Recent Updates — AXTI

AXT reported third-quarter 2026 revenue of $73.4 million, a 54% increase from the prior quarter and up 162% year-over-year, driven by strong demand for indium phosphide materials. GAAP net income was $25.7 million, or $0.39 per diluted share, compared to a net loss of $1.9 million in the same period last year. Gross margin expanded significantly to 56.0% from 22.3% a year ago. The company operates as a manufacturer of compound semiconductor wafer substrates.

AXT's majority-owned subsidiary, Beijing Tongmei Xtal Technology Co., Ltd., entered into definitive agreements with institutional investors led by a major Asian asset manager. The transaction provides for a minimum investment of RMB 1.91 billion (approx. US$285 million) and up to a maximum of RMB 3.67 billion (approx. US$545 million) in Tongmei's ordinary shares. Concurrently, AXT agreed to recapitalize Tongmei by subscribing for approximately US$400 million in new shares. Proceeds will fund expansion of indium phosphide semiconductor substrate manufacturing capacity and general working capital. Assuming the maximum investment, AXT will own approximately 73.40% of Tongmei. The closing is subject to customary conditions, including regulatory approvals, with an expected completion date in December 2026. AXT is a material science company that develops and manufactures high-performance compound semiconductor substrate wafers.

AXT, Inc. reported financial results for the quarter ended June 30, 2026, announcing a significant turnaround in profitability and revenue growth. Second-quarter revenue reached $47.6 million, up from $26.9 million in Q1 2026 and $18.0 million in Q2 2025. The company recorded its highest quarterly indium phosphide revenue to date, driven by strong demand for data center optical connectivity. GAAP net income was $11.1 million, or $0.17 diluted earnings per share, compared to a net loss of $7.0 million in the prior year period. Gross margins expanded substantially, with GAAP gross margin reaching 44.9 percent versus 8.0 percent in Q2 2025. AXT operates as a manufacturer of compound semiconductor wafer substrates including indium phosphide, gallium arsenide, and germanium for applications such as 5G infrastructure and silicon photonics.

AXT Inc. entered into a Capacity Reservation Agreement with Lumentum Operations LLC for the supply and capacity reservation of indium phosphide wafer substrates. The agreement establishes a six-year commitment beginning July 26, 2026, requiring Lumentum to reserve minimum annual product capacity. In consideration, Lumentum agreed to pay an initial deposit of $43,500,000 due within thirty business days and a second deposit of $43,500,000 with payment terms to be determined in 2028. These deposits serve as shipment credits against future purchases. AXT operates in the semiconductor substrate manufacturing industry.

AXT, Inc. expanded its Board of Directors from five to six members by electing Jia-Bin Duh as a Class III independent director, effective July 16, 2026. Mr. Duh brings extensive leadership experience in the technology and consumer sectors, particularly in Greater China, having previously held senior roles at Microsoft, Cisco Systems, and Hewlett-Packard. AXT, Inc. is a material science company that manufactures high-performance compound and single element semiconductor substrate wafers.