UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2025 Or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to Commission File Number 000-24085 AXT, INC. (Exact name of registrant as specified in its charter) DELAWARE 94-3031310 (State or other jurisdiction of Incorp ...

AXT (AXTI -9.38%), a specialty materials producer known for high-performance semiconductor substrates, reported second-quarter 2025 earnings on July 31, 2025. The headline news from the release was a sharper-than-expected revenue decline, as GAAP revenue was $18.0 million, missing the analysts' estimate of $19.78 million by $1.78 million, or 9.0%, with non-GAAP earnings falling short of market estimates amid ongoing pressure from regulatory delays and a slow demand environment in China. GAAP revenue was $18 ...

AXT (AXTI) came out with a quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to a loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -15.38%. A quarter ago, it was expected that this semiconductor materials supplier would post a loss of $0.13 per share when it actually produced a loss of $0.19, delivering a surprise of -46.15%.Over the last four quarters, the com ...

AXT (AXTI) Q2 2025 Earnings Call July 31, 2025 04:30 PM ET Speaker0Good afternoon, everyone, and welcome to AXT Inc. Second Quarter twenty twenty five Financial Conference Call. Leading the call today is Doctor. Morris Young, Chief Executive Officer and Gary Fisher, Chief Financial Officer. In addition, Tim Bettles, VP of Business Development, will be participating in the Q and A portion of the call.My name is Audra, and I will be your coordinator today. I would now like to turn the call over to Leslie Gree ...

The market expects AXT (AXTI) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. ...

Group 1 - AXT Inc (AXTI) has reached a key level of support, with its 50-day simple moving average crossing above its 200-day simple moving average, indicating a "golden cross" which is a bullish signal for potential breakout [1] - The golden cross consists of three stages: a downtrend that bottoms out, the shorter moving average crossing above the longer moving average, and the stock continuing to rise [2] - AXTI shares have increased by 24.7% over the past four weeks, and the company holds a 3 (Hold) rating on the Zacks Rank, suggesting a potential breakout [3] Group 2 - The positive earnings outlook for AXTI is supported by no earnings estimate cuts and one revision higher in the past 60 days, with the Zacks Consensus Estimate also increasing [3] - The combination of earnings estimate revisions and the technical level achieved makes AXTI a stock to watch for potential gains in the near future [4]

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 4281 Technology Drive Fremont, California 94538 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (510) 438-4700 Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8‑K filing is intended to simultaneously satisfy the fili ...

Company Overview - AXT was founded in 1986 and had its IPO in 1998[4] - The company operates in three locations in China: Beijing, Kazuo, and Dingxing[4] Products and Markets - Indium Phosphide (InP) is a growth engine, with expanding applications and a long product life cycle[6] - Gallium Arsenide (GaAs) has a long product life cycle with new applications, and AXT supplied first 8-inch GaAs wafers in April 2021[14] - Germanium (Ge) is primarily used in satellite solar cells, and the satellite solar cell market is increasing[22, 25] Financial Performance - In 2023, AXT's revenue was $75.8 million[29] - In 2022, AXT's revenue was $141.1 million[29] - In 2023, the Non-GAAP Gross Margin was 18.1%[29] - In 2023, the Non-GAAP Net Profit/(Loss) was ($14.3) million[29] Tongmei STAR Market Listing - AXT currently owns approximately 85.5% of Tongmei[31] - If the IPO is approved, AXT would own approximately 77% of Tongmei, selling an additional 10%[31]

