AMPG

Good day, ladies and gentlemen, and welcome to AmpliTech Group's quarterly investor update call, where the company will discuss its first quarter 2026 financial results. Present in this call, we have the executive team of AmpliTech Group, Fawad Maqbool, CEO, CTO, and Board Chair, Jorge Flores, COO, Louisa Sanfratello, CFO. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. As a reminder, today's conference is being recorded. I would now like to turn the call over to AmpliTech COO, Jorge Flores.

Thank you, Drew. Thank you for joining today's call to review AmpliTech's first quarter 2026 financial results, review of our company's outlook, and to answer investor questions. Following the initial management comments, we will open the call to these questions. An archive replay of today's call will be posted to the investor relations section of AmpliTech's corporate website. This call is taking place on Wednesday, May 13th, 2026. Remarks that follow and answer to questions may include statements that the company believes to be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally include words such as anticipate, believe, expect, or words of similar importance. Likewise, statements that describe future plans, objectives, or goals are also forward-looking. These forward-looking statements are subject to various risks that could cause actual results to be materially different than expected.

Such risks include, among others, matters that the company has described in its press releases and in its filings with the Securities and Exchange Commission. Except as described in these filings, the company disclaims any obligation to update forward-looking statements, which are made as of to this date. With that, let me turn the call over to our CEO and CTO, Mr. Fawad Maqbool.

Thank you, Jorge, and thank you everyone for joining us today. The first quarter of 2026 reflects meaningful progress across several areas of our business. We achieved substantial revenue growth year-over-year and expanded gross margin significantly, strengthened our balance sheet, and continued transitioning key technologies from development into commercial deployment. What is important to note here is the trend towards reducing the losses and expanding gross margins as promised. We believe our investments in 5G O-RAN radio technologies, MMIC design capabilities, and advanced RF systems are beginning to contribute more meaningfully to our operational performance. We're encouraged by the increasing demand environment for next-generation wireless infrastructure and remain focused on disciplined execution, operational scalability, and long-term shareholder value creation.

Before we move further into our results and outlook, I want to briefly address the broader operating environment because it is relevant to how we think about timing, delivery schedules, and revenue recognition over the balance of the year. As a technology manufacturer with global suppliers and customers, we continue to monitor several external factors that are outside of our direct control, including geopolitical tensions, volatility in fuel and logistic costs, potential disruptions in international shipping lanes, and broader supply chain constraints. We are also seeing areas of heightened demand across the semiconductor ecosystem, particularly in memory and related components driven by AI, data center, and high-performance computing demand. These conditions can place pressure on component availability, lead times, freight costs, and production scheduling. At this time, we are not changing our full-year revenue guidance.

However, we believe it is prudent to acknowledge that the timing of certain shipments and revenue recognition may be influenced by these external conditions, as well as by customer deployment schedules, supplier lead times, and normal production cycle timing. As a result, we currently expect our revenue profile of the year to be more heavily weighted toward the later quarters, and we have mentioned this in the last investor call as well. We're on track in that respect. Also very important to mention is demand for our products and solutions remains very active, and our team is focused on managing supplier relationships, planning inventory requirements, qualifying alternatives where appropriate, and maintaining close communication with customers to support scheduled deliveries.

While these macro factors may affect the timing of revenue recognition, they do not change our long-term confidence in the markets we serve or in the strategic opportunities ahead for AmpliTech. The company continues to believe in its full-year revenue guidance to remain achievable. We continue to receive orders related to our $40 million LOI with the North American MNO, for which ship-shipments resumed earlier in April. Our distribution business is also experiencing an uptick in demand, contributing nicely to the over $20 million in backlog orders the company currently has. As for our operational and strategic progress, during the quarter, the company continued to advance commercialization initiatives related to 5G O-RAN radio systems, proprietary RF and microwave technologies, 5G MMIC chip design programs, satellite and defense communications applications, next-generation wireless infrastructure solutions.

The company also reported lower research and development expenses year-over-year as several products transitioned from active development into commercialization and deployment phases. This doesn't mean we will not invest in R&D for our products to stay ahead of the competition as always. We pride ourselves in providing unique solutions that differentiate us from other vendors in the industry. The company remains focused on expanding revenue scale, improving operational leverage, strengthening internal controls and infrastructure, increasing commercialization activity, supporting long-term sustainable growth. With this, I'll turn the call over to CFO Louisa Sanfratello to review our financial results in more detail.

Thank you, Fawad. The first quarter 2026 highlights are as follows. Revenue increased 48.6% year-over-year to $5.35 million, compared to $3.6 million in the first quarter of 2025. Gross profit increased 116.1% year-over-year to $2.57 million from $1.19 million in the prior year. Gross margin improved significantly to 48% compared to 33% in the prior year period. I repeat, gross margin improved significantly to 48% compared to 33% in the prior year period. Manufacturing and engineering segment revenue increased to $3.28 million from $0.99 million in the prior year quarter. Net loss improved 17.3% year-over-year to $1.52 million.

