Liquidity remains precarious as evidenced by a $21.1M working capital outflow in 2026Q1, which contributed to a negative free cash flow margin of -48.5% for the same period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | -21.12M | -12.78M | -12.11M | 3.4M | -8.77M | -3.31M | 5.87M | 12.66M | 3.22M | 8.62M | 12.5M | 1.88M | 3.82M | 2.51M | 21.3M | 18.13M | 11.01M | 4.67M | -5.72M | 1.32M | -10.26M | -7.75M | -340K | 6.27M | 725K | 17.14M | 3.7M | -7.84M | -6.3M |
| Operating CF Margin % | - | -14.47% | -12.19% | 4.49% | -6.21% | -2.41% | 6.15% | 15.2% | 3.14% | 8.73% | 15.37% | 2.42% | 4.58% | 2.94% | 24.1% | 17.41% | 11.53% | 8.43% | -7.82% | 2.27% | -23.09% | -29.19% | -0.96% | 18.06% | 1.15% | 14.34% | 3.04% | -9.62% | -14.55% |
| Operating CF Growth % | -723.09% | -5.54% | -455.92% | 138.82% | -165.2% | -156.35% | -53.67% | 293.35% | -62.65% | -31.1% | 565.81% | -50.89% | 52.41% | -88.22% | 17.48% | 64.7% | 135.99% | 181.6% | -533.11% | 112.86% | -32.49% | -2178.24% | -105.42% | 764.69% | -95.77% | 363.85% | 147.12% | -24.51% | - |
| Net Income | -14.08M | -21.26M | -11.79M | -17.88M | 18.74M | 16.51M | 5.04M | -1.59M | 11.01M | 10.06M | 4.97M | -2.53M | -697K | -6.81M | 6.15M | 25.82M | 20.38M | -1.5M | -689K | 5.29M | 944K | -12.21M | -13.63M | -26.73M | -81.18M | -5M | 21.61M | 680K | 6.3M |
| Depreciation & Amortization | 9.32M | 9.11M | 8.98M | 8.72M | 8.12M | 7.08M | 4.33M | 5.53M | 4.87M | 4.42M | 4.87M | 5.49M | 5.64M | 5.47M | 3.93M | 3.41M | 2.92M | 3.06M | 2.19M | 1.42M | 2.55M | 3.94M | 5.18M | 6.28M | 9.9M | 8.86M | 7.4M | 6.21M | 2M |
| Stock-Based Compensation | 2.41M | 0 | 3.1M | 3.54M | 4.01M | 4.52M | 2.62M | 2.35M | 1.93M | 1.41M | 1.1M | 1.35M | 1.13M | 1.28M | 1.22M | 896K | 655K | 766K | 634K | 498K | 822K | 192K | 6K | 28K | 0 | 107K | 0 | 0 | 0 |
| Deferred Taxes | 20K | -88K | 265K | 553K | 104K | 2.34M | 0 | 0 | 981K | 1.67M | 1.88M | -1.09M | -1.27M | 49K | 195K | 0 | 0 | -85K | 0 | -1.54M | -4.01M | -192K | 1.06M | -28K | 2.53M | -5.04M | 5.72M | 758K | -200K |
| Other Non-Cash Items | 8.72M | 1.46M | -925K | 1.43M | -4.55M | -3.49M | 156K | 2.35M | 158K | 173K | 94K | 218K | 432K | 518K | 323K | 382K | -25K | 507K | -244K | 17K | 2.24M | 1.17M | 80K | 11.62M | 53.07M | 19.22M | -18.21M | -398K | 100K |
| Working Capital Changes | -27.21M | -2M | -11.74M | 7.04M | -35.18M | -30.26M | -6.29M | 4.02M | -15.73M | -9.12M | -401K | -1.56M | -1.41M | 2.01M | 9.49M | -12.38M | -12.91M | 1.92M | -7.61M | -4.36M | -12.81M | -633K | 6.97M | 15.1M | 16.41M | -1.01M | -12.83M | -15.1M | -14.5M |
| Change in Receivables | -8.12M | -390K | -6.9M | 9.31M | 4.54M | -9.66M | -5.33M | 441K | 2.82M | -7.98M | 3.46M | -1.08M | -2.96M | 2.16M | 54K | 5.17M | -7.73M | -3.88M | 805K | -2.35M | -4.43M | -1.19M | 2.26M | 232K | 0 | 11.94M | 0 | 0 | 0 |
| Change in Inventory | -6.09M | 6.35M | -737K | 1.07M | -31.41M | -12.4M | -916K | 8.86M | -14.63M | -4.74M | -2.96M | -45K | 479K | 1.44M | 5.66M | -9.84M | -8.29M | 7.35M | -10.05M | -4.27M | -4.11M | 306K | 7.62M | 11.54M | 17.99M | -3.74M | -18.22M | -10.17M | -12.2M |
| Change in Payables | 4.44M | 147K | 3.04M | -162K | -5.52M | 3.56M | 2.31M | -3.14M | 2.31M | 4.4M | 524K | -485K | -979K | 2.19M | 2.61M | -3.84M | 1.53M | -1.08M | 2.16M | 461K | 694K | 1.18M | -743K | -1.59M | 0 | -7.01M | 0 | 0 | 0 |
| Cash from Investing | -73.31M | -6.83M | -4.45M | -2.6M | -25.22M | -38.81M | -16.42M | -8.33M | -30.83M | -36.46M | -1.11M | -2.48M | 142K | -6.21M | -13.17M | -15.43M | -5.27M | 2.37M | 3.83M | -3.51M | -15.81M | 13.89M | -7.85M | 13.72M | -16.04M | -47.7M | -26.07M | -7.53M | -16.4M |
