Amprius Technologies Inc ((AMPX)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Amprius Technologies’ latest earnings call painted a picture of rapid commercial momentum tempered by near‑term profit pressure. Management highlighted triple‑digit revenue growth, rising customer demand and upgraded 2026 targets, while openly acknowledging margin compression, a wider operating loss and heavy cash use tied to working capital and a major lease settlement.
Strong Revenue Growth and Raised Guidance
Amprius reported first‑quarter revenue of $28.5 million, up 153% year over year and 13% sequentially, underscoring accelerating adoption of its silicon‑anode batteries. On the back of this performance, the company lifted its 2026 revenue target to at least $130 million, adding $5 million to its prior forecast and signaling confidence in the demand pipeline.
Broad Adoption of SiCore and Defense Customer Wins
Second‑generation SiCore cells are gaining traction across unmanned aerial systems, with three long‑standing customers securing sizable defense awards. These include a potential $270 million Air Force Central contract and a $117 million U.S. Army contract for one partner, providing stronger visibility into future SiCore orders even though timing remains dependent on program rollouts.
Major Light Electric Vehicle Order in China
The company booked a $21 million multi‑quarter order from a leading light electric vehicle maker in China, marking a notable win in a competitive EV segment. Management framed this as proof that its technology can compete on performance and economics beyond defense, broadening the commercial opportunity set.
Expanded DIU Contract and U.S. Pouch Development
Amprius’ development program with the Defense Innovation Unit has grown to $18.1 million after its third increase, funding multiple cylindrical and pouch cell deliveries. The contract also supports building U.S. pouch‑cell prototype capacity and is expected to help cover a meaningful portion of the company’s 2026 capital spending.
Adjusted EBITDA Trajectory Showing Improvement
Adjusted EBITDA for the quarter came in at negative $1.8 million, a sharp improvement from the negative $5.2 million recorded a year earlier. Management reiterated its outlook for at least $4 million of adjusted EBITDA in 2026, arguing that scale, mix and manufacturing efficiencies should gradually offset current fixed‑cost drag.
Strategic Balance Sheet and Capital Moves
The company ended the quarter with $62.4 million in cash and no debt after a sizable but strategic use of funds. Amprius paid roughly $20 million to settle a Colorado lease, cutting liabilities by $29.8 million, and struck a deal to convert about 7.1 million public warrants to equity, aiming to avert an estimated $70 million of future dilution.
Manufacturing and Technical Validation Progress
On the technical front, contract manufacturer Nanotech validated a 21700 cylindrical cell with 6.8 amp‑hours of capacity, roughly 10% better than comparable cells and able to handle discharge currents up to 20 amps. Amprius also noted it is working with multiple Korean manufacturers and advancing supplier agreements designed to meet U.S. sourcing requirements.
Expanding Geographic and Customer Footprint
SiCore products accounted for 97% of product revenue, with sales spread across EMEA at 58%, North America at 21% and Asia Pacific at 21%. The company said more than half of shipments in the quarter went to new customers, while a network of roughly 40 pack partners is amplifying reach into end markets.
Awards and Brand Recognition
Amprius’ technology received external validation as the company won a CES Innovation Award and was named to a prominent list of top greentech companies. Management believes this recognition enhances credibility with both industrial and financial partners, supporting future business development efforts.
Gross Margin Step‑Back and Mix Pressure
Gross margin slipped to 20% from 24% in the prior quarter, though management said it would have been around 22% excluding one month of Colorado facility costs. The decline was driven mainly by SiMaxx overhead, with over $3 million of fixed costs spread over just $0.618 million of revenue, creating a temporary drag on blended margins.
Operating Loss and Profitability Headwinds
Operating loss widened to $6.7 million versus an adjusted $2.9 million loss in the prior quarter, reflecting softer gross margins and continued investment in commercial and R&D capabilities. The company argued these expenses are necessary to support growth and product roadmaps, but they will keep near‑term profitability under pressure.
Net Loss and Heavy Cash Consumption
The quarter produced a GAAP net loss of $5.0 million, or negative $0.04 per share, alongside substantial cash usage. Cash declined from $90.5 million to $62.4 million as the company consumed about $37.3 million, driven by an $11.5 million increase in receivables and the Colorado lease settlement, even as liabilities fell and equity rose.
Legacy SiMaxx Overhead Drag
The wind‑down of legacy SiMaxx products created outsized fixed‑cost absorption, with overhead more than $3 million against modest revenue. Management expects blended margins to improve once the legacy line is fully wound down and production and logistics are rebalanced toward higher‑volume, higher‑margin offerings.
Execution and Manufacturing Ramp Risks
Amprius’ goal of roughly 25% gross margins for the full year depends heavily on scaling capacity at its Korean and U.S. partners and ironing out logistics. The company cautioned that mix, ramp execution and customer payment timing all remain potential swing factors for profitability as volumes increase.
Defense Award Timing Uncertainty
While recent defense program wins by customers underpin long‑term demand, Amprius emphasized that attach rates and order timing are uncertain. Management currently expects most related shipments to occur in the back half of 2026 and into 2027, but noted that schedules will ultimately depend on each program’s rollout.
Residual Capital Market and Dilution Overhang
The warrant exchange transaction addresses a large portion of the potential dilution that weighed on the stock and contributed to short interest. However, investors were reminded that some warrants remain outstanding, meaning capital market dynamics and dilution concerns have not been entirely eliminated.
Forward‑Looking Guidance and Financial Outlook
Management raised 2026 revenue guidance to at least $130 million and expects a reacceleration of growth in the June quarter, targeting full‑year gross margins of about 25%. For 2026, the company guides to at least $4 million of adjusted EBITDA, a net loss capped at $8 million and full‑year operating expenses near $50 million, with 2026 capital spending under $10 million and largely backed by existing development funding.
Amprius’ earnings call underscored a company in high‑growth mode, leveraging technical differentiation to win sizable defense and commercial orders while cleaning up its balance sheet. Investors are being asked to look through near‑term margin pressure and cash burn in favor of a clearer path to scale, improved profitability and a broader global customer base in the coming years.