

)

(8,798

)

Stock-based compensation expense

1,035

646

Non-GAAP net loss

(585

)

(8,152

)

GAAP net loss per diluted share

(0.03

)

(0.20

)

Stock-based compensation expense per diluted share

0.02

0.01

Non-GAAP net loss per diluted share

(0.01

)

(0.19

)

Shares used to compute diluted net income per share

53,319

43,554