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.

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.

While we acknowledge the potential of AMPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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