AmpliTech Group, Inc. Q3 FY2025 earnings call

• Growth driven by successful integration of Apple 5G ORAN technology and strong momentum in low noise amplifiers, low noise blocks, and 5G infrastructure systems.
• Continued investment in R&D up 60% supporting new product development in various areas.
• Third quarter was EBITDA positive, achieved through disciplined expense control, operational efficiency, and growth in high margin segments.
• Integration of ORAN IP portfolio positions AmpliTech as a US-based vertically integrated supplier for next-generation open RAN 5G radios and private network deployment.
• Price offering announced at $4 per unit, a shareholder-friendly rights offering providing growth capital for scaling ORAN product lines and expanding domestic production.
• Company aims for 25 to 30% annual growth through 2030 driven by ORAN 5G LOIs with two different customers.

Quarterly revenue for Q3 2025 was $6,090,000, a 115% increase from $2,830,000 in Q3 2024. Gross profit more than doubled to $2,960,000, with a gross margin of 48.6%. Year-to-date 2025 revenue surged 171% to $20,700,000 compared to $7,700,000 in the same period 2024. Growth was driven by successful integration of Apple 5G ORAN technology and strong momentum in low noise amplifiers, low noise blocks, and 5G infrastructure systems. R&D investment was up 60% supporting new product development in various areas including MIMO, 64 P64 ORAN radios, private 5G network systems, and cryogenic amplifier platforms for quantum applications. Revenue contribution comes from segments related to 5G ORAN, low noise amplifiers, low noise blocks, and 5G infrastructure systems, with growth in high margin segments driving the performance.

• Increased revenue guidance to at least $25,000,000 for fiscal year 2025, a 160% year-over-year increase over fiscal year 2024.
• Anticipates double-digit gross margins in Q4 2025 and 2026.
• Projects positive cash flow from operations and profitability to be achieved in fiscal year 2026 assuming continuation of current order pace and margin recovery.
• Fiscal year 2026 revenue expected to be at least $50,000,000, effectively doubling the projected record fiscal year 2025 revenue.

• Forward-looking statements are subject to various risks that could cause actual results to be materially different than expected, such as matters described in press releases and filings with the Securities and Exchange Commission.

Q: Just wanna confirm if you expect these rights to be traded when they are distributed?

A: Correct.

Q: Second question about double-digit gross margins and color on margins. Do we have more color on that?

A: We have a mixed list of ORAN 5G products, each with different gross margins. Due to competitive nature, we can't disclose specific gross margin information, but we expect at least double-digit gross margins on our products. Also, we recovered handsomely in Q3 with over 40% gross margins and will keep allocating capital to improve margins by driving down costs on items used in our radios.