Summary
Amplitude's third quarter revenue reached $88.6 million, up 17.7% from the prior-year quarter. Gross profit was $65.5 million, up 16.0%. Gross margin slipped to 73.9%, down 1.1 percentage points, as cost of revenue rose faster than revenue. The bottom line stayed under pressure. GAAP net loss was $24.0 million, and the loss widened by $7.1 million. Diluted EPS was $-0.18, down $0.04. For the first nine months of 2025, revenue was $251.8 million, up 13.9%. The year-to-date net loss was $70.9 million, a wider loss by $9.2 million, and diluted EPS was $-0.54, down $0.04.
The customer and backlog metrics point to durable demand. Annual recurring revenue was $347 million, up 16% year-over-year and up $12 million from the second quarter of 2025. Remaining performance obligations were $391.9 million, up 36.7% year-over-year. Deferred revenue was $131.5 million, up 14.5%. The number of customers with $100,000 or greater in ARR rose to 653, representing 15% growth. Dollar-based net retention rate for the trailing 12 months was 102%, compared with 97% a year earlier, and ending net retention rate was 104%, compared with 98%. Those figures suggest expansion is holding up, though gross margin compression shows the cost of supporting that growth.
Cash generation was mixed. Operating cash flow for the quarter was $5.0 million, down 19.7% year-over-year. Year-to-date operating cash flow was $17.0 million, up 10.7%. Capital expenditures were $0.5 million in the quarter, up year-over-year, and $1.4 million year to date, up 46.7%. Free cash flow, which is a non-GAAP measure, was $3.4 million, down $1.1 million year-over-year. On a non-GAAP basis, income from operations was $0.6 million, compared with $1.6 million in the prior-year quarter. Non-GAAP net income per diluted share was $0.02, compared with $0.03. The company remains GAAP unprofitable, and the gap between GAAP and non-GAAP results reflects large stock-based compensation and related costs.
Guidance covers the fourth quarter of 2025 and the full year 2025. Management guided fourth quarter non-GAAP operating income to $3.5 million to $5.5 million. Full year 2025 non-GAAP operating income is guided to $0.5 million to $2.5 million. Non-GAAP net income per share is guided to $0.04 to $0.05 for the fourth quarter and $0.06 to $0.08 for the full year. The company expects 142.6 million diluted weighted average shares for the fourth quarter and 142.0 million diluted weighted average shares for the full year. Management does not reconcile these non-GAAP outlook figures to GAAP because certain items, including stock-based compensation, cannot be reasonably predicted.
Risks remain familiar for a high-growth software company. Amplitude cites its limited operating history, a history of losses, and the possibility that customer retention or expansion slows. Sales to larger organizations can stretch sales cycles and add variability. A weaker global economy, tariffs or other trade measures, and reduced information technology spending could limit growth. The company also flags reliance on intellectual property and evolving privacy and data laws. International exposure is meaningful: 39% of revenue for the three and nine months ended September 30, 2025 was generated outside the United States. The company terminated certain customer relationships in Russia because of the Russia-Ukraine War and related sanctions, and some customers in affected regions have had trouble paying. Amplitude also has a minimum purchase commitment of $326.3 million in AWS services through March 2031, with $25.1 million utilized as of September 30, 2025. That commitment adds fixed cost pressure if growth slows. Product momentum includes Web Experimentation, AI Visibility, Amplitude Model Context Protocol, AI Agents open beta, and a GitHub agent-to-agent integration. Execution on those launches and the enterprise sales motion will determine whether the company can convert backlog growth into durable GAAP profitability.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $88.6M | $83.3M | +6.4% | $75.2M | +17.7% |
| Gross profit | $65.5M | $60.5M | +8.3% | $56.5M | +16.0% |
| Gross margin | 74.0% | 72.6% | +1.4 pp | 75.1% | -1.1 pp |
| Research & development | $26.6M | $24.1M | +10.5% | $19.0M | +39.8% |
| Sales & marketing | $48.3M | $47.0M | +2.9% | $40.9M | +18.2% |
| General & administrative | $16.2M | $16.5M | -1.7% | $16.6M | -2.2% |
| Total operating expenses | $91.1M | $87.6M | +4.1% | $76.5M | +19.2% |
| Net income (loss) | -$24.0M | -$24.7M | +2.8% | -$16.9M | -42.3% |
| Net margin | -27.1% | -29.6% | +2.5 pp | -22.4% | -4.7 pp |
| Diluted EPS | -$0.18 | -$0.19 | +$0.01 | -$0.14 | -$0.04 |
| Customers | 567 | 547 | +3.7% | 502 | +12.9% |
| Net retention rate | 102.0% | 99.0% | +3.0 pp | 97.0% | +5.0 pp |
Risks
Amplitude has incorporated machine learning and generative AI Technologies into its platform and acquired Inari, June.io, and Kraftful to accelerate its AI roadmap, but competitors or other third parties may incorporate AI Technologies more quickly or more successfully. Third-party LLM availability, pricing, or terms may worsen, and AI output may be inaccurate, not copyrightable, or subject to litigation.
