AXT (AXTI) investor relations material

Executive summary

• Q1 2026 revenue reached $26.9M, up from $23.0M in Q4 2025 and $19.4M in Q1 2025, driven by strong Indium Phosphide demand for data centers.

• Gross margin improved significantly, with non-GAAP at 29.9% versus -6.1% a year ago, and GAAP at 29.6%.

• Net loss narrowed to $1.6M GAAP and $0.6M non-GAAP, showing sequential and year-over-year improvement.

• Indium Phosphide backlog hit a record $100M, with Q2 expected to set a new revenue record for this product.

• Completed $632.5M capital raise to fund Indium Phosphide capacity expansion and R&D.

Financial highlights

• Q1 2026 revenue: $26.9M (up 39% YoY, up 17% sequentially).

• Non-GAAP gross margin: 29.9% (vs. 21.5% in Q4 2025, -6.1% in Q1 2025).

• Non-GAAP operating loss: $550K (vs. $2.6M in Q4 2025, $9.6M in Q1 2025).

• GAAP net loss: $1.6M ($0.03/share), improved from $8.8M ($0.20/share) in Q1 2025.

• Cash and investments: $123M as of March 31, 2026.

Outlook and guidance

• Q2 2026 revenue guidance: $34M with potential upside if additional export permits are received.

• Expecting sequential revenue growth in Q2, led by Indium Phosphide.

• Non-GAAP net income forecasted at $0.06-$0.08/share; GAAP net income at $0.05-$0.07/share.

• OpEx expected at ~$9.3M non-GAAP and ~$10M GAAP for Q2.

• Profitability anticipated on both GAAP and non-GAAP basis in Q2.