Q1 25 EPS
$-0.19
MISS 37.68%
Est. $-0.14
Q1 25 Revenue
$19.4M
BEAT +1.97%
Est. $19.0M
vs S&P Since Q1 25
+5,266.0%
BEATING MARKET
AXTI +5,295.4% vs S&P +29.4%
Market Reaction
Did AXTI Beat Earnings? Q1 2025 Results
AXT, Inc. Reported Q1 2025 GAAP EPS of -$0.20 and non-GAAP EPS of -$0.19, significantly wider losses compared to -$0.05 GAAP and -$0.03 non-GAAP in Q1 2024. Revenue came in at $19.36 million, representing a 14.7% YoY decline from $22.69 million in Q1… Read more AXT, Inc. Reported Q1 2025 GAAP EPS of -$0.20 and non-GAAP EPS of -$0.19, significantly wider losses compared to -$0.05 GAAP and -$0.03 non-GAAP in Q1 2024. Revenue came in at $19.36 million, representing a 14.7% YoY decline from $22.69 million in Q1 2024. The quarter was severely impacted by a 58% sequential decline in indium phosphide sales due to China trade restrictions, significant yield issues on gallium arsenide wafers, and under-absorbed factory overhead, driving GAAP gross margin to negative 6.4% versus positive 26.9% a year ago. The company's China subsidiary Tongmei is pursuing growth in high-speed data center connectivity and LIDAR for autonomous driving. Management acknowledged disappointment with gross margin performance but expects improvement beginning in Q2 2025 and continuing through the balance of the year as it takes a more measured approach to scaling gallium arsenide production for the wireless HBT device market.
Key Takeaways
- • 58% sequential decline in indium phosphide sales due to China trade restrictions
- • Significant yield reduction on semi-insulating gallium arsenide wafers
- • Under-absorbed factory overhead due to lower substrate sales
- • Failed attempt to scale gallium arsenide production too quickly
AXTI YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
“While the geopolitical environment is creating undeniable challenges, we are focusing our energies where we can drive positive returns today. Tongmei, our China subsidiary, is uniquely positioned to optimize growth opportunities in China, such as high-speed data center connectivity and LIDAR for autonomous driving, and are pursuing these and other opportunities with success across key markets for indium phosphide, gallium arsenide, and germanium substrates. We are also working tirelessly on behalf of our global customer base to ensure that we can continue to support their needs across all our products.”
— Morris Young, Q1 2025 Earnings Press Release
AXTI Earnings Trends
AXTI vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
AXTI EPS Trend
Earnings per share: estimate vs actual
AXTI Revenue Trend
Quarterly revenue: estimate vs actual
AXTI Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $-0.05 | $-0.01 | +78.26% | $26.9M | +2.69% |
| Q4 25 BEAT | $-0.06 | $-0.05 | +13.79% | $23.0M | -4.96% |
| Q3 25 BEAT | $-0.12 | $-0.03 | +75.41% | $28.0M | +37.68% |
| Q2 25 MISS | $-0.13 | $-0.15 | -11.94% | $18.0M | +0.18% |
| Q1 25 MISS | $-0.14 | $-0.19 | -37.68% | $19.4M | +1.97% |
| Q4 24 MISS | $-0.04 | $-0.10 | -138.10% | $25.1M | +4.89% |