Core Viewpoint - FuelCell Energy, Inc. is facing financial challenges with significant losses but maintains a strong liquidity position and low debt levels, indicating potential for future growth in the clean energy sector [2][3][4]. Financial Performance - The company reported an earnings per share (EPS) of -$3.78, which was significantly lower than the estimated EPS of -$1.59 [2]. - Revenue generated was approximately $46.7 million, slightly below the estimated revenue of about $47.4 million [2]. - The price-to-sales ratio stands at about 0.91, suggesting the stock is valued at less than one times its sales, indicating potential for future sales growth [2]. Valuation Metrics - FuelCell Energy has a price-to-earnings (P/E) ratio of approximately -0.80, indicating the company is currently not profitable [3]. - The enterprise value to sales ratio is approximately 1.18, reflecting the company's valuation in relation to its revenue [3]. - The enterprise value to operating cash flow ratio is around -1.15, highlighting a negative cash flow situation [3]. Liquidity and Debt Position - The company maintains a strong liquidity position with a current ratio of approximately 5.62, indicating its ability to cover short-term liabilities [4][5]. - The debt-to-equity ratio is about 0.22, suggesting a relatively low level of debt compared to equity [4][5].

Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts The earnings call insights are compilations of earnings call transcripts ...

FuelCell Energy (NasdaqGM:FCEL) Q3 2025 Earnings Call September 09, 2025 10:00 AM ET Speaker0Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the FuelCell Energy Third Quarter of Fiscal twenty twenty five Financial Results Conference Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise.After the speakers' remarks, there will be a question and answer session. At this time, ...

Third Quarter of Fiscal Year 2025 Financial Results & Business Update A rendering of a 50-MW FuelCell Energy data center installation © 2025 FuelCell Energy 1 © 2025 FuelCell Energy Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding future events or our future financial performance that involve certain contingencies and uncertainties. The forward-looking statements incl ...

[Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements%2E) [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20July%2031%2C%202025%20and%20October%2031%2C%202024%2E) As of July 31, 2025, the company's total assets were **$830.5 million**, a decrease from **$944.1 million** as of October 31, 2024, with both current assets and total liabilities decreasing, and stockholders' equity falling from **$656.9 million** to **$556.2 million** Consolidated Balance Sheets (USD in thousands) | Metric | July 31, 2025 (USD in thousands) | October 31, 2024 (USD in thousands) | | :-------------------------------- | :------------------------------- | :-------------------------------- | | **Assets** | | | | Cash and Cash Equivalents, unrestricted | 174,662 | 148,133 | | Investments - Short-term | - | 109,123 | | Inventories | 104,598 | 113,703 | | Project Assets, net | 224,482 | 242,131 | | Goodwill | - | 4,075 | | Intangible Assets, net | 4,215 | 14,779 | | Total Assets | 830,535 | 944,124 | | **Liabilities and Stockholders' Equity** | | | | Total Current Liabilities | 69,027 | 73,904 | | Long-term Liabilities and Other Liabilities | 119,320 | 130,850 | | Total Liabilities | 205,458 | 216,658 | | Total Stockholders' Equity | 556,171 | 656,922 | - As of July 31, 2025, the company's unrestricted cash and cash equivalents increased to **$174.7 million** from **$148.1 million** as of October 31, 2024, with all short-term investments having matured and no longer held[7](index=7&type=chunk) - Goodwill and certain intangible assets were impaired to zero due to restructuring plans and the cessation of solid oxide technology commercialization activities[7](index=7&type=chunk)[66](index=66&type=chunk)[78](index=78&type=chunk) [Consolidated Statements of Operations and Comprehensive Loss (Three Months Ended July 31, 2025 and 2024)](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20for%20the%20three%20months%20ended%20July%2031%2C%202025%20and%202024%2E) For the three months ended July 31, 2025, total revenue increased by **97%** to **$46.7 million** year-over-year, but operating and net losses