Shares of Amplitech Group (AMPG) jumped 9.1% to $2.58 after the micro-cap 5G radio maker announced a $21.7 million follow-on purchase order — the largest single order in its history. The deal sharpens a central question for investors: whether a company with a market value around $65 million can scale fast enough to convert a swelling backlog into actual revenue and, eventually, profit.
The Order Nearly Doubles the Program's Conversion Rate Overnight. The new order supports an Asian mobile network operator under a previously announced $78 million letter-of-intent program, pushing cumulative funded orders under that program to roughly $34 million — about 44% of the original LOI value. Before this deal, the program had converted only about $12 million in actual purchase orders across earlier tranches. Total company backlog now exceeds a record $51 million. That backlog is roughly equal to management's full-year 2026 revenue guidance of at least $50 million, which would represent approximately 100% year-over-year growth.
Revenue Has Surged, But Losses Persist. Q2 2026 revenue hit $8.07 million, up roughly 51% sequentially from $5.35 million in Q1.
Gross margin expanded to 27.9% from 7.8% a year earlier , though that was a significant step down from Q1's 48% margin. The company remains unprofitable, with negative earnings and cash flow , making traditional profit-based valuations unreliable. Amplitech is debt-free , with roughly $12.95 million in cash and securities as of June 30 , bolstered by about $20 million in net proceeds from a July rights offering.
A Record Backlog Doesn't Guarantee Record Revenue. Letters of intent are non-binding; additional orders remain subject to definitive purchase orders and customer deployment schedules.
The company booked over $17 million in purchase orders across all of Q3 , yet today's single $21.7 million order dwarfs that entire quarter, raising the question of whether production capacity in Hauppauge, N.Y. can keep pace.
The Stock Is Cheap on Revenue — If You Believe the Guidance. At a market cap near $65 million against $50 million+ guided revenue, AMPG trades at roughly 1.3x forward sales. Its price-to-sales ratio of about 2.6x on trailing revenue is above the historical median of 1.68x , reflecting investor bets on the growth ahead. Converting backlog into shipped products — and shipped products into profits — is the hurdle that will determine whether today's pop is a starting gun or a false start.