AXT Reports Q4/2025 Revenue Decline Due to Export Permit Delays in China
AXT Inc reported a full-year revenue decline of 11% from $99.4 million in 2024 to $88.3 million in 2025, with Q4 revenue of $23 million, down 8.4% year-over-year. The drop was attributed to fewer export permits for indium phosphide from China. AXT's gross margin fell to 13.1% for 2025, with a net loss of $18 million. The company anticipates improved revenue in Q1 2026, driven by the AI infrastructure build-out, and has increased capacity for indium phosphide production. AXT's backlog for indium phosphide wafers has reached over $60 million.
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AXT Inc reported an 11% revenue decline to $88.3 million in 2025, with Q4 revenue at $23 million, down 8.4% year-over-year. This was due to delays in export permits for indium phosphide from China's Ministry of Commerce.
AXT's gross margin decreased to 13.1% for 2025, and the company recorded a net loss of $18 million. However, AXT expects Q1 2026 revenue growth from indium phosphide for AI applications, with a backlog exceeding $60 million. The company has expanded production capacity and aims to support a $35 million quarterly revenue run-rate by the end of 2026, focusing on meeting the growing demand in the optical and AI infrastructure markets.
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