significantly widened due to **$64.5 million** in impairment charges and **$4.1 million** in restructuring expenses Consolidated Statements of Operations and Comprehensive Loss (USD in thousands) | Metric (USD in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | | Total Revenue | 46,743 | 23,695 | | Total Cost of Sales | 51,877 | 29,897 | | Gross Loss | (5,134) | (6,202) | | Total Operating Expenses | 90,230 | 27,415 | | Operating Loss | (95,364) | (33,617) | | Net Loss | (91,896) | (35,123) | | Net Loss Attributable to Common Stockholders | (92,456) | (33,460) | | Basic and Diluted Loss Per Share | (3.78) | (1.99) | - Product revenue significantly increased, primarily driven by the delivery and commissioning of **8** fuel cell modules under a Long-Term Service Agreement (LTSA) with GGE, and a sales contract with Ameresco, Inc[130](index=130&type=chunk) - The quarter recognized **$64.5 million** in impairment charges, mainly related to goodwill, in-process intangible assets, property, plant, and equipment, and inventories associated with solid oxide technology, along with **$4.1 million** in restructuring expenses[8](index=8&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) [Consolidated Statements of Operations and Comprehensive Loss (Nine Months Ended July 31, 2025 and 2024)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20for%20the%20nine%20months%20ended%20July%2031%2C%202025%20and%202024%2E) For the nine months ended July 31, 2025, total revenue increased by **64%** to **$103.1 million** year-over-year, but net loss expanded to **$162 million** with a loss per share of **$7.22** due to impairment and restructuring charges Consolidated Statements of Operations and Comprehensive Loss (USD in thousands) | Metric (USD in thousands) | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :------------------------ | :------------------------------ | :------------------------------ | | Total Revenue | 103,146 | 62,806 | | Total Cost of Sales | 122,922 | 87,807 | | Gross Loss | (19,776) | (25,001) | | Total Operating Expenses | 144,249 | 92,455 | | Operating Loss | (164,025) | (117,456) | | Net Loss | (162,031) | (117,178) | | Net Loss Attributable to Common Stockholders | (160,431) | (86,993) | | Basic and Diluted Loss Per Share | (7.22) | (5.56) | - Product revenue was primarily driven by the delivery and commissioning of **12** fuel cell modules under the LTSA with GGE, and a sales contract with Ameresco, Inc[161](index=161&type=chunk) - Research and development expenses decreased to **$28.6 million**, mainly due to reduced investment in the commercial development of solid oxide power generation and electrolysis platforms, and carbon separation and capture solutions[177](index=177&type=chunk) [Consolidated Statements of Changes in Equity (Three and Nine Months Ended July 31, 2025)](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity%20for%20the%20three%20and%20nine%20months%20ended%20July%2031%2C%202025%2E) For the nine months ended July 31, 2025, total stockholders' equity decreased from **$657 million** as of October 31, 2024, to **$556 million**, primarily due to net loss and preferred stock dividends, partially offset by common stock issuances and equity incentive plans Consolidated Statements of Changes in Equity (USD in thousands) | Metric (USD in thousands) | Balance as of October 31, 2024 | Balance as of July 31, 2025 | | :------------------------ | :----------------------------- | :-------------------------- | | Common Stock Shares | 20,375,932 | 29,645,294 | | Common Stock Amount | 2 | 3 | | Additional Paid-in Capital | 2,300,031 | 2,357,630 | | Accumulated Deficit | (1,641,550) | (1,799,581) | | Accumulated Other Comprehensive Loss | (1,561) | (1,881) | | Treasury Stock | (1,198) | (1,360) | | Deferred Compensation | 1,198 | 1,360 | | Total Stockholders' Equity | 656,922 | 556,171 | | Noncontrolling Interests | 10,687 | 9,049 | | Total Equity | 667,609 | 565,220 | - For the nine months ended July 31, 2025, approximately **9.2 million** shares of common stock were sold through the Amended Sales Agreement, generating net proceeds of approximately **$51.6 million**[30](index=30&type=chunk)[89](index=89&type=chunk) - Preferred stock dividends were **$2.4 million** for both nine-month periods[9](index=9&type=chunk)[189](index=189&type=chunk) [Consolidated Statements of Changes in Equity (Three