Amplitude — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter revenue was $110.6 million, a 25% increase year-over-year compared to $88.6 million in Q3 2025.
• Annual Recurring Revenue (ARR) reached $431 million, up 24% year-over-year from $347 million.
• Remaining Performance Obligations were $497 million, up 27% year-over-year.
• GAAP loss from operations was $24.6 million, an improvement of $1.1 million from $25.7 million in Q3 2025.
• Non-GAAP income from operations was $5.7 million, a $5.1 million increase from $0.6 million in Q3 2025.
• GAAP net loss per share (basic and diluted) was $(0.19), compared to $(0.18) in Q3 2025.
• Non-GAAP net income per share (diluted) was $0.04, up from $0.02 in Q3 2025.
• Net cash provided by operating activities was $7.1 million, up $2.1 million year-over-year.
• Free Cash Flow was $5.8 million, up $2.4 million year-over-year.
• Non-GAAP operating margin reached its highest level in company history.
• Stock-based compensation expense was $28.8 million in Q3 2026, compared to $25.7 million in Q3 2025.
• The number of customers with $100,000 or greater in ARR increased to 855, a 31% year-over-year growth.

Guidance and Future Outlook:

• For Q4 2026, revenue is expected to be between $110.8 million and $113.2 million.
• For the full year 2026, revenue is expected to be between $415.8 million and $418.2 million.
• Q4 2026 Non-GAAP operating income is projected to be between $7.0 million and $9.0 million.
• Full year 2026 Non-GAAP operating income is projected to be between $8.9 million and $10.9 million.
• Q4 2026 Non-GAAP net income per share (diluted) is expected to be between $0.05 and $0.06.
• Full year 2026 Non-GAAP net income per share (diluted) is expected to be between $0.07 and $0.09.
• Weighted average shares outstanding are projected at 142.5 million (diluted) for Q4 2026 and 139.0 million (diluted) for the full year 2026.
• The company did not provide GAAP income guidance due to the inability to reasonably calculate certain non-GAAP adjustments like stock-based compensation and amortization of acquired intangible assets.

Business Segments and Product Lines:

• Agent Analytics was made generally available in August, enabling teams to evaluate AI agent conversations and connect performance to product outcomes.
• Headless Amplitude was introduced in September, integrating product and user context into AI tools like Claude, ChatGPT, Codex, and Cursor.
• A product learning workflow with GitHub was highlighted in October, connecting Amplitude Wave (in closed beta) with GitHub Copilot and Statsig.
• Statsig's Agent experimentation was expanded to allow teams to configure and compare AI agent variants using A/B tests.
• The company focuses on driving consolidation within enterprises and innovation with Statsig and AI products.

Market and Competitive Landscape:

• Amplitude is ranked #1 in Product Analytics for 24 consecutive quarters in G2's Summer 2026 Report.
• The platform serves over 5,100 paying customers, including Atlassian, Replit, The Economist, and Square.
• Management notes the pace of building and shipping code is increasing, with the context of what to build next acting as a bottleneck.

Risks and Challenges:

• Risks include the company's limited operating history, history of losses, and potential decline in customer retention or expansion.
• The highly competitive market and rapid technology developments, including AI deployment, present risks.
• Dependency on sales to larger organizations may increase sales cycle variability.
• Potential unfavorable conditions in the global economy, trade protection measures, or reductions in IT spending could limit growth.
• Risks related to evolving privacy and data-related laws and the impact of sanctions on receivables collection are noted.

Management Commentary and Tone:

• CEO Spenser Skates stated the company continues to innovate on the "bleeding edge" to help customers transform into AI-powered product builders.
• CFO Andrew Casey highlighted delivering another quarter of growth with leverage, achieving the highest non-GAAP operating margin in company history.
• Management expressed confidence in customers using more AI solutions and seeking guidance on engaging AI to accelerate development.

Other Key Points:

• The company hosts a live video webcast to discuss results and outlook at 2:00 PM Pacific Time / 5:00 PM Eastern Time.
• A reconciliation of GAAP to non-GAAP financial measures is provided, excluding stock-based compensation, amortization of acquired intangible assets, acquisition-related costs, and non-recurring charges.
• Pro Forma Dollar-Based Net Retention Rate for the quarter ended September 30, 2026, was 105%.
• Cash and cash equivalents were $58.9 million as of September 30, 2026, down from $81.1 million as of December 31, 2025.
• Deferred revenue increased to $166.0 million as of September 30, 2026, from $121.9 million as of December 31, 2025.
• No dividends or stock buybacks were announced for the period; however, the cash flow statement shows $89.5 million in repurchases of common stock for the nine months ended September 30, 2026.