Cash, cash equivalents, and marketable securities increased to approximately $18.4 million as of March 31st, 2026. Working capital improved to approximately $25.4 million from $10.2 million on December 31st, 2025. Current ratio, defined as current assets over current liabilities, improved to 4.25 from 1.68 on December 31st, 2025. Multiple 5G and MMIC development programs advanced further into commercialization stages. Total assets to total liabilities improved approximately 47% to $48.36 million from $32.86 million on December 31st, 2025. It is important to highlight that AmpliTech Group remains debt free. Let us turn to the balance sheet and the company's liquidity. As of March 31st, 2026, AmpliTech reported cash equivalents, and marketable securities of $18.4 million.

Total current assets of approximately $33.2 million, and total stockholders' equity of approximately $48.4 million. During the first quarter, the company completed both a rights offering and a registered direct offering, generating aggregate net proceeds exceeding $16 million to support growth initiatives, working capital requirements, and operational expansion. I'll now turn the call back to Fawad for closing remarks.

Thank you, Louisa. To close, this first quarter is nicely setting the tone for the balance of the year for the company. We increased our year-over-year revenue while also decreasing our gross margins. Business development-wise, our participation at MWC Barcelona, one of the world's largest and most influential connectivity events, was strategically important for AmpliTech because it placed us directly in front of global mobile operators, OEMs, infrastructure providers, technology partners, and potential customers at a time when the industry is rapidly advancing toward Open RAN, private 5G, AI-enabled networks, and future 6G architectures. We achieved additional certifications with our flagship radio, our O-RAN 64T64R massive MIMO radio unit. Our O-RAN certification achievements continue to strengthen the market position of our radio portfolio. For mobile network operators, certifications help to reduce perceived deployment risk by demonstrating that our radios are being validated for open standards-based multi-vendor network environments.

We believe this gives operators greater confidence in evaluating and adopting AmpliTech radios and positions the company to benefit from increasing demand for Open RAN solutions that support vendor diversification, network flexibility, and lower total cost of ownership. These are key factors in the MNOs adopting our strategy and our products. Before we open the line for callers in the call for questions, I would like to have our COO, Jorge Flores, go over the questions previously received via email.

Thank you, Fawad. I'd like to immediately start with the first question, which is: Does the company still believe its full-year revenue guidance as achievable? Absolutely, yes. Based on the visibility we have today, including funded purchase orders, customer forecasts, active deployment schedules, and ongoing discussions across our commercial pipeline, we continue to believe our full-year revenue outlook remains achievable. That said, investors should understand that revenue recognition in our business can be influenced by the timing of customer deployments, supply chain availability, production and scheduling, shipment timing, and customer acceptance. As a result, we currently expect a greater portion of 2026 revenue to be weighted toward the later quarters of the year. Importantly, this is primarily a matter of timing, not a change in our long-term view of the opportunity.

We continue to see active demand for our 5G and O-RAN radio solutions. Our focus remains on converting funded orders and customer forecasts into shipments and be able to recognize the revenue. Next question: Are geopolitical tensions, fuel prices, logistic costs, or supply chain pressures affecting your outlook? Of course, we continue to monitor broader macroeconomic and geopolitical conditions, including tensions in key global regions, volatility in fuel and freight costs, potential disruptions in international shipping routes and supply chain constraints affecting the electronics and semiconductor industries. At this time, as previously stated, we are not changing our full year revenue guidance. However, these external factors may influence component availability, lead times, freight cost, and production scheduling. We just believe it's prudent to acknowledge these factors because they could affect the timing of shipments and revenue recognition.

Rest assured that our team is actively managing supply relationships, the inventory planning and logistic options, and customer communications to reduce risk wherever possible. Next question: How do your O-RAN certifications and validations position AmpliTech with mobile network operators? This is a good question, though. Our O-RAN certification and validation work is very important because it helps reduce perceived adoption risks for mobile network operators. These certifications are not just technical milestones. They provide third-party validation that our radios are being tested against recognized Open RAN conformance, interoperability, and performance expectations. For MNO customers, that matters because it gives them greater confidence that AmpliTech radios can operate in open, standard-based multi-vendor network environments. We believe this strengthens the commercial positioning of our radio portfolio and effectively reduce evaluation cycles, support vendor diversification, and increase confidence in broader deployment opportunities.

In short, certification helps move the conversation from, "Can this technology work?" to, "How do we evaluate and deploy it at the scale?" Next question: What did the MWC Barcelona mean for AmpliTech from a business development perspective? The Mobile World Congress show in Barcelona was an important strategic platform for AmpliTech. It placed us directly in front of global mobile network operators, OEMs, providers, technology partners, industry decision-makers at a time when the market is actively evaluating Open RAN, private 5G, AI-enabled network architectures, and future 6G planning. All of these are at our strengths right now. For us, MWC were not only about visibility, it was about strengthening awareness of AmpliTech's capability, brand name, advancing business development conversations, and reinforcing our position as a U.S.-based provider of advanced wireless and 5G infrastructure solutions.

We believe this event supported our long-term commercial strategy and helped expand the number and quality of conversations we are having across the global telecom ecosystem, creating multiple opportunities for us to participate in further interoperability testing efforts with different customers. Next questions: What gives management confidence that demand for AmpliTech's radios can continue to grow? This confidence is based on several factors. First, we have already received meaningful funded purchase orders on the previously announced customer opportunities. Second, we are seeing continued customer interest in O-RAN, private 5G, and vendor-diversified network architectures. Third, our certification and validation efforts help reduce technical risk for customers evaluating our radios. We also believe the market is moving in a direction that favors open, flexible standard-based network solution. While O-RAN adoption is increasing, the regular RAN is decreasing.