and Nine Months Ended July 31, 2024)](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity%20for%20the%20three%20and%20nine%20months%20ended%20July%2031%2C%202024%2E) For the nine months ended July 31, 2024, total stockholders' equity decreased from **$700 million** as of October 31, 2023, to **$685 million**, primarily due to net loss and preferred stock dividends, partially offset by common stock issuances and noncontrolling interest contributions Consolidated Statements of Changes in Equity (USD in thousands) | Metric (USD in thousands) | Balance as of October 31, 2023 | Balance as of July 31, 2024 | | :------------------------ | :----------------------------- | :-------------------------- | | Common Stock Shares | 15,020,872 | 18,461,340 | | Common Stock Amount | 2 | 2 | | Additional Paid-in Capital | 2,199,704 | 2,277,470 | | Accumulated Deficit | (1,515,541) | (1,600,134) | | Accumulated Other Comprehensive Loss | (1,672) | (1,576) | | Treasury Stock | (1,078) | (1,198) | | Deferred Compensation | 1,078 | 1,198 | | Total Stockholders' Equity | 682,493 | 675,762 | | Noncontrolling Interests | 17,955 | 9,345 | | Total Equity | 700,448 | 685,107 | - For the nine months ended July 31, 2024, noncontrolling interests contributed **$25.1 million**, primarily from tax equity financing transactions for the Derby and Groton projects[14](index=14&type=chunk)[247](index=247&type=chunk) - Net proceeds from common stock issuances totaled **$71.7 million**[14](index=14&type=chunk)[247](index=247&type=chunk) [Consolidated Statements of Cash Flows (Nine Months Ended July 31, 2025 and 2024)](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20nine%20months%20ended%20July%2031%2C%202025%20and%202024%2E) For the nine months ended July 31, 2025, cash used in operating activities decreased, cash provided by investing activities significantly increased, and cash provided by financing activities decreased, with total cash, cash equivalents, and restricted cash at period-end increasing to **$237 million** Consolidated Statements of Cash Flows (USD in thousands) | Cash Flow Activities (USD in thousands) | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Net Cash Used in Operating Activities | (102,427) | (158,751) | | Net Cash Provided by (Used in) Investing Activities | 89,970 | (18,978) | | Net Cash Provided by Financing Activities | 40,537 | 96,238 | | Effect of Exchange Rate Changes on Cash | (109) | 96 | | Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 27,971 | (81,395) | | Cash, Cash Equivalents, and Restricted Cash at End of Period | 236,854 | 218,181 | - Cash provided by investing activities primarily resulted from **$772 million** in maturities of U.S. Treasury securities, offset by **$661 million** in U.S. Treasury security purchases, **$3.8 million** in project asset expenditures, and **$17.6 million** in capital expenditures[243](index=243&type=chunk) - Cash provided by financing activities primarily stemmed from **$4 million** in noncontrolling interest contributions and **$51.6 million** in net proceeds from common stock sales, partially offset by **$10.4 million** in debt repayments and **$2.4 million** in preferred stock dividend payments[246](index=246&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%2E) The notes to consolidated financial statements provide detailed information on the company's business, accounting policies, recent accounting pronouncements, tax equity financings, revenue recognition, impairment and restructuring, investments, inventories, project assets, goodwill and intangible assets, accrued liabilities, leases, stockholders' equity, redeemable preferred stock, loss per share, restricted cash, debt, benefit plans, commitments and contingencies, and subsequent events [Note 1. Nature of Business and Basis of Presentation](index=13&type=section&id=Note%201.