AXT Inc ( (AXTI) ) has released its Q3 earnings. Here is a breakdown of the information AXT Inc presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
AXT, Inc. is a material science company specializing in the development and manufacturing of high-performance compound and single element semiconductor wafer substrates, primarily serving industries such as 5G infrastructure and data center connectivity.
In its third quarter of 2025, AXT, Inc. reported a significant increase in revenue, driven by a surge in demand for indium phosphide from data center applications, marking a 250% sequential growth in this segment. The company also highlighted its efforts in managing operating expenses and reducing inventory to improve gross margins.
Key financial metrics for the quarter included a revenue of $28.0 million, up from $18.0 million in the previous quarter, and a GAAP gross margin of 22.3%, a notable recovery from 8.0% in the second quarter. Despite these improvements, AXT reported a GAAP net loss of $1.9 million, though this was a reduction from the $7.0 million loss in the prior quarter.
Looking ahead, AXT, Inc. remains optimistic about its growth prospects in 2026, with expectations of continued demand in the data center sector and a return to profitability. The company is also progressing with the IPO of its subsidiary, Tongmei, on the STAR Market, which is anticipated to further bolster its financial position.