Executive Summary / Key Takeaways

• Technological Dominance Fuels Growth: Amprius Technologies (AMPX) is a leader in silicon anode battery technology, offering unmatched energy and power density, ultra-fast charging, and superior safety, validated by third parties and critical for high-performance applications in aviation and light electric vehicles.
• Record Revenue and Margin Expansion: The company achieved record revenue of $21.4 million in Q3 2025, a 173% year-over-year increase, driven by strong SiCore battery sales, and delivered its second consecutive quarter of positive gross margin at 15%.
• Expanding Commercial Traction: Amprius is rapidly converting customer engagements into significant orders, evidenced by a $53.3 million backlog as of September 30, 2025, an 83% quarter-over-quarter increase, and a $35 million follow-on order from a leading UAS manufacturer.
• Strategic Manufacturing Diversification: A capital-efficient contract manufacturing model, now exceeding 2.0 GWh of capacity globally, coupled with a $12 million U.S. Government Defense Innovation Unit (DIU) contract for domestic Fremont expansion, mitigates geopolitical risks and supports scaling.
• Clear Path to Profitability: With operating losses shrinking and adjusted EBITDA significantly improving, management projects achieving positive EBITDA with an additional $10 million in quarterly revenue, signaling a tangible trajectory towards financial sustainability.

The Dawn of a New Battery Era: Amprius's Silicon Anode Revolution

Amprius Technologies, Inc. (NYSE:AMPX), founded in 2008 and commencing commercial battery production in 2018, stands at the forefront of a transformative shift in energy storage. Headquartered in Fremont, California, the company specializes in developing, manufacturing, and marketing high energy and power density silicon anode lithium-ion batteries. These advanced batteries are critical for the burgeoning electric mobility sector, spanning aviation, electric vehicles (EVs), and light electric vehicles (LEVs). The industry landscape is ripe for disruption, with the electric aerospace market alone estimated at $40 billion to $50 billion today, projected to reach $80 billion by the end of the decade, where batteries constitute approximately 10% of the market. The global drone market is also set for explosive growth, from $18 billion in 2023 to an anticipated $213 billion by 2032, while the LEV market is expected to swell to $136 billion by 2029. This immense market potential, coupled with increasing defense funding and policy shifts favoring domestic drone manufacturing, creates a compelling backdrop for Amprius's innovative solutions.

Technological Leadership: The Silicon Anode Advantage

Amprius's core competitive advantage lies in its proprietary silicon anode technology, which it asserts makes it the "only known manufacturer using a 100% silicon anode that is free of any inactive additives." This technological differentiation translates into tangible, quantifiable benefits that set Amprius apart from conventional lithium-ion batteries and many emerging competitors.

The company's commercially available batteries, under its SiCore and SiMaxx product platforms, deliver impressive performance metrics. These include energy densities of up to 450 Wh/kg and 1,150 Wh/L, a 10C power capability, and an extreme fast-charging rate of 0 to 80% state of charge in approximately six minutes. Furthermore, Amprius batteries can operate across a wide temperature range of -30°C to 55°C and have passed the stringent U.S. military benchmark nail penetration test for safety. An independent third party has validated an even higher performance platform at 500 Wh/kg and 1,300 Wh/L, which Amprius believes is unmatched in the commercial market today.

Recent product introductions underscore this innovation. In April 2025, Amprius launched the SA102, a SiCore cell achieving 450 Wh/kg, representing a 73% increase over typical conventional batteries. In March 2025, the company introduced a high energy density 21,700 cylindrical cell with a 6,300 mAh capacity, providing a 25% energy boost over existing cells and earning "best in show" at the 2025 International Battery Seminar. Amprius also developed a high energy and high power cell with 370 Wh/kg energy density and 3,500 W/kg power, capable of 10C discharge without cooling and 15C with active cooling.

