[8-K] AXT INC Reports Material Event
Rhea-AI Filing Summary
AXT, Inc. reported first quarter 2026 results showing stronger revenue and a much smaller loss. Revenue reached $26.9 million, up from $19.4 million a year earlier, while the net loss attributable to AXT narrowed to $1.6 million from $8.8 million.
Gross profit improved to $8.0 million from a loss, and non-GAAP net loss was $0.6 million. Management highlighted a recently completed $632.5 million capital raise to fund Tongmei’s indium phosphide capacity expansion and new products such as 6‑inch indium phosphide substrates, targeting AI-focused data centers.
On the balance sheet, total assets were $444.6 million and AXT held $41.8 million in cash and cash equivalents plus $65.4 million in short-term investments as of March 31, 2026. The company continues to pursue a STAR Market IPO for its Tongmei subsidiary in China.
Positive
- Revenue and profitability trend improved materially: Q1 2026 revenue increased to $26.9 million from $19.4 million year over year, and net loss attributable to AXT narrowed to $1.6 million from $8.8 million, reflecting better gross profit and tighter operating performance.
- Large growth-focused capital raise completed: Management reports a recent $632.5 million capital raise earmarked for Tongmei’s indium phosphide capacity expansion and R&D, directly targeting demand from AI-focused data centers and next-generation optical data applications.
Negative
- None.
Insights
AXT shows strong Q1 revenue rebound and lands major growth funding.
AXT delivered notable top-line improvement in Q1 2026. Revenue rose to $26.9M from $19.4M, shifting gross profit to $8.0M from a prior gross loss. Net loss attributable to AXT tightened to $1.6M, with non-GAAP net loss at only $0.6M.
Management also disclosed a recent capital raise of $632.5M to support Tongmei’s indium phosphide capacity expansion and R&D for 6‑inch indium phosphide substrates. These materials serve high-speed optical interconnects in AI-focused data centers, directly aligning funding with stated growth markets.
Balance sheet figures show total assets of $444.6M, cash and cash equivalents of $41.8M, and short-term investments of $65.4M as of March 31, 2026. The ongoing proposed STAR Market listing of Tongmei remains a potential additional strategic milestone, with timing subject to Chinese regulatory approvals.
8-K Event Classification
Key Figures
Key Terms
non-GAAP financial
indium phosphide technical
STAR Market regulatory
redeemable noncontrolling interests financial
forward-looking statements regulatory
export permits regulatory
Earnings Snapshot
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The
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Item 2.02
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Results of Operations and Financial Condition
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Item 9.01
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Financial Statements and Exhibits
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(d)
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Exhibits
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99.1
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Press release dated April 30, 2026, regarding the financial results of AXT, Inc. for the quarter ended March 31, 2026.
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Exhibit
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Description
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99.1
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Press release dated April 30, 2026, regarding the financial results of AXT, Inc. for the quarter ended March 31, 2026.
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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AXT, INC.
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Date: April 30, 2026
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By:
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/s/ Gary L. Fischer
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Gary L. Fischer
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Chief Financial Officer and Corporate Secretary
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Exhibit 99.1 |
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AXT, Inc. First Quarter 2026 Results April 30, 2026 Page 1 of 6 |
AXT, Inc. Announces First Quarter 2026 Financial Results
FREMONT, Calif., April 30, 2026 – AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor wafer substrates, today reported financial results for the first quarter, ended March 31, 2026.
Management Qualitative Comments
“This is an incredibly exciting time for AXT,” said Morris Young, chief executive officer. “Last week we completed a capital raise for $632.5 million in support of Tongmei’s indium phosphide capacity expansion as well as R&D investment in new products like 6-inch indium phosphide. Indium phosphide substrates are a key ingredient in high-speed optical data transmission required in AI focused data centers. Thanks goes to our investors who are helping us address the strong demand we are seeing. As the market continues to grow, capacity will become a critical enabler. Longer-term capacity planning is one of the most important discussions we are having today with customers and major supply chain players in our space. The message we have for them is this: AXT is stepping up. We believe we are in the best position to support and enable our industry in meeting the current and future needs.”