%20Nature%20of%20Business%20and%20Basis%20of%20Presentation) FuelCell Energy is a global leader in fuel cell technology, offering clean power, heat, hydrogen, and carbon capture solutions, which implemented a 1-for-30 reverse stock split in November 2024 and generates cash primarily through product sales, projects, power generation, R&D, and financing activities - The company focuses on providing environmentally responsible distributed baseload energy solutions through its proprietary fuel cell technology platforms, including clean power, heat, clean hydrogen, and water, with carbon capture capabilities[18](index=18&type=chunk) - On November 8, 2024, the company effected a 1-for-30 reverse stock split, reducing outstanding common stock from **611 million** shares to approximately **20.376 million** shares[21](index=21&type=chunk) - As of July 31, 2025, unrestricted cash and cash equivalents were **$174.7 million**, an increase from **$148.1 million** as of October 31, 2024, with all short-term U.S. Treasury security investments having matured prior to July 31, 2025[27](index=27&type=chunk) - The company anticipates sufficient liquidity for the next **12 months**, but long-term profitability and cash flow depend on timely project completion, increased power generation cash flows, financing access, order growth, R&D funding, solid oxide and carbon capture platform commercialization, and cost reductions[33](index=33&type=chunk)[34](index=34&type=chunk) [Note 2. Recent Accounting Pronouncements](index=19&type=section&id=Note%202.%20Recent%20Accounting%20Pronouncements) The company is evaluating recent FASB accounting pronouncements on reportable segment disclosures, income tax disclosures, and expense classification disclosures, expecting the impact on financial statements to be primarily in disclosures with no material effect on operating results - The FASB issued guidance in November 2023 to improve reportable segment disclosures, requiring enhanced disclosure of significant segment expenses, effective for annual reports in fiscal year 2025[39](index=39&type=chunk) - The FASB issued guidance in December 2023 to enhance income tax disclosures, requiring more information on how entity operations, tax risks, tax planning, and operating opportunities affect tax rates and future cash flows, effective for fiscal years beginning after December 15, 2025[40](index=40&type=chunk) - The FASB issued new guidance in November 2024, requiring enhanced disclosures for specific expense categories within certain expense captions in the income statement, effective for fiscal years beginning after December 15, 2026[41](index=41&type=chunk) [Note 3. Tax Equity Financings](index=19&type=section&id=Note%203.%20Tax%20Equity%20Financings) The company funds its Derby, Groton, and Yaphank projects through tax equity financing transactions, with Derby showing net income attributable to noncontrolling interests of **$0.4 million** (three months) and **$1.2 million** (nine months) for 2025, and net losses for Groton and Yaphank in both periods Net Income (Loss) Attributable to Noncontrolling Interests (USD in thousands) | Project | Period | Net Income (Loss) Attributable to Noncontrolling Interests (USD in thousands) | | :------ | :------------------------------- | :------------------------------------------------------------ | | Derby | Three Months Ended July 31, 2025 | 400 | | Derby | Three Months Ended July 31, 2024 | (1,800) | | Derby | Nine Months Ended July 31, 2025 | 1,200 | | Derby | Nine Months Ended July 31, 2024 | (28,600) | | Groton | Three Months Ended July 31, 2025 | (10) | | Groton | Three Months Ended July 31, 2024 | (200) | | Groton | Nine Months Ended July 31, 2025 | (3,500) | | Groton | Nine Months Ended July 31, 2024 | (3,500) | | Yaphank | Three Months Ended July 31, 2025 | (600) | | Yaphank | Three Months Ended July 31, 2024 | (400) | | Yaphank | Nine Months Ended July 31, 2025 | (1,700) | | Yaphank | Nine Months Ended July 31, 2024 | (500) | - For the nine months ended July 31, 2024, the loss attributable to noncontrolling interests for the Derby project was primarily due to investment tax credits (ITC) and accelerated depreciation[191](index=191&type=chunk) [Note 4. Revenue Recognition](index=21&type=section&id=Note%204.