We are already there with designs that are ready to be manufactured and sold to all of these MNOs and satisfy their demands for O-RAN-related products. AmpliTech's portfolio is designed to address that market need, and our strategy is to continue building credibility through execution, certification, customer deployments, and supply chain readiness. We want to be clear that timing can vary based on customer deployment schedules and purchase orders, but the level of engagement we are seeing supports our confidence in the long-term opportunities. Last question: How should investors think about gross margins as 5G revenue scales? Gross margin remains a major focus for management. As we discussed, the initial ramp-up of carrier-grade O-RAN radio deployments placed pressure on margins last year as we invested in customer acquisition, production readiness, and early market penetration.

Looking forward and actively doing it right now, we believe margins can improve as volumes increase, production processes mature, supplier terms improve, and we gain efficiencies with our contract manufacturing partners. We are also focused on forecasting, material planning, cost control, pricing discipline, and supply chain optimization. We do not expect margin improvement to be perfectly linear quarter to quarter, especially during a ramp-up phase, but improving gross margin remains one of our key operating priorities. With that said, this concludes the questions previously received into our email. Operator, please open the line for callers' questions.

Thank you. To ask a question, you may press Star One on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, please press Star Two. At this time, we will pause momentarily to assemble our roster. The first question comes from Jack Vander with Maxim Group. Please go ahead.

Okay, great. thanks for taking my questions. Fawad, so good to see the strong year-over-year revenue growth, and definitely strong gross margin expansion. It looks like Spectrum or the international sales definitely rebounded back to normalized levels. I'm wondering how much revenue from this quarter roughly was from the LOI orders.

Jorge, can you answer this?

Right now, from our 5G division, we will say that the revenues, the revenue mix, from our AmpliTech 5G, it was a very high percentage of sales were attributed to the $40 million LOI. Mostly from the $40 million LOI.

Got you. Okay. Somewhere maybe between $2 million and $3 million. Does that feel about right?

Yeah, a little bit more than that.

Okay. SG&A, maybe this is a question for Louisa.

Yeah.

Expenses. The gross margin expanded nicely. SG&A expenses did tick up.

Yes.

Quite a bit more of non-cash stock comp. Just wondering kind of what the reason is there, and if that's a normalized level going forward.

We did Normally speaking, our first quarter, our SG&A expenses are a lot higher as we incur the audit expense, we incur D&O insurance expense, we get hit with our NASDAQ fees and so forth. Typically speaking, SG&A is higher in the first quarter, and we did have the stock compensation expense. We did have the trade show that ran us about $180,000, in addition to hiring a new marketing company to help us expand sales and our outreach. We can probably see an uptick with the SG&A.

Excuse me. Just one moment. This is the operator. It seems like there has been an interruption. Just a moment, please.

Sure. SG&A is going to be.

Yeah.

Excuse me. This is the conference operator. There seemed to have been an interruption. Ms. Sanfratello, were you still answering the question?

I was just reiterating that for the first quarter, we always see an uptick in SG&A because of those expenses in the audit fees that was completed for the first quarter. The D&O insurance is always, we activate it. We reactivate it in the first quarter, as well as the NASDAQ fees and so forth. We may see a little uptick in SG&A as we expand and we, you know, with our revenue guidance, but it all, it really all depends.

Okay. Got it.

Does that answer your question?

Yeah. No, Louisa, that's great. That's great. Maybe, separately, looking at the full year outlook. Maybe this is for Fawad. It sounds like maybe you have limited visibility, just given the geopolitical tensions in the world, and a few other, maybe some shortages in the memory market. It sounds like the guidance is still achievable for that $50 million of revenue, just more back half loaded. I'm wondering now that we're almost halfway through the second quarter, how is the second quarter kinda shaping up? Is there any color you can provide, maybe orders received? You just did $5.3 million of revenue in the first quarter. Any guidance or I guess commentary you could provide would be helpful.

Well, this is Jorge. So far we started the month of April very nicely. As I mentioned previously, we resumed the shipments on our $40 million LOI to our MNO in North America. Right now things are looking very nicely for Q2. We continue to receive orders against that LOI as well. The supply chain is prime and ready to go.

That's as far as I can share right now though, due to the ongoing, we cannot disclose stuff that is not publicly released as of yet.

Okay. Got it. I guess, could you maybe just make it more clear how many, how much orders you've received in the second quarter or expect to receive? Would it I mean, is there a chance that the second quarter is maybe flat or down from the first quarter, the back half is very strong? Just trying to get a sense of what to expect.

No, definitely not. We are projecting Q2 to be definitely much higher than Q1.

Okay, fantastic. I appreciate that color. Then maybe just one more. This one's definitely for Fawad. Fawad, it sounds like you've had success at the trade shows. Sounds like you had a lot more discussions going on.

Yeah

The two vendors that you've disclosed, right? We have the North American MNO that we all know who that is, and then, there's the other, value-add reseller, I believe. Is there any other discussions that are kinda warming up where you feel like maybe you will be able to announce another LOI in the future? Anything you could provide there, I'd be interested to hear. Thank you.

