AXT, Inc.

axt.com

What Do They Do?

Produces specialty semiconductor wafers for companies that add layers before making chips and optical devices. Subsidiaries also sell raw materials to manufacturers.

How Do They Make Money?

Customers buy substrate wafers and raw materials at negotiated or set prices, usually through purchase orders; a sale is complete when goods ship, arrive at the customer, or are taken from consignment.

revenue

Segment	Share	Revenue	How money arrives
Substrates Sold outright	67% FY2022: 79%		Sold outright
Raw Materials and Other Sold outright	33%		Sold outright

Who Are Their Customers?

Wafer buyers are mainly companies that add epitaxial layers, some of which also fabricate wafers; AXT sells directly in the United States, China and Europe and through representatives and distributors elsewhere. Subsidiary raw-material businesses sell directly to their customers, and universities and research groups buy wafers for experiments.

Do Revenues Turn Into Profits?

No. It lost $21.3M in FY2025.

Operating income, FY2025

−25% of revenue

▲ +48% (Loss) vs FY2024 (−$14.8M, −15%)

Net income, FY2025

−24% of revenue

▲ +83% (Loss) vs FY2024 (−$11.6M, −12%)

Free cash flow, FY2025

−21% of revenue

▲ +5% (Loss) vs FY2024 (−$17.9M, −18%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +165%; vs $18M in Q2 FY2025
Net income: ▲ Now profitable; vs −$7M in Q2 FY2025

Substrates share of revenue vs 62.8% in Q2 FY2025

Jul 29, 2026 Lumentum reserves InP wafer capacity under a supply agreement Deposits are credited against future product shipments, and Lumentum commits to minimum annual purchases.
Jul 2, 2026 Coherent signs an InP wafer development and supply agreement AXT commits capacity and receives a prepayment for agreed wafer purchases.
Jun 17, 2026 Casela agrees to purchase InP wafers under a supply agreement Tongmei reserves capacity and raw-material allocation, with the purchase price prepaid before scheduled deliveries.

Shrinking. Revenue fell 36% in 4 years, from $137.4M in FY2021 to $88.3M in FY2025, about 10% a year.

Revenue over time

Substrates Raw Materials and Other Raw materials and others

$200M$100M$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Sumitomo Electric Industries, Japan Energy, Freiberger Compound Materials, Umicore, China Crystal Technology, and Vital Materials

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