AXT, Inc. Reports Challenging Q1 2025 Results

AXT Inc ( (AXTI) ) has released its Q1 earnings. Here is a breakdown of the information AXT Inc presented to its investors.

AXT, Inc. is a material science company specializing in the development and manufacturing of high-performance compound semiconductor wafer substrates, including indium phosphide, gallium arsenide, and germanium, with applications in various advanced technology sectors.

In its first quarter of 2025, AXT, Inc. reported a challenging financial performance, with significant declines in revenue and gross margins compared to the previous quarter and the same period last year. The company highlighted geopolitical challenges and operational hurdles as key factors impacting its results.

Key financial metrics for the quarter included a revenue of $19.4 million, down from $25.1 million in the previous quarter, and a GAAP gross margin of -6.4%, a sharp decline from 17.6% in the previous quarter. The company also reported a GAAP net loss of $8.8 million, or $0.20 per share, reflecting increased losses compared to prior periods. AXT attributed these declines to reduced sales in indium phosphide due to trade restrictions, yield reductions in gallium arsenide wafers, and under-absorbed factory overhead.

Despite the setbacks, AXT’s management remains focused on strategic growth opportunities, particularly in China, and is optimistic about the potential for its gallium arsenide substrates in the wireless market. The company is taking a cautious approach to market expansion to ensure effective execution and anticipates improvements in performance throughout the year.

Looking ahead, AXT, Inc. is committed to optimizing growth opportunities, particularly in high-speed data center connectivity and LIDAR for autonomous driving, while addressing operational challenges to improve its financial performance in the coming quarters.