Forensic Analysis · Semiconductors · as of Sep 25, 2026
Axt Inc (AXTI)
A forensic read on Axt Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Safe
Financial health
14.1
Distress distance
Clean
Earnings quality
3
Forensic signals
1095.8
P / E (ttm)
-7.8%
ROE
$4.8B
Market cap
0.00%
Dividend yield
-11.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Axt Inc earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 14.1, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-7.6%
FY2025
Return on invested capital.Return on invested capital is -7.6% in the latest fiscal year and slipping across FY2023–FY2025 from -5.8%. After-tax operating profit was ($17M) in FY2023 and ($17M) in FY2025, with operating income at -28.5% of revenue in FY2023, -14.9% in FY2024 and -24.9% in FY2025. The capital base behind it came down -22% across FY2023–FY2025, from $292M to $227M, so this is a return struck on a smaller base rather than a record of money put to work. $23M of the $227M base at FY2025 is construction in progress (10.3%) — paid for, not yet in service, and so in the denominator of this return while it cannot be in the profit above it.
+1.5%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +3% over the last 2 years to FY2025 (+1.5%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.5% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~3%.
111d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 94 to 111 days FY2024→FY2025 (receivables +5% vs revenue -11%). Receivables are creeping up relative to sales. Across FY2023–FY2025 the day count ran 93 → 94 → 111 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2024's opening balance is on file, but across the 3 fiscal years read here (FY2023–FY2025) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.
Key fundamentals
Latest Revenue$88.3M
Revenue Growth YoY-11.1%
Revenue CAGR (2yr)+7.9%
Net Margin-24.1%
Free Cash Flow-$18.8M
Return on Equity-7.8%
Debt / Equity0.02x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Axt Inc's actual 10-K/10-Q/8-K filings?