AXT, Inc. announced its financial results for the second quarter ended June 30, 2025, with revenue of $17.974 million. This figure was below the company's revised preliminary revenue range of $17.5 million to $18 million and significantly lower than $27.923 million reported in Q2 2024.
The company's GAAP gross profit for the quarter was $1.433 million, resulting in an 8.0% gross margin, a substantial decrease from 27.4% in Q2 2024. AXT reported a GAAP net loss attributable to AXT, Inc. of $7.008 million, or ($0.16) per share, compared to a net loss of ($1.516 million), or ($0.04) per share, in the prior year's quarter.
The revenue shortfall was primarily attributed to longer processing times for gallium arsenide export permits and a sluggish demand environment in China, which also affected the raw material business. Despite these challenges, AXT noted healthy growth in AI-related demand for indium phosphide in China and successfully shipped initial orders of indium phosphide substrates outside of China after obtaining export permits in June.
Looking ahead, management indicated that third-quarter 2025 results are also expected to be weaker. The Tongmei STAR Market IPO process continues, remaining subject to review and approval by Chinese authorities.
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