Yes. We have had very productive discussions and conversations with major MNOs, and we will probably, it's more likely that they'll go straight to POs, no LOIs. We'll be announcing those in the next quarter or so, in relatively short period of time, actually, because these discussions are ongoing, and we're just finalizing all these. There's a demand, increased demand, I don't know whether it's a sudden demand or not, but it is increasing in the 64T64R, the massive MIMO. There's all sorts of applications that are commercial as well as military that are now becoming more and more evident for all larger MNOs.

Our success as being the largest O-RAN deployment in North America or in America, that's helping us to reach out and reach further in Europe and in other areas of the world.

Okay. Got it. Then just one last question. I'm not sure if you can provide any color on this, but the larger LOI of, you know, in excess of $70 million, it was my understanding that this one might be chunkier in terms of the size of the orders once you do receive them. Do you have any sign or color or just, you know, expectations of when you'll receive a substantial order under that larger LOI? Thank you.

Yeah. We expect that to happen later this year. Again, that's all dependent on the customer being able to deploy their original quantities in the field, and that has slowed down somewhat. It slowed down due to many different factors, and some of them what we mentioned already.

Yep

all over the world. It also, it's like a ripple effect. Fortunately, we haven't felt any tremendous impact. You know, the supply chain for these guys overseas, because of the locations, it slows things down. We don't expect that to go away. It's just going to be a little bit later, as we said, later towards the year.

Okay, great. It sounds like you still feel very good and confident about that LOI, being recognized. It's just a matter of when.

Right

just given the world environment we're in. Okay.

Right.

Great. I appreciate the questions and the answers and look forward to watching you execute. Thank you.

Sure. Thank you, Jack.

Again, if you have a question, please press Star then One. The next question comes from Richard Kreger with Moody Capital. Please go ahead.

Hello. Congratulations on the fantastic quarter.

Thank you.

I've got two questions. Given AmpliTech's gross margin has expanded dramatically from approximately 33% to 48% quarter-over-quarter, which looks like about a 1,500 basis point improvement, how sustainable is that, and is there the possibility of that margin expanding as revenue scales?

Yeah. There's a very good chance it's expanding even more because we have been investing. As mentioned before, we have been investing in initial deployments to get our foot in the door with the larger MNOs. I believe we have done that already and proven that we can do that. That kind of investment is behind us. We are now acknowledged by our MNOs as being a very valid provider of these sophisticated radios, and especially the higher configuration radios. We believe that the margins will expand further. That's the way we are planning it now. I mean, we don't have to do any more of the types of investment that we did earlier.

Okay. Thank you, Fawad.

Yes.

The second question I have is, you know, AmpliTech's been doing a lot of testing and verifications with universities such as Northeastern University. Number one, can you talk a little bit more about where you stand with all the university verifications and testing, the competitive environment for those O-RAN testing, accreditation? Secondly, do you see any orders coming from any of the universities in terms of them ordering any equipment or testing equipment further beyond what we've read in the recent press releases?

Good question. Good question. Yes, we do see with the universities testing our radios, we have gotten exposure to not only the massive MIMO radios, and which, by the way, we are the world's only 64T O-RAN 5G massive MIMO radio company. We are certified by the OTIC center. Northeastern University, through its Institute for the Wireless Internet of Things, has certified us as an OTIC vendor for the largest configuration radio that exists today, and we're the only ones in the world. That's a unique position for us, and that gives us leverage to push our other products, the lower configuration, 32T, 32R, and then also the 4T4R, which are used in private 5G type applications as well as commercial MNO deployment.

We got exposure in these lower configuration radios, and they're also targeting private 5G deployment in these universities. Specifically in both Northeastern, we've been putting our radios in there under test. They are going to deploy them full across their campus, as well as other universities that are looking to put our enterprise private 5G system in place in the university. As these roll out, other universities will also take advantage of the unique position that we have for these private 5Gs. All these sectors like the commercial MNO, the military applications as well, we have several military applications for this as well. Department of Defense, they have shown large interest in these configurations. The private 5G enterprise is growing as well.

We'll get more exposure on these private 5G systems because that is a key in Industry 4.0 where all the industries are targeting automation and monitoring using AI-based tools. In addition to that, we're also showcasing our fixed wireless access capabilities. Fixed wireless access means that there's no cable or no fiber, it's all wireless at very high speeds provided to the homes or businesses. We are the only U.S.-based company that can provide everything from the tower to the home and all the IoT devices in between. That's a very unique position for us to be in to service this growing industry.

Okay. Was there a follow-up, Mr. Kreger?

No, I'm good. Thank you so much.

Thank you.

Thank you.

That concludes the Q&A session. I will now turn the call back to Fawad Maqbool for closing remarks.

Thank you, operator, thanks to everyone who joined today's call to hear about the progress we've made and the plan we have to further our company's mission of providing the communication systems of tomorrow, today. We look forward to updating you further on our 2nd quarter financial results call sometime in August. Until then, please contact us directly should you have any questions or wish to schedule a call with management. Our investor relations team can be reached at the contact information listed at the bottom of our press releases. Thank you, be well.

Today's conference call is now concluded. Thank you. You may now disconnect your lines.