%20Revenue%20Recognition) The company's contract assets and liabilities both increased, customer consideration payable related to the Toyota hydrogen production and power purchase agreement remained stable, and the joint development agreement with ExxonMobil Technology and Engineering Company (EMTEC) and Rotterdam pilot project purchase order continued to contribute to advanced technology revenue, while the Long-Term Service Agreement (LTSA) with Gyeonggi Green Energy Co., Ltd. (GGE) is valued at **$159.6 million** for **42** fuel cell module replacements and long-term O&M services Contract Balances (USD in thousands) | Metric (USD in thousands) | July 31, 2025 | October 31, 2024 | | :------------------------ | :------------ | :--------------- | | Contract Assets | 98,100 | 65,100 | | Contract Liabilities | 10,700 | 7,200 | | Customer Consideration Payable | 6,000 | 6,000 | - The joint development agreement with EMTEC was extended to December 31, 2026, with an expected annual budget of at least **$10 million**, and allows the company to pursue new carbon capture projects using Generation 1 and Generation 2 technologies[56](index=56&type=chunk)[57](index=57&type=chunk) - The LTSA with GGE totals **$159.6 million** for the replacement of **42** 1.4 MW fuel cell modules, balance of plant replacement parts, and long-term operations and maintenance services, with the first **6** modules commissioned in Fall 2024 and another **12** modules commissioned during the nine months ended July 31, 2025[59](index=59&type=chunk)[61](index=61&type=chunk) Remaining Performance Obligations (USD in thousands) | Remaining Performance Obligations (USD in thousands) | Amount (USD in thousands) | Estimated Recognition Period | | :----------------------------------- | :------------------------ | :--------------------------- | | Service Agreements | 169,400 | 3-15 years | | Power Purchase Agreements (PPAs) | 378,900 | 19-20 years | | Advanced Technology Contracts | 7,100 | Approximately 2 years | | Product Purchase Agreements | 96,200 | Next 2 fiscal years | [Note 5. Impairment and Restructuring](index=25&type=section&id=Note%205.%20Impairment%20and%20Restructuring) The company implemented multiple restructuring rounds in September, November 2024, and June 2025, including workforce reductions of approximately **39%** to lower operating costs and reallocate resources, with the June 2025 plan resulting in **$64.5 million** in impairment charges related to solid oxide technology goodwill, in-process intangible assets, inventories, and property, plant, and equipment - In June 2025, the Board of Directors approved a global restructuring plan, reducing the workforce by **122** employees (approximately **22%** of total staff) and ceasing most solid oxide technology development efforts to lower operating costs and reallocate resources[64](index=64&type=chunk) Impairment Charges by Category (USD in thousands) | Impairment Charge Category (USD in thousands) | Amount (USD in thousands) | | :------------------------------------ | :------------------------ | | Property, Plant, and Equipment | 42,100 | | Inventories | 9,000 | | In-Process Intangible Assets | 9,300 | | Goodwill | 4,100 | | **Total** | **64,500** | - Restructuring expenses, primarily severance, were **$4.1 million** and **$5.6 million** for the three and nine months ended July 31, 2025, respectively[65](index=65&type=chunk) [Note 6. Investments – Short-Term](index=29&type=section&id=Note%206.%20Investments%20%E2%80%93%20Short-Term) As of July 31, 2025, the company no longer holds short-term U.S. Treasury security investments, as all such securities held during the first nine months of fiscal year 2025 have matured Investments – Short-Term (USD in thousands) | Metric (USD in thousands) | July 31, 2025 | October 31, 2024 | | :------------------------ | :------------ | :--------------- | | U.S. Treasury Securities | - | 109,123 | - The company classified U.S. Treasury securities as held-to-maturity and recorded them at amortized cost, with a weighted-average yield to maturity of **4.78%** as of October 31, 2024[72](index=72&type=chunk) [Note 7. Inventories](index=29&type=section&id=Note%207.%20Inventories) As of July 31, 2025, the company's total inventories were **$107.3 million**, including **$71 million** in work-in-process inventories, and a **$9 million** impairment charge for solid oxide inventories was recognized during the three months ended July 31, 2025, due to the cessation of solid oxide technology commercialization activities Inventories by Category (USD in thousands) | Inventory Category (USD in thousands) | July 31, 2025 | October 31, 2024 | | :---------------------------------- | :------------ | :--------------- | | Raw Materials | 36,360 | 35,989 | | Work-in-Process | 70,981 | 80,457 | | Total Inventories | 107,341 | 116,446 | | Inventories – Current | (104,598) | (113,703) | | Inventories – Long-term | 2,743 | 2,743 | - Work-in-process inventories primarily include standard inventories used to manufacture modules or module components, intended for future project asset construction, power plant orders, or service agreements[73](index=73&type=chunk) - Long-term inventories include exchange modules contractually required to be segregated for specific project assets[74](index=74&type=chunk) [Note 8. Project Assets](index=30&type=section&id=Note%208.