Plug Power Second Quarter 2025 Highlights

Rhea-AI Summary

Plug Power (NASDAQ: PLUG) reported its Q2 2025 financial results, achieving $174 million in revenue, up 21% year-over-year. The company's electrolyzer revenue tripled to $45 million, while gross margin improved to -31% from -92% in Q2 2024.

Through Project Quantum Leap, PLUG optimized workforce, consolidated facilities, and renegotiated contracts. The company maintains $140 million in unrestricted cash with access to $300 million in additional debt capacity. Over 230 megawatts of GenEco electrolyzer programs are being deployed globally, and the Georgia hydrogen plant set a U.S. production record.

The company expects to achieve gross margin breakeven on a run-rate basis in Q4 2025, supported by the extension of Investment Tax Credit through 2026 and favorable policy developments including Section 45V Clean Hydrogen Production Tax Credit.

Positive

• Revenue grew 21% year-over-year to $174 million
• Electrolyzer revenue tripled to $45 million
• Gross margin improved significantly from -92% to -31%
• Operating and investing cash burn reduced by over 40%
• 230+ megawatts of GenEco electrolyzer programs being mobilized globally
• Extended hydrogen supply agreement with improved economics
• Access to $300 million in additional debt capacity

Negative

• Gross margin remains negative at -31%
• $80 million in non-cash charges from Project Quantum Leap
• Cash position decreased to $140 million in unrestricted cash
• Still burning cash through operations and investments

Insights

Financial Analyst

Plug Power showing progress in financial recovery with revenue growth and margin improvement, but still facing significant challenges to profitability.

Plug Power's Q2 results reveal a company in transition, with revenue growing 21% year-over-year to $174 million, signaling improved market demand. The standout performer was their electrolyzer business, which tripled revenue to approximately $45 million, demonstrating strong market acceptance of their GenEco platform in global hydrogen infrastructure buildouts.

However, despite this growth, Plug continues to operate at a substantial loss with a gross margin of -31%. While this represents significant improvement from the -92% gross margin in Q2 2024, it underscores ongoing fundamental challenges in their business model. The company's cost structure remains problematic despite their "Project Quantum Leap" initiative targeting workforce optimization, facility consolidation, and supply chain improvements.

The $80 million in non-cash charges this quarter (compared to just $6 million in Q2 2024) reflects substantial restructuring costs. More encouraging is the >40% reduction in cash burn year-over-year, though absolute figures weren't disclosed. With $140 million in unrestricted cash and access to $300 million in debt capacity, liquidity appears adequate in the near term.

Management's projection of reaching gross margin breakeven on a run-rate basis by Q4 2025 will be a critical milestone to watch. The extension of the Investment Tax Credit through 2026 and clarification around Section 45V and 48E tax credits provide important policy support for Plug's business model. However, the company remains dependent on continued electrolyzer business growth and significant cost structure improvements to achieve sustainable profitability.

Renewable Energy Expert

The electrolyzer segment emerges as Plug's most promising growth driver, with revenue tripling year-over-year to $45 million amid accelerating global hydrogen infrastructure deployments. Their Georgia hydrogen plant achievement in April – setting a U.S. production record using GenEco systems – represents a significant technical validation that could bolster customer confidence in large-scale deployments.

The company's mobilization of over 230 megawatts of electrolyzer programs across multiple continents demonstrates growing market adoption beyond North America. This geographic diversification is strategically valuable as different regions advance hydrogen policies at varying speeds. The sales funnel for GenEco electrolyzers appears robust, with Plug securing pre-Final Investment Decision (pre-FID) agreements to lock in future revenue earlier in customer development cycles.

Plug's expansion into adjacent sectors – including oil refining, chemicals, mining, semiconductors, steel, and cement – indicates broader industrial acceptance of hydrogen technologies beyond their traditional material handling focus. Their Energy Transition business leveraging skid packaging and liquefier technology for renewable diesel and sustainable aviation fuel applications represents a logical extension of their core competencies.

