Revenue accelerated 164.8% YoY to $47.6M in 2026Q2, with gross margin expanding to 44.9% from 8.0% in 2025Q2, driving operating income to $10.4M, though EPS of $0.18 missed consensus by $0.13.
AXT, Inc. (AXTI) annual income statement — 28-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 125.51M | 88.33M | 99.36M | 75.8M | 141.12M | 137.39M | 95.36M | 83.26M | 102.4M | 98.67M | 81.35M | 77.5M | 83.5M | 85.33M | 88.37M | 104.12M | 95.49M | 55.36M | 73.08M | 58.2M | 44.45M | 26.54M | 35.45M | 34.71M | 63.17M | 119.53M | 121.5M | 81.52M | 43.3M |
| Revenue Growth % | 45.81% | -11.11% | 31.09% | -46.29% | 2.71% | 44.08% | 14.54% | -18.69% | 3.77% | 21.3% | 4.96% | -7.18% | -2.15% | -3.44% | -15.12% | 9.04% | 72.48% | -24.24% | 25.55% | 30.96% | 67.49% | -25.15% | 2.13% | -45.05% | -47.15% | -1.62% | 49.05% | 88.27% | - |
| Cost of Goods Sold | 85.11M | 77.08M | 75.53M | 62.48M | 89M | 89.98M | 65.09M | 58.43M | 65.35M | 64.2M | 54.97M | 60.67M | 66.33M | 73.51M | 63.52M | 59.34M | 59M | 41.49M | 55.12M | 37.94M | 31.71M | 24.34M | 35.7M | 32.48M | 74.03M | 82.19M | 66.28M | 51.15M | 23.4M |
| COGS % of Revenue | - | 87.27% | 76.01% | 82.43% | 63.07% | 65.49% | 68.25% | 70.18% | 63.82% | 65.06% | 67.57% | 78.29% | 79.44% | 86.14% | 71.88% | 56.99% | 61.78% | 74.95% | 75.42% | 65.19% | 71.34% | 91.71% | 100.71% | 93.56% | 117.18% | 68.76% | 54.55% | 62.75% | 54.04% |
| Gross Profit | 40.39M | 11.24M | 23.84M | 13.32M | 52.12M | 47.41M | 30.27M | 24.82M | 37.05M | 34.48M | 26.38M | 16.83M | 17.17M | 11.83M | 24.85M | 44.78M | 36.49M | 13.87M | 17.96M | 20.26M | 12.74M | 2.2M | -251K | 2.23M | -10.86M | 37.34M | 55.22M | 30.37M | 19.9M |
| Gross Margin % | 32.18% | 12.73% | 23.99% | 17.57% | 36.93% | 34.51% | 31.75% | 29.82% | 36.18% | 34.94% | 32.43% | 21.71% | 20.56% | 13.86% | 28.12% | 43.01% | 38.22% | 25.05% | 24.58% | 34.81% | 28.66% | 8.29% | -0.71% | 6.44% | -17.18% | 31.24% | 45.45% | 37.25% | 45.96% |
| Gross Profit Growth % | - | -52.84% | 78.98% | -74.45% | 9.93% | 56.61% | 21.95% | -32.99% | 7.46% | 30.68% | 56.76% | -1.97% | 45.14% | -52.41% | -44.5% | 22.71% | 163.14% | -22.78% | -11.36% | 59.08% | 479.17% | 976.1% | -111.23% | 120.59% | -129.07% | -32.38% | 81.85% | 52.6% | - |
| Operating Expenses | 36.51M | 33.22M | 38.64M | 34.89M | 39.57M | 34.52M | 26.34M | 25.14M | 24.9M | 21.84M | 19.73M | 21.73M | 19.11M | 19.49M | 18.89M | 17.31M | 16.31M | 14.96M | 17.91M | 14.96M | 16.42M | 14.68M | 13.25M | 11.81M | 23.52M | 29.69M | 34.21M | 23.32M | 9.5M |
| OpEx % of Revenue | - | 37.61% | 38.89% | 46.03% | 28.04% | 25.12% | 27.62% | 30.19% | 24.32% | 22.13% | 24.25% | 28.04% | 22.89% | 22.84% | 21.37% | 16.62% | 17.08% | 27.02% | 24.52% | 25.71% | 36.94% | 55.31% | 37.37% | 34.03% | 37.22% | 24.84% | 28.16% | 28.6% | 21.94% |
