Amplitude (AMPL) Reports Record Net New ARR Driven by Robust Enterprise Growth

Amplitude Inc. (NASDAQ:AMPL) is one of the best small cap tech stocks with high upside potential. On February 18, Amplitude delivered a strong conclusion to 2025, reporting Q4 revenue of $91.4 million, which was a 17% increase year-over-year. The company reached an ARR of $366 million, marking its most successful quarter for net new ARR since 2021. This growth was particularly robust in the enterprise segment, where ARR rose by 20%, supported by a gross margin of 77% and a quarterly free cash flow of $11.2 million.

The acquisition of InfiniGrow also played a strategic role, expanding the platform’s capabilities into AI-native marketing analytics. Despite these gains, the company’s non-GAAP operating income remained modest at $4.2 million, or 4.6% of revenue. Management issued a cautious outlook for Q1 2026, forecasting a potential non-GAAP operating loss between $2.5 million and $4.5 million.

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Furthermore, while new pricing and packaging strategies are intended to encourage data ingestion, they may create initial uncertainty regarding cost predictability for customers. Looking forward, Amplitude Inc. (NASDAQ:AMPL) is betting on its AI agents and a new Model Context Protocol to differentiate its analytics accuracy from competitors. The CEO noted that the platform achieves a 76% accuracy rate on complex queries, significantly outperforming rival solutions.

Amplitude Inc. (NASDAQ:AMPL), together with its subsidiaries, provides an AI analytics platform that helps analyze customer behavior within digital products in the US and internationally.