The recent policy developments, particularly the One Big Beautiful Bill's clarification of tax credits, provide critical long-term market visibility. The preservation of the Production Tax Credit with direct pay and transferability for hydrogen projects beginning construction before 2028 creates a more stable investment environment for Plug's customers and partners. The 30% Investment Tax Credit extension for qualified fuel cell properties through 2032 similarly supports the material handling business.

•   Execution on Project Quantum Leap helps accelerate business sales
growth and financial performance
•   Q2 revenue up 21% year-over-year, driven by broad hydrogen demand

LATHAM, N.Y., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the hydrogen economy, today announced its financial results and operational milestones for the second quarter ended June 30, 2025.

Revenue Growth and Run Rate Momentum

• Plug reported $174 million in Q2 revenue, a 21% increase versus Q2 2024, driven by robust demand for its GenDrive fuel cells, GenFuel hydrogen infrastructure, and GenEco electrolyzer platforms.
• Electrolyzer revenue tripled year-over-year, reaching ~$45 million in Q2, as the business scales globally.

Gross Margin, Operating Expenses, and Cash Flow Improvements

• Gross margin for Q2 2025 improved significantly to -31% from -92% in Q2 2024, a result of service cost reductions, equipment cost improvements, and improved hydrogen pricing.
• Continued execution of Project Quantum Leap delivered cost structure gains through:
  • Optimization of the workforce
  • Consolidation of facilities
  • Reduction in professional services and software costs
  • Renegotiated supply contracts, including a new hydrogen gas agreement expected to lower molecule cost in H2 2025 and onward
• The second quarter had approximately $80 million in non-cash charges largely associated with Project Quantum Leap. This compares to approximately $6 million in Q2 2024 for similar activities.
  
  

Cash Flow and Liquidity

• Net cash used in operating and investing activities declined over 40% year-over-year.
• Plug exited Q2 with over $140 million in unrestricted cash and cash equivalents, and a platform to access over $300 million in additional debt capacity from the Company’s secured debt facility.
• The Company is also positioned to benefit from monetization of tax credits under Sections 45V and 48E.
  
  

Strategic and Market Highlights

   GenEco Electrolyzer Growth and Global Expansion

• Over 230 megawatts of GenEco electrolyzer programs are currently being mobilized across Europe, Australia, and North America, reflecting strong global demand and Plug’s leadership in delivering industrial-scale hydrogen solutions.
• In April, Plug’s Georgia hydrogen plant set a U.S. production record using GenEco systems — a milestone that demonstrates the scalability, reliability, and cost-effectiveness of our technology, underscoring Plug’s ability to execute at scale and deliver high-volume, dependable hydrogen powered by GenEco electrolyzers.
• The GenEco electrolyzer sales funnel remains exceptionally strong, with additional customer commitments expected this year and multiple large-scale projects moving toward final investment decisions in 2026. Plug is also pursuing pre-FID agreements to secure long-term value earlier in the development cycle, reinforcing our leadership position in the global electrolyzer market.
  
  

   Strengthened Hydrogen Supply and Customer Confidence

• A major hydrogen supply agreement was extended with improved economics, supporting better margins in the second half.
• GenEco has become the electrolyzer platform of choice for industrial-scale applications in oil refining, chemicals, mining, semiconductors, steel, cement and more.
  
  

   Positioned for Growth in GenDrive Material Handling

• The extension of the Investment Tax Credit (ITC) through 2026 is stimulating customer demand for Plug’s GenDrive fuel cells for material handling solutions. The Company expects this momentum to drive new bookings in the second half of 2025, setting the stage for significant growth in 2026.
  
  

   Advancing Plug’s Energy Transition business with Proven Expertise

• Plug’s Energy Transition business is gaining traction as the Company leverages its expertise in skid packaging and liquefier technology to support customers in industries including renewable diesel and sustainable aviation fuel (SAF). This capability is expected to open new revenue opportunities in the second half of 2025.
  
