Summary
Amplitude's fiscal 2026 second quarter, ended June 30, 2026, produced revenue of $100.9 million, up 21% from the prior-year quarter. Year-to-date revenue was $194.4 million, up 19.1%. Gross profit rose 14.3% to $69.1 million, while gross margin fell to 68.5% from 72.6% in the prior-year quarter, a decline of 4.1 percentage points. Cost of revenue climbed 39%, driven by higher third-party hosting costs, subscription software costs, and personnel and services costs. The GAAP operating loss widened to $35.2 million from $27.1 million. GAAP net loss widened to $34.6 million from $24.7 million, and GAAP net loss per share was $(0.27) against $(0.19) a year earlier. Non-GAAP loss from operations was $(1.5) million, essentially unchanged from the prior-year quarter, and non-GAAP net loss per share was $(0.01) compared with non-GAAP net income per share of $0.01. Stock-based compensation and related payroll taxes of $27.4 million, acquisition-related costs of $3.2 million, restructuring and other related charges of $2.1 million, and amortization of acquired intangibles of $1.0 million account for the gap between the two sets of numbers.
Annual Recurring Revenue closed the quarter at $410 million, up 22% and up $75 million from the prior-year quarter. Remaining performance obligations were $483.0 million, up 34.9%. Deferred revenue was $163.5 million, up 19.7%. Customers with ARR of $100,000 or greater numbered 824, up 30% year over year. The trailing 12-month dollar-based net retention rate was 105% versus 99%, although the ending net retention rate slipped to 103% from 104%. Pro forma net retention rate was 105%. Amplitude counts more than 5,200 paying customers and roughly 795 employees. Management said the Statsig asset acquisition added $17 million in ARR and the core Amplitude business added $19 million. Product work during the quarter included the Global Agent expansion, Specialized Agents, Model Context Protocol, Agent Analytics, and Wave, all part of a push from analytics into AI-driven workflows that measure what ships.
Cash generation held up. Operating cash flow was $25.6 million for the quarter, up 27.6%, and $14.0 million for the first half, up 16.1%. Free cash flow, a different measure that deducts purchases of property and equipment and capitalized internal-use software, was $23.7 million for the quarter, versus $18.2 million a year earlier. Capital expenditures were $1.24 million, up 130.5%. The company repurchased $89.5 million of common stock in the first half under its repurchase program. For the third quarter of 2026, management guides to non-GAAP operating income of $2.5 million to $4.5 million and non-GAAP net income per share of $0.02 to $0.03 on 133.0 million diluted weighted average shares. The full year 2026 outlook calls for non-GAAP operating income of $6.3 million to $9.3 million and non-GAAP net income per share of $0.06 to $0.08 on 137.1 million diluted weighted average shares. Revenue outlooks were also given for both periods, but no GAAP reconciliation was provided because stock-based compensation and intangible amortization cannot be forecast with reasonable effort.
The quarter carried a familiar set of risks. Amplitude competes in a crowded analytics market, depends on retaining and expanding existing accounts, and sells more to large organizations, which lengthens and varies sales cycles. Revenue from outside the United States was 40% of the total. The company has ended certain customer relationships in Russia because of sanctions, and some customers in the region have had trouble paying. Management also flags a history of losses, possible cuts in information technology spending, tariffs and trade measures, and evolving privacy and data laws. Restructuring continued, as the company completed the second phase of a plan begun in the first quarter, and management does not expect material additional charges. Amplitude has committed to a minimum of $326.3 million in AWS services through March 2031 and had used $59.1 million of that commitment as of June 30, 2026. Growth is real, but the widening GAAP losses and the spending required to stay relevant in AI analytics are the items to watch.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $100.9M | $93.5M | +7.9% | $83.3M | +21.2% |
| Gross profit | $69.1M | $68.3M | +1.2% | $60.5M | +14.3% |
| Gross margin | 68.5% | 73.0% | -4.5 pp | 72.6% | -4.1 pp |
| Research & development | $33.7M | $25.3M | +32.9% | $24.1M | +39.7% |
| Sales & marketing | $49.9M | $50.8M | -1.9% | $47.0M | +6.2% |
| General & administrative | $18.6M | $16.3M | +14.4% | $16.5M | +13.0% |
| Total operating expenses | $104.3M | $92.4M | +12.8% | $87.6M | +19.1% |
| Operating income (loss) | -$35.2M | — | — | — | — |
| Operating margin | -34.9% | — | — | — | — |
| Net income (loss) | -$34.6M | -$23.3M | -48.7% | -$24.7M | -40.3% |
| Net margin | -34.3% | -24.9% | -9.4 pp | -29.6% | -4.7 pp |
| Diluted EPS | -$0.27 | -$0.17 | -$0.10 | -$0.19 | -$0.08 |
| Customers | 634 | 617 | +2.8% | 547 | +15.9% |
| Net retention rate | 105.0% | 105.0% | ±0.0 pp | 99.0% | +6.0 pp |
Risks
The market for AI analytics is fragmented, rapidly evolving, and highly competitive, and the filing warns competitors may integrate AI into their products or market AI solutions more effectively than Amplitude. Pricing pressures and increased competition could result in reduced sales, reduced margins, or financial losses.
