AXT

AXT (AXTI) Q4 2025 Earnings

Reported Feb 19, 2026 at 4:16 PM ET · SEC Source

Q4 25 EPS

$-0.05

BEAT +13.79%

Est. $-0.06

Q4 25 Revenue

$23.0M

MISS 4.96%

Est. $24.2M

vs S&P Since Q4 25

+243.3%

BEATING MARKET

AXTI +255.2% vs S&P +11.9%

Full Year 2025 Results

FY 25 EPS

$-0.41

FY 25 Revenue

$88.3M

Market Reaction

Did AXTI Beat Earnings? Q4 2025 Results

AXT delivered a mixed fourth quarter for fiscal 2025, narrowing its losses more than analysts expected while falling short on the top line amid continued regulatory headwinds. The compound semiconductor maker posted adjusted diluted EPS of negative $… Read more AXT delivered a mixed fourth quarter for fiscal 2025, narrowing its losses more than analysts expected while falling short on the top line amid continued regulatory headwinds. The compound semiconductor maker posted adjusted diluted EPS of negative $0.05, beating the consensus estimate of negative $0.06 by 13.79%, even as revenue of $23.04 million trailed the $24.24 million consensus by 4.96% and slid 8.2% from a year ago. The shortfall was largely driven by fewer export permits received than anticipated in the quarter, a China-related bottleneck that has weighed on results throughout the year and contributed to full-year 2025 revenue declining to $88.33 million from $99.36 million in fiscal 2024. On a brighter note, non-GAAP gross margin improved to 21.5% from 17.9% a year ago, reflecting cost discipline that also brought total operating expenses down to $8.66 million from $10.57 million. After a remarkable run in the stock, management is leaning into indium phosphide demand for AI infrastructure as its primary growth catalyst, with plans to double InP manufacturing capacity in 2026 and early permit approvals already pointing toward sequential revenue growth in Q1 2026.

Key Takeaways

  • Fewer export permits received in Q4 than anticipated drove sequential revenue decline
  • Improved gross margin year-over-year from 17.6% to 20.9% in Q4
  • Reduced operating expenses from $10.6M to $8.7M year-over-year in Q4
  • Lower R&D spending from $4.1M to $2.4M year-over-year
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AXTI YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

“While we are disappointed that we didn't receive as many export permits in Q4 as we had hoped, we are pleased to report that we have received some permits to date in 2026 and believe we are in a strong position to achieve sequential revenue growth in Q1, driven primarily by growth in indium phosphide for the AI infrastructure build-out.”

— Morris Young, Q4 2025 Earnings Press Release