AXT, Inc. Earnings Recaps
Q2 2026
Aug 3, 2026
AXT's stock surged 63.5% on record quarterly revenue led by indium phosphide sales and substantial gross margin improvement, signaling strong market approval of the company’s multi-year growth narrative and long-term supply agreements.
Key takeaways
- Q2 revenue reached $47.6 million, up 77% sequentially and 164% year-over-year, driven primarily by a record $30.7 million in indium phosphide sales linked to data center demand.
- Gross margin expanded significantly to 45.0% non-GAAP, up from 29.9% in Q1 and just 8.2% a year ago, reflecting higher volumes and a favorable product mix.
- The company returned to profitability with non-GAAP operating income of $11.2 million and net income of $11.9 million ($0.19 per diluted share), reversing prior losses.
- Cash balance jumped to $749 million following a $632 million secondary stock offering, bolstering liquidity for growth initiatives.
- Signed long-term supply agreements with major customers Casella and Coherent, which included substantial upfront prepayments totaling $47.7 million, underpinning confidence in indium phosphide’s role in AI-driven data infrastructure.
Q1 2026
May 1, 2026
Shares surged 35.1% after AXT’s Q1 2026 report, reflecting investor enthusiasm for a sharp sequential revenue rebound, significantly improved margins, and aggressive Indium Phosphide capacity expansion backed by a major capital raise.
Key takeaways
- Revenue jumped to $26.9M in Q1 2026, up from $23.0M in Q4 and $19.4M in the prior-year quarter, with Indium Phosphide contributing $13.6M, driven by data center demand.
- Non-GAAP gross margin rebounded to 29.9% (from 21.5% in Q4 and a negative 6.1% a year ago), highlighting meaningful operational improvements.
- Operating losses narrowed materially: non-GAAP net loss was reduced to $0.6M ($0.01 per share), versus $2.3M in Q4 and $8.2M in Q1 2025.
- The company completed a $632.5M capital raise earmarked for doubling Indium Phosphide capacity in 2026, with further expansion targeted for 2027 and 2028.
- Cash declined by $5.1M to $123M due to rising accounts receivable and inventory build, as AXT ramps up capacity to meet record order backlogs.
Q3 2025
Nov 1, 2025
AXT reported a strong performance in Q3 2025, with revenues rising 56% sequentially to $28 million, driven by increased demand for indium phosphide from data center applications.
Key takeaways
- Revenue from indium phosphide reached $13.1 million, its highest level since 2022, following successful acquisition of export permits.
- Non-GAAP gross margin improved significantly to 22.4%, up from 8.2% in Q2 2025 and 24.3% in Q3 2024.
- Non-GAAP operating loss narrowed to $384,000, a substantial improvement from a $6.1 million loss in Q2 2025.
- Total cash and cash equivalents declined by $3.9 million to $31.2 million, impacted by an increase in accounts receivable.
- IPO application for subsidiary Tongmei remains active, considered a strong candidate despite geopolitical challenges.