AI Technologies used in the platform may produce inaccurate, misleading, discriminatory, or unexpected results, and responsible-use concerns or AI-related lawsuits could harm reputation, slow adoption, and create liability. The company also relies on licensed third-party AI Technologies it does not control.
Net loss widened to $23.99 million in FY2025 Q3 from $16.85 million in FY2024 Q3, and widened to $70.89 million for FY2025 year to date from $61.73 million for FY2024 year to date, with accumulated deficit of $528.7 million as of September 30, 2025. Expected increases in platform, R&D, sales, and G&A investments may delay profitability.
Amplitude expects to focus more on larger organizations, which lengthens and makes variable its sales cycle; average enterprise sales cycle was four to six months versus one to three months for non-enterprise customers. Failure to close one or more expected significant transactions in a period could adversely affect results.
In April 2025 the company entered a new AWS private pricing addendum with a minimum purchase commitment of $326.3 million through March 2031, and had utilized $25.1 million as of September 30, 2025. If AWS services become unavailable or are no longer available on commercially reasonable terms, expenses could increase and business operations could be interrupted.
Gross margin decreased to 73.9% in FY2025 Q3 from 75.1% in FY2024 Q3, down 1.1 percentage points, and decreased 0.4 percentage points for FY2025 year to date, while cost of revenue increased 23% in FY2025 Q3. Continued platform and AI investments may cause margins to decline.
Revenue growth depends on renewals and expansion; dollar-based net retention rate for trailing 12 months was 102% as of September 30, 2025 and 97% as of September 30, 2024, and ending dollar-based net retention rate was 104% and 98%, respectively. Some customers have elected not to renew, and retention or expansion declines would harm revenue.
The company is defending two privacy class actions and previously defended against a securities class action and a derivative action. It has incurred and will continue to incur significant legal costs, and management will devote significant time to these defenses.
The company completed acquisitions of Inari, June.io, Kraftful, and CommandAI and may pursue more acquisitions or strategic investments. Integration may divert management attention, fail to achieve expected synergies, dilute stockholders, or result in impairment charges.
Rapid growth and recent acquisitions place significant demands on management and operational resources. Research and development expenses increased 40% in FY2025 Q3 and 18% for FY2025 year to date, while sales and marketing expenses increased 18% in the quarter and 11% year to date, and investments may cause margins to decline if not managed efficiently.
Economic downturns, inflation, rising interest rates, tariffs, trade wars, bank failures, and geopolitical conflicts including the Russia-Ukraine War and Middle East conflicts could reduce software spending. For the three and nine months ended September 30, 2025, 39% of revenue was generated outside the United States, exposing results to international instability.
Competition for highly skilled engineers, AI talent, and sales professionals is intense, particularly in the San Francisco Bay Area. If the perceived value of equity awards declines or organizational changes hurt morale, the company may fail to attract or retain key personnel.
SaaS KPIs
All quarters →Free Cash Flow Margin
Non-GAAP Operating Margin
Paying Customers
Free Cash Flow
Dollar-Based Net Retention Rate
Annual Recurring Revenue (ARR)
Summary, forecast, risks and KPIs are extracted from Amplitude, Inc.'s SEC filings for Q3 FY2025 (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.