This article first appeared on GuruFocus .
Release Date: August 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sequential revenue growth of approximately 51% in Q2 2026, reaching $8.1 million.
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Gross profit increased 161% year-over-year, with gross margin expanding from 7.8% to 27.9%.
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First half 2026 gross profit up 135% and gross margin improved to 35.9% from 14%.
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Strengthened balance sheet with $13 million in cash and marketable securities, and $22.9 million working capital.
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Received $6 million in follow-on orders in July 2026, indicating continued customer demand.
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Strategic investments in R&D, supply chain, and cybersecurity to support larger customers and future growth.
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Participation in AI-RAN Alliance and O-RAN certification positions company for advanced 5G opportunities.
Negative Points
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Year-over-year revenue declined due to absence of lower-margin Titan asset sales.
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Sequential gross margin decreased from 48% in Q1 to 28% in Q2 due to product mix.
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Operating expenses increased significantly, leading to an operating loss of $3.2 million and net loss of $3.09 million.
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Company declined to reaffirm $50 million revenue guidance due to timing shifts in customer deployments.
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R&D expenses more than doubled year-over-year, impacting near-term profitability.
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Quantum computing market remains static with slow adoption, limiting growth in that segment.
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Customer deployment delays, particularly in international 5G programs, create uncertainty in revenue timing.
Q & A Highlights
Q: Can you confirm if the previously announced $50 million revenue guidance for 2026 is still on pace, and why did the company not reaffirm it? A: CEO Fawad Maqbool and COO George Flores explained that the company is not reaffirming the $50 million figure due to a shift in the timing of certain anticipated volume shipments, particularly within one international 5G program. They emphasized this is a timing issue, not a change in the underlying customer opportunity, and that no orders have been cancelled. They expect meaningful year-over-year revenue growth and a stronger second half, but believe it is prudent to wait for better visibility before providing a specific number.
Q: Why did gross margin decline sequentially from Q1 to Q2, and what should investors expect for the second half of the year? A: CFO Luisa Santillo and CEO Fawad Maqbool attributed the sequential decline to product mix and the current stage of commercialization, noting that individual customer programs can significantly affect quarterly margins. They highlighted that first-half gross margin improved to 35.9% from 14% year-over-year, and gross profit increased 135%. Management expects higher-margin orders in the second half as larger 5G programs progress, which should help smooth out quarterly lumpiness.
Q: Why did operating expenses increase so significantly in Q2, and are these expenses non-recurring? A: COO George Flores explained that the increase was due to higher amortization, legal fees, stock-based compensation, marketing, trade shows, and consulting for the 5G portfolio. He clarified that while not all expenses are non-recurring, certain costs were elevated due to specific implementation, development, and commercialization initiatives. The company is building infrastructure now to leverage over a larger future revenue base, with the objective of increasing revenue faster than expenses.
Q: Why was it necessary to raise additional capital through the Series A rights exercise? A: CFO Luisa Santillo stated that financial strength is increasingly important when dealing with larger MNOs and telecom infrastructure providers, who need confidence in a supplier's financial resources, manufacturing capability, and supply chain resilience. The exercise generated approximately $20.12 million in net proceeds, which management views not just as cash on the balance sheet but as a commercial capability to support larger opportunities and working capital requirements.
Q: Can you provide color on the Spectrum division's strong performance and the overall segment gross margin differences? A: COO George Flores noted that the Spectrum division performed better than expected, with stable mid-40% gross margins and increased demand. CEO Fawad Maqbool added that Spectrum is a distribution business with stable margins, while the engineering-focused divisions (AmpliTech and 5G) require continuous R&D investment, which impacts overall margins. The mix will shift toward higher profitability as the 5G business scales.
Q: Is the $76 million LOI with the reseller still active, and are there any incremental testing or certification requirements before orders roll in? A: CEO Fawad Maqbool confirmed the LOI is still active and that final testing is complete. He attributed delays to bureaucracy in Asian countries and the adoption process. The technology has been proven, and the company has already exceeded the original $40 million LOI with the same customer. Management expects customers to move directly to purchase orders, with new announcements expected in the coming months.
Q: Can you elaborate on the company's involvement with the AI-RAN Alliance and the relationship with NVIDIA? A: CEO Fawad Maqbool explained that the AI-RAN Alliance includes major players like AT&T, Verizon, and NVIDIA, and focuses on ensuring hardware has AI interoperability. AmpliTech is the only company with AI-RAN-enabled radios, which positions them ahead of competitors. Regarding NVIDIA, he clarified that while NVIDIA's Aerial layer is used in their radios, there is no direct contractual relationship, so the company cannot officially mention NVIDIA in press releases.
Q: What was the impact of the Titan acquisition amendment on the first half of the year and the back half? A: CEO Fawad Maqbool stated that the amendment negotiated away penalties for late delivery of parts. The delay was due to re-engineering the IP to be more feasible for customers. The asset transfer is now 99% complete, and productionized versions are ready to ship, with orders already in hand. Shipments are expected to begin towards the end of the year or early next year, with a press release detailing the amendment to be issued the following day.
Q: How should investors think about the recurring SG&A run rate versus one-time expenditures? A: CEO Fawad Maqbool explained that SG&A is connected to revenue, and as revenues grow to $50 million or $100 million, SG&A as a percentage of revenue will drop because expenses are relatively fixed. The current high SG&A is due to investments made ahead of revenue growth, and once revenue catches up, operating leverage will improve.
Q: Has customer engagement related to quantum computing increased over the past year? A: CEO Fawad Maqbool noted that quantum computing adoption has been slow and remains a static business. He believes AI will eventually drive the need for quantum computing, but currently, it is not a productionized market. AmpliTech has sold low-noise amplifiers capable of operating at 4 Kelvins into quantum computing systems for R&D, but does not expect tremendous growth in the quantum component area in the near term.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
