Amplitude Q3 2026 Earnings: Revenue Rises 25% as Non-GAAP Margin Expands

Amplitude (Nasdaq: AMPL) reported Q3 2026 revenue of $110.6 million, up 25% from $88.6 million, while GAAP diluted EPS was a loss of $0.19 compared with a loss of $0.18 a year earlier. Annual recurring revenue grew 24%, non-GAAP operating margin reached a company record, and both operating cash flow and free cash flow remained positive for the quarter ended September 30, 2026.

Core Earnings Data

Revenue growth remained closely aligned with the 24% increase in annual recurring revenue. However, GAAP gross profit grew more slowly than revenue, and the GAAP net loss widened slightly despite a narrower operating loss.

Non-GAAP results showed greater operating leverage. Non-GAAP operating income increased by $5.1 million, while non-GAAP diluted EPS doubled to $0.04.

Margins are approximate calculations based on the reported figures. Free cash flow is operating cash flow less purchases of property and equipment and capitalized internal-use software costs.

Recurring Revenue and Enterprise Adoption

Annual recurring revenue reached $431 million, up 24%, while remaining performance obligations rose 27% to $497 million. The number of customers generating at least $100,000 in ARR increased 31% to 855, faster than overall ARR growth and consistent with management’s focus on consolidating more enterprise activity onto Amplitude’s platform.

ARR is an operating metric rather than annualized GAAP revenue, and it can be affected by contract timing, renewals, and expansion. RPO provides another view of contracted business, but the company did not disclose how much will be recognized within the next year.

Amplitude also expanded its AI-focused product set. Agent Analytics became generally available in August, Headless Amplitude launched in September, and Statsig added experimentation capabilities for comparing AI agent variants. Management said customers are using more of its AI products, although the release did not quantify their contribution to revenue or ARR growth.

Non-GAAP Leverage Improved Even as GAAP Gross Margin Contracted

Cost of revenue increased approximately 57% to $36.3 million, substantially faster than the 25% increase in revenue. As a result, GAAP gross margin fell by about 6.7 percentage points. Amplitude did not identify a single operating factor responsible for the decline.

Below the gross-profit line, total GAAP operating expenses increased only about 9%. Research and development expense grew approximately 26% to $33.5 million, but sales and marketing expense was nearly unchanged at $48.3 million, while general and administrative expense increased about 6% to $17.2 million. This expense discipline allowed the GAAP operating margin to improve despite the lower gross margin.

The difference between GAAP and non-GAAP profitability remains material. Amplitude excluded $28.8 million of stock-based compensation and related payroll taxes, $1.2 million of acquired-intangible amortization, and $0.3 million of capitalized-software impairment from its non-GAAP results. CFO Andrew Casey characterized the approximately 5.2% non-GAAP operating margin as the highest in company history.

The GAAP net loss nevertheless widened slightly because other income declined to $1.2 million from $2.6 million, while the income-tax provision increased to $1.1 million from $0.9 million. Those changes more than offset the improvement in the operating loss.

Cash Flow and Balance Sheet

Operating cash flow increased to $7.1 million, and free cash flow rose to $5.8 million, equivalent to an approximate 5.3% free cash flow margin. Cash generation remained positive even though the company reported a $24.5 million GAAP net loss.

The reconciliation from net loss to operating cash flow included $27.7 million of stock-based compensation and a $7.3 million cash inflow from higher accounts payable. These benefits were partly offset by increases in accounts receivable, prepaid assets, and deferred commissions.

At September 30, Amplitude held approximately $154.3 million of cash, cash equivalents, and current and non-current marketable securities, down from approximately $252.5 million at December 31, 2025. The company repurchased $89.5 million of common stock during the first nine months of 2026, although it reported no repurchases during Q3 itself. The release did not state that the repurchases reflected management’s view of valuation.

Earnings Guidance

Management’s Q4 revenue outlook has a midpoint of $112.0 million, about 1.2% above Q3 revenue. At the same time, the projected increase in non-GAAP operating income points to further operating-margin improvement if the company reaches its ranges.

Amplitude did not provide corresponding GAAP guidance because it said certain adjustments, including future stock-based compensation and acquired-intangible amortization, could not be reasonably estimated.

Recent Insider Transactions

The supplied six-month insider data showed 11 purchases totaling 496,639 shares and nine sales totaling 739,200 shares. That represents net selling of 242,561 shares, or 3.6% of the reported 6.42 million insider shares held.

Among the latest valid transaction records, five disclosed sales had a combined value of approximately $9.19 million. Four additional entries lacked transaction details and are omitted below; the available data did not include share quantities for the individual transactions.

These transactions describe reported insider activity but do not, by themselves, establish insiders’ views of Amplitude’s prospects.

Risks Investors Need to Watch

• Gross-margin pressure: Cost of revenue grew much faster than sales, reducing GAAP gross margin by approximately 6.7 percentage points. Continued pressure could offset further operating-expense leverage.
• The GAAP and non-GAAP profitability gap: Stock-based compensation and related payroll taxes remained substantial at $28.8 million. Amplitude is profitable on its adjusted measure but continues to report meaningful GAAP losses.
• Limited sequential revenue growth in the Q4 outlook: The guidance midpoint implies only about 1.2% growth from Q3, placing more emphasis on maintaining operating discipline and converting contracted business into revenue.
• Execution on enterprise and AI products: Management is relying on enterprise consolidation, Statsig, and AI tools to support growth, but the company has not quantified the revenue or retention contribution from those products.

Summary

Amplitude’s Q3 2026 results combined 25% revenue growth and expanding enterprise adoption with better non-GAAP operating leverage and positive free cash flow. The main counterweights were lower GAAP gross margin, continued GAAP losses, and a Q4 revenue outlook indicating modest sequential growth. Future results will depend on whether Amplitude can sustain enterprise expansion and AI-product adoption while controlling cost of revenue and maintaining its recent expense discipline.