AXTI AXT INC

Overview and Growth

AXT INC generated $88.33M of revenue in fiscal 2025, with net loss of $21.26M and an operating cash outflow of $12.78M. The $88.33M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line contracted 11.1% from $99.36M in fiscal 2024; this top-line contraction left the company with a smaller revenue base. The company reported diluted EPS of -$0.49, adding a shareholder-level measure to the absolute income figures considered below. The diluted weighted-average share count was 43.93M, linking total earnings with the per-share result received by shareholders. At period end, total assets were $433.75M, framing the scale of the company’s operating and financing commitments. Revenue equaled 0.2x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

The first profit layer was $11.24M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 12.7% of revenue, showing how much of the top line remained after direct costs. The company recorded an operating loss of $21.98M after the reported operating expense base. An operating margin of -24.9% reflected costs exceeding revenue-level gross profit by 24.9% of sales. The company ended the period with a net loss of $21.26M, extending the operating result through all remaining items. Measured against revenue, the bottom-line deficit represented 24.1% after all recognized items. Negative EBITDA totaled $12.87M, confirming that the earnings deficit remained before depreciation and amortization. The company reported a pretax loss of $21.54M, before the effect of income taxes. Pretax margin was -24.4%, reflecting a pre-tax loss equal to 24.4% of revenue. The reported income-tax provision was $1.66M, the amount recognized between pretax income and the final net-income result. Relative to period-end equity, the net loss represented 7.2%. Relative to total assets, the net loss represented 4.9%. The bottom-line deficit increased from $11.62M in fiscal 2024 to $21.26M.

Liquidity and Capital Structure

At period end, the $433.75M asset base was financed through $99.12M of liabilities and $296.57M of equity. The near-term balance sheet paired $246.56M of current assets with $90.54M of current liabilities at the reporting date. At 2.72x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $120.27M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 132.8%, excluding receivables and other current assets. The equity-to-assets relationship was 68.4%, placing book capital against the total resource base. Liabilities represented 22.9% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 27.7%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 27.8% from $339.31M in fiscal 2024, leaving current total assets higher year over year. Against $216.33M of equity in fiscal 2024, the current book-equity balance moved 37.1% and ended higher. Compared with $22.83M in fiscal 2024, the current cash balance moved 426.7% and finished higher.

Cash Flow and Earnings Quality

The company reported an operating cash outflow of $12.78M, rather than cash generation from operations. Capital spending of $6.00M added to the period’s operating cash use, reinforcing the overall cash deficit after investment for the year. Negative free cash flow was $18.78M, leaving a cash deficit after capital spending and reducing financial flexibility. The free-cash-flow deficit equaled 21.3% of revenue, showing the post-investment cash shortfall relative to sales. Relative to total assets, the post-investment cash deficit measured 4.3%.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.