10-Q: Amprius Technologies Soars with 153% Revenue Growth

Amprius Technologies reports significant Q1 2026 financial improvements, including a 153% revenue increase and a shift to gross profit, driven by strong SiCore battery sales.

Summary

• Revenue surged by 153% to $28.5 million for the three months ended March 31, 2026, up from $11.3 million in the prior year period.
• The company achieved a gross profit of $5.7 million, a substantial improvement from a gross loss of $2.4 million in the same period last year.
• Net loss decreased by 46% to $5.0 million, compared to $9.4 million in the prior year period.
• Amprius terminated its Brighton, Colorado facility lease for a one-time payment of $20.0 million, shifting to an outsourced contract manufacturing strategy.
• Cash and cash equivalents stood at $62.4 million as of March 31, 2026, down from $90.5 million at December 31, 2025, primarily due to the lease termination payment.
• The Fremont, California facility is being expanded to increase pilot line capacity to 10 MWh, accelerated by an $18.1 million DIU contract.
• Amprius has shipped over 5.9 million battery cells since inception through March 31, 2026, serving mission-critical applications in the aviation industry.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, driven by exceptional revenue growth and a significant turnaround in gross profit. While cash burn increased due to a one-time lease termination, the underlying operational improvements and strategic shift towards capital-efficient manufacturing are strong indicators of progress.

Positives

• Revenue increased by $17.3 million, or 153%, to $28.5 million, driven by strong sales of SiCore batteries and an increase in new and existing customers.
• Gross profit improved significantly to $5.7 million, a 343% increase from a gross loss of $2.4 million in the prior year, indicating improved operational efficiency and product mix.
• Net loss decreased by $4.3 million, or 46%, to $5.0 million, demonstrating progress towards profitability.
• Other income, net, increased by $1.3 million, or 447%, primarily due to $0.8 million in government grant income and a $0.4 million gain on disposal of property, plant and equipment.
• The strategic termination of the Brighton, Colorado lease and shift to outsourced contract manufacturing is expected to enable rapid capacity expansion with minimal capital investment.
• The DIU contract, amended to $18.1 million, accelerates the expansion of the Fremont facility's pilot line capacity to 10 MWh and supports quick-turn SiCore customer prototypes.

Negatives

• Cash and cash equivalents decreased to $62.4 million from $90.5 million, primarily due to a $20.0 million lease termination payment for the Brighton, Colorado facility.
• Net cash used in operating activities increased significantly to $37.3 million from $14.1 million in the prior year, largely due to the lease termination payment and higher working capital requirements.
• Accumulated deficit increased to $223.4 million, reflecting ongoing losses as the company scales its business.
• Research and development expenses increased by 90% to $3.8 million, and selling, general and administrative expenses increased by 63% to $8.6 million, contributing to continued operating losses.

Risks

• Incurring recurring losses and negative cash flows from operations, with expectations of additional losses as the business scales and operating expenditures increase.
• Inability to raise additional funds or enter into financing agreements on favorable terms or at all, which could necessitate reducing spending activities and negatively affect operating goals.
• Potential for additional dilution for stockholders if additional funds are raised by issuing equity securities.
• Adverse impacts from economic, business, or competitive factors, including supply chain interruptions and developments in alternative technologies.
• Exposure to macroeconomic factors such as tariffs, trade barriers, abrupt political change, geopolitics, currency fluctuations, embargoes, shortages, terrorist activity, armed conflict (e.g., Russia-Ukraine, Middle East), which can lead to global economic volatility, inflation, and supply chain disruptions.
• Risks related to any change in demand from existing customers, particularly those in the defense industry in jurisdictions experiencing military conflict.
• Increased freight charges due to elevated oil prices resulting from geopolitical tensions.
• Challenges in establishing and managing a global network of contract manufacturing partnerships, including supply chain risks, loss of control over manufacturing processes, quality control issues, production delays, increased production costs, non-compliance with standards, and potential loss of intellectual property.
• Operating in a highly competitive market with established manufacturers and new entrants, some of whom may be better capitalized or have greater resources and customer access.
• The need to significantly reduce manufacturing costs, increase form factors, and increase production quantity to compete effectively in the electric vehicle (EV) industry.
• Compliance risks with existing and future environmental regulations, battery safety and transportation laws, and health and production safety laws governing hazardous materials, which could result in fines, litigation, or criminal charges.

Future Outlook

Amprius expects to incur additional losses as it scales its business and increases operating expenditures, particularly in research and development. The company believes its current cash and cash equivalents are sufficient for the next twelve months but may need to raise additional funds for future operating and capital expenditure requirements. The strategy of leveraging global contract manufacturing is intended to enable rapid capacity expansion with minimal capital investment. Research and development efforts will focus on improving battery life, enhancing energy and power density, and developing larger cell form factors for broader electrified transportation applications.

Management Comments

• "We believe that our cash and cash equivalents will be sufficient to fund our obligations over twelve months from the date these condensed consolidated financial statements are issued."
• "We expect to incur additional losses in the future as we scale our business and increase our operating expenditures, including our research and development spend."
• "We may raise additional funds in order to meet our future operating and capital expenditure requirements, and we may be unable to raise additional funds or enter into such other agreements when needed on favorable terms or at all."
• "If sufficient funding is not raised, we may need to reduce our spending activities, which may negatively affect our ability to achieve our operating goals."
• "We believe that our outsource contract manufacturing strategy enables rapid capacity expansion with minimal capital investment."
• "We believe that we are one of the leading companies in the market that has a high-performance battery that can meet the requirements of aviation and LEV applications."
• "To compete in the EV industry, we expect that we will need to significantly reduce our manufacturing costs, increase form factors and increase production quantity."

