Digital analytics platform Amplitude NASDAQ:AMPL reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 21.2% year on year to $100.9 million. On top of that, next quarter’s revenue guidance ($106.8 million at the midpoint) was surprisingly good and 4.3% above what analysts were expecting. Its non-GAAP profit of $0.01 per share was $0.02 above analysts’ consensus estimates.
Amplitude (AMPL) Q2 CY2026 Highlights:
- Revenue: $100.9 million vs analyst estimates of $98.16 million (21.2% year-on-year growth, 2.8% beat)
- Adjusted EPS: $0.01 vs analyst estimates of -$0.01 ($0.02 beat)
- Adjusted Operating Income: -$1.45 million vs analyst estimates of -$2.48 million (-1.4% margin, 41.4% beat)
- The company lifted its revenue guidance for the full year to $409.2 million at the midpoint from $400 million, a 2.3% increase
- Management raised its full-year Adjusted EPS guidance to $0.07 at the midpoint, a 55.6% increase
- Operating Margin: -34.9%, down from -32.5% in the same quarter last year
- Free Cash Flow was $23.74 million, up from -$13.18 million in the previous quarter
- Customers: 5,200
- Net Revenue Retention Rate: 105%, down from 106% in the previous quarter
- Annual Recurring Revenue: $410 million (22.4% year-on-year growth, beat)
- Market Capitalization: $1.31 billion
Company Overview
Born from the realization that companies were flying blind when it came to understanding user behavior in their digital products, Amplitude NASDAQ:AMPL provides a digital analytics platform that helps businesses understand how people use their digital products to improve user experiences and drive revenue growth.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, Amplitude’s sales grew at a solid 23.8% compounded annual growth rate over the last five years. Its growth beat the average software company and shows its offerings resonate with customers.
Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. Amplitude’s recent performance shows its demand has slowed as its annualized revenue growth of 14% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.
This quarter, Amplitude reported robust year-on-year revenue growth of 21.2%, and its $100.9 million of revenue topped Wall Street estimates by 2.8%. Company management is currently guiding for a 20.6% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 15.2% over the next 12 months, similar to its two-year rate. This projection is above the sector average and suggests its newer products and services will fuel better top-line performance.
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Annual Recurring Revenue
While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable.
Amplitude’s ARR punched in at $410 million in Q2, and over the last four quarters, its growth was solid as it averaged 18.3% year-on-year increases. This performance aligned with its total sales growth, reflecting the company’s ability to maintain strong customer relationships and secure longer-term commitments. Its growth also contributes positively to Amplitude’s predictability and valuation, as investors typically prefer businesses with recurring revenue.
Customer Retention
One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company’s products and services over time.
Amplitude’s net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 105% in Q2. This means Amplitude would’ve grown its revenue by 5% even if it didn’t win any new customers over the last 12 months.
Significantly up from the last quarter, Amplitude has an adequate net retention rate, showing us that it generally keeps customers but lags behind the best SaaS businesses, which routinely post net retention rates of 120%+.
Key Takeaways from Amplitude’s Q2 Results
We were impressed by how significantly Amplitude blew past analysts’ adjusted operating income expectations this quarter. We were also glad its full-year EPS guidance trumped Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 4.2% to $10.43 immediately after reporting.
Amplitude put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. .