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	Exhibit 99.1
	AXT, Inc. Third Quarter 2024 Results
	October 31, 2024
	Page 1 of 7

AXT, Inc. Announces Third Quarter 2024 Financial Results

FREMONT, Calif., October 31, 2024 – AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor wafer substrates, today reported financial results for the third quarter, ended September 30, 2024.

Management Qualitative Comments

“Q3 came in largely in line with our expectations, coming off a strong quarter in Q2," said Morris Young, chief executive officer. “By comparison to the year ago quarter Q3 2023, our revenue in Q3 of 2024 increased over 36 percent and we are pleased to see that every product, including raw materials, had double digit year-over-year growth. Data center-related demand remained solid, and we are anticipating new order momentum in indium phosphide substrates for photodetectors in AI applications.”

“This year-over-year revenue improvement benefited our GAAP gross margin significantly, moving from 10.7 percent in Q3 2023 to 24.0 percent in the recent quarter. The impact on the bottom line reduced the GAAP net loss from ($0.14) per share in Q3 2023 to ($0.07) per share in the recent quarter. As we move into 2025, we are optimistic about the growth and expansion of our business. Across our portfolio of products, the signs of recovery are tangible, and we are strongly positioned for success in this highly dynamic technology landscape."

Third Quarter 2024 Results

In order to provide better clarity on its operational and financial results, AXT reports its financial results on both a GAAP and non-GAAP basis. Non-GAAP results exclude stock-based compensation expense. Investors can find GAAP to non-GAAP reconciliation tables in the financial statements in this earnings release.  

● Revenue for the third quarter of 2024 was $23.6 million, compared with $27.9 million for the second quarter of 2024 and $17.4 million for the third quarter of 2023.

● GAAP gross margin was 24.0 percent of revenue for the third quarter of 2024, compared with 27.4 percent of revenue for the second quarter of 2024 and 10.7 percent for the third quarter of 2023.

● Non-GAAP gross margin, after excluding charges for stock-based compensation, was 24.3 percent of revenue for the third quarter of 2024, compared with 27.6 percent of revenue for the second quarter of 2024 and 11.3 percent for the third quarter of 2023.

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	October 31, 2024
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● GAAP net loss, after minority interests, for the third quarter of 2024 was a net loss of ($2.9) million, or ($0.07) per share, compared with a net loss of ($1.5) million, or ($0.04) per share, for the second quarter of 2024 and a net loss of ($5.8) million, or ($0.14) per share, for the third quarter of 2023.

● Non-GAAP net loss for the third quarter of 2024 was a net loss of ($2.1) million, or ($0.05) per share, compared with a net loss of ($0.8) million, or ($0.02) per share, for the second quarter of 2024 and a net loss of ($4.9) million, or ($0.12) per share, for the third quarter of 2023.

STAR Market Listing Update

On January 10, 2022, AXT announced that Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), its subsidiary in Beijing, China, submitted to the Shanghai Stock Exchange (the “SSE”) its application to list its shares in an initial public offering (the “IPO”) on the SSE’s Sci-Tech innovAtion boaRd (the “STAR Market”) and the application was accepted for review. Subsequently, Tongmei responded to several rounds of questions received from the SSE. On July 12, 2022, the SSE approved the listing of Tongmei’s shares in an IPO on the STAR Market. On August 1, 2022, the China Securities Regulatory Commission (the “CSRC”) accepted for review Tongmei’s IPO application. The STAR Market IPO remains subject to review and approval by the CSRC and other authorities. The process of going public on the STAR Market includes several periods of review and, therefore, is a lengthy process. Subject to review and approval by the CSRC and other authorities, Tongmei hopes to accomplish this goal in the coming months. AXT has posted a brief summary of the plan and the process on its website at http://www.axt.com.

Conference Call

The company will host a conference call to discuss these results today at 1:30 p.m. PT. The conference call can be accessed at (800) 715-9871 (passcode 4378083). The call will also be simulcast at www.axt.com. Replays will be available at (800) 770-2030 (Playback ID: 4378083 followed by # key) until November 14, 2024. Financial and statistical information to be discussed in the call will be available on the company’s website immediately prior to commencement of the call. Additional investor information can be accessed at http://www.axt.com or by calling the company’s Investor Relations Department at (510) 438-4700.