  

Tax Credit Clarity Helps Accelerate Growth

• The passage of the One Big Beautiful Bill in July was a major policy win, solidifying the Section 45V Clean Hydrogen Production Tax Credit and the Section 48E Investment Tax Credit:
  • 30% ITC for qualified fuel cell properties (2026–2032)
  • Preservation of the PTC with direct pay and transferability for hydrogen projects beginning construction before 2028
    
    

Focus on Gross Margin Neutrality

• Plug expects to achieve gross margin breakeven on a run-rate basis in Q4 2025.
• Continued cost discipline, enhanced service execution, and scale benefits from GenEco deployments positions the Company to achieve this goal.
  
  

Earnings Call Details

• Date: August 11, 2025
• Time: 4:30 PM ET
• Dial-In: 877-407-9221 / +1 201-689-8597
• Webcast: https://event.webcasts.com/starthere.jsp?ei=1727352&tp_key=81848c6f90
  
  

A live webcast will be available on the Plug Investor Relations website at https://www.ir.plugpower.com, and a playback will be available online for a period of time following the call.

About Plug

Plug Power is building the global hydrogen economy with a fully integrated ecosystem spanning production, storage, delivery, and power generation. A first mover in the industry, Plug Power provides electrolyzers, liquid hydrogen, fuel cell systems, storage tanks, and fueling infrastructure to industries such as material handling, industrial applications and energy producers—advancing energy independence and decarbonization at scale.

With electrolyzers deployed across five continents, Plug Power leads in hydrogen production, delivering large-scale projects that redefine industrial power. The company has deployed over 72,000 fuel cell systems and 275 fueling stations and is the largest user of liquid hydrogen. Plug Power is rapidly expanding its generation network to ensure a reliable, domestically produced hydrogen supply. With plants operational in Georgia, Tennessee, and Louisiana, Plug Power’s total production capacity is now 40 tons per day.

Plug Power supports global leaders like Walmart, Amazon, Home Depot, BMW, and BP through its talented workforce and state-of-the-art manufacturing facilities around the world.

For more information, visit www.plugpower.com.

Safe Harbor

This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Plug, including but not limited to statements about Project Quantum Leap and the anticipated benefits from the implementation of such initiative; Plug’s expectations regarding its financial profile and market outlook, including its estimated gross margins and the expected timing to break even on a run-rate basis; Plug’s ability to deliver on its business and strategic objectives, including its expectations regarding its sales growth, gross margin, cash utilization, access to capital and working capital performance; Plug’s expectations regarding its hydrogen production network and its ability to leverage its platform and reduce third-party fuel costs; Plug’s expectations regarding benefits of the Section 45V Clean Hydrogen Production Tax Credit and the Section 48E Investment Tax Credit; and Plug’s ability to advance financing initiatives which will support long-term capital efficiency. You are cautioned that such statements should not be read as a guarantee of future performance or results as such statements are subject to risks and uncertainties. Actual performance or results may differ materially from those expressed in these statements as a result of various factors, including, but not limited to, the following: the anticipated benefits and actual savings and costs resulting from Project Quantum Leap; the risk that Plug’s ability to achieve its business objectives and to continue to meet its obligations is dependent upon its ability to maintain a certain level of liquidity, which will depend in part on its ability to manage its cash flows; the risk that the funding of the Department of Energy loan may be delayed or cancelled; the risk that Plug may continue to incur losses and might never achieve or maintain profitability; the risk that Plug may not be successful in its financing initiatives and not have sufficient capital to continue its operations; the risk that Plug may not be able to expand its business or manage its future growth effectively; the risk that global economic uncertainty, including inflationary pressures, fluctuating interest rates, currency fluctuations, increase in tariffs, and supply chain disruptions, may adversely affect Plug’s operating results; the risk that Plug may not be able to obtain from its hydrogen suppliers a sufficient supply of hydrogen at competitive prices or the risk that Plug may not be able to produce hydrogen internally at competitive prices; the risk that delays in or not completing its product and project development goals may adversely affect its revenue and profitability; the risk that its estimated future revenue may not be indicative of actual future revenue or profitability; the risk of elimination, nonrenewal, reduction of, or changes in qualifying criteria for government subsidies and economic incentives for alternative energy products, including Plug’s qualification to utilize the PTC and ITC; the risk that volatility in commodity prices and product shortages may adversely affect Plug’s gross margins and financial results; and the risk that Plug may not be able to manufacture and market products on a profitable and large-scale commercial basis. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Plug in general, see Plug’s public filings with the Securities and Exchange Commission, including the “Risk Factors” section of Plug’s Annual Report on Form 10-K for the year ended December 31, 2024, Plug’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 as well as any subsequent filings. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Plug disclaims any obligation to update forward-looking statements except as may be required by law.

