AmpliTech Group (NASDAQ:AMPG) expects at least $28 million in 2026 revenue, well below the $50 million target it withdrew in August, as customer deployment delays and production constraints slow the conversion of orders into sales.
On its third-quarter earnings call, the wireless technology company also said it will stop providing formal full-year revenue guidance beginning in 2027. Management cited the difficulty of predicting shipment and revenue-recognition timing in an industry affected by customer schedules and component availability.
Revenue Outlook Reset
Maqbool attributed the shortfall from the original 2026 target to supply chain constraints, technology transfer delays, extended customer evaluations, geopolitical developments and customer-directed deployment changes. He said the earlier forecast relied partly on customer shipment schedules that subsequently moved, while major orders arrived later than expected.
Chief Operating Officer Jorge Flores said the initial outlook also assumed follow-on orders would be received earlier in the year. He said AmpliTech did not lose orders or business, but customers pushed out scheduled deliveries.
The company reported $20 million in revenue for the first nine months of 2026, meaning its outlook of at least $28 million implies at least $8 million in fourth-quarter revenue. The revised expectation is based on current customer schedules, production plans and anticipated shipments, Flores said.
Starting in 2027, management plans to emphasize confirmed orders, backlog, production milestones, shipments and actual financial results rather than annual revenue projections. Maqbool said rising demand for electronic components used in AI-related infrastructure has contributed to higher costs and longer delivery times.
Orders and Production Readiness
AmpliTech received more than $17 million in customer purchase orders during the third quarter and recorded nearly $25 million in bookings in October, a company record, Maqbool said. Following the announced October orders, previously reported backlog exceeded $52 million.
October bookings included a $21.7 million follow-on order for 5G open radio access network, or O-RAN, radios supporting an Asian mobile network operator program. Maqbool said cumulative orders under that program reached approximately $34 million. The company also announced a $1.03 million follow-on order for low-noise amplifiers from a Fortune 1000 satellite communications customer.
Flores said AmpliTech received an additional $3 million in bookings from its Spectrum and AmpliTech Inc. divisions after its published booking reports. Management expects the backlog to be fulfilled over the remainder of 2026 and through 2027, but Flores cautioned that timing can change and did not provide a quarterly conversion commitment.
The company completed a dedicated production line after the quarter ended and expects initial shipments in the fourth quarter. Flores also said more than 3,000 AmpliTech radios had been deployed under a North American operator program with TELUS.
AmpliTech’s medium-power radio unit demonstrated interoperability with the open-source OCUDU software platform, Maqbool said. He added that the company completed qualification and onboarding to become an approved vendor to a major telecommunications infrastructure provider, allowing it to pursue larger opportunities with that customer.
Quarterly Loss Narrows
Third-quarter revenue rose 8% to $6.58 million from $6.09 million a year earlier, Chief Financial Officer Louisa Sanfratello said. Spectrum semiconductor materials distribution revenue increased 36.4% to $2.89 million, while manufacturing and engineering revenue declined to $3.70 million from $3.98 million.
Gross margin improved to 34.2% from 27.9% in the second quarter, with quarterly gross profit of $2.25 million. Flores said product mix contributed to the improvement but cautioned that margins can vary substantially and that the company was not presenting the third-quarter rate as a guaranteed floor.
Selling, general and administrative expenses rose to $3.38 million from $2.48 million a year earlier, reflecting higher corporate costs and increased spending on marketing, business development and security initiatives. Research and development expenses increased to $860,000 from $700,000.
The third-quarter net loss was $1.89 million, or $0.07 per share, compared with a $3.09 million loss in the preceding quarter. For the first nine months, the company reported a $6.50 million net loss and used $8.48 million in operating cash.
Liquidity Assessment
At September 30, AmpliTech had $19.48 million in cash and cash equivalents and $10.79 million in marketable securities, for a combined $30.27 million. Sanfratello said the improved liquidity primarily reflected equity financing in 2026, including approximately $20.11 million in net proceeds from the July closing of the Series A Rights.
Executives offered different assessments of how long existing resources would cover planned needs. Sanfratello said management believed the company could meet normal operating obligations and planned capital requirements for at least 12 months. Flores later said management believed it could meet those needs for the next 18 months, subject to business conditions and capital requirements.
About AmpliTech Group (NASDAQ:AMPG)
AmpliTech Group, Inc. (NASDAQ: AMPG) designs and manufactures radio-frequency (RF) and microwave components, subsystems, and related technologies. Its product portfolio includes low-noise amplifiers, power amplifiers, filters, antennas, and integrated RF solutions used to support high-frequency communications and signal-processing applications. The company serves markets including satellite communications, telecommunications, aerospace and defense, commercial wireless infrastructure, and emerging technologies such as 5G and quantum computing.
