AXT, Inc. Announces First Quarter 2026 Financial Results

View all news 04/30/2026 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 Revenue for the first quarter of 2026 was $26.9 million, compared with $23.0 million for the fourth quarter of 2025 and $19.4 million for the first quarter of 2025.GAAP gross margin was 29.6 percent of revenue for the first quarter of 2026, compared with 20.9 percent of revenue for the fourth quarter of 2025 and (6.4) percent for the first quarter of 2025.Non-GAAP gross margin, after excluding charges for stock-based compensation, was 29.9 percent of revenue for the first quarter of 2026, compared with 21.5 percent of revenue for the fourth quarter of 2025 and (6.1) percent for the first quarter of 2025.GAAP net loss, after minority interests, for the first quarter of 2026 was a net loss of $1.6 million, or $0.03 per share, compared with a net loss of $3.5 million, or $0.08 per share, for the fourth quarter of 2025 and a net loss of $8.8 million, or $0.20 per share, for the first quarter of 2025.Non-GAAP net loss for the first quarter of 2026 was a net loss of $0.6 million, or $0.01 per share, compared with a net loss of $2.3 million, or $0.05 per share, for the fourth quarter of 2025 and a net loss of $8.2 million, or $0.19 per share, for the first quarter of 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 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 76 354 Loss before provision for income taxes (1,055 ) (9,942 ) Provision for income taxes 430 74 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 3,532 Common stock 56 55 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 65 63 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 Source: AXT, Inc. View all news