Amplitude's Q3 Loss Widens 42% Despite Strong Revenue Growth

Ticker: AMPL · Form: 10-Q · Filed: 2025-11-06T00:00:00.000Z

Sentiment: bearish

Topics: Software, SaaS, Digital Analytics, Earnings, Net Loss, Cash Flow, Growth Stock

Related Tickers: AMPL

TL;DR

**Amplitude's burning cash to fuel growth, and while revenue is up, the widening losses are a red flag for profitability-focused investors.**

AI Summary

Amplitude, Inc. reported a net loss of $23.986 million for the three months ended September 30, 2025, an increase from a net loss of $16.854 million in the same period of 2024, representing a 42.3% wider loss. Revenue grew to $88.564 million for the quarter, up 17.7% from $75.217 million in Q3 2024. For the nine months ended September 30, 2025, the net loss was $70.885 million, compared to $61.729 million in the prior year, a 14.8% increase in loss. Total revenue for the nine months reached $251.788 million, an increase of 13.8% from $221.141 million in the same period of 2024. Operating expenses increased significantly, with research and development rising to $26.612 million (up 39.8%) and sales and marketing to $48.306 million (up 18.2%) for the quarter. Cash and cash equivalents decreased substantially from $171.678 million at December 31, 2024, to $82.217 million at September 30, 2025. The company also repurchased $14.282 million of common stock during the nine months ended September 30, 2025.

Why It Matters

Amplitude's widening net loss, despite robust revenue growth, signals increased investment in R&D and sales, which could be a double-edged sword for investors. While the 17.7% quarterly revenue increase to $88.564 million shows strong market demand for its digital analytics platform, the 42.3% increase in net loss to $23.986 million raises concerns about profitability and cash burn. Competitors in the analytics space, like Google Analytics or Adobe Analytics, might capitalize on Amplitude's struggle to achieve profitability, potentially impacting its market share and long-term viability. Employees might face pressure to deliver on these investments, while customers could benefit from enhanced product features if R&D spending translates into innovation.

Risk Assessment

Risk Level: high — The risk level is high due to a significant increase in net loss and a substantial decrease in cash. The net loss for the three months ended September 30, 2025, widened by 42.3% to $23.986 million from $16.854 million in the prior year. Furthermore, cash and cash equivalents plummeted from $171.678 million at December 31, 2024, to $82.217 million at September 30, 2025, indicating a rapid depletion of liquid assets.

Analyst Insight

Investors should closely monitor Amplitude's next few quarters for signs of improved operating leverage and a path to profitability. Consider reducing exposure if cash burn continues at this rate without a clear strategy for sustainable positive cash flow, as the current trend is unsustainable.

Financial Highlights

revenue
$88.564M
total Assets
$438.124M
net Income
-$23.986M
gross Margin
73.95%
cash Position
$82.217M
revenue Growth
+17.7%

Key Numbers

Key Players & Entities

FAQ

What were Amplitude's revenues for the third quarter of 2025?

Amplitude, Inc. reported revenues of $88.564 million for the three months ended September 30, 2025, an increase from $75.217 million in the same period of 2024.

How much was Amplitude's net loss in Q3 2025?

Amplitude's net loss for the third quarter of 2025 was $23.986 million, which is a significant increase from the $16.854 million net loss reported in Q3 2024.

What is Amplitude's cash position as of September 30, 2025?

As of September 30, 2025, Amplitude, Inc. had cash and cash equivalents totaling $82.217 million, a substantial decrease from $171.678 million at December 31, 2024.

Did Amplitude's operating expenses increase in the latest quarter?

Yes, Amplitude's operating expenses increased, with research and development rising to $26.612 million (up 39.8%) and sales and marketing to $48.306 million (up 18.2%) for the three months ended September 30, 2025.

What are the key risks highlighted in Amplitude's 10-Q filing?

Key risks include a limited operating history with rapid growth, a history of losses, dependence on customer renewals and new customer acquisition, and expected fluctuations in financial results, making future projections difficult.

How has Amplitude's stock-based compensation changed?

Stock-based compensation expense for Amplitude was $70.218 million for the nine months ended September 30, 2025, an increase from $64.914 million in the same period of 2024.

What is Amplitude's strategy for growth, according to the filing?

Amplitude's forward-looking statements indicate a focus on acquiring new customers, increasing usage of its Digital Analytics Platform, upselling and cross-selling additional products, and driving growth by incorporating artificial intelligence and machine learning solutions.

How many shares of Class A common stock does Amplitude have outstanding?

As of November 3, 2025, Amplitude, Inc. had 103,610,139 shares of Class A common stock outstanding, each with a $0.00001 par value per share.

What impact do global events have on Amplitude's business?

Amplitude acknowledges that public health crises and other global events, such as the war in Ukraine and conflicts in the Middle East, could affect its business and the global economy generally, as stated in its forward-looking statements.

What is Amplitude's accumulated deficit as of September 30, 2025?

Amplitude's accumulated deficit as of September 30, 2025, was $528.734 million, an increase from $457.849 million at December 31, 2024, reflecting continued net losses.

Risk Factors

Industry Context

Amplitude operates in the rapidly evolving product analytics and data intelligence market. The industry is characterized by intense competition from established cloud providers and specialized analytics firms. Key trends include the increasing demand for real-time data insights, AI-driven analytics, and robust data governance capabilities to help businesses understand customer behavior and optimize product development.

