We're Interested To See How AmpliTech Group (NASDAQ:AMPG) Uses Its Cash Hoard To Grow

We can readily understand why investors are attracted to unprofitable companies. By way of example, AmpliTech Group (NASDAQ:AMPG) has seen its share price rise 122% over the last year, delighting many shareholders. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?

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 report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway.

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When Might AmpliTech Group Run Out Of Money?

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. When AmpliTech Group last reported its March 2025 balance sheet in May 2025, it had zero debt and cash worth US$17m. Importantly, its cash burn was US$6.6m over the trailing twelve months. That means it had a cash runway of about 2.6 years as of March 2025. Importantly, though, the one analyst we see covering the stock thinks that AmpliTech Group will reach cashflow breakeven before then. If that happens, then the length of its cash runway, today, would become a moot point. You can see how its cash balance has changed over time in the image below.

View our latest analysis for AmpliTech Group

How Well Is AmpliTech Group Growing?

Some investors might find it troubling that AmpliTech Group is actually increasing its cash burn, which is up 38% in the last year. And we must say we find it concerning that operating revenue dropped 21% over the same period. Considering both these metrics, we're a little concerned about how the company is developing. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company.

How Easily Can AmpliTech Group Raise Cash?

Even though it seems like AmpliTech Group is developing its business nicely, we still like to consider how easily it could raise more money to accelerate growth. 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. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations.

AmpliTech Group's cash burn of US$6.6m is about 14% of its US$49m 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.

How Risky Is AmpliTech Group's Cash Burn Situation?

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 cash runway stands out as evidence that the company is well on top of its spending. Although its falling revenue does give us reason for pause, the other metrics we discussed in this article form a positive picture overall. It's clearly very positive to see that at least one analyst is forecasting the company will break even fairly soon. After considering a range of factors in this article, we're pretty relaxed about its cash burn, since the company seems to be in a good position to continue to fund its growth. On another note, we conducted an in-depth investigation of the company, and identified 3 warning signs for AmpliTech Group (1 doesn't sit too well with us!) that you should be aware of before investing here.

Of course AmpliTech Group may not be the best stock to buy. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.