Good day, ladies and gentlemen, and welcome to AmpliTech Group's Quarterly Investor Update Call, where the company will discuss its FY 2025 Financial Results. Present in this call, we have the executive team of AmpliTech Group, Fawad Maqbool, CEO, CTO and Board Chair; Jorge Flores, COO; and Louisa Sanfratello, CFO. [Operator Instructions] As a reminder, today's conference is being recorded. I would now like to turn the call over to AmpliTech's COO, Jorge Flores.

Thank you, operator, and thank you, everyone, for joining today's call to review the progress of AmpliTech's growth initiatives and to answer investors' questions. Following initial management comments, we will open the call to investors' questions as well. An archived replay of today's call will be posted to the Investor Relationship section of AmpliTech's corporate website. This call is taking place on Thursday, April 9, 2026. Remarks that follow and answers to questions may include statements that the company believes to be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally include words such as anticipate, believe, expect or words of similar importance. Likewise, statements that describe future plans, objectives or goals are also forward-looking. These forward-looking statements are subject to various risks that could cause actual results to be materially different than expected. Such risks include, among others, matters that the company has described in its press releases and in its filings with the Securities and Exchange Commission. Except as described in these filings, the company disclaims any obligation to update forward-looking statements, which are made as of today's date. With that, let me turn the call over to our CEO and CTO, Mr. Fawad Maqbool.

Thank you, operator and Jorge, and thank you, everyone, for joining us today. Fiscal year 2025 was a transformative year for AmpliTech Group. We delivered company record top line growth, expanded our presence in the 5G infrastructure market and continue to build the foundation for long-term growth across both our legacy RF business and our emerging ORAN 5G platform. For the full year 2025, revenue increased to $25.2 million compared to $9.5 million in 2024, representing approximately 165% year-over-year growth. This increase was driven by higher sales of our low noise amplifier and low noise block products, expansion of our 5G product lines, recovery in Asian markets within the Spectrum division and increased demand from telecommunications and satellite communications customers. We're very encouraged by this performance because it reflects growth from multiple parts of the business, while also showing that our strategic investments in 5G are beginning to translate into commercial traction. At the same time, 2025 was also a year of deliberate investment. As we entered the carrier-grade ORAN radio market and ramped early deployments, we experienced near-term margin pressure. Gross profit increased to $6 million from $3.5 million in the prior year, but gross margin declined to 23.9% from 36.7%. That decline reflects our strategic ramp-up of 5G product deployments, initial market penetration efforts and our focus on winning long-term opportunities with larger mobile network operator customers. The company expects these margins to improve over the next few quarters. We view this as an investment phase. Our priority has been to establish market presence, support customer adoption and position the company for larger scale deployments over time. As volume, scale and execution matures, we believe margin performance has the potential to improve. From a technology and strategy standpoint, we've made meaningful progress in 2025. We continued advancing our ORAN compliant radio systems, including our Massive MIMO 64T64R ORAN CAT B platform while integrating proprietary RF and MMIC capabilities that we believe help differentiate our solution set in the market. We also continue to build our commercial pipeline. As previously announced, the company has a nonbinding letter of intent for $78 million in ORAN radio systems, representing a potential multiyear growth opportunity, subject to definitive purchase orders. The company believes this LOI itself will surpass the $100 million mark supported by production forecast that we have received. As of March 2026, we had received approximately $5 million in funded purchase orders, of which we had a small number of initial shipments from December to early this quarter. The bulk of the shipments will resume and culminate during our second quarter this year. Also, as previously announced, we have a second LOI with the North American MNO valued at over $40 million, of which we already have received half of this amount in funded purchase orders. This means these LOIs are real and dynamic. From this amount, we still have to ship about $8 million with shipments resuming in early Q2 of 2026. We believe an increase in this LOI amount is also possible. In addition, during 2025, we continue expanding our MMIC Design Center, advanced our AmpliTech 5G division focused on 5G system deployment and integration. These steps are part of our broader strategy to evolve from a component supplier into a more complete systems provider, serving high-growth and growth markets. Overall, we believe fiscal 2025 marked meaningful progress in scaling the business, expanding our market reach and positioning AmpliTech for the next stage of growth. With that, I'll turn the call over to our CFO, Louisa Sanfratello, to review our financial results in more detail.

Thank you, Fawad. As Fawad mentioned, fiscal year 2025 reflected substantial growth in revenue along with continued investment in the business. For the year ended December 31, 2025, revenue was $25.2 million, up from $9.5 million in 2024. Gross profit increased to $6 million compared to $3.5 million in the prior year. Gross margin was 23.9% in 2025 compared to 36.7% in 2024. The year-over-year decrease in gross margin was primarily due to the strategic ramp-up of 5G deployments, early-stage customer acquisition efforts and in the initial market penetration costs associated with carrier-grade ORAN radio systems. Selling, general and administrative expenses increased to $10.7 million from $7.9 million in 2024. This increase was driven primarily by the higher headcount and payroll costs, increased professional and compliance expenses and expanded commercial and marketing activities as we supported the growth of the organization. Research and development expense was $2.7 million compared to $3.6 million in 2024. The decline reflects the completion of certain key development initiatives, including work related to our Massive MIMO 64T64R ORAN CAT B Radio System and advanced beam-forming and 5G infrastructure technologies. Net loss for fiscal 2025 was $7 million compared to $11.2 million in 2024. Operating loss improved to $7.3 million compared to $8.4 million in the prior year. This improvement was driven by the strong revenue growth as well as the absence of certain onetime charges recorded in 2024. Turning to the balance sheet. As of December 31, 2025, working capital was $10.2 million. Cash and cash equivalents were $11.6 million, which included subscription proceeds held in escrow. Our accounts receivable was approximately $3.4 million. The company also strengthened its capital position through approximately $8.1 million in net proceeds from a rights offering and an additional $8.3 million in net proceeds from a registered direct offering, of which both were completed in January of 2026. Based on our current operating plan, management believes we have existing liquidity to fund operations for at least the next 12 months. In summary, we are pleased with the top line momentum in the business while remaining disciplined in managing investments to support long-term valuation creation. I'll now turn the call back to Fawad for closing remarks.

