AXT announces Q2 results
AXT, a manufacturer of compound semiconductor wafer substrates, has reported financial results for the second quarter, ended June 30, 2025 with revenue at $18.0m, compared with $19.4m for Q1 2025 and $27.9m for Q2 2024.
“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 GaAs export permits, coupled with some sluggishness in the demand environment in China, which also affected our raw material business,” said Morris Young, CEO.
He added: “That said, we made good progress in driving recovery in our gross margins, with a strong focus on our manufacturing process and efficiency. We also saw healthy growth in AI-related demand for InP in China and, as a result of obtaining our first export permits in June, were able to ship initial orders of InP substrates to customers outside of China. Our competitive positioning continues to be enhanced by superior product performance in key specifications such as low etch pit density, or EPD, and we are working diligently to support the next-generation technology requirements of our global customer base.”
GAAP gross margin was 8.0 percent of revenue for Q2 2025, compared with (6.4) percent of revenue for Q1 2025 and 27.4 percent for Q2 2024.
Non-GAAP gross margin, after excluding charges for stock-based compensation, was 8.2 percent of revenue for Q2 2025, compared with (6.1) percent of revenue for Q1 2025 and 27.6 percent for Q2 2024.
GAAP net loss, after minority interests, for Q2 2025 was a net loss of $7.0m, or $0.16 per share, compared with a net loss of $8.8m, or $0.20 per share, for Q1 2025 and a net loss of $1.5m, or $0.04 per share, for Q2 2024.
Non-GAAP net loss for Q2 2025 was a net loss of $6.4m, or $0.15 per share, compared with a net loss of $8.2m, or $0.19 per share, for Q1 2025 and a net loss of $0.8m, or $0.02 per share, for Q2 2024.