Plug Power Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
		June 30,				December 31,
		2025				2024
Assets
Current assets:
Cash and cash equivalents		$	140,736			$	205,693
Restricted cash			195,443				198,008
Accounts receivable, net of allowance of $42,384 as of June 30, 2025 and $37,712 as of December 31, 2024			138,743				157,244
Inventory, net			643,926				682,642
Contract assets			97,714				94,052
Prepaid expenses, tax credits, and other current assets			113,435				139,845
Total current assets			1,329,997				1,477,484
Restricted cash		$	540,622			$	637,008
Property, plant, and equipment, net			910,144				866,329
Right of use assets related to finance leases, net			55,017				51,822
Right of use assets related to operating leases, net			215,310				218,081
Equipment related to power purchase agreements and fuel delivered to customers, net			129,456				144,072
Contract assets			23,125				23,963
Intangible assets, net			81,043				84,660
Investments in non-consolidated entities and non-marketable equity securities			46,196				85,494
Other assets			22,870				13,933
Total assets		$	3,353,780			$	3,602,846
		—
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	152,060			$	180,966
Accrued expenses			105,173				103,145
Deferred revenue and other contract liabilities			107,063				144,093
Operating lease liabilities			72,478				71,250
Finance lease liabilities			14,147				12,802
Finance obligations			81,368				83,129
Current portion of convertible debt instruments, net			145,318				58,273
Current portion of long-term debt (of which $64,000 was measured at fair value as of June 30, 2025 and $0 was measured at fair value as of December 31, 2024)			64,936				946
Contingent consideration, loss accrual for service contracts, and other current liabilities (of which $25,017 was measured at fair value as of June 30, 2025 and $28,954 was measured at fair value as of December 31, 2024)			93,223				93,885
Total current liabilities			835,766				748,489
		—				—
Deferred revenue and other contract liabilities		$	40,624			$	58,532
Operating lease liabilities			227,319				242,148
Finance lease liabilities			22,471				22,778
Finance obligations			228,609				264,318
Convertible debt instruments, net (of which $173,150 was measured at fair value as of December 31, 2024)			—				321,060
Long-term debt (of which $133,861 was measured at fair value as of June 30, 2025 and $0 was measured at fair value as of December 31, 2024)			135,325				1,932
Contingent consideration, loss accrual for service contracts, and other liabilities (of which $16,913 was measured at fair value as of June 30, 2025 and $31,792 was measured at fair value as of December 31, 2024)			99,706				135,833
Total liabilities			1,589,820				1,795,090
		—
Stockholders’ equity:
Common stock, $.01 par value per share; 1,500,000,000 shares authorized; Issued (including shares in treasury): 1,165,714,048 as of June 30, 2025 and 934,126,897 as of December 31, 2024		$	11,658			$	9,342
Additional paid-in capital			8,789,434				8,430,537
Accumulated other comprehensive income/(loss)			3,478				(2,502	)
Accumulated deficit			(7,018,200	)			(6,594,445	)
Less common stock in treasury: 18,494,066 as of June 30, 2025 and 20,230,043 as of December 31, 2024			(105,304	)			(108,795	)
Total Plug Power Inc. stockholders’ equity			1,681,066				1,734,137
Non-controlling interest			82,894				73,619
Total stockholders’ equity			1,763,960				1,807,756
Total liabilities and stockholders’ equity		$	3,353,780			$	3,602,846