Thank you, Louisa. To close, fiscal 2025 was an important year for AmpliTech Group. We generated substantial revenue growth, improved operating performance, continued investing in our 5G platform and strengthened our balance sheet. While we remain in an investment phase, we believe the progress made across our commercial pipeline, technology portfolio and strategic initiatives positions us well for long-term growth. We appreciate the continued support of our shareholders, customers, employees and partners. Before we open the line for callers in the call for questions, I would like to have our COO, Jorge Flores, go over the questions previously received via e-mail.

Thank you, Fawad. I would like to immediately start with the first question received, which was revenue growth was very strong. What were the main drivers? Our 165% revenue growth in 2025 was driven by a combination of a stronger demand for our core LNA and LNB products, expansion of our 5G product lines, recovering Asian markets within the Spectrum division and increased demand from telecom and satellite communications customers. But out of this, without a doubt, our major revenue growth came from our AmpliTech 5G division and shipment done on our $40 million LOI with a North American MNO. Question number two, why did gross margin decline despite the higher revenue? The margin decline was largely due to the strategic ramp-up of our 5G deployments. If you reflect back on our Q2 2025 results, that's the quarter in which we invested heavily to become a major player in the ORAN markets. We were in the early stages of customer acquisition and market penetration for carrier-grade ORAN radio systems, and that put pressure on our gross margins in the near term, driving our gross margin down into the single digits. Our focus has been on establishing long-term customer relationships and scaling the business. We also provided guidance that our gross margins will recover into double-digit gross margins, which we accomplished over Q3 and Q4 of 2025, going from about 7% gross margins in Q2 of 2025 into the final fiscal year 2025 gross margins of 23.9%. Question number three, how should investors think about the $78 million letter of intent? This letter of intent represents and it is actually more than a multiyear opportunity. While it is not binding and subject to definitive purchase orders, it's the second sizable deployment we have in our hands. So investors must see not just this LOI, but both LOIs as tremendous validations that we have the technology. In addition to this, we also have the supply chain. And on top of that, we are also able to handle the logistics of shipping our radios directly into installer warehouses where these are kitted and sent out to deployment at cell tower sites. As for purchase order amounts and shipment status, what we can share is that as of March 2026, we have already received a little over $5 million in funded purchase orders against this LOI. Initial shipments began in December 2025. To date, we have shipped less than $0.5 million of these orders as we must follow the initial cadence of the end users' installation crews. As they acquire speed in their deployment, we will acquire speed in our shipments. This leaves us with projections to ship the balance of the order, if not during Q2, very early Q3. As such and based on forecast received, we estimate receiving additional orders before the end of the current quarter. Based on the magnitude of the project at hand and the number of sites that need to be deployed, the company believes this LOI will grow north of the $100 million mark over the next 2 years. Question number four, what gives you confidence in liquidity? As of year-end, we had $10.2 million in working capital. Cash and cash equivalents were $11.6 million, and we also added capital through the rights offering and the January 2026 registered direct offerings. Based on our current plan, management believes this is more than sufficient to fund the operations for the next 12 months. Question number five, what are the most important strategic priorities going forward? Our priorities include scaling our 5G and ORAN product opportunities, executing on funded orders, continuing development and commercialization of our Massive MIMO and ORAN solutions, turning to orders additional projects currently being discussed with other major players, also expanding our MMIC and systems capabilities by continuing development on 5G front-end modules. Gross margin improvement is not just a strategic goal, but a critical day-to-day operation goal for us. For any business really, it goes without saying that we fully understand that we must do whatever is within our power to maximize cost efficiency, price competitively, push our supply chains, keep on working using forecast to optimize material order placements and receipts. While we do have our own manufacturing capabilities in the U.S., these are largely related to our AmpliTech Inc. core division. For large volume of ORAN 5G radio manufacturing, we will continue our strategy to use CMs or contract manufacturers, either local or abroad that are specifically in business. These are the CMs are specifically in business to handle the type of production we require. Our strategy does not include hiring hundreds of people to support manufacturing. It is just not cost efficient for our organization. That is why CMs are there. That's why contract manufacturers are there to scale up when we need them to scale up and scale down when delivery time frames require us to do so. Last question is, what you can say about your $40 million LOI with the North American MNO? What is the current level of orders received, orders shipped, balance of funded POs and program visibility? We already received 50%, about 50% of funded purchase orders for this program. We have shipped about $12 million worth of ORAN 5G radios to this MNO, with shipments slated to resume early in Q2 of 2026. Same as with the $78 million LOI, we believe this project will exceed the initial LOI value of $40 million. We are certainly very excited when we hear our end customers speak about future cell tower site deployments and their plans for expansions. This concludes the questions previously received to our e-mail. Operator, please open the line for other questions.

