AXT, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results

Key Highlights for Investors

• GAAP Net Loss: For Q4 2025, AXT, Inc. reported a net loss after minority interests of \$3.5 million, or \$0.08 per share. This compares to a net loss of \$1.9 million (\$0.04 per share) in Q3 2025 and \$5.1 million (\$0.12 per share) in Q4 2024.
• Non-GAAP Net Loss: Q4 2025 non-GAAP net loss was \$2.2 million, or \$0.05 per share. This is narrower than the Q3 2025 non-GAAP net loss of \$4.3 million (\$0.10 per share) and Q4 2024 non-GAAP net loss of \$4.3 million (\$0.10 per share).
• Annual Results (GAAP): Fiscal year 2025 ended with a GAAP net loss of \$21.3 million (\$0.49 per share), a significant increase from the net loss of \$11.6 million (\$0.27 per share) in fiscal year 2024.
• Annual Results (Non-GAAP): Non-GAAP net loss for FY2025 was \$18.0 million (\$0.41 per share), compared to non-GAAP net income of \$8.5 million (\$0.20 per share) in FY2024.
• Revenue: Q4 2025 revenue was \$23.0 million, compared to \$23.8 million in Q4 2024.
• Cash Position: AXT, Inc. reported cash and cash equivalents of \$120.3 million as of December 31, 2025, up from \$22.8 million at the end of 2024. Total current assets at year-end were \$339.3 million.
• Stockholders’ Equity: Stockholders’ equity at December 31, 2025, was \$192.8 million, compared to \$216.3 million at the end of 2024.
• Conference Call: Management scheduled a conference call at 1:30 p.m. PT on February 19, 2026, to discuss these results and business outlook.

Important Information for Shareholders

• Significant Increase in Annual Net Loss: The jump in GAAP net loss from \$11.6 million in 2024 to \$21.3 million in 2025 is substantial and could be perceived as negative by shareholders and investors, potentially affecting share value. The company attributes some of this loss to ongoing market challenges and operational factors.
• Cash Reserves Surge: The dramatic rise in cash and cash equivalents from \$22.8 million to \$120.3 million offers reassurance regarding liquidity and financial stability, possibly offsetting concerns about operational losses. This increase may be attributed to financing activities, asset sales, or other capital events, although specifics are not disclosed in the summary.
• Forward-Looking Statements and Risks: The company notes several forward-looking risks, including administrative challenges for listing shares of subsidiary Tongmei on China’s STAR Market, market demand, production yields, factory shutdown risks (including COVID-19 and air pollution), tariffs/trade war issues, performance of supply chain companies, and geopolitical tensions between China and the U.S. These factors could have material impacts on future results and share price.
• Non-GAAP Measures: AXT, Inc. uses non-GAAP financial metrics to provide a clearer picture of core operating performance, but cautions investors to review both GAAP and non-GAAP results for a full understanding. Non-GAAP results exclude stock-based compensation and other items.
• Potential Corporate Actions: There are no indications of imminent tender offers, mergers, or other price-sensitive corporate actions in the report.

Detailed Financial Tables

Condensed (Unaudited) Financial Results:

• Q4 2025 Revenue: \$23.0 million
• Q4 2025 GAAP Net Loss: \$3.5 million (\$0.08 per share)
• Q4 2025 Non-GAAP Net Loss: \$2.2 million (\$0.05 per share)
• FY2025 GAAP Net Loss: \$21.3 million (\$0.49 per share)
• FY2025 Non-GAAP Net Loss: \$18.0 million (\$0.41 per share)
• Cash and Equivalents (12/31/25): \$120.3 million
• Total Current Assets (12/31/25): \$339.3 million
• Stockholders’ Equity (12/31/25): \$192.8 million

Operating Expenses:

• Selling, General, and Administrative (Q4 2025): \$6.3 million
• Research and Development (Q4 2025): \$2.4 million
• Total Operating Expenses for FY2025: \$38.6 million

Other Items:

• Interest Expense (FY2025): \$1.3 million
• Equity in Income of Unconsolidated Joint Ventures (FY2025): \$3.4 million
• Other Income (FY2025): \$713 thousand

Forward-Looking Statements and Risks

Management’s discussion includes forward-looking statements regarding market demand, product mix, growth prospects, new applications, customer ramping, ability to lead the industry, margin performance, and development of new technology substrates. These statements are subject to risks including regulatory uncertainties, market conditions, geopolitical tensions, supply chain performance, and external factors such as COVID-19 and air pollution. Investors should consider these risks when evaluating future performance and share value.

Conclusion

AXT, Inc.’s FY2025 financial results highlight a challenging year with increased losses but strengthened liquidity. The company remains exposed to substantial risks, both operational and external, which may have a material impact on future results and share price. Shareholders should closely monitor management’s conference call and future disclosures for insights into recovery strategies and operational improvements.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All financial data is unaudited and subject to change. Investors should review official filings and consult their financial advisor before making any investment decisions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

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