PART I. FINANCIAL INFORMATION [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for Q1 2025 and 2024, including balance sheets, statements of operations, comprehensive loss, cash flows, and explanatory notes Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $149,531 | $158,272 | | **Total assets** | $333,477 | $339,314 | | **Total current liabilities** | $75,256 | $74,176 | | **Total liabilities** | $87,305 | $84,406 | | **Total stockholders' equity** | $208,047 | $216,331 | Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $19,356 | $22,688 | | Gross profit (loss) | $(1,241) | $6,094 | | Loss from operations | $(10,275) | $(3,347) | | Net loss | $(10,016) | $(2,048) | | Net loss attributable to AXT, Inc. | $(8,798) | $(2,083) | | Diluted net loss per share | $(0.20) | $(0.05) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,346) | $(8,806) | | Net cash used in investing activities | $(786) | $(3,912) | | Net cash provided by financing activities | $6,882 | $2,000 | | **Net increase (decrease) in cash** | **$4,373** | **$(10,514)** | [Notes To Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20To%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial items, including revenue breakdown, Tongmei STAR Market IPO risks, debt, stock-based compensation, and legal proceedings Revenue by Product Type (in thousands) | Product Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Substrates | $11,082 | $16,903 | | Raw Materials and Other | $8,274 | $5,785 | | **Total** | **$19,356** | **$22,688** | Revenue by Geographic Region (in thousands) | Geographical region | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | China | $13,426 | $11,517 | | Taiwan | $1,221 | $4,582 | | Europe | $2,101 | $3,725 | | North America | $1,109 | $1,076 | | Other | $1,499 | $1,788 | | **Total** | **$19,356** | **$22,688** | - Tongmei's STAR Market IPO application was approved by the Shanghai Stock Exchange and is under review by the CSRC[135](index=135&type=chunk)[136](index=136&type=chunk) - Investors hold a redemption right for their **~$49 million investment** if the IPO is not successfully completed[135](index=135&type=chunk)[136](index=136&type=chunk) - As of March 31, 2025, the company had **$52.5 million in short-term loans** and **$7.9 million in long-term loans** (net of current portion)[122](index=122&type=chunk) - The company is facing a putative shareholder class action and a related derivative lawsuit, which is currently on appeal after being dismissed[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - The company believes the claims are meritless[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance, financial condition, and outlook, highlighting Q1 2025 revenue decline, gross margin compression, US-China trade tensions, and the Tongmei STAR Market IPO initiative - AXT is a materials science company producing high-performance compound semiconductor substrates (InP, GaAs, Ge) and related raw materials, with all manufacturing operations located in the PRC[148](index=148&type=chunk)[149](index=149&type=chunk)[154](index=154&type=chunk) - The business is significantly impacted by escalating US-China trade tensions, with US tariffs on its products increasing to as high as **100%** and China imposing export permit requirements on all three of its substrate product lines (GaAs, Ge, and InP)[170](index=170&type=chunk)[202](index=202&type=chunk) - The strategic initiative to list its subsidiary Tongmei on the STAR Market is a key focus[162](index=162&type=chunk) - The process is lengthy and subject to CSRC approval[162](index=162&type=chunk) - Failure could trigger a **~$49 million redemption** by investors[237](index=237&type=chunk) [Results of Operations](index=70&type=section&id=Results%20of%20Operations) Q1 2025 revenue decreased 14.7% year-over-year to $19.4 million, driven by a substrate revenue decline, while gross margin collapsed to negative 6.4% due to production issues and export restrictions Revenue Change Q1 2024 to Q1 2025 (in thousands) | Product Type | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Substrates | $11,082 | $16,903 | $(5,821) | (34.4)% | | Raw materials and other | $8,274 | $5,785 | $2,489 | 43.0% | | **Total revenue** | **$19,356** | **$22,688** | **$(3,332)** | **(14.7)%** | - Gross profit decreased by **$7.3 million (120.4%)** to a loss of **$1.2 million** in Q1 2025[209](index=209&type=chunk) - The gross margin was **-6.4%** compared to **26.9%** in Q1 2024, attributed to significant unfavorable yields in gallium arsenide production and reduced sales of higher-margin indium phosphide due to export restrictions[209](index=209&type=chunk) - SG&A expenses decreased by **5.0%** to **$5.9 million**, while R&D expenses decreased by **3.0%** to **$3.1 million** compared to the prior-year period[210](index=210&type=chunk)[211](index=211&type=chunk) [Liquidity and Capital Resources](index=75&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held $38.2 million in cash and restricted cash. During the quarter, cash increased by $4.4 million, primarily due to $6.9 million in net proceeds from financing activities (net debt issuance), which more than offset the $3.3 million cash used in operations. Management believes current liquidity is adequate for the next 12 months, but acknowledges the significant risk of a potential ~$49 million cash outflow if the Tongmei IPO fails and investors exercise their redemption rights - Principal source of liquidity as of March 31, 2025 was **$38.2 million**, consisting of **$31.6 million in cash** and **$6.6 million in restricted cash**[221](index=221&type=chunk) Q1 2025 Cash Flow Summary (in millions) | Cash Flow