AXT INC Segments Disclosure

Note 14. Segment Information and Foreign Operations

 

Segment Information

 

We operate in one segment for the design, development, manufacture and distribution of high-performance compound and single element semiconductor substrates and sale of raw materials integral to these substrates. In accordance with ASC Topic 280, Segment Reporting, our chief operating decision-maker (“CODM”) has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the Company. Since we operate in one segment, all financial segment and product line information can be found in the consolidated financial statements. The CODM regularly evaluates consolidated net income (loss) and functional expenses, including cost of revenue, selling, general and administrative and research and development, to manage Company operations. No additional disaggregated expense categories are presented beyond those already disclosed in the primary financial statements.

 

Product Information

 

The following table represents revenue amounts (in thousands) by product type:

 

		December 31,
		2025				2024				2023
Product Type:
Substrates		$	58,900			$	67,748			$	47,466
Raw materials and others			29,426				31,613				28,329
Total		$	88,326			$	99,361			$	75,795

 

Geographical Information

 

The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region:

 

		Year Ended
		December 31,
		2025				2024				2023
Geographical region:
China		$	55,076			$	56,119			$	39,778
Taiwan			13,039				14,098				8,651
Japan			4,906				4,979				4,641
Asia Pacific (excluding China, Taiwan and Japan)			2,441				2,818				3,814
Europe (primarily Germany)			11,156				13,766				12,315
North America (primarily the United States)			1,708				7,581				6,596
Total		$	88,326			$	99,361			$	75,795

 

Long- lived assets consist primarily of property, plant and equipment, and operating lease right-of-use assets are attributed to the geographic location in which they are located. Long-lived assets, net of depreciation, by geographic region were as follows (in thousands):

 

		As of December 31,
		2025				2024
Long-lived assets by geographic region, net of depreciation:
North America		$	1,040			$	1,353
China			162,802				160,847
		$	163,842			$	162,200