%20Project%20Assets) As of July 31, 2025, the company's net project assets totaled **$224.5 million**, primarily comprising **12** completed and operational power generation facilities with a net value of **$223.8 million**, and **$0.7 million** in construction-in-progress project assets Project Assets by Category (USD in thousands) | Project Asset Category (USD in thousands) | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Project Assets in Operation | 306,747 | 308,503 | | Accumulated Depreciation | (82,964) | (66,542) | | Project Assets in Operation, net | 223,783 | 241,961 | | Construction-in-Progress Project Assets | 699 | 170 | | **Project Assets, net** | **224,482** | **242,131** | - The estimated useful lives for project assets are **20 years** for balance of plant and site construction, and **4 to 7 years** for modules[76](index=76&type=chunk) [Note 9. Goodwill and Intangible Assets](index=30&type=section&id=Note%209.%20Goodwill%20and%20Intangible%20Assets) Due to the June 2025 restructuring plan, the company recognized **$4.1 million** in goodwill and **$9.3 million** in in-process intangible asset impairment charges related to Versa Inc. during the three months ended July 31, 2025, reducing goodwill to zero, and as of July 31, 2025, net intangible assets were **$4.2 million**, primarily associated with the Bridgeport Fuel Cell Project acquisition Intangible Assets by Category (USD in thousands) | Intangible Asset Category (USD in thousands) | Net as of July 31, 2025 | Net as of October 31, 2024 | | :----------------------------------- | :---------------------- | :------------------------- | | In-Process Intangible Assets | - | 9,592 | | Bridgeport PPA | 4,215 | 5,187 | | **Total** | **4,215** | **14,779** | - Amortization expense for intangible assets related to the Bridgeport Fuel Cell Project was **$0.3 million** for both three-month periods and **$1 million** for both nine-month periods ended July 31, 2025 and 2024[79](index=79&type=chunk) [Note 10. Accrued Liabilities](index=32&type=section&id=Note%2010.%20Accrued%20Liabilities) As of July 31, 2025, the company's total accrued liabilities were **$29.87 million**, slightly lower than **$30.36 million** as of October 31, 2024, primarily comprising accrued payroll and employee benefits, customer consideration payable, accrued service agreement and PPA costs, and accrued severance Accrued Liabilities by Category (USD in thousands) | Accrued Liability Category (USD in thousands) | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Accrued Payroll and Employee Benefits | 6,999 | 9,808 | | Customer Consideration Payable | 2,515 | 2,515 | | Accrued Service Agreement and PPA Costs | 11,872 | 10,574 | | Accrued Legal, Tax, Professional, and Other | 5,097 | 5,230 | | Accrued Severance | 3,383 | 2,235 | | **Total Accrued Liabilities** | **29,866** | **30,362** | - Accrued service agreement costs include a service agreement loss reserve of **$9.8 million** as of July 31, 2025, and **$9 million** as of October 31, 2024[85](index=85&type=chunk) - Accrued severance is primarily related to restructuring activities and workforce reductions in September, November 2024, and June 2025[85](index=85&type=chunk) [Note 11. Leases](index=32&type=section&id=Note%2011.%20Leases) The company primarily leases real estate, vehicles, and equipment through operating lease agreements, with a weighted-average remaining lease term of approximately **18 years** and a weighted-average discount rate of **7.8%** as of July 31, 2025 Operating Lease Expense (USD in thousands) | Operating Lease Expense (USD in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Operating Lease Expense | 300 | 400 | | Operating Lease Expense (USD in thousands) | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | Operating Lease Expense | 1,000 | 1,100 | Undiscounted Operating Lease Liability Maturities (USD in thousands) | Undiscounted Operating Lease Liability Maturities (USD in thousands) | Amount (USD in thousands) | | :------------------------------------------- | :------------------------ | | Due in Year 1 | 1,313 | | Due in Year 2 | 1,431 | | Due in Year 3 | 1,748 | | Due in Year 4 | 1,221 | | Due in Year 5 | 1,119 | | Thereafter | 17,617 | | **Total Undiscounted Lease Payments** | **24,449** | [Note 12. Stockholders' Equity](index=32&type=section&id=Note%2012.