| Capital Expenditures | -6.86M | -6M | -5.77M | -10.47M | -28.46M | -29.64M | -19.86M | -21.79M | -40.54M | -21.36M | -2.73M | -4.15M | -1.97M | -5.42M | -7.08M | -13.1M | -6.39M | -1.96M | -6.79M | -3.71M | -4.46M | -2.33M | -2.14M | -2.17M | -14.24M | -25.83M | -26.28M | -7.53M | -16.4M |
| CapEx % of Revenue | 7.15% | 6.79% | 5.81% | 13.82% | 20.17% | 21.58% | 20.82% | 26.17% | 39.59% | 21.64% | 3.35% | 5.35% | 2.36% | 6.36% | 8.01% | 12.58% | 6.69% | 3.55% | 9.29% | 6.37% | 10.03% | 8.78% | 6.03% | 6.27% | 22.54% | 21.61% | 21.63% | 9.23% | 37.88% |
| Acquisitions | 0 | 0 | 0 | 708K | 2.23M | 9.16M | 0 | -13.46M | 99K | 0 | 35K | -162K | 0 | 0 | 2K | -3.02M | 18.99M | 430K | 5K | 62K | 173K | 1.34M | 10K | 13.77M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -837K | 0 | 0 | -708K | -2.23M | -9.16M | 0 | 13.46M | 99K | 169K | 35K | 469K | 13K | 818K | -875K | -1.53M | -18.98M | 3.01M | 8.74M | 450K | 300K | 765K | 1.09M | -5.82M | -1M | -1.31M | 206K | 0 | 0 |
| Cash from Financing | 108.21M | 107.09M | -536K | 8.61M | 38.03M | 5.72M | 52.66M | 6.19M | 213K | 35.64M | 1.3M | -2.23M | -32K | -2.51M | -3.79M | -999K | 474K | -3.69M | -3.52M | 3.92M | 24.25M | -792K | -4.22M | -9.65M | -8.12M | -522K | 84.87M | 5.05M | 35.5M |
| Debt Issued (Net) | 11.65M | 11.94M | -564K | 7.89M | 35.28M | 3.31M | 4.41M | 5.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -496K | -3.09M | -3.69M | -592K | -431K | -610K | -4.49M | -10.13M | -8.97M | -5.28M | -11.14M | 3.08M | 8.85M |
| Equity Issued (Net) | 96.63M | 95.16M | 28K | 10K | 518K | -1.08M | 47.56M | 366K | 0 | 1.76M | 1.34M | -2.12M | 134K | -716K | 0 | 0 | 0 | 351K | 171K | 4.52M | 24.68M | -182K | 270K | 480K | 850K | 4.76M | 96M | 1.06M | 27.65M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -465K | 0 | -112K | -166K | -2.33M | 0 | -1.64M | -527K | -957K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -415K | 0 | 0 | -2.29M | 0 | -716K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -246K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -80K | 0 | 0 | 708K | 2.23M | 3.49M | 694K | 6K | 213K | 34.34M | -39K | 0 | 0 | 532K | -3.79M | 637K | 1.5M | 0 | 1.96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 897K | 0 |
| Net Change in Cash | 19.68M | 94.56M | -16.3M | 8.77M | 4.58M | -35.84M | 45.71M | 10.37M | -27.83M | 8.2M | 11.28M | -3.94M | 3.85M | -5.67M | 4.48M | 2.43M | 6.79M | 3.37M | -4.81M | 2.26M | -1.36M | 5.36M | -12.22M | 10.54M | -23.74M | -31.05M | 62.52M | -10.38M | 13M |
| Free Cash Flow | -27.98M | -18.78M | -17.88M | -7.07M | -37.23M | -32.95M | -13.99M | -9.13M | -37.32M | -12.74M | 9.78M | -2.27M | 1.85M | -2.92M | 14.22M | 5.03M | 4.62M | 2.7M | -12.51M | -2.39M | -14.72M | -10.07M | -2.48M | 4.09M | -13.51M | -8.69M | -22.58M | -15.37M | -22.7M |
| FCF Margin % | -29.18% | -21.26% | -18% | -9.33% | -26.38% | -23.98% | -14.67% | -10.97% | -36.45% | -12.91% | 12.02% | -2.93% | 2.22% | -3.42% | 16.09% | 4.83% | 4.84% | 4.88% | -17.11% | -4.1% | -33.12% | -37.97% | -6.99% | 11.79% | -21.39% | -7.27% | -18.59% | -18.86% | -52.42% |
| FCF Growth % | -227.57% | -5% | -152.87% | 81% | -12.99% | -135.53% | -53.16% | 75.53% | -192.92% | -230.33% | 530.28% | -222.61% | 163.57% | -120.49% | 182.76% | 8.8% | 71.1% | 121.61% | -424.1% | 83.79% | -46.11% | -306.41% | -160.55% | 130.3% | -55.5% | 61.52% | -46.91% | 32.29% | - |
| FCF per Share | -0.52 | -0.43 | -0.41 | -0.17 | -0.87 | -0.77 | -0.34 | -0.23 | -0.93 | -0.33 | 0.30 | -0.07 | 0.06 | -0.09 | 0.43 | 0.15 | 0.14 | 0.09 | -0.41 | -0.08 | -0.60 | -0.44 | -0.11 | 0.18 | -0.60 | -0.38 | -1.07 | -0.78 | -1.39 |
