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NEW YORK - Plug Power Inc. (NASDAQ:PLUG), currently trading at $1.58 per share, reported second quarter revenue of $174 million, a 21% increase compared to the same period last year, driven by demand across its hydrogen product lines, according to a company press release Monday. This quarterly performance comes against a backdrop of -19.85% revenue decline over the last twelve months, according to InvestingPro data.
The hydrogen solutions provider said its electrolyzer revenue tripled year-over-year to approximately $45 million in the quarter as the business scales globally.
Despite the revenue growth, Plug Power continues to operate at a loss, though its gross margin improved to -31% from -92% in Q2 2024. The company attributed the improvement to service cost reductions, equipment cost improvements, and better hydrogen pricing. InvestingPro data shows the company’s trailing twelve-month gross margin stands at -77.54%, highlighting ongoing profitability challenges. With 8 additional ProTips and comprehensive analysis available, investors can gain deeper insights into Plug Power’s financial health through InvestingPro’s detailed research reports.
Plug Power reported a net loss of $228.7 million for the quarter, compared to a $262.3 million loss in the same period last year. The company’s cash position stood at over $140 million in unrestricted cash and cash equivalents at the end of the quarter.
The company highlighted progress in its "Project Quantum Leap" initiative, which has delivered cost structure improvements through workforce optimization, facility consolidation, and renegotiated supply contracts, including a new hydrogen gas agreement expected to lower costs in the second half of 2025.
Plug Power stated it expects to achieve gross margin breakeven on a run-rate basis by Q4 2025, citing continued cost discipline, enhanced service execution, and scale benefits from electrolyzer deployments. While the company maintains a healthy current ratio of 1.95, indicating strong short-term liquidity, InvestingPro analysis suggests the company is quickly burning through cash, a crucial factor for investors to monitor.
The company also noted that the extension of the Investment Tax Credit through 2026 is stimulating customer demand for its fuel cells for material handling solutions, which it expects will drive new bookings in the second half of 2025.
In other recent news, Plug Power Inc. has been active with significant developments. The company announced a multi-year extension of its hydrogen supply agreement with an unnamed U.S.-based industrial gas company through 2030. This extension is expected to reduce costs and improve cash flows, enhancing network efficiency for over 275 hydrogen-consuming customer sites. Furthermore, Plug Power’s shareholders approved a reverse stock split and the election of three Class II directors during their annual meeting.
In analyst updates, JPMorgan issued positive comments following a management conference call, noting that policy clarity from the OBBB should remove an overhang for the hydrogen sector. Additionally, H.C. Wainwright reiterated its Buy rating on Plug Power, maintaining a $3 price target, influenced by changes to clean energy incentives in the One Big Beautiful Bill Act. These changes, specifically to the 48E and 45V tax credits, are anticipated to benefit Plug Power’s operations. These developments reflect the company’s ongoing efforts to strengthen its market position and operational efficiency.
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