AXT (NASDAQ:AXTI) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

AXT (NASDAQ:AXTI) released its earnings results on Thursday. The semiconductor company reported ($0.05) EPS for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.01), FiscalAI reports. The business had revenue of $23.04 million for the quarter, compared to the consensus estimate of $24.24 million. AXT had a negative return on equity of 10.59% and a negative net margin of 24.07%.

Here are the key takeaways from AXT’s conference call:

• AXT said demand for indium phosphide is very strong — backlog topped $60 million and the customer base is expanding to Tier?One laser and transceiver makers, with management expecting sequential revenue growth in Q1 driven by AI/data?center builds.
• The company reported Q4 revenue of $23.0M and a non?GAAP net loss of $2.6M, with inventory rising to $81.7M, highlighting near?term profitability pressure despite improving margins versus last year.
• AXT strengthened its balance sheet via a late?December public offering that boosted cash, cash equivalents and investments to $128.4 million, which management says will fund capacity expansion and six?inch product investment.
• For Q1 management is highly confident of recognizing about $26 million of revenue that either has permits or doesn’t require them, and they guide to non?GAAP net loss of $0.02–$0.04 per share (OpEx ~ $9M), noting outcomes still depend on permit timing.
• Vertical integration advanced: subsidiaries Boyu and Jinmei increased PBN/crucible and high?quality indium supply, which management says reduces material risk and supports scaled wafer production.

AXT Stock Performance

Shares of AXTI opened at $29.68 on Friday. The stock’s 50-day simple moving average is $19.78 and its 200 day simple moving average is $10.92. The stock has a market capitalization of $1.64 billion, a price-to-earnings ratio of -61.83 and a beta of 1.96. AXT has a 52-week low of $1.13 and a 52-week high of $30.80.

Insider Transactions at AXT

In related news, CEO Morris S. Young sold 35,000 shares of the business’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $12.05, for a total transaction of $421,750.00. Following the completion of the transaction, the chief executive officer owned 2,495,564 shares of the company’s stock, valued at approximately $30,071,546.20. The trade was a 1.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David C. Chang sold 25,000 shares of the company’s stock in a transaction that occurred on Tuesday, December 9th. The stock was sold at an average price of $14.84, for a total transaction of $371,000.00. Following the sale, the director directly owned 132,744 shares in the company, valued at $1,969,920.96. This trade represents a 15.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 110,000 shares of company stock valued at $1,369,000 in the last ninety days. Insiders own 8.80% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. XTX Topco Ltd bought a new position in shares of AXT in the second quarter worth $42,000. Jefferies Financial Group Inc. purchased a new position in AXT during the third quarter worth about $52,000. State of Wyoming bought a new position in AXT in the 4th quarter worth about $69,000. Creative Planning bought a new position in AXT in the 2nd quarter worth about $86,000. Finally, Kestra Advisory Services LLC purchased a new stake in shares of AXT in the 4th quarter valued at about $98,000. 49.52% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about AXT

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Analyst upgrade/price target bump: Wedbush raised its price target to $28 and kept an “outperform” rating, which added institutional credibility and buy?side interest. Read More.
• Positive Sentiment: Unusually large call buying: Traders purchased roughly 6,246 call options (about a 66% jump vs. average), signaling speculative/hedged bullish positioning that can amplify upside momentum. (Options flow reported intraday.)
• Positive Sentiment: Momentum / market coverage: AXT was mentioned among equities moving higher in broader market roundups, which can attract momentum traders and headline?driven flows. Read More.
• Neutral Sentiment: Company press release and call: AXT filed its Q4/fiscal?2025 results and management said export permits were lower than hoped in Q4 but that some permits have since arrived and they expect sequential revenue improvement; that commentary reduces uncertainty if permits continue to clear. Read More.
• Neutral Sentiment: Full call transcripts published (MSN, Seeking Alpha) — provide detail for investors evaluating management’s tone, guidance and permit timing. Read More. Read More.
• Negative Sentiment: Earnings and revenue miss: AXT reported a ($0.05) EPS vs. a ($0.04) consensus and revenue of $23.04M vs. $24.24M expected — results show continuing losses and a negative margin profile, which are fundamental headwinds. Read More.
• Negative Sentiment: Export?permit uncertainty: Outside coverage flagged that export hurdles cloud the near?term outlook for AI?chip substrate demand; delayed permits materially affected Q4 revenue and remain a risk until permit flow steadies. Read More.
• Neutral Sentiment: Short interest / data quirks: Recent short?interest entries reported odd/zero values and short?ratio metrics that don’t indicate a clear squeeze signal; treat these figures cautiously until clarified.

Analysts Set New Price Targets

Several analysts have commented on the stock. Craig Hallum reaffirmed a “buy” rating on shares of AXT in a research report on Friday, January 9th. Needham & Company LLC cut shares of AXT from a “buy” rating to a “hold” rating in a report on Tuesday, January 20th. B. Riley Financial upped their price objective on AXT to $21.00 and gave the company a “neutral” rating in a research note on Friday. Wall Street Zen raised AXT from a “sell” rating to a “hold” rating in a research report on Saturday, February 14th. Finally, Northland Securities set a $20.00 target price on AXT in a research note on Monday, December 22nd. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $22.80.

About AXT

AXT, Inc (NASDAQ: AXTI) is a global supplier of compound and single-element semiconductor substrates, offering a range of materials critical for high-performance electronic and optoelectronic devices. Founded in 1986 and headquartered in Fremont, California, AXT specializes in the development, manufacture and distribution of wafers composed of gallium arsenide (GaAs), indium phosphide (InP), gallium nitride (GaN) and other compound semiconductor materials. These substrates serve as the foundational platforms for devices used in data communications, wireless infrastructure, advanced computing, consumer electronics and photovoltaic applications.

AXT’s product portfolio encompasses a variety of wafer sizes, dopant concentrations and crystal orientations, tailored to meet the precise specifications of its customers.