AXT, Inc. (NASDAQ: AXTI) announced that its underwriters exercised the over‑allotment option on April 24 2026, purchasing an additional 1,284,046 shares of common stock at $64.25 per share. The transaction generated approximately $82.5 million in gross proceeds, bringing the total gross proceeds from the offering to roughly $632.5 million before underwriting discounts and commissions.
The additional capital will be directed toward supporting the company’s Beijing Tongmei Xtal Technology subsidiary, which is expanding its indium phosphide (InP) substrate production capacity. Proceeds will also fund research and development of new products, working capital needs, and general corporate purposes.
AXT’s recent financial performance has been challenging. In 2025 the company reported revenue of $88.3 million, down from $99.4 million in 2024, and a non‑GAAP net loss of $18.0 million versus a non‑GAAP net income of $8.5 million in 2024. Q4 2025 revenue fell 8.2% to $23.0 million, with a net loss of $3.5 million. Export‑permit delays from China have constrained revenue and contributed to the decline in profitability. The equity raise is intended to address these headwinds and fund the expansion of InP capacity to meet growing demand for AI infrastructure.
CEO Morris Young noted that the company was disappointed by the lack of export permits in Q4 2025 but highlighted that some permits were received in 2026. He said the company expects sequential revenue growth in Q1 2026 driven by InP for AI infrastructure and plans to double InP manufacturing capacity by year‑end 2026.
Investors reacted with mixed sentiment. Dilution concerns and valuation worries tempered enthusiasm, while the company’s AI‑driven growth narrative and capacity expansion were viewed positively.
The equity raise positions AXT to strengthen its manufacturing base and pursue growth in AI infrastructure, but the company remains under pressure from export‑permit uncertainties and profitability challenges.
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