Amplitude, Inc. (AMPL) Balance Sheet

The sequential decline in total assets is driven by a $45.1M drop in cash and a $9.7M reduction in PPE, while liabilities increased by $36.0M, likely reflecting higher deferred revenue and accrued expenses. This trajectory suggests the company is consuming its asset base to fund operations, with equity shrinking by $81.1M in a single quarter. The trend implies that without a return to profitability, the balance sheet will continue to weaken, potentially constraining future flexibility.

Although absolute debt is modest, the sequential increase in debt while equity declines by 37.3% suggests that leverage is rising from a low base. The D/E ratio, though still conservative, has doubled from 0.02 to 0.04 year-over-year, indicating a gradual shift toward debt financing. This may reflect a strategic move to preserve cash, but it also signals that the company is not generating sufficient internal funds to cover its operating losses, which averaged -$34.6M in 2026Q2.

The six-fold increase in goodwill, likely from the Statsig acquisition, now represents 7.1% of total assets, up from less than 1% a year ago. This raises the risk of future impairment if the acquired business underperforms. Meanwhile, PPE remains minimal at 5.3% of assets, confirming the company's reliance on cloud infrastructure rather than owned hardware. The asset mix suggests that Amplitude's value is increasingly tied to intangible assets, which may be more volatile and harder to monetize.

The $81.1M sequential drop in equity is the largest in the ten-quarter period, driven by a net loss of -$34.6M and a $68.7M share repurchase program, which reduced cash and equity simultaneously. Retained earnings have deteriorated by $219.3M over the past year, indicating that the company is burning through its accumulated capital. While the buyback signals management confidence, it also accelerates equity depletion, leaving a thinner cushion against future shocks.

The current ratio is now barely above 1.0, indicating that current assets barely cover current liabilities, a significant deterioration from the 2.68 level seen in 2024Q1. Cash and equivalents have declined by $243.9M over the past year, from $317.4M to $73.8M, reflecting heavy cash burn and the buyback. At the current burn rate of approximately $34.6M per quarter, the cash position provides less than three quarters of runway, though operating cash flow turned positive in 2026Q2, which may extend the runway.