AXT Inc's stock experienced a significant after-hours plunge of 5.46% following the release of its fourth quarter and fiscal year 2025 financial results.

The semiconductor wafer maker reported quarterly revenue of $23.041 million, which missed analyst consensus estimates of $25.175 million by 8.48% and represented an 8.22% decrease compared to the same period last year. While the company's adjusted earnings per share of $0.05 beat estimates, investors focused on the revenue shortfall and management's disclosure that they received fewer export permits than expected during the quarter.

Management indicated that export permit issues impacted Q4 results but noted they have received some permits in 2026 and expect sequential revenue growth in the first quarter, driven primarily by indium phosphide demand tied to AI infrastructure build-outs. The company also remains on track to double its indium phosphide manufacturing capacity in 2026.