AmpliTech Group (NASDAQ:AMPG) reported sharply higher first-quarter 2026 revenue and wider gross margins, while management said it remains confident in the company’s full-year revenue outlook despite potential timing risks tied to supply chains, customer deployments and geopolitical factors.
On the company’s quarterly investor update call, CEO, CTO and Board Chair Fawad Maqbool said the quarter reflected “meaningful progress” across the business, including year-over-year revenue growth, a stronger balance sheet and continued movement of key technologies from development into commercial deployment.
“What is important to note here is the trend towards reducing the losses and expanding gross margins as promised,” Maqbool said. He added that AmpliTech’s investments in 5G O-RAN radio technologies, MMIC design capabilities and advanced RF systems are beginning to contribute more meaningfully to operating performance.
Revenue rises 48.6% as gross margin expands
CFO Louisa Sanfratello said first-quarter revenue increased 48.6% year over year to $5.35 million, compared with $3.6 million in the first quarter of 2025. Gross profit rose 116.1% to $2.57 million from $1.19 million a year earlier.
Gross margin improved to 48%, compared with 33% in the prior-year period. Sanfratello repeated the margin figure during the call, emphasizing the scale of the improvement.
Manufacturing and engineering segment revenue increased to $3.28 million from $0.99 million in the prior-year quarter. Net loss improved 17.3% year over year to $1.52 million.
Sanfratello said AmpliTech ended March 31, 2026, with approximately $18.4 million in cash, cash equivalents and marketable securities. Working capital improved to approximately $25.4 million from $10.2 million at Dec. 31, 2025, while the current ratio rose to 4.25 from 1.68. Total stockholders’ equity was approximately $48.4 million, and Sanfratello said the company remains debt free.
During the quarter, AmpliTech completed a rights offering and a registered direct offering, generating aggregate net proceeds of more than $16 million to support growth initiatives, working capital needs and operational expansion.
Management maintains full-year outlook, expects back-half weighting
Management said it is not changing full-year revenue guidance, though Maqbool and COO Jorge Flores both cautioned that shipment timing and revenue recognition could be affected by external conditions.
Maqbool said AmpliTech continues to monitor geopolitical tensions, fuel and logistics cost volatility, potential disruptions in international shipping lanes and broader supply chain constraints. He also pointed to heightened demand across parts of the semiconductor ecosystem, including memory and related components, driven by AI, data center and high-performance computing demand.
“At this time, we are not changing our full-year revenue guidance,” Maqbool said. However, he said AmpliTech currently expects its revenue profile for the year to be more heavily weighted toward later quarters.
In response to a question from Jack Vander of Maxim Group, who referenced a $50 million full-year revenue outlook, Flores said the company started April “very nicely” and had resumed shipments tied to its previously announced $40 million letter of intent with a North American mobile network operator. Flores said the company continues to receive orders against that LOI and that the supply chain is “prime and ready to go.”
Asked whether second-quarter revenue could be flat or down from the first quarter, Flores said, “No, definitely not,” adding that AmpliTech is projecting the second quarter to be “definitely much higher than Q1.”
Backlog, LOIs and O-RAN demand remain key focus areas
Maqbool said AmpliTech continues to receive orders related to the $40 million LOI, for which shipments resumed in April. He also said the company’s distribution business is seeing stronger demand and is contributing to more than $20 million in backlog orders.
During the Q&A, Flores said a “very high percentage” of sales from AmpliTech’s 5G division in the first quarter were attributed to the $40 million LOI. When Vander suggested the amount could be between $2 million and $3 million, Flores said it was “a little bit more than that.”
Maqbool also discussed a larger LOI in excess of $70 million, saying the company expects activity later this year, depending on the customer’s ability to deploy initial quantities in the field. He said deployment has slowed somewhat because of several factors, including broader global conditions discussed earlier on the call.
Management also indicated that discussions with other major mobile network operators are progressing. Maqbool said some potential new customer activity may move directly to purchase orders rather than LOIs, with announcements possible in the next quarter or in a “relatively short period of time,” though he did not provide specific customer names or order amounts.
Certifications and MWC Barcelona support commercial strategy
AmpliTech highlighted progress with its O-RAN 64T64R massive MIMO radio unit. Maqbool said the company achieved additional certifications for the flagship radio and said those certifications help reduce perceived deployment risk for mobile network operators evaluating open, multi-vendor network environments.
Flores said certification and validation work helps move customer conversations from whether the technology can work to how it can be evaluated and deployed at scale. He said the certifications provide third-party validation tied to Open RAN conformance, interoperability and performance expectations.
Management also pointed to the company’s participation at MWC Barcelona as an important business development event. Maqbool said the conference placed AmpliTech in front of global mobile operators, OEMs, infrastructure providers, technology partners and potential customers at a time when the industry is moving toward Open RAN, private 5G, AI-enabled networks and future 6G architectures.
SG&A expenses rise with first-quarter costs and trade show spending
Sanfratello said selling, general and administrative expenses typically rise in the first quarter because of audit costs, D&O insurance, Nasdaq fees and related items. She also noted stock compensation expense, approximately $180,000 in trade show costs and the hiring of a new marketing company to support sales expansion and outreach.
Asked about margin sustainability, Maqbool said management believes margins can expand further as revenue scales. He said earlier investments tied to initial deployments with large mobile network operators helped establish AmpliTech as a provider of advanced radios and that those investments are largely behind the company.
Maqbool closed the call by saying AmpliTech plans to update investors on second-quarter results in August.
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.
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