| Selling, General & Admin | 26.44M | 24.17M | 24.1M | 22.81M | 25.65M | 24.19M | 19.2M | 19.3M | 19M | 17.01M | 13.88M | 16.06M | 14.97M | 16.07M | 15.42M | 14.84M | 13.97M | 13.39M | 15.75M | 13.75M | 12.65M | 12.96M | 11.56M | 10.47M | 18.65M | 21.49M | 18.04M | 14.02M | 5M |
| SG&A % of Revenue | - | 27.36% | 24.25% | 30.09% | 18.18% | 17.61% | 20.13% | 23.19% | 18.56% | 17.24% | 17.06% | 20.73% | 17.93% | 18.83% | 17.45% | 14.25% | 14.63% | 24.18% | 21.55% | 23.62% | 28.46% | 48.82% | 32.61% | 30.18% | 29.52% | 17.98% | 14.85% | 17.19% | 11.55% |
| Research & Development | 10.07M | 9.05M | 14.54M | 12.08M | 13.91M | 10.33M | 7.13M | 5.83M | 5.9M | 4.83M | 5.85M | 5.66M | 4.14M | 3.42M | 3.47M | 2.47M | 2.34M | 1.57M | 2.16M | 1.7M | 2.35M | 1.72M | 1.48M | 1.34M | 4.87M | 8.2M | 8.77M | 3.09M | 2.5M |
| R&D % of Revenue | - | 10.24% | 14.64% | 15.94% | 9.86% | 7.52% | 7.48% | 7.01% | 5.76% | 4.89% | 7.19% | 7.31% | 4.96% | 4.01% | 3.92% | 2.38% | 2.45% | 2.83% | 2.96% | 2.92% | 5.29% | 6.49% | 4.17% | 3.85% | 7.71% | 6.86% | 7.22% | 3.79% | 5.77% |
| Other Operating Expenses | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -481K | 1.42M | 0 | 210K | 0 | 0 | 0 | 7.4M | 6.21M | 2M |
| Operating Income | 3.88M | -21.98M | -14.8M | -21.57M | 12.55M | 12.9M | 3.94M | -314K | 12.15M | 12.64M | 6.42M | -4.9M | -2.85M | -7.66M | 5.96M | 27.47M | 20.18M | -1.6M | -38K | 5.3M | -3.68M | -13.31M | -14.81M | -9.58M | -73.46M | 7.65M | 21.01M | 7.05M | 10.4M |
| Operating Margin % | 3.09% | -24.88% | -14.9% | -28.46% | 8.9% | 9.39% | 4.13% | -0.38% | 11.86% | 12.81% | 7.9% | -6.32% | -3.42% | -8.98% | 6.75% | 26.39% | 21.14% | -2.88% | -0.05% | 9.1% | -8.28% | -50.18% | -41.77% | -27.59% | -116.28% | 6.4% | 17.29% | 8.65% | 24.02% |
| Operating Income Growth % | - | -48.46% | 31.37% | -271.81% | -2.66% | 227.34% | 1354.78% | -102.58% | -3.89% | 96.72% | 231.15% | -71.65% | 62.75% | -228.45% | -78.29% | 36.11% | 1364.66% | -4100% | -100.72% | 243.94% | 72.36% | 10.09% | -54.63% | 86.96% | -1060.49% | -63.6% | 198% | -32.21% | - |
| EBITDA | 13.38M | -12.87M | -5.82M | -12.85M | 20.67M | 19.98M | 8.27M | 5.22M | 17.02M | 17.06M | 11.29M | 595K | 2.79M | -2.19M | 9.89M | 30.88M | 23.1M | 1.46M | 2.16M | 6.72M | -1.13M | -9.38M | -9.63M | -3.29M | -63.56M | 16.51M | 28.41M | 13.27M | 12.4M |
| EBITDA Margin % | 10.66% | -14.57% | -5.86% | -16.95% | 14.65% | 14.54% | 8.68% | 6.27% | 16.62% | 17.29% | 13.88% | 0.77% | 3.34% | -2.57% | 11.19% | 29.66% | 24.19% | 2.64% | 2.95% | 11.54% | -2.55% | -35.34% | -27.17% | -9.49% | -100.61% | 13.81% | 23.38% | 16.27% | 28.64% |
| EBITDA Growth % | 176.14% | -120.95% | 54.67% | -162.14% | 3.49% | 141.45% | 58.58% | -69.34% | -0.25% | 51.12% | 1797.48% | -78.64% | 227.05% | -122.16% | -67.97% | 33.69% | 1480.03% | -32.19% | -67.91% | 692.42% | 87.91% | 2.65% | -192.53% | 94.82% | -484.99% | -41.89% | 114.18% | 6.98% | - |