%20Stockholders%27%20Equity) The company continues to issue common stock through its Amended Sales Agreement, selling approximately **6.8 million** shares for net proceeds of **$38.1 million** during the three months ended July 31, 2025, and approximately **9.2 million** shares for net proceeds of **$51.6 million** during the nine months ended July 31, 2025, with approximately **$151.4 million** of stock remaining available for sale as of July 31, 2025 - The Amended Sales Agreement allows the company to issue and sell common stock with an aggregate offering price of up to **$300 million** from time to time[88](index=88&type=chunk) Common Stock Sales through Amended Sales Agreement | Period | Common Stock Shares Sold (millions) | Average Selling Price (USD/share) | Net Proceeds (million USD) | | :----- | :-------------------------------- | :-------------------------------- | :------------------------- | | Three Months Ended July 31, 2025 | 6.8 | 5.70 | 38.1 | | Nine Months Ended July 31, 2025 | 9.2 | 5.84 | 51.6 | - As of July 31, 2025, approximately **$151.4 million** of stock remained available for sale under the Amended Sales Agreement[90](index=90&type=chunk) [Note 13. Redeemable Preferred Stock](index=34&type=section&id=Note%2013.%20Redeemable%20Preferred%20Stock) As of July 31, 2025, the company had **64,020** shares of Series B 5% Cumulative Convertible Perpetual Preferred Stock issued and outstanding, with a liquidation preference of **$1,000** per share and a carrying value of **$59.9 million**, and paid **$0.8 million** and **$2.4 million** in preferred stock dividends for the three and nine months ended July 31, 2025 and 2024, respectively Redeemable Preferred Stock (USD in thousands) | Metric (USD in thousands) | July 31, 2025 | October 31, 2024 | | :------------------------ | :------------ | :--------------- | | Series B Preferred Stock (Shares Outstanding) | 64,020 | 64,020 | | Series B Preferred Stock (Carrying Value) | 59,857 | 59,857 | - The Series B Preferred Stock has a liquidation preference of **$1,000** per share[92](index=92&type=chunk) - The company paid **$0.8 million** and **$2.4 million** in preferred stock dividends for the three and nine months ended July 31, 2025 and 2024, respectively[92](index=92&type=chunk) [Note 14. Loss Per Share](index=35&type=section&id=Note%2014.%20Loss%20Per%20Share) Due to net losses, diluted loss per share calculations did not consider potentially dilutive securities, with net loss attributable to common stockholders of **$92.5 million** and **$160.4 million**, and loss per share of **$3.78** and **$7.22**, for the three and nine months ended July 31, 2025, respectively Loss Per Share (USD in thousands, except per share data) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :----- | :------------------------------- | :------------------------------- | | Net Loss Attributable to Common Stockholders (USD in thousands) | (92,456) | (33,460) | | Basic and Diluted Loss Per Share (USD) | (3.78) | (1.99) | | Weighted-Average Common Stock Shares | 24,441,294 | 16,772,791 | | Metric | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :----- | :------------------------------- | :------------------------------- | | Net Loss Attributable to Common Stockholders (USD in thousands) | (160,431) | (86,993) | | Basic and Diluted Loss Per Share (USD) | (7.22) | (5.56) | | Weighted-Average Common Stock Shares | 22,233,074 | 15,646,242 | Potentially Dilutive Securities | Potentially Dilutive Securities | July 31, 2025 | July 31, 2024 | | :------------------------------ | :------------ | :------------ | | Options to Purchase Common Stock | 523 | 577 | | Unvested Restricted Stock Units | 929,358 | 559,081 | | Series B Preferred Stock | 1,261 | 1,261 | | **Total** | **931,142** | **560,919** | [Note 15. Restricted Cash](index=35&type=section&id=Note%2015.