AmpliTech Group, Inc. (AMPG) — Fundamental Analysis
Snapshot & Big Picture
AmpliTech Group, Inc. (Nasdaq: AMPG) is a small-cap company focused on the design and manufacture of radio-frequency (RF) amplifiers and related components, serving aerospace, defense, satellite, and telecommunications markets. Over the past decade the company has grown from a sub-$2 million revenue operation into one approaching $25 million annually — but that growth has been lumpy, and sustained profitability has proven elusive. The fiscal year 2022 acquisition of Spectrum Semiconductor Materials meaningfully expanded revenues, and the most recent full year (FY 2025) showed a sharp revenue recovery after a difficult FY 2024, though losses remain a defining characteristic of the business at this stage.
| Fiscal Year | Revenue | Gross Margin | Operating Margin | Net Margin | Current Ratio |
|---|---|---|---|---|---|
| 2025 | $25,195,930 | 23.9% | -29.1% | -27.8% | 1.68 |
| 2024 | $9,508,372 | 36.7% | -88.7% | -118.2% | 18.45 |
| 2023 | $15,584,577 | 46.7% | -16.5% | -15.8% | 11.44 |
| 2022 | $19,394,492 | 46.0% | 0.8% | -3.5% | 5.52 |
| 2021 | $5,275,434 | 24.5% | -96.8% | -90.2% | 6.36 |
| 2020 | $3,458,081 | 36.3% | -26.5% | -29.7% | 2.13 |
| 2019 | $3,122,630 | 50.1% | 2.6% | 0.2% | 3.60 |
| 2018 | $2,397,418 | 57.6% | 14.2% | 13.7% | 3.21 |
| 2017 | $1,380,743 | 52.7% | -6.5% | -7.0% | 3.66 |
| 2016 | $2,036,443 | 59.4% | 23.2% | 22.4% | 3.78 |
| 2015 | $1,484,793 | 49.4% | 5.8% | 3.4% | 1.13 |
Latest Quarter Snapshot (Q1 2026, period ending March 31, 2026)
The most recent data available — more current than the annual figures — comes from the 10-Q filed May 13, 2026, covering the quarter ended March 31, 2026. This quarter represents an encouraging signal: revenue came in at $5,349,446, and gross margin rebounded to 48.0%, the highest level in several years and well above the depressed FY 2025 full-year gross margin of 23.9%. The operating margin was -30.3% and the net margin was -28.4%, showing persistent losses, but the gross margin recovery suggests the product mix or volume leverage may be improving.
| Metric | Q1 2026 (Mar 31, 2026) |
|---|---|
| Revenue | $5,349,446 |
| Gross Margin | 48.0% |
| Operating Margin | -30.3% |
| Net Margin | -28.4% |
| EBITDA | -$1,086,724 |
| Current Ratio | 4.25 |
| Debt-to-Equity | 0.024 |
| Capital Expenditures | $361,045 |
| CapEx-to-Revenue | 6.7% |
Profitability
AmpliTech's profitability history is volatile. The pre-acquisition era (2015–2019) actually included some genuinely profitable years — FY 2016 and FY 2018 delivered double-digit net margins, and FY 2019 was modestly profitable. These years reflected a lean, higher-margin RF amplifier business. The dramatic shift came with rapid scaling: the FY 2021 Nasdaq uplisting and capital raises, followed by the FY 2022 acquisition of Spectrum Semiconductor, ballooned the cost structure. FY 2022 was the closest the larger company came to operating breakeven (operating margin of +0.8%), but that was short-lived.
FY 2023 and FY 2024 saw significant revenue declines from the FY 2022 peak, with FY 2024 being particularly painful — revenue collapsed to just $9.5 million while losses widened substantially, producing a net margin of -118%. FY 2025 shows a sharp revenue recovery to $25.2 million, but gross margin compressed to 23.9% from 46%+ in prior years, suggesting unfavorable product mix or cost pressures at higher volumes. The Q1 2026 gross margin of 48% is a potentially meaningful reversal worth watching in future quarters.
EBITDA has been negative in most years, with only FY 2016, FY 2018, FY 2019, and FY 2022 generating positive EBITDA. The path to sustained profitability requires both revenue scale and margin discipline — neither has been consistently achieved together.