About AXT, Inc.

AXT is a material science company that develops and manufactures high-performance compound and single element semiconductor wafer substrates comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). The company’s wafer substrates are used when a typical silicon wafer substrate cannot meet the performance requirements of a semiconductor or optoelectronic device. End markets include 5G infrastructure, data center connectivity (silicon photonics), passive optical networks, LED lighting, lasers, sensors, power amplifiers for wireless devices and satellite solar cells. AXT’s worldwide headquarters are in Fremont, California where the company maintains sales, administration and customer service functions. AXT has its Asia

AXT, Inc. Third Quarter 2024 Results
	October 31, 2024
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headquarters in Beijing, China and manufacturing facilities in three separate locations in China. In addition, as part of its supply chain strategy, the company has partial ownership in more than ten companies in China producing raw materials and consumables for its manufacturing process. For more information, see AXT’s website at http://www.axt.com.

Note Regarding Use of Non-GAAP Financial Measures

As discussed above, the company provides certain non-GAAP financial measures that exclude stock-based compensation in addition to, and not as a substitute for, or because it believes that such information is superior to, financial measures calculated in accordance with GAAP. The company believes that non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance and provide better comparability with our peer companies, many of which also use similar non-GAAP financial measures. Further, the company believes that these non-GAAP financial measures offer an important analytical tool to help investors understand the company’s core operating results and trends. In addition, management uses non-GAAP financial measures to compare the company’s performance relative to forecasts and strategic plans and to benchmark its performance externally against peer companies. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the company’s non-GAAP financial measures as tools for comparison. The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non‐GAAP information and the reconciliation between these presentations, to more fully understand its business. A reconciliation of our GAAP consolidated financial statements to our non-GAAP consolidated financial statements is provided below.

Forward-Looking Statements

The foregoing paragraphs contain forward-looking statements within the meaning of the Federal securities laws, including, for example, statements regarding the timing and completion of the proposed listing of shares of Tongmei on the STAR Market. Additional examples of forward-looking statements include statements regarding the market demand for our products, our product mix, our growth prospects and opportunities for continued business expansion, including trends, new applications and the ramping of Tier-1 customers, our market opportunity, our ability to lead our industry, our expectations with respect to our business prospects and financial results, including our gross margin performance, and our development of larger diameter substrates that we believe will enable the next generation of technology innovation across a number of end-markets. These forward-looking statements are based upon assumptions that are subject to uncertainties and factors relating to the company’s operations and business environment, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. These uncertainties and factors include but are not limited to: the requests for redemptions by private equity funds in China of investments in Tongmei, the administrative challenges in satisfying the requirements of various government

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	October 31, 2024
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agencies in China in connection with the listing of shares of Tongmei on the STAR Market, continued open access to companies to list shares on the STAR Market, investor enthusiasm for new listings of shares on the STAR Market and geopolitical tensions between China and the United States. Additional uncertainties and factors include, but are not limited to: the timing and receipt of significant orders; the cancellation of orders and return of product; emerging applications using chips or devices fabricated on our substrates; end-user acceptance of products containing chips or devices fabricated on our substrates; our ability to bring new products to market; product announcements by our competitors; the ability to control costs and improve efficiency; the ability to utilize our manufacturing capacity; product yields and their impact on gross margins; the relocation of manufacturing lines and ramping of production; possible factory shutdowns as a result of air pollution in China or COVID-19; COVID-19 or other outbreaks of a contagious disease; tariffs and other trade war issues; the financial performance of our partially owned supply chain companies; policies and regulations in China; and other factors as set forth in the company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q and other filings made with the Securities and Exchange Commission. Each of these factors is difficult to predict and many are beyond the company’s control. The company does not undertake any obligation to update any forward-looking statement, as a result of new information, future events or otherwise.