[Operator Instructions] The first question will come from Jack Vander Aarde with Maxim Group.

Good results and good outlook. It's good to see things are still on track. Fawad, can you maybe just touch on the nature of this agreement, this larger LOI and just the cadence of the orders you're expecting? I believe it's going to be a little bit different than the agreement you had where you've already received most of the LOIs. Is it going to be bigger chunks?

Yes. Yes. So this LOI is basically for overseas, right? It's an Asian customer. And in that one there, there are lots of -- in the countries that these are deployed, the pace is very slow as far as deployment is concerned. So they have a whole crew of people working to do the entire nation. And what happens, they have to get all the legalities and they have to have all these permits and everything in place. So it's a slow process that's initially slowing this down. Our proof-of-concept has been done. We have delivered already radios that have been put into the first deployments, and they're working very well. So what we're working on right now is just basically the logistics of getting the radios deployed and then installed. And that's just taking a little bit of time initially. But as that ramps up, then our shipments will also continue to ramp up later this quarter and towards the end of the year.

Okay. Great. And then because if I look at last year, like especially the second quarter in 2025, that's when you received the largest amount of orders. It sounds like this year with this other customer, you're expecting something similar maybe between the second quarter and the third quarter. How about other agreements that you -- potential opportunities with other 5G players? Can you just touch on those discussions? Are you -- do you feel like there's an opportunity to announce a new partner in the next 6, 12 months on top of these?

Yes. Definitely, there's a chance of that happening. We have been in discussions for a while. And obviously, the success of our previous deployments is also key. And in these various different areas, there are different bands that we have to adjust the radios for, and we've been doing that. And in those adjustments, those radios, they have to go through a proof-of-concept phase as well. But all of these are part of expanding our traction. So we believe that these will be successful just like these first LOIs, and we may be going into directly the PO phase even before an LOI phase from other leading MNOs that are going to follow suit in this ORAN deployment. Everyone is not as strongly focused into this ORAN but as time progresses, the ORAN deployments will replace the older RAN deployments. And the larger MNOs are very slow to adopt the new structure. It involves a lot of expense for them, but they will eventually have to adopt that because the technology for expanding the capacity and the speeds of various networks in larger dense populated areas as well as rural areas is increasing. The demand is increasing for that. So it's inevitable that this growth will happen, and we are in the right spot. So we do feel that we will have some positive engagements this year.

Okay. Great. And then just one more for me. You guys kind of touched on the expenses and the gross margin. But the fourth quarter, I think it's just kind of a trend where the fourth quarter operating expenses are higher than any other quarter. Is this just a onetime thing at the end of the year? Maybe for Louisa, if you could help understand, I think it's the SG&A expense line.

Yes. Those expenses were basically -- we had -- we reviewed employment contracts and so forth with our management. We had accounting expenses that increased because of the rights offering as well as legal and things like that.

Okay. Got you. And then I guess, going forward, on a normalized basis, I mean, do you expect gross margins and operating expenses to be somewhat more linear and smooth out? Is this a good read-through for the go-forward run rate, maybe north of 40% gross margin? Just help me understand what the kind of normalized cadence is? And that's it for me.

Yes. So it will increase. It's anywhere between 30% and 50% is the number in this telecom business, depending on what type of products we're offering. And obviously, we're offering products that are not me-too products. Our products are always -- they have value added because we're putting our own MMICS in there that other companies cannot do to improve the performance. And we have other enhancements that we're working on to differentiate our product from the rest of the competitors. So right now, in ORAN, we are the leading company deploying the largest ORAN radios out there. And we are making them even better so that if there are competition that comes in, then they would not be able to compete with the performance because of our inherent legacy business that designs our own LNAs and our designs our PAs. Those are all going to wind up going into our radios and all the other components. So we're just talking about radios right now, but there's a whole slew of products that come out of this. We're not doing just the radios. We're also doing the private 5G enhanced CPE devices. There -- if they're like advanced routers, so to speak. But those are special products that are also all kinds of IoT-related products that we're doing that we haven't really called out specifically, but it's an entire industry base that supports this whole radio rollout.

The next question will come from Anthony Bates with [ Despoer Ventures ].

Can you give us any updates on progress in the cryogenic tech area? Anything that you're working on there?

Yes. So we originally were introduced our cryogenic LNAs for the quantum computing applications. We have gone through successful iterations and many different iterations from initial concept based on our customers' feedback. So we're working on a final version, which is basically a very standard module for [ 4 Kelvin ] operation for a quantum computing production environment. What we have done initially was to provide proof-of-concept units customized for every single different, let's say, manufacturer of the quantum computers like Google and IBM and many others. But every one of them has a different type of flavor to their quantum computers, and none of them are going to very large production levels right now. So we have worked on our fourth version, and we are about to deliver the fourth version of the quantum computing LNAs, which are very high performance. And they're more of a standardized product to fit into many different quantum computing platforms. So we haven't introduced that yet, but we are working on that, and that's going to come up. It will become more important when the larger production starts to ramp up for all these quantum computing companies. They're not in high production mode right now.

