AXT, Inc. reported financial results for the quarter ended June 30, 2026, announcing a significant turnaround in profitability and revenue growth. Second-quarter revenue reached $47.6 million, up from $26.9 million in Q1 2026 and $18.0 million in Q2 2025. The company recorded its highest quarterly indium phosphide revenue to date, driven by strong demand for data center optical connectivity. GAAP net income was $11.1 million, or $0.17 diluted earnings per share, compared to a net loss of $7.0 million in the prior year period. Gross margins expanded substantially, with GAAP gross margin reaching 44.9 percent versus 8.0 percent in Q2 2025. AXT operates as a manufacturer of compound semiconductor wafer substrates including indium phosphide, gallium arsenide, and germanium for applications such as 5G infrastructure and silicon photonics.

AXT Inc. entered into a Capacity Reservation Agreement with Lumentum Operations LLC for the supply and capacity reservation of indium phosphide wafer substrates. The agreement establishes a six-year commitment beginning July 26, 2026, requiring Lumentum to reserve minimum annual product capacity. In consideration, Lumentum agreed to pay an initial deposit of $43,500,000 due within thirty business days and a second deposit of $43,500,000 with payment terms to be determined in 2028. These deposits serve as shipment credits against future purchases. AXT operates in the semiconductor substrate manufacturing industry.

AXT, Inc. expanded its Board of Directors from five to six members by electing Jia-Bin Duh as a Class III independent director, effective July 16, 2026. Mr. Duh brings extensive leadership experience in the technology and consumer sectors, particularly in Greater China, having previously held senior roles at Microsoft, Cisco Systems, and Hewlett-Packard. AXT, Inc. is a material science company that manufactures high-performance compound and single element semiconductor substrate wafers.

On July 8, 2026, the Shanghai Stock Exchange accepted the withdrawal of an IPO application for Beijing Tongmei Xtal Technology Co., Ltd., a majority-controlled subsidiary of AXT, Inc. The company intends to pivot its listing efforts toward the Hong Kong Stock Exchange, shifting its business focus toward indium phosphide (InP) substrates for AI data centers and high-speed optical data transmission. The withdrawal triggers redemption rights for eleven private equity funds that previously invested RMB 324,404,508 (approximately $49 million). These funds may request redemption of their original investment amount without interest. AXT states it has sufficient funds to cover full redemptions if required. AXT operates in the semiconductor industry, specializing in the manufacture of compound semiconductor wafer substrates.

AXT, Inc. subsidiary AXT-Tongmei, Inc. entered into a three-year Master Development and Supply Agreement with Coherent Corp. effective June 25, 2026. Under the agreement, AXT will increase manufacturing capacity for 6-inch indium phosphide wafer substrates at its Beijing facility through 2028 in exchange for a US$22,288,500 prepayment from Coherent. AXT, Inc. operates in the semiconductor materials industry, providing indium phosphide substrates.