AXT Inc. cuts Q4 revenue view to $22.5M-$23.5M from $27M-$30M

Consensus $28.77M. The company expects revenue to be in the range of $22.5M to $23.5M, primarily due to fewer export control permits for indium phosphide being issued by China’s Ministry of Commerce than previously expected. “While we are disappointed that we were not able to ship indium phosphide substrates to fulfil more customer orders in December, we continue to work diligently with the Ministry of Commerce on the export permit process and are hopeful that we will receive additional permits in the first quarter 2026,” said Morris Young, chief executive officer. “As we have noted, the timing for permit issuance can be fluid and doesn’t necessarily align with our quarterly reporting. That said, customer demand for our products continues to be very strong. Our industry is in the early stages of a multi-year growth cycle, driven by the AI infrastructure build-out and growing demand for high-speed optical connectivity. As such, we are on target to more than double our indium phosphide capacity in the second half of the year. In addition, we are making plans for continued growth and capacity expansion. We were very pleased to complete a capital raise in December and intend to use some of the proceeds to increase manufacturing capacity in anticipation of a multi-year trend in data center expansion. We believe we are uniquely positioned to serve the global market with industry-leading technology, an integrated supply chain, and world-class manufacturing capabilities.”