Financial Health
Liquidity: The current ratio has generally been comfortable, reflecting periodic equity raises that left the company with meaningful cash cushions. The FY 2024 current ratio of 18.45 was unusually high — likely the result of a significant capital raise relative to current liabilities at a time of low revenue. By FY 2025 it had normalized to 1.68, which is still above 1.0 but a notable compression. The Q1 2026 reading of 4.25 suggests some liquidity recovery.
Leverage: Debt-to-equity has been minimal or not reportable across most periods. FY 2020 showed a D/E of 3.64, FY 2019 was 1.37, and FY 2022 and 2023 showed near-zero readings. FY 2024 and FY 2021 had no reportable debt-to-equity (null in the filings). Q1 2026 shows a very low D/E of 0.024, meaning the company is not meaningfully leveraged — it has funded operations primarily through equity, which dilutes shareholders but avoids balance sheet stress.
Capital Expenditures: CapEx has been variable but generally modest in absolute dollar terms for a company of this size. FY 2015 CapEx was not available in that filing. FY 2016 through FY 2019 saw very low CapEx ($5K–$14K range), consistent with an asset-light RF design operation. FY 2021 saw a spike to $1,063,676 (20.2% of revenue) as the company invested ahead of its expansion phase. FY 2022 and FY 2023 CapEx was in the $735K–$973K range (3.8%–6.2% of revenue), reflecting continued reinvestment. FY 2024 dropped sharply to just $42,920 (0.5% of revenue), possibly reflecting a deliberate pullback during the revenue trough. FY 2025 rebounded to $1,015,710 (4.0% of revenue). Q1 2026 CapEx of $361,045 (6.7% of revenue annualized) suggests investment activity is picking up again. Overall, capital intensity is moderate and appears to track business momentum — rising when the company is growing or investing in new capacity, falling during downturns.
Growth
Revenue has grown substantially from the company's early years, but the path has been far from linear. The table below shows trailing revenue CAGRs over three time horizons, as derived directly from SEC filing data.
| CAGR Window | Start Fiscal Year | End Fiscal Year | Start Revenue | End Revenue | CAGR |
|---|---|---|---|---|---|
| 3-Year | FY 2022 | FY 2025 | $19,394,492 | $25,195,930 | 9.1% |
| 5-Year | FY 2020 | FY 2025 | $3,458,081 | $25,195,930 | 48.8% |
| 10-Year | FY 2015 | FY 2025 | $1,484,793 | $25,195,930 | 32.7% |
The 5-year and 10-year CAGRs look impressive at first glance — 48.8% and 32.7% respectively — but they are heavily influenced by the low revenue base in early years and the step-change effect of the Spectrum Semiconductor acquisition in FY 2022. The more relevant near-term signal is the 3-year CAGR of 9.1%, which captures the post-acquisition growth trajectory. That more modest figure reflects the revenue volatility since FY 2022 — the company peaked, then fell sharply in FY 2024, and recovered in FY 2025. Sustainable double-digit revenue growth from the current base will require consistent execution.
Plain English Summary
AmpliTech Group is a small RF and semiconductor components company that has grown dramatically over the past decade, largely through an acquisition that roughly quadrupled its revenue base. But growth alone hasn't translated into profitability — the company has burned cash in most years, and the cost structure expanded faster than the business could absorb. FY 2025 showed a strong revenue recovery to $25 million after a difficult FY 2024, but gross margins compressed sharply, eating into any benefit from higher sales. The most recent quarter (Q1 2026) is more encouraging: revenues look healthy on a run-rate basis, and gross margins jumped back toward 48%, which — if sustained — would represent a meaningful improvement. The balance sheet carries very little debt and liquidity looks adequate, though the company has funded itself primarily through equity issuances. Capital expenditures are moderate and trending upward again, suggesting the company is investing in capacity to support the growth recovery. The core question for investors is whether AmpliTech can hold the Q1 2026 gross margin improvement while scaling revenues, and whether it can finally bend the operating cost curve enough to approach breakeven. The historical record shows it's possible — the company was profitable at smaller scale before its acquisition phase — but demonstrating it at the current, larger scale remains the unfinished work.
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