AXT (AXTI) Is Up 27.7% After $87 Million Follow-On Offering Boosts Equity Base

• In December 2025, AXT, Inc. completed a follow-on equity offering of approximately US$86.96 million, issuing 7,098,492 common shares at US$12.25 each, with a per-share discount of US$0.67375.
• This capital raise meaningfully enlarges AXT’s equity base, potentially giving the company more flexibility to fund manufacturing improvements and growth initiatives highlighted in its prior investment narrative.
• Next, we will examine how raising roughly US$87 million through new common stock issuance could reshape AXT’s risk profile and growth assumptions.

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AXT Investment Narrative Recap

To own AXT today, you need to believe its substrate technology can translate into improving margins and a path toward profitability despite recent losses and export permit uncertainty. The roughly US$86.96 million equity raise bolsters the balance sheet and may ease short term funding pressure, but it does not remove near term risks around low gross margins and reliance on approvals for key materials.

The most recent Q3 2025 result, with US$27.96 million in revenue and a net loss of US$1.91 million, frames this offering in a clear way: AXT is still loss making and funding its operations and manufacturing improvements while targeting Q4 revenue of US$27 million to US$30 million. The new equity capital sits alongside that guidance and could support efforts to lift utilization and margins if demand and export permits cooperate.

Yet, against this stronger cash position, investors still need to be aware of the risk that ongoing low gross margins and operating losses could...

Read the full narrative on AXT (it's free!)

AXT's narrative projects $117.8 million revenue and $16.6 million earnings by 2028. This requires 11.0% yearly revenue growth and a $40.6 million earnings increase from $-24.0 million today.

Uncover how AXT's forecasts yield a $9.50 fair value, a 53% downside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span roughly US$5.70 to US$9.50, underscoring how far apart individual views can be. You can weigh those opinions against the fact that export permit delays and customer concentration still hang over AXT’s ability to translate its technology position into more stable revenue and improving margins over time.

Explore 3 other fair value estimates on AXT - why the stock might be worth less than half the current price!

Build Your Own AXT Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AXT research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free AXT research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AXT's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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