AXT (AXTI) Q2 Revenue Drops 36%
(NASDAQ:AXTI), a specialty materials producer known for high-performance semiconductor substrates, reported second-quarter 2025 earnings on July 31, 2025. The headline news from the release was a sharper-than-expected revenue decline, as GAAP revenue was $18.0 million, missing the analysts' estimate of $19.78 million by $1.78 million, or 9.0%, with non-GAAP earnings falling short of market estimates amid ongoing pressure from regulatory delays and a slow demand environment in China. GAAP revenue was $18.0 million, missing the $19.8 million GAAP analyst estimate, while non-GAAP loss per share was ($0.15), instead of the expected ($0.13) (non-GAAP). The quarter's overall performance showed persistent challenges, with some improvement in gross margin from the prior period but continued losses and steep year-over-year declines (GAAP gross margin 8.0%, up from (6.4)% in Q1 2025 and down from 27.4% in Q2 2024; non-GAAP gross margin 8.2%, up from (6.1)% in Q1 2025 and down from 27.6% in Q2 2024).
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report.
AXT manufactures compound semiconductor substrates such as gallium arsenide (GaAs), indium phosphide (InP), and germanium (Ge). These substrates serve as foundational materials in products for the data center, wireless, 5G, LED, and automotive sectors. Its products are used in applications such as artificial intelligence, optical networking, and advanced sensing.
Source Fool.com