Plug Power Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
		Three months ended								Six months ended
		June 30,								June 30,
		2025				2024				2025				2024
Net revenue:
Sales of equipment, related infrastructure and other		$	99,173			$	76,788			$	162,679			$	145,083
Services performed on fuel cell systems and related infrastructure			16,367				13,034				33,241				26,057
Power purchase agreements			23,633				19,674				46,843				37,978
Fuel delivered to customers and related equipment			34,399				29,887				63,856				48,173
Other			398				3,967				1,025				6,323
Net revenue		$	173,970			$	143,350			$	307,644			$	263,614
Cost of revenue:
Sales of equipment, related infrastructure and other			117,280				129,911				191,836				265,036
Services performed on fuel cell systems and related infrastructure			9,996				13,730				24,458				26,687
(Benefit)/provision for loss contracts related to service			(10,832	)			16,484				(1,944	)			32,229
Power purchase agreements			45,272				54,312				95,204				109,540
Fuel delivered to customers and related equipment			65,636				58,317				124,990				116,890
Other			83				1,851				426				3,562
Total cost of revenue		$	227,435			$	274,605			$	434,970			$	553,944
Gross loss		$	(53,465	)		$	(131,255	)		$	(127,326	)		$	(290,330	)
Operating expenses:
Research and development			12,193				18,940				29,550				44,220
Selling, general and administrative			87,893				85,144				168,732				163,103
Restructuring			2,964				1,629				20,118				7,640
Impairment			20,599				3,937				21,663				4,221
Change in fair value of contingent consideration			(168	)			3,768				(11,987	)			(5,432	)
Total operating expenses		$	123,481			$	113,418			$	228,076			$	213,752
Operating loss			(176,946	)			(244,673	)			(355,402	)			(504,082	)
Interest income			5,845				7,795				10,998				17,072
Interest expense			(15,938	)			(9,511	)			(27,424	)			(20,836	)
Other income/(expense), net			3,817				(9,080	)			5,107				(16,076	)
Loss on extinguishment of convertible debt instruments and debt			(5,475	)			—				(9,127	)			(14,047	)
Change in fair value of convertible debenture			9,240				—				1,902				—
Change in fair value of debt			(3,408	)			—				(3,408	)			—
Loss on equity method investments			(45,850	)			(7,240	)			(48,220	)			(20,353	)
Loss before income taxes		$	(228,715	)		$	(262,709	)		$	(425,574	)		$	(558,322	)
Income tax (expense)/benefit			(12	)			376				(12	)			213
Net loss		$	(228,727	)		$	(262,333	)		$	(425,586	)		$	(558,109	)
Net loss attributable to non-controlling interest		$	(1,628	)		$	—			$	(1,831	)		$	—
Net loss attributable to Plug Power Inc.		$	(227,099	)		$	(262,333	)		$	(423,755	)		$	(558,109	)
Net loss per share attributable to Plug Power Inc.:
Basic and diluted		$	(0.20	)		$	(0.36	)		$	(0.41	)		$	(0.81	)
Weighted average number of common stock outstanding			1,126,627,283				736,848,684				1,036,697,246				688,900,904

