AXT, Inc. Q3 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Performance Highlights

  • Revenue: $73.4 million in Q3 2026, +54% vs. $47.6 million in Q2 2026 and +162% vs. $28.0 million in Q3 2025.
  • Revenue by Product: Indium phosphide $54.3 million (data center focus); Gallium arsenide $9.1 million; Germanium $0.344 million; Raw materials (consolidated) $9.7 million. Top 5 customers ~35% of revenue; one customer >10%.
  • Gross Margin (Non-GAAP): 56.1% in Q3 2026 vs. 45.0% in Q2 2026 and 22.4% in Q3 2025. GAAP: 56.0% vs. 44.9% and 22.3%.
  • Operating Profit (Non-GAAP): $29.5 million (40.2% of revenue) vs. $11.2 million in Q2 2026 and loss of $0.384 million in Q3 2025.
  • Net Profit (Non-GAAP): $26.8 million or $0.41 per diluted share vs. $11.9 million or $0.19 per share in Q2 2026 and loss of $1.2 million ($0.03/share) in Q3 2025. GAAP net profit: $25.7 million or $0.39/share.
  • Cash & Investments: $825.9 million as of Sept 30, 2026 (+$77 million from $748.8 million at June 30). DSO improved to 49 days; $43.5 million customer prepayment from Lumentum supply agreement.

Business & Market Context

Professional feature The full AI summary covers key highlights, financial performance and analyst Q&A.
Operator: Good afternoon, everyone, and welcome to AXT's Third Quarter 2026 Financial Conference Call. Leading the call today is Dr. Morris Young, Chief Executive Officer; and Gary Fischer, Chief Financial Officer. In addition, Tim Bettles, VP of Business Development, will be participating in the Q&A portion of the call. My name is Tracy, and I will be your coordinator today. I would like to now turn the call over to Leslie Green, Investor Relations for AXT. Leslie, please go ahead. Leslie Green: Thank you, Tracy, and good afternoon, everyone. Before we begin, I would like to remind you that during the course of this conference call, including comments made in response to your questions, we will provide projections or make other forward-looking statements regarding, among other things, the future financial performance of the company, market conditions and trends, emerging applications using chips or devices fabricated on our substrates, our product mix, global economic and political conditions, including trade tariffs and import and export restrictions, ability to obtain China export permits, timing and receipt of export permits, our plan to list our subsidiary, Tongmei in Hong Kong, the closing of the intended investment into Tongmei by a leading Asia-based asset manager our ability to increase orders in succeeding quarters to control costs and expenses, to improve manufacturing yields and efficiencies or to utilize our manufacturing capacity. We wish to caution you that suc
Professional feature The full transcript includes every speaker turn.