AmpliTech AMPG Q3 2025 Earnings Call Transcript

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Call participants

• Chief Executive Officer — Fawad Maqbool
• Chief Operating Officer — Jorge Flores

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Takeaways

• Revenue — $6.1 million in fiscal Q3 2025, representing a 115% increase year-over-year, with management explicitly noting nine-month revenue of $20.7 million for the period ending September 30, 2025, up 171% year-over-year.
• Gross margin — 48.6% in fiscal Q3 2025, up from 47.5% in fiscal Q3 2024 and up about 40% from fiscal Q2 2025 gross margin.
• EBITDA — Positive near $200,000 in fiscal Q3 2025, indicating significant operating improvement.
• Net loss — Reduced to $188,000 from $1.19 million, reflecting substantial narrowing of losses.
• Cash and receivables — Totaling nearly $12 million, with zero long-term debt and $14 million in working capital at period end.
• Product and R&D investment — R&D spending increased 60%, targeting MIMO, P64 ORAN radios, private 5G networks, and cryogenic amplifier platforms for quantum applications.
• 5G/ORAN integration — “Integration of ORAN IP portfolio positions AmpliTech Group (AMPG 3.19%) as a US-based vertically integrated supplier for next-generation open RAN 5G radios and private network deployment.”
• Rights offering — Announced a shareholder-friendly unit rights offering at $4 per unit, each containing one share and two short-term rights, with rights transferable on the market.
• 2025 guidance — Increased revenue guidance to at least $25 million, with management stating this “representing a 160% year-over-year increase.”
• Profitability outlook — Management projects positive cash flow from operations and profitability in fiscal 2026, assuming continuation of current order volume and margin recovery.
• Future orders — Company expects follow-on orders from two publicly announced LOIs imminently and new customer orders in 2026.
• 2026 revenue forecast — Provided outlook for at least $50 million in revenue, doubling the baseline 2025 target, based on ongoing customer forecasts.
• Margin prospects — COO Jorge Flores stated, “we are going to be able to achieve double-digit gross margins on on every of our products right now.”
• Growth target — Management reiterated a 25%-30% annual growth target through 2030, citing LOIs with minimum quantity requirements and defined pricing.
• Capital use — Outlined five areas for rights offering proceeds: production scaling, certifications, product roadmap/encryption, go-to-market expansion, and strategic flexibility for M&A or joint ventures.

Summary

Record-setting growth in both revenue and gross margin highlights improved execution and demand for AmpliTech Group 5G and ORAN product lines. Management detailed a $4 rights offering that is transferable and accessible to all shareholders, with proceeds explicitly allocated toward accelerating revenue and capacity. New product development and certification expansion are emphasized as near-term growth catalysts, underpinned by substantial forecast demand from existing and potential customers. Longer-term revenue expectations of $50 million for fiscal 2026 and annual growth rates of 25%-30% through the decade are directly tied to continued customer commitments and pipeline visibility.

• Management highlighted zero long-term debt and a focus on non-dilutive, balance-sheet-friendly capital raises to preserve shareholder value.
• Discussion of ORAN customer LOIs described them as “not binding” but “predetermined price set up with these minimum quantities and specific delivery requirements,” emphasizing high forecast confidence.
• The COO deferred segment gross margin disclosure for competitive reasons but confirmed consistent double-digit margins across products.
• Growth prospects are reinforced by repeat order visibility, the shift to higher-margin product mix, and anticipated operational leverage as production scales.

Industry glossary

• ORAN: Open Radio Access Network — a modular, standards-based approach enabling interoperability and open interfaces among network equipment vendors in 5G infrastructure.
• LOI: Letter of Intent — a document outlining agreed-upon terms for prospective business transactions; in this case, relating to forecasted orders for 5G ORAN products.
• MIMO: Multiple-Input, Multiple-Output — an advanced wireless technology using multiple transmitters and receivers to improve communication performance and throughput.
• P64: Product reference for a 64-port MIMO open RAN radio platform, used in next-generation wireless infrastructure.
• FWP: Free Writing Prospectus — a disclosure filed with the SEC providing details about a securities offering outside of the formal prospectus.
• CE/ISED: CE is a European product certification marking; ISED is Innovation, Science, and Economic Development Canada marking, required for market access and compliance in respective regions.

