How does AXT (AXTI) make money?

AXT (AXTI) generates revenue primarily from Substrates, which accounted for 64.4% of total revenue in TTM through Q1 2026. The company reported $95.9M in revenue and converted -14.7% of it into net profit, equivalent to roughly -$14.1M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of AXT (AXTI)?

AXT (AXTI) reported a gross profit margin of 21.3% in TTM through Q1 2026, equivalent to $20.5M in gross profit on $95.9M in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of AXT (AXTI)?

AXT (AXTI) reported an operating profit margin of -13.9% in TTM through Q1 2026, equivalent to -$13.3M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of AXT (AXTI)?

AXT (AXTI) reported a net profit margin of -14.7% in TTM through Q1 2026, equivalent to -$14.1M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is AXT (AXTI) profitable?

AXT (AXTI) reported a net loss of $14.1M for TTM through Q1 2026, a net profit margin of -14.7%. Combined operating expenses, interest, and income taxes exceeded revenue, so the period closed in the red on a reported basis.

How much does AXT (AXTI) invest in research and development?

AXT (AXTI) invested $8.94M in research and development during TTM through Q1 2026, roughly 9.3% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does AXT (AXTI) spend on capital expenditures?

AXT (AXTI) spent $6.86M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 7.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does AXT (AXTI) generate?

AXT (AXTI) generated -$28M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of -29.2%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What are the main business segments of AXT (AXTI)?

AXT (AXTI) reports revenue across 2 reportable product segments, led by Substrates at 64.4% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does AXT (AXTI) generate most of its revenue?

CHINA is the largest geographic market for AXT (AXTI), accounting for 60.2% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How AXT Makes Money: 2026 Visual Revenue Map

AXT (AXTI) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 14, 2026).

AXT (AXTI) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for AXT (AXTI), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Substrates	$61.8M	64.4%
Raw Materials and Other	$34.1M	35.6%
Total	$95.9M	100%

Substrates$61.8M
Raw Materials and Other$34.1M
Total$95.9M

AXT (AXTI) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for AXT (AXTI), TTM through Q1 2026
Region	Revenue (USD)	% of total
CHINA	$58.2M	60.2%
Europe	$14.8M	15.3%
TAIWAN	$12.5M	12.9%
JAPAN	$5.73M	5.9%
Asia Pacific Excluding China, Taiwan and Japan	$4.62M	4.8%
North America	$806K	0.8%
Total	$96.7M	100%

CHINA
Europe
TAIWAN
JAPAN
Asia Pacific Excluding China, Taiwan and Japan
North America
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, AXT (AXTI) reports revenue across 2 reportable product segments; the largest segment was Substrates at 64.4%, followed by Raw Materials and Other (35.6%). Geographically, CHINA accounted for 60.2% of revenue, followed by Europe (15.3%) and TAIWAN (12.9%).

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