AXT INC's revenue ballooned from $20M in 2023 to nearly $100M in 2024, fueled by increased demand for indium phosphide, gallium arsenide, and germanium wafers largely in Asia-Pacific markets. Despite this top-line surge, the company struggled with operating losses worsening to -$22M in 2025 amid rising raw material costs, trade tariffs, and environmental shutdowns in China. Geopolitical tensions have complicated export controls and operational flexibility. To address capacity constraints and market growth opportunities, AXTI raised $93.9M in late 2025 to scale its Tongmei subsidiary’s indium phosphide wafer output. Its proprietary Vertical Gradient Freeze (VGF) technology and integrated supply chain contribute to competitive positioning but require careful navigation of regulatory risks. Financially, liquidity improved significantly post-offering, yet negative free cash flow and a negative ROE highlight ongoing challenges.