Regulatory Implications

As a software-as-a-service (SaaS) provider, Amplitude must comply with various data privacy regulations such as GDPR and CCPA. Ensuring robust data security and transparent data handling practices is crucial to avoid potential fines and reputational damage. Changes in accounting standards for revenue recognition or stock-based compensation could also impact financial reporting.

What Investors Should Do

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Glossary

Accumulated deficit
The cumulative net losses of a company since its inception, minus any cumulative net income. (Indicates the company has historically incurred more expenses than revenues, resulting in a net loss over time. Amplitude's accumulated deficit was $(528,734) thousand as of September 30, 2025.)
Deferred revenue
Revenue that has been received by a company for goods or services that have not yet been delivered or rendered. (Represents future revenue that Amplitude has been paid for in advance. A significant increase in deferred revenue ($131,534 thousand as of Sept 30, 2025) can be a positive indicator of future revenue streams.)
Goodwill
An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (Represents the premium paid for acquisitions. Amplitude's goodwill was $25,181 thousand as of September 30, 2025, suggesting past acquisitions.)
Weighted-Average Shares Outstanding
The average number of outstanding shares of common stock over a period, adjusted for stock splits and dividends. (Used in the calculation of earnings per share (EPS). An increase in shares outstanding, as seen from 124,324 in Q3 2024 to 132,997 in Q3 2025, can dilute EPS if net income does not grow proportionally.)

Year-Over-Year Comparison

Compared to the prior year, Amplitude's Q3 2025 revenue grew by 17.7% to $88.564 million, a healthy increase. However, this revenue growth was outpaced by a 42.3% wider net loss of $23.986 million. Operating expenses, particularly R&D (up 39.8%) and Sales & Marketing (up 18.2%), saw significant increases. The company's cash position has drastically reduced by 52.0% from $171.678 million at the end of 2024 to $82.217 million, indicating a substantial increase in cash burn. No new significant risk factors were highlighted in this filing compared to the general themes of competition and execution risk.

Filing Stats: 4,430 words · 18 min read · ~15 pages · Grade level 19.3 · Accepted 2025-11-05 19:17:05

Key Financial Figures

Filing Documents

Financial Statements (Unaudited)

Financial Statements (Unaudited) 6 Condensed Consolidated Balance Sheets 6 Condensed Consolidated Statements of Operations and Comprehensive Loss 7 Condensed Consolidated Statements of Stockholders' Equity 8 Condensed Consolidated Statements of Cash Flows 10 Notes to Condensed Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 4.

Controls and Procedures

Controls and Procedures 40 PART II. OTHER INFORMATION 41 Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71 Item 3. Defaults Upon Senior Securities 72 Item 4. Mine Safety Disclosures 72 Item 5. Other Information 72 Item 6. Exhibits 73

Signatures

Signatures 74 2 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential," or "continue," or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to statements about: our expectations regarding our revenue, expenses, and other operating results; our ability to acquire new customers; our ability to increase usage of our Digital Analytics Platform and upsell and cross-sell additional products; our ability to achieve or sustain profitability; future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements; the costs and success of our sales and marketing efforts, including our ability to grow and maintain our channel partners, and our ability to promote our brand; the effects of public health crises and other global events, such as the war in Ukraine and the conflicts in the Middle East, on our business and the global economy generally; our reliance on key personnel and our ability to identify, recruit, and retain skilled personnel; our ability to drive growth by incorporating a

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

. Financial Statements

Item 1 . Financial Statements AMPLITUDE, INC. Condensed Consolidated Balance Sheets (In thousands, except per share amounts) (unaudited) As of September 30, 2025 As of December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 82,217 $ 171,678 Restricted cash, current 891 881 Marketable securities, current 106,983 69,419 Accounts receivable, net of allowance for doubtful accounts of $ 1,439 and $ 1,417 as of September 30, 2025 and December 31, 2024, respectively 34,790 26,346 Prepaid expenses and other current assets 23,641 20,353 Deferred commissions, current 17,255 14,954 Total current assets 265,777 303,631 Marketable securities, noncurrent 78,150 57,242 Property and equipment, net 17,786 16,333 Intangible assets, net 6,822 4,364 Goodwill 25,181 24,370 Deferred commissions, noncurrent 32,382 27,697 Operating lease right-of-use assets 3,976 5,286 Other noncurrent assets 8,050 6,988 Total assets $ 438,124 $ 445,911 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 5,528 $ 991 Accrued expenses 33,729 33,851 Deferred revenue 131,534 109,671 Total current liabilities 170,791 144,513 Operating lease liabilities, noncurrent 1,767 1,772 Noncurrent liabilities 3,338 3,070 Total liabilities 175,896 149,355 Commitments and contingencies (Note 9) Stockholders' equity: Preferred stock, $ 0.00001 par value per share; 20,000 shares authorized as of September 30, 2025 and December 31, 2024; zero shares issued and outstanding as of September 30, 2025 and December 31, 2024 — — Class A common stock, $ 0.00001 par value per share; 600,000 shares authorized as of September 30, 2025 and December 31, 2024; 103,629 and 96,095 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 1 1 Class B common stock, $ 0.00001 par value per

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