The strategic "so what" for investors is clear: these technological advancements create a significant competitive moat. They enable Amprius to command premium pricing and foster strong customer loyalty in performance-critical applications. For instance, Nordic Wing's Astero ISR UAV, powered by Amprius's SiCore cells, achieves 90% longer flight times, a critical differentiator for intelligence, surveillance, and reconnaissance missions. Amprius's research and development efforts are focused on further improving battery life, increasing energy density through exploration of conversion cathodes, and developing larger cell form factors to meet evolving market demands.

Strategic Expansion and Commercial Momentum

Amprius's growth strategy is built on a capital-efficient contract manufacturing model, allowing it to scale rapidly without heavy upfront capital expenditures. As of September 30, 2025, the company had access to over 1.8 GWh of annual SiCore battery production capacity through its global contract manufacturers, including a new partnership in South Korea. This capacity has since expanded to exceed 2.0 GWh with the establishment of the Amprius Korea Battery Alliance in November 2025. This model provides the flexibility to produce cells in pouch, cylindrical, and prismatic formats, catering to diverse customer needs.

The company's commercial traction is accelerating. Since Q1 2023, Amprius has shipped batteries to a total of 444 end customers, with 159 customers served in Q3 2025 alone, 80 of whom were new. This expanding customer base is translating into substantial orders. A significant highlight in Q3 2025 was a $35 million follow-on purchase order from a leading Unmanned Aerial Systems (UAS) manufacturer, building on a previous $15 million order from the same customer. Other notable wins include deepening its relationship with AeroVironment (AVAV) for the U.S. Army's xTech Prime program, delivering ultra-high energy cells (up to 520 Wh/kg). Amprius was also selected for the Amazon Devices (AMZN) Climate Tech Accelerator program, advancing to the integration assessment phase.

Geographic diversification is a key strategic pillar, with 75% of Q3 2025 revenue originating from outside the United States on a ship-to basis. This global reach helps mitigate risks associated with domestic trade policies. Furthermore, Amprius is actively expanding its U.S. manufacturing footprint. In July 2025, it began delivering SiCore cells manufactured at its Fremont, California facility to drone and UAV customers. The U.S. Government Defense Innovation Unit (DIU) awarded Amprius a contract totaling $12 million (initially $10.5 million in July 2025, with an additional $1.5 million in August 2025) to expand manufacturing capacity at its Fremont facility, specifically to include electrode manufacturing and increase its pilot line to 10 MWh. This DIU contract is expected to cover the majority of capital investments for this expansion over the next several quarters and aims to establish a resilient, NDAA-compliant domestic supply source.

Financial Performance: A Turning Point

For the three months ended September 30, 2025, the company reported record revenue of $21.4 million, a remarkable 173% increase year-over-year and a 42% sequential jump from Q2 2025. This strong performance surpassed analyst expectations. For the nine months ended September 30, 2025, revenue reached $47.8 million, representing a 253% increase over the same period in 2024.

Crucially, Amprius achieved a gross profit of $3.3 million in Q3 2025, translating to a 15% gross margin. This marks the second consecutive quarter of positive gross margins, a significant milestone driven primarily by the increasing sales volume and favorable product mix of its SiCore batteries. Operating expenses in Q3 2025 remained lean at $8 million, a slight decrease from the previous quarter, reflecting efficient cost management. As a result, the operating loss for Q3 2025 shrank by over 30% quarter-over-quarter to $4.7 million. The GAAP net loss for the third quarter was $3.9 million, or -$0.03 per share, outperforming analyst forecasts. Adjusted EBITDA for Q3 2025 improved significantly, reducing the loss by over 60% quarter-over-quarter to -$1.4 million.

The company's liquidity position is solid, with $73.2 million in cash and cash equivalents as of September 30, 2025, and no debt. Management believes this cash balance is sufficient to fund obligations for at least the next twelve months. An At Market Issuance Sales Agreement provides additional financial flexibility, with approximately $20.1 million remaining available as of September 30, 2025.