Well, can you guesstimate when you might have an order?

I don't know. I mean everything is just right now, we can't say anything when they would be in order. We have provided all these samples, and it could be later this year, it could be early next quarter. But it's all based on the demand of the companies in building these quantum computers. They're not reaching production.

Right, right. Actually, I guess I'm asking is they're not in production yet. Do you have any idea when they may be in production?

I couldn't tell you every single one of them is different. I think that's also being driven by other parts of the industry. It's not just the quantum computing is one example for us. The quantum computer demand comes from the large data, right? So large data is part of the large data is the 5G deployments. Every single MNO has to have a high-speed infrastructure so that all that data can go into a quantum cloud and then the supercomputers will have -- quantum computers will have a lot more data to crunch on, right? So as this builds out, the other industry is going to build up. It's connected. It's all connected in the ecosphere of high-speed connectivity as well as computing because you can't have the metaverse and all these other things, fully automated vehicles, all these things that require high-speed capacity and then crunching all these numbers into a quantum cloud unless everything is in place.

And my last question is, can you give us any kind of updates on -- is it the Texoma Semiconductor Tech Hub? Anything coming out of that?

Yes. That's our MMIC Division. And our MMIC Division is basically expanding its product line. They're also building LNBs now, low noise block converters are used in satellite communication technologies. So the LEO satellites will need ground station terminals to communicate with and the LNBs that are in these ground station terminals, rebuild because we have the lowest noise figures in the world. So those are increasing in number every day, every year, actually. And so our LNBs product line is increasing as well. That's why you saw some increase in the revenues from our LNB division. But this is part of our Texoma Division in Texas in Allen, Texas. But they're also ramping up production of our ICs that are going into these radios. So that's growing, and that division will be growing more as our production increases.

Okay. And that will be growing this year?

Yes.

The next question will come from Andrew DeAngelis with Venture Visionary Partners.

Just a lot of helpful detail on this call, but just wanted to make an explicit question of it. The $50 million revenue guidance that you have out there for this year, what gives you confidence in your ability to achieve that?

Right now, it's a combination of 2 factors. One is the current backlog that we already have in funded orders on both of the LOIs. And the second though is that we are actively seeing forecasts provided by the end users directly into us, and that's how we're managing the supply chain as well. So that's a big definitely on why we are projecting that.

That's helpful. And then just relative to the funds that you guys received in the recent rights offering, where will you be utilizing those funds? And can you talk maybe through the cadence of how those funds will be deployed?

So most of those funds are used for our -- the growth of this 5G business, right? So as I mentioned before, we're building new MMICS and new chips to go into these radios, and we're building different types of radios. So most of our expense is going to be working capital for building out the infrastructure for our 5G groups. But as well, we're building the other groups as well. So it's a scaling effect. Every single group, the idea is to drive growth from our 5G division, which will require increased amount of MMICS, custom MMICS and PAs and low noise amplifiers, which will go down to the MMIC group and increase their revenue because they will be supplying the 5G radio requirements. And then the other packaging group, which is Spectrum division, which is in California, that's a stocking and distribution group. They'll be providing the packages for all these MMICS that go into these radios. So each of these divisions are structured such that there's a synergetic synergy and growth. As we scale up the 5G, we will scale all the other divisions as well. But our sales force is increasing as well. So we're putting in key personnel this year to grow the specific telecom business. So we recognize the need for having specific sales force for this particular application because connectivity to these large MNOs is very, very important in growing the business. And we found that these are giants, right, telecom giants, and we're a smaller company, penetrating these giants. But what will help is a good technical force as well as sales force that is connected to all of these companies. So we're going to be focusing on increasing sales personnel as well as technical personnel in these areas.

Very helpful. And I guess this just kind of layers -- this question layers on to what you just mentioned. But I just, again, want to make it explicit. In terms of your execution priorities, the 1 or 2 things that you're focused on here in the first half of the year, what would those be?

Well, I mean, R&D, we're still -- we're basically growing the company, right? So the R&D phase mostly is done. What we're trying to do now is to take our production line and our assembly lines and make them such that we can make repeatable products. So many of our products are standardized now. It took about a year or 2 so that we can actually make our assembly line standardized and have our supply chain standardized as well. And this increases our 5G exposure. So the idea is to build consistent and cost-effective assembly lines and product lines and procure all the materials at good prices so that we can have a higher gross margin as we grow the business.

And you think that inflection point is going to really, I guess, happen here in the first half?

Yes. It's more likely in the second half. It will start in late Q2, but in the second half of the year.

That concludes the question-and-answer session. I will now turn the call back to Fawad Maqbool for closing remarks.

Thank you, operator, and thanks to everyone who joined today's call to hear the progress we've made and the plan we have to further our company's mission of providing the communication systems of tomorrow today. We look forward to updating you further on our first quarter financial results call next month. Until then, please contact us directly should you have any questions or wish to schedule a call with management. Our Investor Relations team can be reached at the contact information listed at the bottom of our press releases. Thank you, and be well.

Today's conference call is now concluded. Thank you. You may now disconnect your lines.