FREMONT, Calif., July 30, 2026–(BUSINESS WIRE)–AXT, Inc. (NasdaqGS: AXTI), a number one producer of compound semiconductor wafer substrates, immediately reported monetary outcomes for the second quarter, ended June 30, 2026.
Management Qualitative Comments
“This is an incredibly exciting time for AXT,” mentioned Morris Young, chief govt officer. “We have reached an inflection point in our business where strong customer demand for data center optical connectivity coupled with our continued success in adding manufacturing capacity and improving productivity are driving a step-function increase in our revenue. In Q2, we recorded our highest quarterly indium phosphide revenue to date. We are working closely with our direct customers as well as major end customers to understand their expected demand and roadmaps. We believe AXT is entering one of the most consequential chapters in our company’s history. The investments we are making today—in capacity, in technology, and in our uniquely integrated supply chain—position us to meet the extraordinary demand we see building across the optical and AI infrastructure markets.”
Second Quarter 2026 Results
Revenue for the second quarter of 2026 was $47.6 million, in contrast with $26.9 million for the primary quarter of 2026 and $18.0 million for the second quarter of 2025.
GAAP gross margin was 44.9 p.c of income for the second quarter of 2026, in contrast with 29.6 p.c of income for the primary quarter of 2026 and eight.0 p.c for the second quarter of 2025.
Non-GAAP gross margin, after excluding costs for stock-based compensation, was 45.0 p.c of income for the second quarter of 2026, in contrast with 29.9 p.c of income for the primary quarter of 2026 and eight.2 p.c for the second quarter of 2025.
GAAP web earnings, after minority pursuits, for the second quarter of 2026 was a web earnings of $11.1 million, or $0.17 diluted earnings per share, in contrast with a web lack of $1.6 million, or $0.03 per share, for the primary quarter of 2026 and a web lack of $7.0 million, or $0.16 per share, for the second quarter of 2025.
Non-GAAP web earnings for the second quarter of 2026 was a web earnings of $11.9 million, or $0.19 per share, in contrast with a web lack of $0.6 million, or $0.01 per share, for the primary quarter of 2026 and a web lack of $6.4 million, or $0.15 per share, for the second quarter of 2025.
Conference Call
The firm will host a convention name to debate these outcomes immediately at 1:30 p.m. PT. The convention name could be accessed at (833) 461-5787 (passcode 630205921). The name may even be simulcast at www.axt.com. The webcast will probably be obtainable at http://www.axt.com till July 30, 2027. Additional investor info could be accessed at http://www.axt.com.
About AXT, Inc.
AXT is a cloth science firm that develops and manufactures high-performance compound and single ingredient semiconductor substrate wafers comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). The firm’s substrate wafers are used when a typical silicon substrate wafer can not meet the efficiency necessities of a semiconductor or optoelectronic gadget. End markets embrace 5G infrastructure, knowledge heart connectivity (silicon photonics), passive optical networks, LED lighting, lasers, sensors, energy amplifiers for wi-fi units and satellite tv for pc photo voltaic cells. AXT’s worldwide headquarters are in Fremont, California the place the corporate maintains gross sales, administration and customer support features. AXT has its Asia headquarters in Beijing, China and manufacturing services in three separate areas in China. In addition, as a part of its provide chain technique, the corporate has partial possession in ten corporations in China producing uncooked supplies for its manufacturing course of. For extra info, see AXT’s web site at https://investors.axt.com.
Safe Harbor Statement
This press launch comprises sure statements that represent “forward-looking statements” throughout the which means of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. For instance, our plans and skill to extend manufacturing capability and to allow our trade to satisfy future calls for and wishes for our indium phosphide wafer substrates. Statements regarding our expectations concerning the receipt of export permits for our indium phosphide substrates, outcomes of operations, market and buyer demand for our merchandise, our potential to develop our markets or enhance gross sales, rising purposes utilizing chips or units fabricated on our substrates, together with using indium phosphide wafer substrates in synthetic intelligence (“AI”) purposes, product yields and gross margins, expense ranges, our investments in capital tasks, ramping manufacturing at our websites, our potential to make the most of or enhance our manufacturing capability, and our perception that we have now ample money and investments to satisfy our wants are additionally forward-looking statements. The phrases “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “potentially,” “likely,” and comparable expressions and variations thereof are supposed to determine forward-looking statements, however are usually not the unique technique of figuring out such statements. These statements seem on this press launch and elsewhere, embrace statements concerning the intent, perception or present expectations of our administration which can be topic to recognized and unknown dangers, uncertainties and assumptions which might trigger precise outcomes to vary materially from these expressed or implied within the forward-looking assertion. These dangers, uncertainties and assumptions embrace, however are usually not restricted to, the receipt of export permits for our indium phosphide substrates, the withdrawal, cancellations or requests for redemptions by non-public fairness funds in China of their investments in Tongmei, the executive challenges in satisfying the necessities of varied authorities businesses in China in reference to the investments in Tongmei, geopolitical tensions between China and the United States, and different elements described and captioned “Risk Factors” within the firm’s Annual Report on Form 10-Okay, quarterly reviews on Form 10-Q and different filings made with the Securities and Exchange Commission. Each of those elements is tough to foretell and plenty of are past the corporate’s management. The firm doesn’t undertake any obligation to replace any forward-looking assertion, because of new info, future occasions or in any other case. You are cautioned that any such forward-looking statements are usually not ensures of future efficiency and contain dangers and uncertainties, and that precise outcomes could differ materially from these projected within the forward-looking statements because of varied elements.