Industry Context

StockSavvy.ai notes that Amprius Technologies operates in the rapidly evolving lithium-ion battery market, specifically targeting high-performance applications in aviation, electric vehicles (EV), and light electric vehicles (LEV) with its silicon anode technology. The company's focus on high energy density, high power density, and fast charging capabilities positions it well against conventional graphite lithium-ion batteries. The strategic shift to outsourced contract manufacturing aligns with broader industry trends seeking capital-efficient scaling, particularly relevant in a competitive landscape with significant investment from both established players and new entrants. The company's engagement with the U.S. Government Defense Innovation Unit (DIU) highlights its relevance in defense applications, a segment less susceptible to consumer market volatility. While Amprius acknowledges the need to reduce manufacturing costs and increase form factors to compete in the broader EV market, its current strength lies in specialized, high-performance niches.

Comparison to Industry Standards

• Amprius's silicon anode technology aims to provide superior performance compared to conventional graphite lithium-ion batteries, a key differentiator in the high-performance battery market.
• The company's collaboration with Berzelius and global contract manufacturing partners, including the Amprius Korea Battery Alliance, provides access to annual production exceeding 2.0 GWh of SiCore batteries, which is a significant capacity for a specialized battery producer.
• Amprius's SiCore batteries have been tested and validated by customers such as AALTO Airbus, AeroVironment, BAE Systems, and the U.S. Army, indicating strong product validation in demanding aviation and defense sectors, comparable to leading suppliers in these specialized fields.
• The company's R&D focus on improving battery life, energy/power density, and larger cell form factors is consistent with industry-wide efforts to advance battery technology for next-generation electric mobility, similar to research initiatives by major battery developers like CATL, LG Energy Solution, and Panasonic, though Amprius specializes in silicon anode advancements.

Corporate Governance

Legal Proceedings

• The company is not currently a party to any litigation or legal proceedings that are likely to have a material adverse effect on its business. However, litigation can have an adverse impact due to defense and settlement costs, and diversion of management resources.

Related Party Transactions

• Dr. Kang Sun, former Chief Executive Officer and current director, serves as a member of the board of directors of Berzelius and its holding company.
• Amprius has an Exclusive Supply Agreement with Berzelius, entered into in November 2023, granting exclusive rights to purchase its proprietary silicon anode materials in the United States, Canada, and Mexico.
• The company purchases, and may continue to purchase, SiCore batteries and raw materials for SiMaxx battery production and R&D activities from Berzelius.
• As of March 31, 2026, there were no purchase commitments with Berzelius.

Stakeholder Impact

• Shareholders: Potential for dilution from future equity raises, but also benefit from strong revenue growth and improved gross profit. The warrant exchange reduces potential future cash from warrant exercises but also reduces the number of outstanding warrants.
• Employees: Increased R&D and SG&A expenses indicate growth in headcount and investment in personnel. Equity incentive plans and ESPP provide opportunities for employee ownership.
• Customers: Increased production capacity through contract manufacturing and Fremont expansion aims to meet strong demand for SiCore batteries, ensuring supply and supporting new prototypes.
• Suppliers: Continued reliance on Berzelius for silicon anode materials and global contract manufacturing partners for battery production, indicating ongoing business relationships.
• Creditors: The company's liquidity position, while reduced by a one-time payment, is deemed sufficient for the next 12 months, which is positive for creditors. However, recurring losses and potential need for future funding remain considerations.

Next Steps

• Continue expanding the global network of contract manufacturing partnerships to meet increased demand for SiCore batteries.
• Expand the Fremont, California facility's pilot line capacity to 10 MWh and capabilities for quick-turn SiCore customer prototypes.
• Invest in research and development to improve battery life, further enhance energy and power density (e.g., exploring new cathode materials), and develop larger cell form factors.
• Adapt the supply chain to meet new provisions and rules in the fiscal 2026 National Defense Authorization Act (NDAA) for battery suppliers to the United States Government.
• Evaluate the impact of new accounting guidance on government grants (ASU 2025-10) and interim reporting (ASU 2025-11) on consolidated financial statements and disclosures.

Key Dates

Recommendation

Amprius Technologies demonstrated exceptional performance in Q1 2026, with revenue more than doubling and a significant turnaround from a gross loss to a gross profit. This indicates strong market traction for its SiCore batteries and effective operational management. While the company continues to incur a net loss and experienced increased cash burn due to a strategic lease termination, the underlying operational improvements are compelling. The shift to outsourced manufacturing for scalability and the substantial DIU contract for Fremont expansion are positive strategic moves. The company's leadership in high-performance silicon anode technology for aviation and defense applications provides a strong foundation. Despite the need for future capital, the current growth trajectory and strategic positioning make it an attractive 'buy' for investors with a long-term view on advanced battery technology.

Keywords

Lithium-ion batteries, Silicon anode technology, SiCore batteries, Aviation, Electric vehicles, Energy density, Fast charging, SEC filing, Quarterly report, AMPX, Battery manufacturing, Defense Innovation Unit, Contract manufacturing