AXT

AXTI Q2 2025 Earnings

Reported Jul 31, 2025 at 4:16 PM ET · SEC Source

Q2 25 EPS

$-0.15

MISS 11.94%

Est. $-0.13

Q2 25 Revenue

$18.0M

BEAT +0.18%

Est. $17.9M

vs S&P Since Q2 25

+3,114.3%

BEATING MARKET

AXTI +3,132.3% vs S&P +17.9%

Market Reaction

Did AXTI Beat Earnings? Q2 2025 Results

AXT, Inc. Reported Q2 2025 non-GAAP EPS of -$0.15, with no consensus estimate available for comparison. Revenue came in at $17.97 million, representing a 35.6% YoY decline from $27.92 million in Q2 2024. GAAP gross margin recovered to 8.0% from negat… Read more AXT, Inc. Reported Q2 2025 non-GAAP EPS of -$0.15, with no consensus estimate available for comparison. Revenue came in at $17.97 million, representing a 35.6% YoY decline from $27.92 million in Q2 2024. GAAP gross margin recovered to 8.0% from negative 6.4% in Q1 2025, though it remained well below the 27.4% posted in the year-ago quarter. The company cited longer processing times for gallium arsenide export permits and sluggish demand in China as headwinds, while noting healthy growth in AI-related demand for indium phosphide substrates. AXT received its first export permits in June 2025 and shipped initial indium phosphide orders to customers outside China. Non-GAAP net loss narrowed sequentially to $6.4 million from $8.2 million in Q1 2025. Cash and cash equivalents stood at $27.01 million as of June 30, 2025, up from $22.83 million at year-end 2024. Total assets were $329.0 million.

Key Takeaways

  • Longer processing times for gallium arsenide export permits constrained revenue growth
  • Sluggish demand environment in China affected both substrate and raw material business
  • Gross margin recovered to 8.0% GAAP from negative 6.4% in Q1 through manufacturing efficiency improvements
  • Healthy growth in AI-related demand for indium phosphide in China
  • First export permits obtained in June enabled initial indium phosphide shipments outside China
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AXTI YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

“Our substrate revenue increased in Q2 from the prior quarter, though the increase was less than we had expected as a result of longer processing times for gallium arsenide export permits, coupled with some sluggishness in the demand environment in China, which also affected our raw material business.”

— Morris Young, Q2 2025 Earnings Press Release