AXT, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in 1000’s, besides per share knowledge) |
| | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2026 | | 2025 | | 2026 | | 2025 |
| | | | | | | | | | | | |
Revenue | | $ | 47,589 | | | $ | 17,974 | | | $ | 74,513 | | | $ | 37,330 | |
Cost of income | | | 26,223 | | | | 16,541 | | | | 45,169 | | | | 37,138 | |
Gross revenue | | | 21,366 | | | | 1,433 | | | | 29,344 | | | | 192 | |
Operating bills: | | | | | | | | | | | | |
Selling, basic and administrative | | | 7,292 | | | | 5,653 | | | | 13,843 | | | | 11,569 | |
Research and growth | | | 3,651 | | | | 2,525 | | | | 6,663 | | | | 5,643 | |
Total working bills | | | 10,943 | | | | 8,178 | | | | 20,506 | | | | 17,212 | |
Income (loss) from operations | | | 10,423 | | | | (6,745 | ) | | | 8,838 | | | | (17,020 | ) |
Interest earnings (expense), web | | | 4,728 | | | | (202 | ) | | | 4,829 | | | | (471 | ) |
Equity in earnings (loss) of unconsolidated joint ventures | | | 417 | | | | (171 | ) | | | 770 | | | | 77 | |
Other earnings (expense), web | | | (436 | ) | | | 23 | | | | (360 | ) | | | 377 | |
Income (loss) earlier than provision for earnings taxes | | | 15,132 | | | | (7,095 | ) | | | 14,077 | | | | (17,037 | ) |
Provision for earnings taxes | | | 2,102 | | | | 579 | | | | 2,532 | | | | 653 | |
Net earnings (loss) | | | 13,030 | | | | (7,674 | ) | | | 11,545 | | | | (17,690 | ) |
Less: Net (earnings) loss attributable to noncontrolling pursuits and redeemable noncontrolling pursuits | | | (1,902 | ) | | | 666 | | | | (2,037 | ) | | | 1,884 | |
Net earnings (loss) attributable to AXT, Inc. | | $ | 11,128 | | | $ | (7,008 | ) | | $ | 9,508 | | | $ | (15,806 | ) |
Net earnings (loss) attributable to AXT, Inc. per frequent share: | | | | | | | | | | | | |
Basic | | $ | 0.18 | | | $ | (0.16 | ) | | $ | 0.16 | | | $ | (0.36 | ) |
Diluted | | $ | 0.17 | | | $ | (0.16 | ) | | $ | 0.16 | | | $ | (0.36 | ) |
Weighted-average variety of frequent shares excellent: | | | | | | | | | | | | |
Basic | | | 61,227 | | | | 43,710 | | | | 57,274 | | | | 43,630 | |
Diluted | | | 63,474 | | | | 43,710 | | | | 59,642 | | | | 43,630 | |
AXT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in 1000’s) |
| | | | |
| | June 30, | | December 31, |
| | 2026 | | 2025 |
| | | | | | |
ASSETS | | | | | | |
Current property: | | | | | | |
Cash and money equivalents | | $ | 412,167 | | | $ | 120,266 | |
Restricted money | | | 33,050 | | | | 8,100 | |
Short-term investments | | | 5,031 | | | | — | |
Accounts receivable, web | | | 36,675 | | | | 26,849 | |
Inventories | | | 96,322 | | | | 81,651 | |
Prepaid bills and different present property | | | 15,558 | | | | 9,690 | |
Total present property | | | 598,803 | | | | 246,556 | |
Long-term investments | | | 298,600 | | | | — | |
Property, plant and tools, web | | | 174,924 | | | | 161,860 | |
Operating lease right-of-use property | | | 1,766 | | | | 1,982 | |
Other property | | | 23,099 | | | | 23,353 | |
Total property | | $ | 1,097,192 | | | $ | 433,751 | |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY | | | | | | |
Current liabilities: | | | | | | |
