Amplitude's second quarter arrived with the company trying to do two things at once: grow at the pace investors expect from a 22%-revenue business, and absorb a brand-new product line in Statsig that the same market had not yet agreed was Amplitude. The two stories are now sitting inside the same income statement. Annual recurring revenue closed the quarter at $410 million, up 22% year over year. Revenue grew 21% to $100.9 million, and the high-margin SaaS engine underneath it - non-GAAP operating loss held at roughly $(1.5) million, basically flat with a year ago - is still producing real cash. Free cash flow of $23.7 million in the quarter, up 30% year over year, was the strongest single signal that the model works, and operating cash flow of $25.6 million was nearly double the GAAP net loss, an unusual ratio for a company still recording a $34.6M net loss.
The second story is the one that the headlines will not print. GAAP loss from operations was $(35.2) million, deeper than the $(27.1)M a year earlier, because three line items - Statsig integration costs, a $2.1M restructuring charge, and an extra $3.1M of intangible amortization from acquired technology - combined to add roughly $13M of expenses that did not exist in the second quarter of 2025. Strip them out and the operating loss is unchanged. Stock-based compensation, at $26.8M (up from $24.5M) is the largest of the additions and is the line investors need to look through; it is the price Amplitude pays to keep an engineering-heavy workforce intact in a labor market that has rewarded exactly that skill set. The quarter is best read as: the business is compounding, the cost structure is transitioning, and the next two quarters decide whether the AI-analytics bet is real or is being carried by the legacy product.
The company also showed its hand on capital return. Amplitude repurchased $68.7M of stock in the quarter and $89.5M in the first half - the bulk of the new $150M authorization the board approved in February - shrinking the share count from 134.0 million at year-end to 124.8 million at quarter-end, a 6.9% reduction. With $36.6M of authorization remaining and the buyback run-rate now roughly $45M a quarter, the company is voting with its balance sheet that its own shares are a more compelling investment than cash on hand. At $12.38 after the post-earnings move, the stock trades at 4.1x TTM revenue - in line with peer product-analytics comps, far below platform peers, and roughly 12% off the $12.69 52-week high set the day before the report, after a deep selloff in April that took the shares to $5.61. The thesis is: the AI-analytics pivot is genuine, the balance sheet supports the test, and the multiple is not pricing the upside.