First Quarter 2026 Results
In order to provide better clarity on its operational and financial results, AXT reports its financial results on both a GAAP and non-GAAP basis. Non-GAAP results exclude stock-based compensation expense. Investors can find GAAP to non-GAAP reconciliation tables in the financial statements in this earnings release.
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Revenue for the first quarter of 2026 was $26.9 million, compared with $23.0 million for the fourth quarter of 2025 and $19.4 million for the first quarter of 2025. |
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GAAP gross margin was 29.6 percent of revenue for the first quarter of 2026, compared with 20.9 percent of revenue for the fourth quarter of 2025 and (6.4) percent for the first quarter of 2025. |
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Non-GAAP gross margin, after excluding charges for stock-based compensation, was 29.9 percent of revenue for the first quarter of 2026, compared with 21.5 percent of revenue for the fourth quarter of 2025 and (6.1) percent for the first quarter of 2025. |
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GAAP net loss, after minority interests, for the first quarter of 2026 was a net loss of $1.6 million, or $0.03 per share, compared with a net loss of $3.5 million, or $0.08 per share, for the fourth quarter of 2025 and a net loss of $8.8 million, or $0.20 per share, for the first quarter of 2025. |
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Non-GAAP net loss for the first quarter of 2026 was a net loss of $0.6 million, or $0.01 per share, compared with a net loss of $2.3 million, or $0.05 per share, for the fourth quarter of 2025 and a net loss of $8.2 million, or $0.19 per share, for the first quarter of 2025. |
AXT, Inc. First Quarter 2026 Results
April 30, 2026
Page 2 of 6
STAR Market Listing Update
On January 10, 2022, AXT announced that Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), its subsidiary in Beijing, China, submitted to the Shanghai Stock Exchange (the “SSE”) its application to list its shares in an initial public offering (the “IPO”) on the SSE’s Sci-Tech innovAtion boaRd (the “STAR Market”) and the application was accepted for review. Subsequently, Tongmei responded to several rounds of questions received from the SSE. On July 12, 2022, the SSE approved the listing of Tongmei’s shares in an IPO on the STAR Market. On August 1, 2022, the China Securities Regulatory Commission (the “CSRC”) accepted for review Tongmei’s IPO application. The STAR Market IPO remains subject to review and approval by the CSRC and other authorities. The process of going public on the STAR Market includes several periods of review and, therefore, is a lengthy process. Subject to review and approval by the CSRC and other authorities, Tongmei hopes to accomplish this goal in the coming months. AXT has posted a brief summary of the plan and the process on its website at http://www.axt.com.
Conference Call
The company will host a conference call to discuss these results today at 1:30 p.m. PT. The conference call can be accessed at (833) 461-5787 (passcode 619252830). The call will also be simulcast at www.axt.com. The webcast will be available at http://www.axt.com until April 30, 2027. Additional investor information can be accessed at http://www.axt.com.
About AXT, Inc.
AXT is a material science company that develops and manufactures high-performance compound and single element semiconductor wafer substrates comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). The company’s wafer substrates are used when a typical silicon wafer substrate cannot meet the performance requirements of a semiconductor or optoelectronic device. End markets include 5G infrastructure, data center connectivity (silicon photonics), passive optical networks, LED lighting, lasers, sensors, power amplifiers for wireless devices and satellite solar cells. AXT’s worldwide headquarters are in Fremont, California where the company maintains sales, administration and customer service functions. AXT has its Asia headquarters in Beijing, China and manufacturing facilities in three separate locations in China. In addition, as part of its supply chain strategy, the company has partial ownership in more than ten companies in China producing raw materials and consumables for its manufacturing process. For more information, see AXT’s website at http://www.axt.com.
Note Regarding Use of Non-GAAP Financial Measures
As discussed above, the company provides certain non-GAAP financial measures that exclude stock-based compensation in addition to, and not as a substitute for, or because it believes that such information is superior to, financial measures calculated in accordance with GAAP. The company believes that non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance and provide better comparability with our peer companies, many of which also use similar non-GAAP financial measures. Further, the company believes that these non-GAAP financial measures offer an important analytical tool to help investors understand the company’s core operating results and trends. In addition, management uses non-GAAP financial measures to compare the company’s performance relative to forecasts and strategic plans and to benchmark its performance externally against peer companies. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the company’s non-GAAP financial measures as tools for comparison. The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non‐GAAP information and the reconciliation between these presentations, to more fully understand its business. A reconciliation of our GAAP consolidated financial statements to our non-GAAP consolidated financial statements is provided below.
