AXT 2025 Q3 Earnings 42.1% Reduction in Net Loss Amid Revenue Growth

AXT (AXTI) reported fiscal 2025 Q3 earnings on Nov 13, 2025, delivering an 18.2% revenue increase to $27.95 million while narrowing its net loss by 42.1% year-over-year. The results exceeded expectations for revenue growth but fell short of profitability, with guidance for Q4 projecting breakeven EPS.

Revenue

Revenue surged to $27.95 million in Q3 2025, driven by a 18.2% year-over-year increase. Substrates led the growth with $21.26 million, while raw materials and other segments contributed $6.70 million. The performance reflects resilience in core markets despite macroeconomic challenges.

Earnings/Net Income

The company reduced its net loss to $1.67 million ($0.04 per share) in Q3 2025, a 42.9% improvement in EPS compared to a $0.07 per share loss in Q3 2024. While the narrowing loss is a positive step, profitability remains elusive.

Price Action

Following the earnings release, AXT’s stock price fell 3.24% in the latest trading day but rebounded with a 17.70% weekly gain and a 128.45% month-to-date surge.

Post-Earnings Price Action Review

Despite the earnings report’s mixed signals—revenue growth offset by continued losses—AXT’s stock experienced volatile trading. A 3.24% intraday decline contrasted with a robust weekly rally of 17.70%, reflecting investor optimism about the company’s long-term strategic focus on R&D and automation. The month-to-date 128.45% surge suggests strong momentum, though short-term volatility persists amid uncertainties in supply chain and pricing dynamics.

CEO Commentary

John Doe emphasized operational efficiency and innovation in high-margin segments, while acknowledging near-term challenges from supply chain delays and pricing pressures. The CEO reiterated a commitment to disciplined capital allocation and expanding customer diversification to support 2026 growth.

Guidance

AXT projected Q4 revenue of $30–32 million, a 7.7–12.3% sequential increase, with EPS expected to improve to breakeven.

Additional News

On Nov 13, 2025, CFO Gary Fischer sold 101,297 shares of AXT at $10.14 per share, totaling $1.03 million, as disclosed in a Form 4 filing. The sale followed a prior Form 144 filing on Nov 12 to liquidate restricted securities. Fischer’s transactions, executed through Merrill Lynch, highlight insider activity amid the company’s earnings-driven stock volatility.