Activity | Amount | | :--- | :--- | | Net cash used in operating activities | $(3.3) | | Net cash used in investing activities | $(0.8) | | Net cash provided by financing activities | $6.9 | | **Net increase in cash** | **$4.4** | - A key risk to liquidity is the potential redemption of Tongmei shares by investors for approximately **$49 million** if the STAR Market IPO is not successfully completed[237](index=237&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=83&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are identified as foreign currency fluctuations, interest rate changes, and credit risk. Significant business is conducted in Chinese Renminbi and Japanese Yen, creating exposure to currency volatility, which is partially managed by a hedging program for the Yen. Interest rate risk is considered minimal. Credit risk is concentrated, with one customer accounting for over 10% of accounts receivable - The company has significant foreign currency risk exposure from operations in China (Renminbi) and sales to Japan (Yen)[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk) - A hedging program is in place to mitigate risk from the Japanese Yen[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk) - Interest rate risk is low; a **10% change in rates** would have an immaterial impact on interest income[254](index=254&type=chunk) - One customer accounted for more than **10% of the accounts receivable balance** as of March 31, 2025[255](index=255&type=chunk) [Controls and Procedures](index=85&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation as of the end of the quarter, the CEO and CFO concluded that the company's disclosure controls and procedures were effective. No material changes to internal control over financial reporting were identified during the quarter - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025[257](index=257&type=chunk) - There were no changes in internal control over financial reporting during Q1 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[259](index=259&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=86&type=section&id=Item%201.%20Legal%20Proceedings) The company is currently defending against a putative shareholder class action lawsuit and a related derivative action. The class action, filed in May 2024, alleges violations of federal securities laws. The derivative suit was dismissed in March 2025, but the plaintiff has filed a notice of appeal. AXT believes the claims in both cases are meritless - A putative shareholder class action was filed on **May 6, 2024**, against the company, its CEO, and CFO, alleging violations of the Securities Exchange Act[263](index=263&type=chunk) - The case is pending[263](index=263&type=chunk) - A related derivative lawsuit was dismissed by the court on **March 17, 2025**, but the plaintiff filed a notice of appeal on **May 13, 2025**[264](index=264&type=chunk) [Risk Factors](index=86&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks that could adversely affect the company's business. Major risks include the severe impact of escalating US-China trade tariffs and export restrictions; operational and regulatory risks tied to its manufacturing base in China, such as potential government intervention and mandatory shutdowns; high volatility in financial results and gross margins; the potential failure of the Tongmei STAR Market IPO, which carries a ~$49 million redemption obligation; and intense competition and pricing pressure in the semiconductor materials market - Escalating and volatile trade tariffs from the U.S. and export restrictions from China on key materials (gallium, germanium, indium phosphide) pose a material threat to the business[338](index=338&type=chunk)[340](index=340&type=chunk) - The PRC central government may intervene in or influence PRC operations at any time, and regulations can change quickly[346](index=346&type=chunk)[348](index=348&type=chunk)[350](index=350&type=chunk) - This includes risks of mandatory factory shutdowns due to environmental policies[346](index=346&type=chunk)[348](index=348&type=chunk)[350](index=350&type=chunk) - The proposed IPO of subsidiary Tongmei on the STAR Market could fail, triggering a right for investors to redeem their shares for approximately **$49 million**[386](index=386&type=chunk) - Gross margins are highly volatile and can be negatively impacted by product mix, manufacturing yields, capacity utilization, and pricing pressure[276](index=276&type=chunk) - The gross margin was **negative (-6.4%)** in Q1 2025[276](index=276&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=138&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds from such sales during the reporting period - None [Defaults upon Senior Securities](index=138&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None [Mine Safety Disclosures](index=138&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable [Other Information](index=140&type=section&id=Item%205.%20Other%20Information) The company disclosed that no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the last fiscal quarter - No director or officer, as defined in Rule 16a-1(f), adopted or terminated a Rule 10b5-1 trading arrangement during the last fiscal quarter[418](index=418&type=chunk) [Exhibits](index=140&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed concurrently with the Form 10-Q, which include the CEO and CFO certifications required under the Sarbanes-Oxley Act of 2002 (Sections 302 and 906) and the Inline XBRL data files for financial reporting - The filed exhibits include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL files (101 series)[420](index=420&type=chunk)