AXT(US:AXTI)2025-10-30 20:17Revenue Performance - Revenue for Q3 2025 was $28.0 million, a 55.6% increase from $18.0 million in Q2 2025 and a 18.6% increase from $23.6 million in Q3 2024[4] - Indium phosphide revenues grew more than 250% sequentially, reaching a three-year high due to strong demand from data center applications[3] Profitability Metrics - GAAP gross margin for Q3 2025 was 22.3%, up from 8.0% in Q2 2025 but down from 24.0% in Q3 2024[4] - Non-GAAP net loss for Q3 2025 was $1.2 million, or $0.03 per share, compared to a net loss of $6.4 million, or $0.15 per share in Q2 2025[4] - The company reported a GAAP net loss of $1.9 million, or $0.04 per share, an improvement from a net loss of $7.0 million, or $0.16 per share in Q2 2025[4] - GAAP gross profit for Q3 2025 was $6,224 million, an increase from $5,682 million in Q3 2024, representing an 9.5% growth[15] - Non-GAAP gross profit for the nine months ended September 30, 2025, was $19,674 million, up from $19,428 million in the same period of 2024, reflecting a 1.3% increase[15] - Non-GAAP loss from operations improved to $(385) million in Q3 2025 compared to $(2,586) million in Q3 2024, showing a significant reduction of 85.1%[15] - Non-GAAP net loss per diluted share improved to $(0.03) in Q3 2025 from $(0.05) in Q3 2024, reflecting a 40% improvement[15] Operating Expenses - GAAP operating expenses decreased to $7,347 million in Q3 2025 from $9,088 million in Q3 2024, a reduction of 19.2%[15] - Stock-based compensation expense for Q3 2025 was $50 million, down from $73 million in Q3 2024, a decrease of 31.5%[15] - Non-GAAP operating expenses for the nine months ended September 30, 2025, were $22,701 million, down from $25,968 million in the same period of 2024, a decrease of 12.5%[15] Balance Sheet and Cash Flow - Total current assets as of September 30, 2025, were $149.8 million, a decrease from $158.3 million as of December 31, 2024[13] - Cash and cash equivalents increased to $23.1 million from $22.8 million as of December 31, 2024[13] Strategic Initiatives - AXT is focused on driving gross margin recovery, operating expense discipline, and inventory reduction to capitalize on market trends in 2026[3] - The company continues to build a healthy backlog for both indium phosphide and gallium arsenide materials[3] - AXT's subsidiary, Tongmei, is in the process of an IPO on the STAR Market, which remains subject to review and approval by regulatory authorities[5] Shareholder Metrics - Shares used to compute diluted net income per share increased to 43,842 million in Q3 2025 from 43,157 million in Q3 2024, indicating a growth in share count[15] - GAAP net loss for the nine months ended September 30, 2025, was $(17,712) million, compared to $(6,536) million in the same period of 2024, indicating a larger loss year-over-year[15] - GAAP loss from operations for the nine months ended September 30, 2025, was $(18,143) million, compared to $(8,638) million in the same period of 2024, indicating a worsening operational loss[15]