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AXTI

AXT, Inc.

AXTI

AXT, Inc. • NASDAQ
$10.70 ▲ 2.39% (+0.25)
Market Cap $498.87 M
52w High $11.88
52w Low $1.13
Dividend Yield 0%
P/E -20.19
Volume 1.91M
Outstanding Shares 46.62M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $27.955M ▲ $7.347M ▼ $-1.906M ▲ -6.818% ▲ $-0.043 ▲ $1.532M ▲
Q2-2025 $17.974M ▼ $8.178M ▼ $-7.008M ▲ -38.99% ▲ $-0.16 ▲ $-4.633M ▲
Q1-2025 $19.356M ▼ $9.034M ▼ $-8.798M ▼ -45.454% ▼ $-0.2 ▼ $-7.45M ▼
Q4-2024 $25.105M ▲ $10.573M ▲ $-5.088M ▼ -20.267% ▼ $-0.12 ▼ $-2.983M ▼
Q3-2024 $23.645M $9.088M $-2.937M -12.421% $-0.069 $426K

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $31.21M ▲ $334.034M ▲ $93.578M ▲ $179.148M ▼
Q2-2025 $27.007M ▼ $329.003M ▼ $88.372M ▲ $179.714M ▼
Q1-2025 $31.584M ▲ $333.477M ▼ $87.305M ▲ $185.037M ▼
Q4-2024 $22.833M ▼ $339.314M ▼ $84.406M ▼ $192.77M ▼
Q3-2024 $24.898M $355.58M $89.361M $200.733M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-1.673M ▲ $-9.151M ▼ $-2.175M ▼ $5.192M ▲ $-3.897M ▼ $-11.326M ▼
Q2-2025 $-7.674M ▲ $-4.576M ▼ $-840K ▼ $-321K ▼ $-3.077M ▼ $-4.855M ▼
Q1-2025 $-10.016M ▼ $-3.346M ▼ $-786K ▼ $6.882M ▲ $4.373M ▲ $-3.856M ▼
Q4-2024 $-5.657M ▼ $1.27M ▲ $-441K ▼ $-5.039M ▼ $-4.98M ▼ $1.103M ▲
Q3-2024 $-2.937M $-5.419M $454K $824K $-2.806M $-6.36M

Revenue by Products

Product Q3-2024Q1-2025Q2-2025Q3-2025
Raw Materials and Other
Raw Materials and Other
 $0 ▲$0 ▲$10.00M ▲$10.00M ▲
Substrates
Substrates
 $20.00M ▲$10.00M ▼$10.00M ▲$20.00M ▲
Raw materials and others
Raw materials and others
 $10.00M ▲$10.00M ▲$0 ▼$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been volatile, with a drop after the 2021–2022 peak and a more recent recovery. Gross profit remains positive but relatively thin, leaving little room to absorb downturns. The company moved from modest profitability a few years ago to losses in the last two years, with operating and net margins slipping into the red. Overall, the income statement shows a niche business that can be profitable in good demand cycles but is currently in a loss‑making phase and quite sensitive to market swings and pricing pressure.

Balance Sheet

Balance Sheet The balance sheet looks fairly steady in size over the past few years, with assets and equity moving only modestly. Cash has trended down from earlier levels, indicating less of a cushion than before. Debt has crept up from very low levels, but overall leverage still appears moderate relative to the company’s asset base. In simple terms, AXTI still has a solid equity foundation, but its financial flexibility has narrowed a bit as cash declined and profitability weakened.

Cash Flow

Cash Flow Cash generation from the core business hovers around breakeven, occasionally dipping slightly negative, which is not ideal but common for a company in an investment phase. Free cash flow has been consistently negative because capital spending has been higher than internal cash generation. This suggests AXTI is funding growth and technology upgrades using its cash reserves and, at times, outside capital rather than surplus cash from operations. The key question going forward is whether improving demand can push operating cash flow clearly into positive territory.

Competitive Edge

Competitive Edge AXTI operates in a specialized corner of the semiconductor market, focused on compound substrates where performance matters more than sheer volume. Its proprietary crystal growth technology, larger‑diameter wafers, and strong position in indium phosphide give it a real edge in high‑speed communications, AI data centers, 5G, and sensing applications. Vertical integration into raw materials in China strengthens supply security and cost control. At the same time, the company is relatively small in a cyclical, capital‑intensive industry and is exposed to geopolitical risk, export controls, and customer concentration, which can amplify both the upside and downside of market shifts.

Innovation and R&D

Innovation and R&D Innovation is clearly a core strength. AXTI’s Vertical Gradient Freeze process, leadership in indium phosphide, and progress on larger 6‑ and 8‑inch gallium arsenide wafers all support differentiated products with higher performance and better yields for customers. The company is actively scaling capacity for AI and data‑center demand and exploring further material advances, while the planned IPO of its Chinese subsidiary could, if completed, provide additional capital for expansion. The main execution risks are scaling new wafer sizes efficiently, maintaining quality as volumes rise, and managing regulatory and geopolitical hurdles tied to its China operations.

Summary

AXTI combines a specialized, technologically advanced product set with a mixed financial picture. The business is aligned with powerful long‑term trends—AI, high‑speed networking, 5G, and advanced sensing—where its substrates are critical enablers. However, the recent shift to losses, thin margins, and negative free cash flow underline that the company is still in a vulnerable phase, dependent on stronger demand and careful cost control. The overall story is of a niche semiconductor materials player with genuine technical advantages and attractive end markets, but with execution, cyclical, and geopolitical risks that make financial outcomes more volatile than those of larger, more diversified peers.

NEWS

October 30, 2025 · 4:05 PM UTC

AXT, Inc. Announces Third Quarter 2025 Financial Results

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October 8, 2025 · 4:05 PM UTC

AXT, Inc. Schedules Third Quarter 2025 Earnings Release for October 30, 2025

Read more