AXT Inc. cuts Q2 revenue view to $17.5M-$18M from $20M-$22M, consensus $20.85M

The preliminary revenue range for the second quarter of 2025 is primarily the result of slower than expected issuance of export control permits for the company’s gallium arsenide products in Q2 and a weaker demand environment in China, the company said. “Though we continue to feel confident about our participation in a number of exciting technology trends, the current geopolitical environment remains challenging across our business,” said Morris Young, chief executive officer. “Further, the demand environment in China has been weaker than expected for our gallium arsenide substrate business, as well as our consolidated raw material joint ventures. That said, we saw a meaningful increase in AI-related demand for indium phosphide in China during Q2 and were also pleased that our subsidiary, Beijing Tongmei Xtal Technology Co., received its first export control permits for indium phosphide late in the quarter. In addition, we remain highly focused on gross margin improvement and despite the revenue shortfall, we expect to deliver Q2 2025 gross margins in the high single digits.”