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AXT, Inc. First Quarter 2026 Results April 30, 2026 Page 3 of 6 |
Forward-Looking Statements
The foregoing paragraphs contain forward-looking statements within the meaning 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 example, our plans and ability to step up by adding manufacturing capacity and to enable our industry to meet future demands and needs for our indium phosphide wafer substrates. Statements relating to our expectations regarding the receipt of export permits for our indium phosphide substrates, results of operations, market and customer demand for our products, our ability to expand our markets or increase sales, emerging applications using chips or devices fabricated on our substrates, including the use of indium phosphide wafer substrates in artificial intelligence (“AI”) applications, product yields and gross margins, expense levels, our investments in capital projects, ramping production at our sites, our ability to utilize or increase our manufacturing capacity, and our belief that we have adequate cash and investments to meet our needs are also forward-looking statements. Additionally, statements regarding completing steps in connection with the proposed listing of shares of Tongmei on the Shanghai Stock Exchange’s Sci-Tech innovAtion boaRd (the “STAR Market”), being accepted to list shares of Tongmei on the STAR Market, the timing and completion of such listing of shares of Tongmei on the STAR Market are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “potentially,” “likely,” and similar expressions and variations thereof are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These statements appear in this press release and elsewhere, include statements regarding the intent, belief or current expectations of our management that are subject to known and unknown risks, uncertainties and assumptions which could cause actual results to differ materially from those expressed or implied in the forward-looking statement. These risks, uncertainties and assumptions include, but are not limited to, the receipt of export permits for our indium phosphide substrates, the withdrawal, cancellations or requests for redemptions by private equity funds in China of their investments in Tongmei, the administrative challenges in satisfying the requirements of various government agencies in China in connection with the investments in Tongmei and the listing of shares of Tongmei on the STAR Market, continued open access to companies to list shares on the STAR Market, investor enthusiasm for new listings of shares on the STAR Market, geopolitical tensions between China and the United States, and other factors described and captioned “Risk Factors” in the company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q and other filings made with the Securities and Exchange Commission. Each of these factors is difficult to predict and many are beyond the company’s control. The company does not undertake any obligation to update any forward-looking statement, as a result of new information, future events or otherwise. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.
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FINANCIAL TABLES TO FOLLOW
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AXT, Inc. First Quarter 2026 Results April 30, 2026 Page 4 of 6 |
AXT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
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Three Months Ended |
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March 31, |
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2026 |
2025 |
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Revenue |
$ | 26,924 | $ | 19,356 | ||||
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Cost of revenue |
18,946 | 20,597 | ||||||
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Gross profit (loss) |
7,978 | (1,241 | ) | |||||
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Operating expenses: |
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Selling, general and administrative |
6,551 | 5,916 | ||||||
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Research and development |
3,012 | 3,118 | ||||||
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Total operating expenses |
9,563 | 9,034 | ||||||
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Loss from operations |
(1,585 | ) | (10,275 | ) | ||||
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Interest income (expense), net |
101 | (269 | ) | |||||
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Equity in income of unconsolidated joint ventures |
353 | 248 | ||||||
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Other income, net |
76 | 354 | ||||||
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Loss before provision for income taxes |
(1,055 | ) | (9,942 | ) | ||||
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Provision for income taxes |
430 | 74 | ||||||
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Net loss |
(1,485 | ) | (10,016 | ) | ||||
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Less: Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests |
(135 | ) | 1,218 | |||||
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Net loss attributable to AXT, Inc. |
$ | (1,620 | ) | $ | (8,798 | ) | ||
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Net loss attributable to AXT, Inc. per common share: |
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Basic |
$ | (0.03 | ) | $ | (0.20 | ) | ||
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Diluted |
$ | (0.03 | ) | $ | (0.20 | ) | ||
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Weighted-average number of common shares outstanding: |
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Basic |