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FINANCIAL TABLES TO FOLLOW

AXT, Inc. Third Quarter 2024 Results
	October 31, 2024
	Page 5 of 7

AXT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenue	$	23,645	$	17,366	$	74,256	$	55,366
Cost of revenue		17,963		15,500		54,828		46,675
Gross profit		5,682		1,866		19,428		8,691
Operating expenses:
Selling, general and administrative		5,650		5,667		17,656		17,439
Research and development		3,438		2,926		10,410		9,261
Total operating expenses		9,088		8,593		28,066		26,700
Loss from operations		(3,406)		(6,727)		(8,638)		(18,009)
Interest expense, net		(391)		(381)		(1,022)		(1,143)
Equity in income of unconsolidated joint ventures		1,007		369		2,495		2,344
Other income, net		529		223		2,052		1,282
Loss before provision (benefit) for income taxes		(2,261)		(6,516)		(5,113)		(15,526)
Provision (benefit ) for income taxes		626		(101)		1,021		(92)
Net loss		(2,887)		(6,415)		(6,134)		(15,434)
Less: Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests		(50)		592		(402)		1,174
Net loss attributable to AXT, Inc.	$	(2,937)	$	(5,823)	$	(6,536)	$	(14,260)
Net loss attributable to AXT, Inc. per common share:
Basic	$	(0.07)	$	(0.14)	$	(0.15)	$	(0.34)
Diluted	$	(0.07)	$	(0.14)	$	(0.15)	$	(0.34)
Weighted-average number of common shares outstanding:
Basic		43,157		42,638		43,079		42,574
Diluted		43,157		42,638		43,079		42,574

AXT, Inc. Third Quarter 2024 Results
	October 31, 2024
	Page 6 of 7

AXT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	September 30,		December 31,
	2024		2023
ASSETS
Current assets:
Cash and cash equivalents	$	24,898	$	37,752
Restricted cash		13,893		12,362
Short-term investments		—		2,140
Accounts receivable, net		27,970		19,256
Inventories		86,109		86,503
Prepaid expenses and other current assets		14,991		12,643
Total current assets		167,861		170,656
Property, plant and equipment, net		166,459		166,348
Operating lease right-of-use assets		2,451		2,799
Other assets		18,809		18,898
Total assets	$	355,580	$	358,701
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	12,780	$	9,617
Accrued liabilities		11,941		19,019
Short-term loans		54,052		52,921
Total current liabilities		78,773		81,557
Noncurrent operating lease liabilities		1,993		2,351
Other long-term liabilities		8,595		5,647
Total liabilities		89,361		89,555
Redeemable noncontrolling interests		41,237		41,663
Stockholders’ equity:
Preferred stock		3,532		3,532
Common stock		45		44
Additional paid-in capital		240,770		238,452
Accumulated deficit		(38,576)		(32,040)
Accumulated other comprehensive loss		(5,038)		(5,999)
Total AXT, Inc. stockholders’ equity		200,733		203,989
Noncontrolling interests		24,249		23,494
Total stockholders’ equity		224,982		227,483
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$	355,580	$	358,701

AXT, Inc. Third Quarter 2024 Results
	October 31, 2024
	Page 7 of 7

AXT, INC.

Reconciliation of Statements of Operations Under GAAP and Non-GAAP

(Unaudited, in thousands)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
GAAP gross profit	$	5,682	$	1,866	$	19,428	$	8,691
Stock-based compensation expense		73		102		246		310
Non-GAAP gross profit	$	5,755	$	1,968	$	19,674	$	9,001
GAAP operating expenses	$	9,088	$	8,593	$	28,066	$	26,700
Stock-based compensation expense		747		789		2,098		2,408
Non-GAAP operating expenses	$	8,341	$	7,804	$	25,968	$	24,292
GAAP loss from operations	$	(3,406)	$	(6,727)	$	(8,638)	$	(18,009)
Stock-based compensation expense		820		891		2,344		2,718
Non-GAAP loss from operations	$	(2,586)	$	(5,836)	$	(6,294)	$	(15,291)
GAAP net loss	$	(2,937)	$	(5,823)	$	(6,536)	$	(14,260)
Stock-based compensation expense		820		891		2,344		2,718
Non-GAAP net loss	$	(2,117)	$	(4,932)	$	(4,192)	$	(11,542)
GAAP net loss per diluted share	$	(0.07)	$	(0.14)	$	(0.15)	$	(0.34)
Stock-based compensation expense per diluted share	$	0.02	$	0.02	$	0.05	$	0.06
Non-GAAP net loss per diluted share	$	(0.05)	$	(0.12)	$	(0.10)	$	(0.27)
Shares used to compute diluted net income per share		43,157		42,638		43,079		42,574