Accounts payable | | $ | 14,373 | | | $ | 12,947 | |
Accrued liabilities | | | 27,052 | | | | 14,798 | |
Short-term loans | | | 84,233 | | | | 62,796 | |
Total present liabilities | | | 125,658 | | | | 90,541 | |
Noncurrent working lease liabilities | | | 1,164 | | | | 1,441 | |
Other long-term liabilities | | | 18,522 | | | | 7,138 | |
Total liabilities | | | 145,344 | | | | 99,120 | |
| | | | | | |
Redeemable noncontrolling pursuits | | | 39,735 | | | | 38,056 | |
| | | | | | |
Stockholders’ fairness: | | | | | | |
Preferred inventory | | | 3,532 | | | | 3,532 | |
Common inventory | | | 66 | | | | 55 | |
Additional paid-in capital | | | 943,758 | | | | 339,922 | |
Accumulated deficit | | | (55,416 | ) | | | (64,924 | ) |
Accumulated different complete loss | | | (4,666 | ) | | | (5,295 | ) |
Total AXT, Inc. stockholders’ fairness | | | 887,274 | | | | 273,290 | |
Noncontrolling pursuits | | | 24,839 | | | | 23,285 | |
Total stockholders’ fairness | | | 912,113 | | | | 296,575 | |
Total liabilities, redeemable noncontrolling pursuits and stockholders’ fairness | | $ | 1,097,192 | | | $ | 433,751 | |
AXT, INC. Reconciliation of Statements of Operations Under GAAP and Non-GAAP (Unaudited, in 1000’s) |
| | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2026 | | 2025 | | 2026 | | 2025 |
GAAP gross revenue | | $ | 21,366 | | $ | 1,433 | | | $ | 29,344 | | $ | 192 | |
Stock-based compensation expense | | | 65 | | | 47 | | | | 130 | | | 110 | |
Non-GAAP gross revenue | | $ | 21,431 | | $ | 1,480 | | | $ | 29,474 | | $ | 302 | |
| | | | | | | | | | | | |
GAAP working bills | | $ | 10,943 | | $ | 8,178 | | | $ | 20,506 | | $ | 17,212 | |
Stock-based compensation expense | | | 697 | | | 586 | | | | 1,667 | | | 1,169 | |
Non-GAAP working bills | | $ | 10,246 | | $ | 7,592 | | | $ | 18,839 | | $ | 16,043 | |
| | | | | | | | | | | | |
GAAP earnings (loss) from operations | | $ | 10,423 | | $ | (6,745 | ) | | $ | 8,838 | | $ | (17,020 | ) |
Stock-based compensation expense | | | 762 | | | 633 | | | | 1,797 | | | 1,279 | |
Non-GAAP earnings (loss) from operations | | $ | 11,185 | | $ | (6,112 | ) | | $ | 10,635 | | $ | (15,741 | ) |
| | | | | | | | | | | | |
GAAP web earnings (loss) | | $ | 11,128 | | $ | (7,008 | ) | | $ | 9,508 | | $ | (15,806 | ) |
Stock-based compensation expense | | | 762 | | | 633 | | | | 1,797 | | | 1,279 | |
Non-GAAP web earnings (loss) | | $ | 11,890 | | $ | (6,375 | ) | | $ | 11,305 | | $ | (14,527 | ) |
| | | | | | | | | | | | |
GAAP web earnings (loss) per diluted share | | $ | 0.17 | | $ | (0.16 | ) | | $ | 0.16 | | $ | (0.36 | ) |
Stock-based compensation expense per diluted share | | $ | 0.01 | | $ | 0.01 | | | $ | 0.03 | | $ | 0.03 | |
Non-GAAP web earnings (loss) per diluted share | | $ | 0.19 | | $ | (0.15 | ) | | $ | 0.19 | | $ | (0.33 | ) |
| | | | | | | | | | | | |
Shares used to compute diluted web earnings per share | | | 63,474 | | | 43,710 | | | | 59,642 | | | 43,630 | |
View supply model on businesswire.com: https://www.businesswire.com/news/home/20260730124233/en/
Contacts
Gary Fischer
Chief Financial Officer
(510) 438-4700
Leslie Green
Green Communications Consulting, LLC
leslie@greencommunicationsllc.com
