AmpliTech Group Inc. (AMPG) had a rough Friday morning. The company's stock took a hit after it reported second-quarter results that showed a wider-than-expected loss, even though revenue came in slightly above what analysts were looking for.

Here's the headline numbers: AmpliTech lost 12 cents per share in the second quarter, while analysts had expected a loss of just 2 cents. Sales hit $8.07 million, edging past the $8 million estimate. Revenue also jumped 50.9% sequentially from $5.35 million in the first quarter, according to the company's Thursday report.

Gross Margin Shows Big Improvement

There's some good news buried in the numbers. Gross profit soared 161.2% year over year to $2.25 million, up from $860,000. Gross margin improved to 27.9% from 7.8% a year earlier. Sales from AmpliTech's amplifier and related passive microwave components and subsystems business also grew 42.7% year over year.

But here's the catch: the net loss widened to $3.09 million from $1.77 million in the same quarter last year. AmpliTech says that's because it's spending more on research and development, plus higher selling, general and administrative expenses. Those costs include amortization, legal fees, stock-based compensation, marketing, and business development activities.

R&D expenses more than doubled to $1.37 million from $660,000. That spending included about $1.08 million for 5G development and $300,000 for MMIC design.

The company still has a decent cash cushion. Cash, cash equivalents, and marketable securities stood at about $12.95 million as of June 30.

Four Growth Markets in Focus

AmpliTech is pushing to commercialize its technology across four key areas: 5G and telecommunications, SATCOM and space, defense and aerospace, and semiconductor and quantum computing.

The company said its second-quarter revenue growth, new O-RAN 5G product sales, expansion of Spectrum Semiconductor Materials' distribution business, and stronger amplifier and passive microwave sales all point to broader monetization across its operations. AmpliTech also kept investing in 5G and MMIC development ahead of what it expects to be bigger opportunities down the road.

What's Next for AmpliTech

Management sees multiple potential growth drivers across its four core markets, all supported by shared RF, microwave, and semiconductor capabilities. The company says it's focused on scaling revenue, improving operating leverage, and turning customer and technology programs into more commercial production.

Looking ahead, AmpliTech plans to advance its 5G O-RAN and MMIC programs, grow Spectrum's semiconductor distribution business, and improve operational efficiency as its product and shipment mix evolves.

Stock Reaction

Investors weren't thrilled. AmpliTech Group shares were down 26.38% at $4.410 during premarket trading on Friday, according to market data.