Amplitude 2025 Q3 Earnings Beats Revenue Estimates, Net Loss Widens 42.3%

Amplitude (AMPL) reported Q3 2025 earnings with revenue of $88.56 million, exceeding expectations by $2.27 million. The company raised full-year revenue guidance to $340.8–$342.8 million but maintained a loss trajectory, with net losses widening by 42.3% year-over-year. Analysts noted strong enterprise adoption of AI-native products, yet challenges in gross margins and monetization of new features persist.

Revenue

Amplitude’s Q3 revenue surged 17.7% year-over-year to $88.56 million, surpassing the Zacks estimate of $86.03 million by 2.94%. This marks the fifth consecutive year of quarterly revenue growth, driven by enterprise client expansion and multi-product adoption, which now accounts for 71% of ARR.

Earnings/Net Income

The company’s losses deepened to $0.18 per share in Q3 2025 from $0.14 per share in Q3 2024, representing a 28.6% increase in per-share losses. Net loss widened to $23.99 million, up 42.3% from $16.85 million in the prior year. Despite revenue growth, the EPS decline underscores ongoing financial challenges.

Post-Earnings Price Action Review

The strategy of buying AMPL shares on the revenue raise announcement and holding for 30 days shows promising returns, especially during the first year. However, the performance declines over the long term. Here's a breakdown of the strategy's performance over the past three years: Initial Surge: Following the revenue raise announcement, AMPL shares experience a significant uptick. This is likely due to the market reacting positively to the growth prospects indicated by the revenue raise. Short-Term Performance: The 30-day holding period allows investors to capture the initial growth momentum. The strategy yields strong returns during the first month, reflecting the market's optimism about Amplitude's future performance. Long-Term Performance Deterioration: Over the longer term, the strategy's returns diminish. This is partly due to the market adjusting its expectations or encountering challenges in executing its growth plans, as indicated by the deceleration in revenue growth projected for Q4 and the challenges in maintaining gross margins. Overall Performance: The strategy's cumulative returns over three years show a significant peak in the first month, followed by a gradual decline. This suggests that while the strategy can capture short-term gains, it may not be optimal for long-term investment. In conclusion, while the strategy of buying AMPL shares on the revenue raise announcement and holding for 30 days can be effective for short-term gains, it may not be the best approach for long-term investment due to the anticipated challenges in maintaining growth and margins.

CEO Commentary

CEO Spenser Skates highlighted AI’s transformative role in software development, emphasizing the launch of AI-native products like MCP and AI agents. He credited enterprise customer growth and operational efficiency for the quarter’s results, while CFO Andrew Casey noted improved contract durations and RPO growth.

Guidance

Amplitude provided Q4 2025 revenue guidance of $89.0–$91.0 million and full-year revenue of $340.8–$342.8 million. Non-GAAP operating income for Q4 is projected at $3.5–$5.5 million, with full-year non-GAAP operating income of $0.5–$2.5 million.

Additional News

Amplitude announced the launch of AI-native products, including AI agents and AI Visibility, to enhance customer analytics. The company also expanded enterprise customer base to 653 clients with over $100K in ARR, up 19% from Q2. Additionally, Amplitude extended its average contract duration to 22 months, signaling stronger long-term revenue visibility.

[Guidance]

Amplitude’s Q4 revenue guidance of $89.0–$91.0 million reflects 15% annual growth at the midpoint, while full-year 2025 revenue guidance of $340.8–$342.8 million indicates 14% growth. Non-GAAP operating income is projected at $0.5–$2.5 million for the year, with net income per share of $0.06–$0.08.

[Price Action]

Shares fell 1.34% in the latest trading day but gained 1.64% over the past week. The stock declined 1.59% month-to-date amid mixed investor sentiment.

[Financial Highlights]

• Revenue: $88.56M (+17.7% Y/Y)

• Net Loss: $23.99M (-42.3% Y/Y)

• GAAP EPS: -$0.18

• Non-GAAP EPS: $0.02

• Free Cash Flow: $3.4M

[Key Metrics]

• ARR: $347M (+16% Y/Y)

• RPO: $257.7M (+37% Y/Y)

• Gross Margin: 76% (stable Q/Q)

• R&D Spend: 19% of revenue

[Analyst Consensus]

• Median Price Target: $16.00 (+61% from $9.93)

• Recommendations: 7 “Buy,” 3 “Hold,” 0 “Sell”

• Zacks Rank: #4 (Sell)

[Risks]

• Margin Pressure: Gross margin deceleration and R&D costs at 19% of revenue.

• Monetization Challenges: AI products remain in early adoption phases.

• Market Competition: Intensifying rivalry in AI analytics.

[Outlook]

Amplitude remains focused on enterprise expansion and AI product innovation, with leadership confident in long-term growth despite near-term profitability hurdles.