Amplitude, Inc. (AMPL) Cash Flow Statement

The persistent gap between net income and operating cash flow is almost entirely attributable to non-cash stock-based compensation, which exceeded $20M in every quarter shown. This suggests that reported losses overstate actual cash burn, but investors should note that SBC is a real economic cost that dilutes shareholders. The positive OCF in 2026Q2 appears to be a working capital tailwind rather than a fundamental improvement in earnings quality.

The FCF trajectory is dominated by working capital swings, particularly in deferred revenue and collections, rather than by changes in the underlying business. While the 2026Q2 FCF margin is impressive, it follows a negative quarter, suggesting that investors should focus on the trailing twelve-month average rather than any single quarter. The company's capital-light model, with capex under 2% of revenue, means FCF is essentially a function of operating cash flow, which itself is heavily influenced by SBC add-backs.

The negligible capex intensity suggests that Amplitude's cloud-based architecture requires minimal fixed asset investment, allowing revenue growth to translate almost directly into cash flow once operating expenses are controlled. However, this also implies that the company's heavy R&D and S&M spending are the primary cash consumers, and any future margin expansion will depend on scaling those costs rather than on capex efficiency. The low capex also means that depreciation is minimal, so the gap between net income and operating cash flow is almost entirely SBC-driven.

The volatility in working capital is likely due to the timing of enterprise renewals and usage-based billing, which can cause large swings in deferred revenue and accounts receivable. The positive working capital contribution in 2026Q2 may indicate strong collections or upfront payments, but it is not necessarily a sustainable trend. Investors should monitor whether these swings are driven by customer payment behavior or by changes in contract terms, as they can obscure the underlying cash generation of the business.

The acceleration of buybacks, despite ongoing operating losses, suggests that management believes the stock is undervalued and that the cash cushion is sufficient to support repurchases. However, this deployment strategy may be aggressive given that the company is not yet profitable on a GAAP basis, and it could strain liquidity if operating cash flow deteriorates. The lack of dividends is consistent with a growth-stage company, but the buyback program warrants monitoring for its impact on cash reserves and future financial flexibility.

The divergence between cumulative net income and operating cash flow is almost entirely due to stock-based compensation, which totaled over $230M in the same period. This suggests that the company's cash burn is significantly lower than its accounting losses, but it also means that shareholders are bearing substantial dilution. The positive cumulative OCF indicates that the business can generate cash on a variable basis, but the sustainability of this depends on the company's ability to control SBC and working capital swings as it scales.