Plug Power Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Six months ended June 30,
		2025				2024
Operating activities
Net loss		$	(425,586	)		$	(558,109	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of long-lived assets			24,910				34,603
Amortization of intangible assets			4,008				9,434
Lower of cost or net realizable value inventory adjustments and provision for excess and obsolete inventory			21,166				53,359
Stock-based compensation			24,167				40,013
Loss on extinguishment of convertible debt instruments and debt			9,127				14,047
Provision/(recoveries) for losses on accounts receivable			4,672				(1,313	)
Amortization of premium of debt issuance costs on convertible debt instruments and long-term debt			(214	)			(718	)
Provision for common stock warrants			18,599				10,327
Deferred income tax benefit			—				(213	)
Impairment			21,663				4,221
(Recovery)/loss on service contracts			(25,806	)			7,292
Change in fair value of contingent consideration			(11,987	)			(5,432	)
Lease origination costs			—				(2,467	)
Change in fair value of convertible debenture			(1,902	)			—
Change in fair value of debt			3,408				—
Loss on equity method investments			48,220				20,353
Changes in operating assets and liabilities that provide/(use) cash:
Accounts receivable			13,829				55,261
Inventory			16,356				(11,925	)
Contract assets			(5,210	)			(2,897	)
Prepaid expenses and other assets			41,691				(20,864	)
Accounts payable, accrued expenses, and other liabilities			(4,077	)			(15,818	)
Payments of contingent consideration			(8,341	)			(9,164	)
Payments of operating lease liability, net			(11,133	)			—
Deferred revenue and other contract liabilities			(54,938	)			(42,456	)
Net cash used in operating activities		$	(297,378	)		$	(422,466	)
Investing activities
Purchases of property, plant and equipment			(79,069	)			(193,923	)
Purchases of equipment related to power purchase agreements and equipment related to fuel delivered to customers			(7,409	)			(11,022	)
Cash paid for non-consolidated entities and non-marketable equity securities			(838	)			(63,713	)
Net cash used in investing activities		$	(87,316	)		$	(268,658	)
Financing activities
Payments of contingent consideration			—				(1,836	)
Proceeds from public and private offerings, net of transaction costs			276,192				572,120
Payments of tax withholding on behalf of employees for net stock settlement of stock-based compensation			(207	)			(602	)
Contributions by non-controlling interest			750				—
Proceeds from exercise of stock options			—				67
Principal payments on convertible debentures			(185,962	)			—
Proceeds from debt issuance			199,500				—
Premium on principal of convertible debenture settled in cash			(3,832	)			—
Principal payments on long-term debt			(688	)			(685	)
Cash paid for closing fees related to DOE loan guarantee			(13,414	)			—
Principal repayments of finance obligations and finance leases			(46,275	)			(42,313	)
Net cash provided by financing activities		$	226,064			$	526,751
Effect of exchange rate changes on cash			(5,278	)			14,135
Decrease in cash and cash equivalents			(64,957	)			(72,674	)
Decrease in restricted cash			(98,951	)			(77,564	)
Cash, cash equivalents, and restricted cash beginning of period			1,040,709				1,169,144
Cash, cash equivalents, and restricted cash end of period		$	876,801			$	1,018,906

MEDIA CONTACT
Teal Hoyos
media@plugpower.com

FAQ

What were Plug Power's Q2 2025 revenue and growth rate?

Plug Power reported $174 million in Q2 2025 revenue, representing a 21% increase compared to Q2 2024.

How much did PLUG's electrolyzer revenue grow in Q2 2025?

PLUG's electrolyzer revenue tripled year-over-year, reaching approximately $45 million in Q2 2025.

When does Plug Power expect to achieve gross margin breakeven?

Plug Power expects to achieve gross margin breakeven on a run-rate basis in Q4 2025, driven by cost discipline, enhanced service execution, and scale benefits.

What is Project Quantum Leap's impact on Plug Power?

Project Quantum Leap helped optimize workforce, consolidate facilities, reduce costs, and renegotiate supply contracts, though it resulted in $80 million in non-cash charges in Q2 2025.

How much cash does PLUG have available?

PLUG ended Q2 with $140 million in unrestricted cash and access to $300 million in additional debt capacity from its secured debt facility.

What tax credits will benefit Plug Power?

Plug Power will benefit from the 30% Investment Tax Credit (ITC) through 2026-2032 and the Section 45V Clean Hydrogen Production Tax Credit for projects beginning construction before 2028.