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We're Hopeful That AmpliTech Group (NASDAQ:AMPG) Will Use Its Cash Wisely

Simply Wall St · 2d ago

There's no doubt that money can be made by owning shares of unprofitable businesses. Indeed, AmpliTech Group (NASDAQ:AMPG) stock is up 250% in the last year, providing strong gains for shareholders. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.

Given its strong share price performance, we think it's worthwhile for AmpliTech Group shareholders to consider whether its cash burn is concerning. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. First, we'll determine its cash runway by comparing its cash burn with its cash reserves.

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Does AmpliTech Group Have A Long Cash Runway?

A company's cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate. In September 2025, AmpliTech Group had US$8.4m in cash, and was debt-free. Looking at the last year, the company burnt through US$12m. That means it had a cash runway of around 8 months as of September 2025. Notably, however, the one analyst we see covering the stock thinks that AmpliTech Group will break even (at a free cash flow level) before then. If that happens, then the length of its cash runway, today, would become a moot point. The image below shows how its cash balance has been changing over the last few years.

debt-equity-history-analysis
NasdaqCM:AMPG Debt to Equity History December 10th 2025

View our latest analysis for AmpliTech Group

How Well Is AmpliTech Group Growing?

Notably, AmpliTech Group actually ramped up its cash burn very hard and fast in the last year, by 105%, signifying heavy investment in the business. While that isa little concerning at a glance, the company has a track record of recent growth, evidenced by the impressive 93% growth in revenue, over the very same year. Considering the factors above, the company doesn’t fare badly when it comes to assessing how it is changing over time. Clearly, however, the crucial factor is whether the company will grow its business going forward. So you might want to take a peek at how much the company is expected to grow in the next few years.

How Hard Would It Be For AmpliTech Group To Raise More Cash For Growth?

Since AmpliTech Group has been boosting its cash burn, the market will likely be considering how it can raise more cash if need be. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).

AmpliTech Group's cash burn of US$12m is about 17% of its US$71m market capitalisation. Given that situation, it's fair to say the company wouldn't have much trouble raising more cash for growth, but shareholders would be somewhat diluted.

So, Should We Worry About AmpliTech Group's Cash Burn?

It may already be apparent to you that we're relatively comfortable with the way AmpliTech Group is burning through its cash. In particular, we think its revenue growth stands out as evidence that the company is well on top of its spending. While we must concede that its increasing cash burn is a bit worrying, the other factors mentioned in this article provide great comfort when it comes to the cash burn. It's clearly very positive to see that at least one analyst is forecasting the company will break even fairly soon. Considering all the factors discussed in this article, we're not overly concerned about the company's cash burn, although we do think shareholders should keep an eye on how it develops. On another note, we conducted an in-depth investigation of the company, and identified 4 warning signs for AmpliTech Group (1 is a bit concerning!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies with significant insider holdings, and this list of stocks growth stocks (according to analyst forecasts)