AXT (AXTI) investor relations material

Executive summary

• Q4 2025 revenue was $23.0 million, down from $28.0 million in Q3 2025 and $25.1 million in Q4 2024.

• Fiscal year 2025 revenue totaled $88.3 million, a decrease from $99.4 million in 2024.

• Indium phosphide demand is surging, driven by AI and data center build-outs, with backlog exceeding $60 million.

• Export permit delays constrained Q4 shipments, but permits received in Q1 position the company for sequential revenue growth.

• Customer base is expanding, including more Tier One laser and optical module makers globally.

Financial highlights

• Non-GAAP gross margin in Q4 was 21.5%, up from 17.9% in Q4 2024 but down from 22.6% in Q3 2025.

• Q4 2025 GAAP gross margin was 20.9%, up from 17.6% in Q4 2024 but down from 22.3% in Q3 2025.

• Non-GAAP net loss was $2.6 million ($0.06/share), compared to $4.2 million ($0.10/share) in Q4 2024.

• Cash and investments rose to $128.4 million, mainly due to a $93.9 million public offering.

• Inventory increased by $4 million to $81.7 million.

Outlook and guidance

• Q1 2026 revenue guidance is at least $26 million, with upside possible if more export permits are received.

• Non-GAAP net loss expected between $0.02 and $0.04 per share; GAAP net loss between $0.04 and $0.06.

• OpEx expected to remain around $9.0 million in Q1.

• Capacity expansion underway, aiming to double from Q4 2025 levels by year-end, with $30 million CapEx planned.

• Management anticipates continued business expansion and broader Tier-1 customer engagement.