Ricardo Rodriguez, Amprius's CFO, highlighted that an additional $10 million in revenue could lead to positive adjusted EBITDA, underscoring the company's proximity to cash flow breakeven.

Competitive Dynamics and Differentiating Moats

The battery market is intensely competitive, populated by both established manufacturers and new entrants. While large incumbents like Panasonic Holdings Corporation (PCRFY) and Samsung SDI Co., Ltd. (SSDIY) dominate the broader EV and consumer electronics segments, their focus on these high-volume markets often means their cell chemistry and design differ from Amprius's specialized offerings. Amprius differentiates itself by being the "leading company in the market that has a high-performance battery that can meet the requirements of aviation and LEV applications." Its "most complete silicon anode technology portfolio," encompassing silicon monoxide, silicon carbon, and silicon nanowire, provides a unique technological edge.

Compared to these larger players, Amprius's proprietary IP, protected by 111 global patents, creates a high barrier to entry. Its batteries offer superior energy density, enabling benefits like 80% more energy than conventional lithium-ion cells, rapid charging, robust thermal performance, and enhanced safety. These attributes allow Amprius to compete on performance rather than solely on price, particularly in demanding applications where weight and endurance are paramount. While Amprius's smaller scale might lead to higher manufacturing costs for its SiMaxx platform compared to mass-produced alternatives, its capital-light contract manufacturing model for SiCore helps mitigate this.

Amprius also faces indirect competition from alternative energy storage solutions like fuel cells and supercapacitors. However, its strategic focus on high-performance, high-energy-density applications, particularly in electric aerospace, positions it to capture segments where its technology offers a distinct advantage. The company's proactive approach to supply chain diversification, including partnerships in South Korea and the U.S. DIU contract for NDAA-compliant domestic production, addresses geopolitical risks and customer preferences for varied manufacturing bases.

Outlook and Key Risks

Amprius Technologies anticipates continued strong momentum, expecting sequential revenue growth driven by its robust customer pipeline and the conversion of more customer engagements into revenue-generating purchase orders. Management projects positive gross margins to persist and grow over time, supported by the increasing proportion of SiCore product sales. Operating expenses are expected to remain lean, with strategic investments in R&D and sales to support growth. The company plans to release new batteries, including further advancements in its SiCore platform and the commercial availability of the 500 Wh/kg SiMaxx product.

Despite this optimistic outlook, several risks warrant investor attention. The company's reliance on third-party contract manufacturers, while capital-efficient, introduces risks related to supply chain disruptions, quality control, and potential price increases. Scaling production to meet rapidly increasing demand, particularly for high-volume manufacturing lines, presents engineering challenges and potential delays. The planned GWh-scale manufacturing facility in Brighton, Colorado, remains contingent on funding and broader industry dynamics, with the company currently exploring subleasing options. Geopolitical and trade risks, such as tariffs, could impact operations, though management asserts that tariffs are "not our primary concern" due to a competitive cost base and global reach. The company also faces the ongoing challenge of attracting and retaining key technical talent and maintaining effective internal controls as a public company.

Conclusion

Amprius Technologies is emerging as a compelling investment story, driven by its groundbreaking silicon anode battery technology and accelerating commercial success. The company's ability to deliver industry-leading energy and power density, coupled with a capital-efficient manufacturing strategy and a rapidly expanding global customer base, positions it favorably within the high-growth electric mobility markets. Record revenue, positive gross margins, and a shrinking adjusted EBITDA loss in Q3 2025 signal a pivotal shift towards financial health. While competitive pressures and scaling challenges persist, Amprius's technological leadership, strategic diversification of its manufacturing footprint, and clear roadmap for product innovation underscore its potential for sustained growth. For investors seeking exposure to the next generation of battery technology, Amprius offers a unique opportunity to participate in the electrification revolution, backed by a strong foundation and a clear trajectory.