| FCF Conversion (FCF/Net Income) | 1.99x | 0.60x | 1.04x | -0.19x | -0.55x | -0.23x | 1.81x | -4.87x | 0.33x | 0.85x | 2.22x | -0.84x | -2.76x | -0.32x | 6.85x | 0.89x | 0.59x | -2.46x | 8.30x | 0.25x | -10.87x | 0.63x | 0.02x | -0.23x | -0.01x | -3.43x | 0.17x | -45.60x | -1.00x |
| Interest Paid | 0 | 0 | 2.07M | 1.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14K | 72K | 227K | 382K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 962K | 686K | 1.69M | 3.18M | 1.96M | 749K | 1.13M | 714K | 788K | 284K | 293K | 782K | 1.73M | 3.23M | 1.98M | 887K | 1.49M | 483K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Geopolitical supply chain volatility
As reported in recent financial filings, AXTI's operating cash flow frequently diverges from net income, evidenced by a 2026Q1 OCF/NI ratio of 7.21, which highlights a significant disconnect between accounting losses and the actual cash burn required to sustain the company's manufacturing operations.
The persistent gap between net income and operating cash flow suggests that the company's reported losses do not fully capture the cash-intensive nature of its substrate production. Investors should monitor whether this divergence stems from recurring working capital requirements or if it indicates an underlying inability to convert operational activity into liquid resources.
Based on the provided quarterly data, AXTI's free cash flow trajectory remains highly erratic, with margins swinging from a negative 58.2% in 2024Q1 to a positive 10.4% in 2023Q4, reflecting the company's struggle to maintain consistent cash generation amidst fluctuating demand for semiconductor substrates.
The inability to sustain positive free cash flow suggests that the company remains in a capital-intensive phase where growth initiatives and maintenance requirements frequently outpace internal cash generation. This pattern warrants further investigation into whether the company can achieve self-funding status without recurring external capital injections.
According to recent SEC filings, AXTI experienced a substantial working capital outflow of $21.1M in 2026Q1, a development that significantly exacerbated the company's cash burn and underscores the sensitivity of its liquidity position to inventory management and accounts receivable collection cycles within the semiconductor sector.
The sharp negative swing in working capital suggests that the company may be struggling with inventory accumulation or delayed customer payments, both of which are common in the cyclical optical communications market. Such volatility in working capital appears to be a primary driver of the company's inconsistent cash flow performance.
Data from financial statements indicates that AXTI consistently utilizes stock-based compensation, such as the $1.0M recorded in 2026Q1, which effectively obscures the true cash cost of talent acquisition and retention while simultaneously diluting existing shareholders during periods of negative operating cash flow.
While stock-based compensation is a non-cash expense, its persistent use in the face of negative operating cash flow suggests that the company is relying on equity to preserve cash. This practice may provide short-term liquidity relief but raises questions regarding the long-term sustainability of the company's compensation structure.
Quick answers to the most common questions about buying AXTI stock.
AXT, Inc. (AXTI) generated $-12.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
AXT, Inc. (AXTI) reported negative free cash flow of $18.8M in 2025, indicating capital requirements exceeded cash from operations.
AXT, Inc. (AXTI) spent $6.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.