Companies

AXT Inc

NASDAQ: AXTI

Q2 2025 Earnings

Reported Jul 31, 2025, 4:16pm ET · SEC source
$-0.15
Miss −11.94%
EPS · est. $-0.13
$18.0M
Beat +0.18%
Revenue · est. $17.9M
+56.9%
Beating market
AXTI vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−5%0+5%Jul 31Aug 1report 4:16pm ETearnings−1.5%−4.9%
−5%0+5%Jul 31Aug 1earnings−1.5%−4.9%
AXTI −4.9%S&P 500 −1.5%
−5%0+5%Jul 31Aug 1report 4:16pm ETearnings−1.8%−4.9%
−5%0+5%Jul 31Aug 1earnings−1.8%−4.9%
AXTI −4.9%NASDAQ −1.8%
−10%−5%0+5%Jul 30Aug 8report 4:16pm ETearnings+0.9%+1.7%
−10%−5%0+5%Jul 30Aug 8earnings+0.9%+1.7%
AXTI +1.7%S&P 500 +0.9%
−10%−5%0+5%Jul 30Aug 8report 4:16pm ETearnings+1.8%+1.7%
−10%−5%0+5%Jul 30Aug 8earnings+1.8%+1.7%
AXTI +1.7%NASDAQ +1.8%
−7.69%
Day of report
+9.90%
Next session
+11.46%
One week
+60.42%
30 days

S&P 500 over the same 30 days: +3.54%.

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 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

“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.”

AXT CEO, on the earnings call

AXTI YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$8.0M$16.0M$24.0M$27.9M$18.0MRevenue$7.7M$1.4MGross Profit
$0$8.0M$16.0M$24.0MRevenueGross Profit

Figures from SEC filings and company reports. Not investment advice.