| D&A (Non-Cash Add-back) | 9.49M | 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 |
| EBIT | 5.12M | -20.29M | -9.32M | -17.51M | 22M | 18.02M | 7.25M | -932K | 12.15M | 12.64M | 6.65M | -4.9M | -1.95M | -7.66M | 5.96M | 27.47M | 20.18M | -1.09M | 45K | 4.82M | -3.68M | -12.48M | -13.5M | -9.58M | -39.72M | 7.65M | 21.01M | 12.31M | 11.55M |
| Net Interest Income | 4.04M | -1.26M | -1.34M | -1.53M | -1.07M | -213K | -179K | 217K | 528K | 461K | 409K | 412K | 483K | 408K | 518K | 449K | 53K | 177K | 513K | 704K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 4.83M | 0 | 0 | 0 | 0 | 0 | 0 | 217K | 528K | 461K | 409K | 412K | 483K | 408K | 518K | 449K | 53K | 0 | 0 | 704K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 786K | 1.26M | 1.34M | 1.53M | 1.07M | 213K | 179K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 177K | 513K | 0 | 0 | 0 | 290K | 466K | 1.33M | 2.08M | 0 | 0 | 0 |
| Other Income/Expense | 5.69M | 432K | 4.15M | 2.54M | 8.37M | 4.71M | 3.13M | -712K | -200K | -1.79M | -726K | 2.9M | 2.37M | 1.04M | 1.04M | 1.15M | 2.52M | 562K | 372K | 720K | 3.15M | -394K | 356K | -1.52M | -14.03M | -15.45M | 18.41M | -3.59M | 988K |
| Pretax Income | 9.57M | -21.54M | -10.66M | -19.03M | 20.93M | 17.6M | 7.07M | -1.03M | 11.95M | 10.85M | 5.7M | -2M | -482K | -6.63M | 7M | 28.62M | 22.7M | -1.03M | 334K | 6.02M | -528K | -13.79M | -14.45M | -11.09M | -87.49M | -7.81M | 39.42M | 2.82M | 10.2M |
| Pretax Margin % | 7.62% | -24.39% | -10.73% | -25.11% | 14.83% | 12.81% | 7.42% | -1.23% | 11.67% | 11% | 7.01% | -2.58% | -0.58% | -7.76% | 7.92% | 27.49% | 23.77% | -1.87% | 0.46% | 10.34% | -1.19% | -51.97% | -40.77% | -31.96% | -138.49% | -6.53% | 32.44% | 3.46% | 23.56% |
| Income Tax | 3.54M | 1.66M | 1.13M | 160K | 2.19M | 1.09M | 2.03M | 562K | 938K | 792K | 733K | 531K | 215K | 188K | 853K | 2.79M | 2.32M | 471K | 1.02M | 728K | -1.45M | -950K | 71K | 0 | -6.31M | -2.81M | 14.98M | 2.14M | 3.9M |
| Effective Tax Rate % | 36.96% | -7.7% | -10.64% | -0.84% | 10.44% | 6.21% | 28.72% | -54.78% | 7.85% | 7.3% | 12.86% | -26.52% | -44.61% | -2.84% | 12.18% | 9.77% | 10.23% | -45.55% | 306.29% | 12.1% | 275.38% | 6.89% | -0.49% | 0% | 7.21% | 36% | 38% | 75.88% | 38.24% |
| Net Income | 4.05M | -21.26M | -11.62M | -17.88M | 15.81M | 14.57M | 3.24M | -2.6M | 9.65M | 10.15M | 5.64M | -2.23M | -1.39M | -7.96M | 3.11M | 20.32M | 18.65M | -1.9M | -689K | 5.29M | 944K | -12.21M | -13.63M | -26.73M | -81.18M | -5M | 21.61M | 172K | 6.3M |
| Net Margin % | 3.23% | -24.07% | -11.7% | -23.59% | 11.2% | 10.61% | 3.4% | -3.12% | 9.43% | 10.28% | 6.93% | -2.87% | -1.66% | -9.33% | 3.52% | 19.52% | 19.53% | -3.43% | -0.94% | 9.09% | 2.12% | -46.03% | -38.45% | -77.01% | -128.5% | -4.18% | 17.79% | 0.21% | 14.55% |
