AXT Inc
NASDAQ:AXTI
AXT Inc
AXT, Inc. engages in the design, development, manufacture and distribution of compound and single element semiconductor substrates. The company is headquartered in Fremont, California and currently employs 1,008 full-time employees. The company has two product lines: specialty material substrates and raw materials integral to these substrates. Its compound substrates combine indium with phosphorous (InP) or gallium with arsenic (GaAs). Its single element substrates are made from germanium (Ge). Its InP substrates are used in broadband and fiber optic applications, 5G infrastructure and data center connectivity. Its semi-conducting GaAs substrates are used to create opto-electronic products, including high brightness light emitting diodes (HBLEDs), liquid crystal display (LCD) televisions, and are also used for automotive panels, display and lighting applications. Its Ge substrates are used in applications, such as solar cells for space and terrestrial photovoltaic applications. Its two raw material companies sell purified gallium and pyrolytic boron nitride (pBN) crucibles.
AXT, Inc. engages in the design, development, manufacture and distribution of compound and single element semiconductor substrates. The company is headquartered in Fremont, California and currently employs 1,008 full-time employees. The company has two product lines: specialty material substrates and raw materials integral to these substrates. Its compound substrates combine indium with phosphorous (InP) or gallium with arsenic (GaAs). Its single element substrates are made from germanium (Ge). Its InP substrates are used in broadband and fiber optic applications, 5G infrastructure and data center connectivity. Its semi-conducting GaAs substrates are used to create opto-electronic products, including high brightness light emitting diodes (HBLEDs), liquid crystal display (LCD) televisions, and are also used for automotive panels, display and lighting applications. Its Ge substrates are used in applications, such as solar cells for space and terrestrial photovoltaic applications. Its two raw material companies sell purified gallium and pyrolytic boron nitride (pBN) crucibles.
Revenue Decline: Q4 2025 revenue was $23.0 million, down from $28.0 million in Q3 and $25.1 million in Q4 2024.
Strong Q1 Outlook: Management expects sequential revenue growth in Q1 2026, driven by accelerating demand for indium phosphide for AI and data centers.
Export Permit Bottleneck: Difficulty obtaining export permits was the main constraint on Q4 results and remains the biggest variable for Q1 and beyond.
Backlog Growth: Indium phosphide wafer backlog hit a new high above $60 million, with customers placing longer-term orders.
Capacity Doubling: AXT increased capacity by 25% since October and plans to double by the end of 2026, supported by a recent $93.9 million capital raise.
Gross Margin Improvement: GAAP gross margin rose to 20.9% from 17.6% in Q4 2024.
Net Loss Narrows: GAAP net loss was $3.6 million, better than $5.1 million a year ago. Company expects further improvement toward profitability in 2026.
