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
+3,957.7%
BEATING MARKET
AXTI +3,982.0% vs S&P +24.4%
Market Reaction
Did AXTI Beat Earnings? Q2 2025 Results
AXT delivered a mixed second quarter for 2025, narrowly clearing the revenue bar while falling short on the bottom line as export permit delays and weak Chinese demand took a visible toll on results. The compound semiconductor substrate maker posted … Read more AXT delivered a mixed second quarter for 2025, narrowly clearing the revenue bar while falling short on the bottom line as export permit delays and weak Chinese demand took a visible toll on results. The compound semiconductor substrate maker posted revenue of $17.97 million, essentially in line with the $17.94 million consensus estimate but down a steep 35.6% from the year-ago period, as longer processing times for gallium arsenide export permits restricted shipments and sluggish conditions in China weighed on the raw materials business. Adjusted diluted EPS came in at negative $0.15, missing the negative $0.13 consensus by 11.94%, though the loss did narrow sequentially from Q1 2025. A notable bright spot was gross margin recovery, with GAAP gross margin climbing to 8.0% from negative 6.4% in the prior quarter, reflecting improved manufacturing efficiency. The receipt of initial export permits for indium phosphide substrates in June added a forward-looking dimension, opening the door to shipments outside China as AI-driven demand for the material continues to build.
Key Takeaways
- • Longer processing times for gallium arsenide export permits reduced expected revenue
- • Sluggish demand environment in China affected both substrate and raw material business
- • Strong focus on manufacturing process and efficiency drove gross margin recovery from negative territory
- • Healthy growth in AI-related demand for indium phosphide in China
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
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
7 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.07 | $0.19 | +163.89% | $47.6M | +39.63% |
| Q1 26 BEAT | $-0.05 | $-0.01 | +78.26% | $26.9M | +2.69% |
| Q4 25 BEAT FY | $-0.06 | $-0.05 | +13.79% | $23.0M | -4.96% |
| FY Full Year | — | $-0.41 | — | $88.3M | — |
| 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% |