| Net Income Growth % | 117.01% | -82.9% | 34.99% | -213.09% | 8.48% | 350.12% | 224.54% | -126.93% | -4.87% | 80.06% | 352.96% | -60.52% | 82.56% | -355.88% | -84.69% | 8.94% | 1082.77% | -175.47% | -113.03% | 460.28% | 107.73% | 10.4% | 49% | 67.07% | -1524.92% | -123.12% | 12463.95% | -97.27% | - |
| Net Income (Continuing) | 6.03M | -23.2M | -11.79M | -19.19M | 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 | 742K | 7.19M | 926K | -12.76M | -14.52M | -11.09M | -54.98M | -5M | 24.44M | 4.34M | 6.72M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 18K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 64.57M | 61.34M | 62.14M | 65.16M | 68.14M | 68.7M | 62.91M | 4.88M | 3.7M | 4.5M | 4.38M | 5.59M | 6.42M | 5.88M | 7.3M | 8.27M | 4.04M | 2.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.06 | -0.49 | -0.27 | -0.42 | 0.37 | 0.34 | 0.07 | -0.04 | 0.24 | 0.26 | 0.17 | -0.07 | -0.04 | -0.24 | 0.09 | 0.61 | 0.57 | -0.06 | -0.02 | 0.16 | 0.03 | -0.53 | -0.59 | -1.17 | -3.62 | -0.22 | 1.03 | 0.01 | 0.26 |
| EPS Growth % | 104.35% | -81.48% | 35.71% | -213.51% | 8.82% | 355.76% | 285.57% | -116.75% | -7.69% | 52.94% | 345.66% | -61.68% | 82.17% | -366.67% | -85.25% | 7.02% | 1016.4% | -174.01% | -114.19% | 433.33% | 105.66% | 10.17% | 49.57% | 67.68% | -1545.45% | -121.36% | 10200% | -96.15% | - |
| EPS (Basic) | - | -0.49 | -0.27 | -0.42 | 0.37 | 0.35 | 0.08 | -0.04 | 0.25 | 0.27 | 0.17 | -0.07 | -0.04 | -0.24 | 0.09 | 0.63 | 0.60 | -0.06 | -0.02 | 0.17 | 0.03 | -0.53 | -0.59 | -1.17 | -3.62 | -0.22 | 1.10 | 0.01 | 0.27 |
| Diluted Shares Outstanding | 63.47M | 43.93M | 43.15M | 42.64M | 42.72M | 42.72M | 41.02M | 39.49M | 40.27M | 38.97M | 32.89M | 32.18M | 32.45M | 32.7M | 32.87M | 33.06M | 32.51M | 30.5M | 30.4M | 31.35M | 24.6M | 23.05M | 23.06M | 22.78M | 22.43M | 22.93M | 21.06M | 19.77M | 16.32M |
| Basic Shares Outstanding | 61.23M | 43.93M | 43.15M | 42.64M | 42.1M | 41.37M | 40.15M | 39.49M | 39.05M | 37.44M | 32.14M | 32.18M | 31.3M | 32.54M | 32.14M | 31.87M | 31.01M | 30.5M | 30.4M | 30.04M | 23.3M | 23.05M | 23.06M | 22.78M | 22.43M | 22.28M | 19.68M | 18.66M | 16.08M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 4.58% | - | - | - | - | - | 8.05% | 2.83% | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AXTI stock.
For fiscal year 2025, AXT, Inc. (AXTI) reported total revenue of $88.3M. This represents a 104.0% increase compared to $43.3M in 1998.
AXT, Inc. (AXTI) reported a net loss of $21.3M for the fiscal year ending 2025.
AXT, Inc. (AXTI) reported an operating income of $-22.0M, resulting in an operating profit margin of -24.9%. This margin reflects the operational efficiency of the business before interest and taxes.
AXT, Inc. (AXTI) generated $11.2M in gross profit for the year, representing a gross profit margin of 12.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Profitability lags revenue surge
Metrics are mathematically derived from official filings.
