AXT, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results

View all news 02/19/2026 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 Revenue for the fourth quarter of 2025 was $23.0 million, compared with $28.0 million for the third quarter of 2025 and $25.1 million for the fourth quarter of 2024.GAAP gross margin was 20.9 percent of revenue for the fourth quarter of 2025, compared with 22.3 percent of revenue for the third quarter of 2025 and 17.6 percent for the fourth quarter of 2024.Non-GAAP gross margin, after excluding charges for stock-based compensation, was 21.5 percent of revenue for the fourth quarter of 2025, compared with 22.4 percent of revenue for the third quarter of 2025 and 17.9 percent for the fourth quarter of 2024.GAAP net loss, after minority interests, for the fourth quarter of 2025 was a net loss of $3.5 million, or $0.08 per share, compared with a net loss of $1.9 million, or $0.04 per share, for the third quarter of 2025 and a net loss of $5.1 million, or $0.12 per share, for the fourth quarter of 2024.Non-GAAP net loss for the fourth quarter of 2025 was a net loss of $2.3 million, or $0.05 per share, compared with a net loss of $1.2 million, or $0.03 per share, for the third quarter of 2025 and a net loss of $4.3 million, or $0.10 per share, for the fourth quarter of 2024. Fiscal Year 2025 Results (January 1 to December 31, 2025) Revenue for fiscal year 2025 was $88.3 million, compared with $99.4 million in fiscal year 2024.GAAP gross margin for fiscal year 2025 was 12.7 percent of revenue, compared with 24.0 percent of revenue in fiscal year 2024.Non-GAAP gross margin for fiscal year 2025 was 13.1 percent of revenue, compared with 24.3 percent of revenue in fiscal year 2024.GAAP net loss for fiscal year 2025 was a net loss of $21.3 million, or $0.49 per share, compared with a net loss of $11.6 million, or $0.27 per share for fiscal year 2024.Non-GAAP net loss for fiscal year 2025 was a net loss of $18.0 million, or $0.41 per share, compared with net income of $8.5 million, or $0.20 per share for fiscal year 2024. 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 Source: AXT, Inc. 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