Amplitude has incorporated and expects to further integrate AI Technologies, including large language models, into its AI Analytics Platform and internal processes. Risks include model drift, inaccurate or misleading AI outputs, dependence on third-party AI providers, and intellectual property or copyright liability from AI-generated code or output.
Amplitude expects to focus more on larger enterprise organizations, which may lengthen and make less predictable its sales cycle. The filing states enterprise sales cycles averaged four to six months versus one to three months for non-enterprise customers, increasing variability if significant transactions slip to a later period.
The business depends on customer renewals and expansion, and customers have no obligation to renew. MD&A reports dollar-based net retention rate for the trailing 12 months was 105% as of June 30, 2026, while ending dollar-based net retention rate was 103%, down from 104% as of June 30, 2025.
Amplitude has a history of losses, with net loss of $57.9 million for the six months ended June 30, 2026 and an accumulated deficit of $604.3 million as of June 30, 2026. Operating loss widened to $59.3 million for the six months ended June 30, 2026, and gross margin declined to 70.7% from 73.6% in the prior-year period.
During the six months ended June 30, 2026, Amplitude implemented the 2026 Restructuring Program in two phases, including executive leadership changes and a broader reorganization that reduced approximately 5% of its workforce. The filing warns of unintended consequences such as attrition, lower morale, and loss of institutional knowledge.
Amplitude must attract and retain highly skilled employees, especially engineers and sales professionals, and competition in the San Francisco Bay Area is intense. The 2026 Restructuring Program could harm morale and recruiting, and the loss of executive officers or key employees could disrupt the business.
Unfavorable global economic conditions, including inflation, rising interest rates, tariffs, and a potential recession, could reduce software spending and lead customers to seek extended billing terms or financial concessions. The filing also notes 40% of revenue for the three and six months ended June 30, 2026 was generated outside the United States.
Amplitude depends on third-party hosted cloud services, particularly AWS, to operate critical functions. The AWS agreement includes a minimum purchase commitment of $326.3 million through March 2031, with $59.1 million utilized as of June 30, 2026, and service unavailability or unfavorable terms could increase expenses and interrupt operations.
Amplitude has completed multiple acquisitions, including Statsig in May 2026, InfiniGrow in January 2026, and Kraftful in July 2025. The filing warns that acquisitions may divert management attention, pose integration challenges, result in impairment charges, or dilute stockholders, though Statsig contributed approximately $6.5 million of revenue in the three months ended June 30, 2026.
The filing describes evolving cybersecurity risks and notes Amplitude is currently defending two privacy class actions and previously defended a securities class action and shareholder derivative lawsuit. A breach or unauthorized disclosure could lead to reputational harm, regulatory investigations, litigation, and significant remediation costs.
Amplitude faces evolving privacy, data protection, export control, economic sanctions, anti-corruption, and AI-related laws and regulations. Compliance costs and potential liability could increase, especially as it expands into public sector and highly regulated industries.
SaaS KPIs
All quarters →Free Cash Flow Margin
Non-GAAP Operating Margin
Paying Customers
Free Cash Flow
Dollar-Based Net Retention Rate (NRR)
Non-GAAP Gross Margin
Annual Recurring Revenue (ARR)
Non-GAAP Loss from Operations
Summary, forecast, risks and KPIs are extracted from Amplitude, Inc.'s SEC filings for Q2 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.