Revenue Inflection on AI Optics
AXTI's revenue surged 164.8% year-over-year to $47.6M in 2026Q2, per the latest quarterly report, marking a sharp acceleration from prior quarters and suggesting a structural demand inflection for InP substrates.
The sequential jump from $26.9M in 2026Q1 to $47.6M in 2026Q2 is the largest in the ten-quarter series, with growth accelerating from 39.1% to 164.8% year-over-year. This appears driven by data center optical connectivity demand, as indicated by CEO commentary, though the sustainability of this pace is uncertain given the absence of forward guidance. The revenue base remains small, so investors should monitor whether this reflects a durable cycle or a one-time inventory build.
Gross Margin Recovery Signals Utilization
Gross margin expanded from 8.0% in 2025Q2 to 44.9% in 2026Q2, as reported in financial statements, suggesting a dramatic improvement in capacity utilization and product mix toward higher-value InP substrates.
The gross margin trajectory shows a V-shaped recovery from negative territory in 2025Q1 to near 45% in 2026Q2, implying that fixed costs are being absorbed by higher volumes. This suggests the company is operating closer to efficient capacity utilization, though the sustainability depends on maintaining demand and managing input costs. The margin is now above peer averages, but this may reflect a cyclical peak rather than a structural norm given historical volatility.
Operating Leverage Finally Materializes
Operating income swung from -$6.7M in 2025Q2 to +$10.4M in 2026Q2, per the income statement, as revenue growth outpaced fixed cost growth, demonstrating significant operating leverage.
The 2026Q2 operating margin of 21.9% contrasts sharply with the negative margins of the prior year, indicating that SG&A and R&D costs did not scale proportionally with revenue. R&D expense rose only modestly to $3.7M despite the revenue surge, suggesting disciplined spending. However, the company's history of volatile margins warrants caution; investors should monitor whether this leverage persists as revenue normalizes.
Earnings Quality Clouded by One-Time Items
Net income of $11.1M in 2026Q2 exceeded operating income by $0.7M, per the income statement, suggesting non-operating gains may have boosted EPS, which came in at $0.18 versus $0.19 diluted.
The gap between net income and operating income, along with a lower diluted EPS than basic, indicates potential one-time items or tax benefits that may not recur. Stock-based compensation of $762K is modest but adds to the divergence between reported and cash earnings. Given the EPS miss versus consensus, investors should scrutinize the quality of earnings and the sustainability of non-operating contributions.
Cost Discipline Amid Expansion
COGS as a percentage of revenue fell from 91.7% in 2025Q2 to 55.1% in 2026Q2, as per the income statement, while SG&A remained flat sequentially, indicating improved cost absorption.
The dramatic reduction in COGS ratio suggests better fixed-cost absorption and possibly favorable raw material pricing, though the company's high fixed-cost structure remains a risk if volumes decline. SG&A of $7.3M in 2026Q2 is only slightly above the $5.7M in 2025Q2, showing expense discipline despite revenue growth. R&D spending increased modestly, reflecting continued investment in InP technology, but the overall cost structure appears to be leveraging well.
2026Q2: The Turning Point
The 2026Q2 quarter marks a clear inflection, with revenue more than doubling sequentially and margins turning positive for the first time in the series, as reported in the latest financials.
This quarter reverses a prolonged period of negative operating and net margins, driven by a step-function increase in demand for data center optics. The gross margin jump from 29.6% to 44.9% suggests a structural shift in product mix or pricing power. However, the sustainability of this inflection is unproven, and the company's history of cyclicality implies that investors should not extrapolate this performance linearly.
What Could Invalidate the Base Case
Despite the 2026Q2 revenue surge, EPS of $0.18 missed consensus by $0.13, per the earnings release, suggesting profitability is not keeping pace and may indicate unsustainable cost structures.
The significant EPS miss despite strong revenue growth raises questions about the quality of the earnings beat, as non-operating items may have masked underlying operational weakness. The company's high fixed-cost structure and reliance on a cyclical demand spike could lead to margin compression if volumes normalize or input costs rise. Additionally, the ongoing delays in the Tongmei IPO could constrain capital for 6-inch InP expansion, limiting the ability to sustain this growth trajectory. Investors should monitor whether the revenue inflection translates into durable operating leverage or if it is a temporary peak.