53,319 | 43,554 | ||||||
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Diluted |
53,319 | 43,554 | ||||||
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AXT, Inc. First Quarter 2026 Results April 30, 2026 Page 5 of 6 |
AXT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
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March 31, |
December 31, |
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2026 |
2025 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | 41,769 | $ | 120,266 | ||||
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Restricted cash |
16,100 | 8,100 | ||||||
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Short-term investments |
65,375 | — | ||||||
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Accounts receivable, net |
32,016 | 26,849 | ||||||
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Inventories |
90,168 | 81,651 | ||||||
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Prepaid expenses and other current assets |
8,347 | 9,690 | ||||||
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Total current assets |
253,775 | 246,556 | ||||||
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Property, plant and equipment, net |
164,622 | 161,860 | ||||||
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Operating lease right-of-use assets |
1,854 | 1,982 | ||||||
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Other assets |
24,347 | 23,353 | ||||||
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Total assets |
$ | 444,598 | $ | 433,751 | ||||
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LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
$ | 16,141 | $ | 12,947 | ||||
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Accrued liabilities |
12,864 | 14,798 | ||||||
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Short-term loans |
68,871 | 62,796 | ||||||
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Total current liabilities |
97,876 | 90,541 | ||||||
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Noncurrent operating lease liabilities |
1,309 | 1,441 | ||||||
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Other long-term liabilities |
8,447 | 7,138 | ||||||
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Total liabilities |
107,632 | 99,120 | ||||||
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Redeemable noncontrolling interests |
38,516 | 38,056 | ||||||
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Stockholders’ equity: |
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Preferred stock |
3,532 | 3,532 | ||||||
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Common stock |
56 | 55 | ||||||
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Additional paid-in capital |
342,434 | 339,922 | ||||||
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Accumulated deficit |
(66,544 | ) | (64,924 | ) | ||||
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Accumulated other comprehensive loss |
(4,604 | ) | (5,295 | ) | ||||
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Total AXT, Inc. stockholders’ equity |
274,874 | 273,290 | ||||||
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Noncontrolling interests |
23,576 | 23,285 | ||||||
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Total stockholders’ equity |
298,450 | 296,575 | ||||||
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Total liabilities, redeemable noncontrolling interests and stockholders’ equity |
$ | 444,598 | $ | 433,751 | ||||
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AXT, Inc. First Quarter 2026 Results April 30, 2026 Page 6 of 6 |
AXT, INC.
Reconciliation of Statements of Operations Under GAAP and Non-GAAP
(Unaudited, in thousands)
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Three Months Ended |
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March 31, |
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2026 |
2025 |
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GAAP gross profit (loss) |
$ | 7,978 | $ | (1,241 | ) | |||
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Stock-based compensation expense |
65 | 63 | ||||||
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Non-GAAP gross profit (loss) |
$ | 8,043 | $ | (1,178 | ) | |||
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GAAP operating expenses |
$ | 9,563 | $ | 9,034 | ||||
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Stock-based compensation expense |
970 | 583 | ||||||
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Non-GAAP operating expenses |
$ | 8,593 | $ | 8,451 | ||||
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GAAP loss from operations |
$ | (1,585 | ) | $ | (10,275 | ) | ||
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Stock-based compensation expense |
1,035 | 646 | ||||||
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Non-GAAP loss from operations |
$ | (550 | ) | $ | (9,629 | ) | ||
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GAAP net loss |
$ | (1,620 | ) | $ | (8,798 | ) | ||
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Stock-based compensation expense |
1,035 | 646 | ||||||
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Non-GAAP net loss |
$ | (585 | ) | $ | (8,152 | ) | ||
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GAAP net loss per diluted share |
$ | (0.03 | ) | $ | (0.20 | ) | ||
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Stock-based compensation expense per diluted share |
$ | 0.02 | $ | 0.01 | ||||
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Non-GAAP net loss per diluted share |
$ | (0.01 | ) | $ | (0.19 | ) | ||
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Shares used to compute diluted net income per share |
53,319 | 43,554 | ||||||