AXT Q2 revenue falls more than expected on China sluggishness

AXT

31/07/2025 21:26

Overview

AXT Q2 revenue declines to $18 mln, missing analyst expectations

Adjusted net income for Q2 shows a loss of $6.4 mln, missing estimates

Co sees growth in AI-related demand for indium phosphide substrates

Result Drivers

EXPORT PERMIT DELAYS - Longer processing times for gallium arsenide export permits affected revenue growth, per CEO Morris Young

CHINA DEMAND SLUGGISHNESS - Sluggish demand environment in China impacted substrate and raw material business

AI DEMAND - Healthy growth in AI-related demand for indium phosphide substrates, with initial exports outside China

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$18 mln
$19.80 mln (5 Analysts)
Q2 EPS
$0.15
Q2 Adjusted Net Income
Miss
-$6.40 mln
-$5.87 mln (5 Analysts)
Q2 Adjusted Gross Margin
8.2%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductors peer group is "buy"

Wall Street's median 12-month price target for AXT Inc is $4.25, about 50.1% above its July 30 closing price of $2.12

Press Release: ID:nBw3y63Wfa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)