AmpliTech Group (NASDAQ:AMPG) reported second-quarter 2026 revenue of approximately $8.1 million, up 51% sequentially from about $5.35 million in the first quarter, as the company continued to invest in 5G, telecom infrastructure, semiconductor and advanced communications opportunities.
Management characterized the quarter as an “investment quarter,” citing increased spending on customer-driven research and development, production readiness, supply-chain capacity, sales and marketing, cybersecurity, IT infrastructure and internal controls. The company said those investments contributed to wider operating and net losses but were intended to position it for larger customer programs and future operating leverage.
Margins Improve Year Over Year, Decline Sequentially
For the first six months of 2026, gross profit increased about 135% to $4.82 million, while gross margin rose to 35.9% from approximately 14% in the comparable 2025 period. First-half revenue was approximately 8% below the prior-year period, according to Chief Executive Officer Fawad Maqbool.
However, second-quarter gross margin declined from approximately 48% in the first quarter. Management attributed the sequential decline to customer and product mix, noting that individual orders can materially affect margins at the company’s current scale.
During the question-and-answer session, Maqbool said the Spectrum division contributed just over $4 million in revenue during the quarter and maintained gross margins in the mid-40% range. He described Spectrum as a distribution business selling standard parts, in contrast to AmpliTech’s engineering-focused divisions, which require ongoing research and development.
Expenses Rise as Company Builds Infrastructure
Second-quarter selling, general and administrative expense increased to approximately $4.08 million from $2.13 million a year earlier. Sanfratello cited higher parent-company costs, including amortization, legal fees and stock-based compensation, along with trade-show participation, business-development activity and consulting resources for the company’s 5G portfolio.
Research and development expense rose to approximately $1.37 million from about $659,000 in the prior-year quarter. Of the second-quarter R&D total, roughly $1.08 million was related to 5G development and approximately $297,000 related to MMIC design. The company said the increase included prototype, testing and consulting costs, as well as engineering support for customized customer requirements.
The investments resulted in an operating loss of approximately $3.2 million and a net loss of about $3.09 million for the quarter.
Management said certain elevated costs were tied to implementation, consulting, commercialization and customer-development initiatives, but it did not characterize all of the expenses as nonrecurring. The company expects operating expenses to grow more efficiently than revenue over time as it uses its expanded infrastructure across a larger revenue base.
Capital Position and Supply-Chain Preparation
At June 30, AmpliTech reported approximately $13 million in cash, cash equivalents and marketable securities; accounts receivable of approximately $6.3 million; and current assets of approximately $31.25 million. Working capital was approximately $22.9 million. Total liabilities declined to about $11.75 million from $18.62 million at Dec. 31, while stockholders’ equity increased to approximately $46.75 million.
Following the quarter end, the company’s Series A rights exercise generated approximately $21.92 million in gross proceeds and $20.12 million in net proceeds. Management said the additional liquidity was intended to support working-capital needs, inventory, production capacity, customer qualification, testing and larger commercial opportunities.
Chief Operating Officer Jorge Flores said long-term deposits totaled approximately $3.08 million at June 30, including about $2.47 million for dedicated production capacity. The company also made an additional $1.3 million in advance payments toward the dedicated production line during the first six months of the year.
Outlook: Company Does Not Reaffirm $50 Million Revenue Target
Management said it expects meaningful year-over-year growth and a stronger second half, but it declined to reaffirm its previously stated $50 million 2026 revenue outlook. Flores said the decision reflected shifts in anticipated volume-shipment timing, particularly within an international 5G program, rather than a change in the underlying customer opportunity.
The company said it received approximately $6 million in follow-on orders during July. Maqbool said a previously announced $76 million reseller letter of intent remains active, with final testing completed, but deployment and follow-on order timing depend on customer processes and adoption in individual countries.
Management also said it had not experienced cancellations of orders in backlog. Flores said AmpliTech would wait for better visibility into customer deployment schedules before providing another specific full-year revenue figure.
Looking ahead, Maqbool said the company’s priorities include converting engineering engagements into production orders, increasing higher-margin product contributions, expanding its customer base, completing customer-specific customization work and continuing to strengthen supply-chain, cybersecurity and internal-control capabilities.
About AmpliTech Group (NASDAQ:AMPG)
AmpliTech Group, Inc is a design, development and manufacturing company specializing in high-performance RF and microwave components and subsystems. Headquartered in Lancaster, Pennsylvania, the company focuses on delivering ruggedized solutions for demanding applications in defense, aerospace, satellite communications and industrial test and measurement. AmpliTech’s products are engineered to meet stringent military and commercial standards, making them well-suited for mission-critical environments.
The company’s product portfolio includes high-power amplifiers, low-noise amplifiers, filters, frequency converters and integrated assemblies.