Full Conference Call Transcript

Fawad Maqbool: Ladies and gentlemen, good morning, and thank you for joining our Q3 2025 review call. Today, we will reflect on our record performance in 2025 and the nine-month period ending September 30, 2025. We will take the opportunity to discuss the company’s growth outlook, market opportunities, and provide additional financial guidance. Let’s start with the Q3 2025 highlights and strategic progress. Quarterly revenue was $6,090,000, a 115% increase compared to $2,830,000 in Q3 2024. Gross profit more than doubled to $2,960,000, representing a 48.6% gross margin, up from 47.5% in the prior year period. Up about 40% from Q2 2025 gross margin. EBITDA positive of nearly $200,000, reflecting substantial improvement in operating performance and margin expansion.

Net loss significantly narrowed to $188,000 compared to a net loss of $1,190,000 in Q3 2024. Cash, cash equivalents, and accounts receivable of nearly $12,000,000 with zero long-term debt working capital of $14,000,000 as of September 30, 2025. Now the nine-month highlights. Year to date, 2025. Overall, nine months company’s record revenues surged 171% year to date to $20,700,000 compared to $7,700,000 in the same period last year. Net loss reduced by nearly 50% improving from $7,400,000 in 2024 to $3,800,000 in 2025. The growth driven by successful integration of Apple 5G ORAN technology and strong momentum in low noise amplifiers, low noise blocks, and 5G infrastructure systems.

This is not just 5G ORAN, it’s true 5G, and we are 5G. Continued investment in R&D up 60% supporting the new product development in MIMO, 64 P64 ORAN radios, private 5G network systems, and cryogenic amplifier platforms for quantum applications. Now this isn’t just random R&D. It’s strategically focused on what the world needs. Billion and trillion dollar market. Operational and financial highlights. Integration of ORAN IP portfolio positions AmpliTech Group, Inc. as a US-based vertically integrated supplier for next-generation open RAN 5G radios and private network deployment. Our third quarter shows to be an EBITDA positive quarter. Achieved through disciplined expense control, operational efficiency, and growth in high margin segments.

This is a clear signal we are turning the corner and getting close to achieving profitability. Price offering announced earlier. It’s an above-market price, shareholder-friendly rights offering priced at $4 per unit, providing growth capital for scaling ORAN product lines and expanding domestic production. We are going to go deeper into that a little bit later. But now I give some outlook and forward guidance. The company increased revenue guidance to at least $25,000,000 fiscal year 2025, representing a 160% year-over-year increase over fiscal year 2024, beating the street estimates. We anticipate double-digit gross margins in Q4 2025 and 2026. As production costs normalize, one-time costs are reduced and higher margin follow-on business ramps up.

We project positive cash flow from operations and profitability to be achieved in fiscal year 2026. Assuming simulation of current order pace and margin recovery. Company expects to receive follow-on orders from both public announced LOIs, imminently. As well as orders from new customers in 2026. Assuming continuation of the current order pace and based on forecast information received by the company, fiscal year 2026 revenue will be at least $50,000,000, effectively doubling that of projected record fiscal year 2025 of at least $25,000,000. What you have all said, I would like to focus on our current right offering effort. Because I am sure many people are confused. AmpliTech Group, Inc. has an effective form S-3 based perspective.

Perspective from which it intends to offer these securities registered with the Securities Exchange Commission. For a proposed rights offering in which the class distribute to a, stockholders and b, certain warrant holders to transferable unit rights. To purchase up to the maximum of 8,000,000 units. At $4 per unit. Each unit will consist of one share of common stock. The common shares, and two short-term rights to purchase additional common shares. These are rights short-term rights, not warrants.

Under the rights offering, each stockholder and certain warrant holders as of the record date will receive as a dividend at no charge two unit rights for each common share each common share subject to a warrant owned on the record date. The distribution of the unit rights will occur on or around the record date. The record date for the distribution of the unit rights the expiration date for the unit rights, and related short-term rights, and related pricing information will be included in the final perspective. Holders who fully exercise their unit rights will be entitled to oversubscribe for additional units. If available.

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