AXT, Inc. announced its financial results for the first quarter ended March 31, 2025, reporting revenue of $19.356 million, a decrease from $22.688 million in Q1 2024. The company recorded a GAAP gross loss of $1.241 million, resulting in a negative gross margin for the quarter.
The GAAP net loss attributable to AXT, Inc. was $8.798 million, or ($0.20) per share, compared to a net loss of ($2.083 million), or ($0.05) per share, in Q1 2024. This decline was primarily attributed to a 58% quarter-over-quarter reduction in indium phosphide sales due to China trade restrictions, significant yield reduction in semi-insulating gallium arsenide wafers, and under-absorbed factory overhead.
For the second quarter of 2025, management guided for revenue in the range of $20.0 million to $22.0 million, explicitly excluding any revenue from indium phosphide shipments to customers outside of China pending export permits. The company anticipates gross margin to improve to approximately 10% in Q2 2025, driven by manufacturing improvements to address yield issues.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.