%20Restricted%20Cash) As of July 31, 2025, the company's total restricted cash and cash equivalents amounted to **$62.2 million**, primarily designated for performance guarantees, future debt service, and letters of credit, with **$16.1 million** classified as short-term and **$46.1 million** as long-term restricted cash Restricted Cash by Category (USD in thousands) | Restricted Cash Category (USD in thousands) | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Restricted Cash for Letters of Credit | 14,152 | 14,152 | | Restricted Cash for Crestmark Sale-Leaseback Transaction | 2,914 | 2,908 | | Debt Service and Performance Reserve for OpCo Financing Facility | 20,868 | 24,721 | | Debt Service and Performance Reserve for Senior and Subordinate Back-Leverage Facilities | 15,756 | 12,869 | | Other | 8,502 | 6,100 | | **Total Restricted Cash** | **62,192** | **60,750** | | Short-term Restricted Cash | (16,092) | (12,161) | | Long-term Restricted Cash | 46,100 | 48,589 | - As of July 31, 2025, total outstanding letters of credit were **$14.2 million**, with various maturity dates extending through October 2029[95](index=95&type=chunk) [Note 16. Debt](index=37&type=section&id=Note%2016.%20Debt) As of July 31, 2025, the company's total debt and financing obligations were **$123.1 million**, slightly lower than **$131.7 million** as of October 31, 2024, primarily comprising EXIM financing, Derby and Groton back-leverage loans, the OpCo financing facility, and the Connecticut loan, with the OpCo financing facility's interest rate swap generating a **$0.6 million** gain and a **$0.2 million** loss for the three and nine months ended July 31, 2025, respectively Debt by Category (USD in thousands) | Debt Category (USD in thousands) | July 31, 2025 | October 31, 2024 | | :------------------------------- | :------------ | :--------------- | | EXIM Financing Facility | 9,409 | 10,104 | | Derby Senior Back-Leverage Facility | 7,805 | 8,514 | | Derby Subordinate Back-Leverage Facility | 3,500 | 3,500 | | Groton Senior Back-Leverage Facility | 10,145 | 10,857 | | Groton Subordinate Back-Leverage Facility | 8,000 | 8,000 | | Sale-Leaseback Transaction Financing Obligation | 18,781 | 18,811 | | Connecticut Loan | 5,350 | 6,024 | | OpCo Financing Facility | 63,563 | 70,067 | | Deferred Financing Costs | (3,481) | (4,215) | | **Total Debt and Financing Obligations** | **123,072** | **131,662** | | Current Portion | (16,710) | (15,924) | | Long-term Portion | 106,362 | 115,738 | - The OpCo financing facility's interest rate swap generated a **$0.6 million** gain and a **$0.2 million** loss for the three and nine months ended July 31, 2025, respectively[98](index=98&type=chunk) [Note 17. Benefit Plans](index=39&type=section&id=Note%2017.%20Benefit%20Plans) The company implements long-term incentive plans, including Performance Stock Units (PSUs) tied to relative Total Shareholder Return (TSR) and time-vesting Restricted Stock Units (RSUs), granting **186,507** PSUs and **186,501** time-vesting RSUs to senior management, and **321,184** time-vesting RSUs to other employees in fiscal year 2025, with a total of **929,358** unvested RSUs as of July 31, 2025 - The fiscal year 2025 long-term incentive plan includes relative Total Shareholder Return (TSR) Performance Stock Units (PSUs) and time-vesting Restricted Stock Units (RSUs)[100](index=100&type=chunk)[102](index=102&type=chunk) Equity Compensation Expense (USD in thousands) | Equity Compensation Expense (USD in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | | Cost of Sales | 207 | 463 | | Administrative and Selling Expenses | 1,271 | 2,304 | | Research and Development Expenses | 158 | 483 | | **Total** | **1,636** | **3,250** | | Equity Compensation Expense (USD in thousands) | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | | Cost of Sales | 620 | 1,211 | | Administrative and Selling Expenses | 7,399 | 6,498 | | Research and Development Expenses | 482 | 1,257 | | **Total** | **8,501** | **8,966** | Restricted Stock Unit Activity | Restricted Stock Unit Activity | Shares | Weighted-Average Fair Value (USD) | | :----------------------------- | :-------- | :-------------------------------- | | Unvested as of October 31, 2024 | 516,561 | 64.53 | | Granted - Time-Vesting RSUs | 507,685 | 8.11 | | Granted - PSUs | 186,507 | 14.38 | | Vested | (146,207) | 63.36 | | Forfeited | (135,188) | 39.84 | | **Unvested as of July 31, 2025** | **929,358** | **26.53** | [Note 18. Commitments and Contingencies](index=41&type=section&id=Note%2018.%20Commitments%20and%20Contingencies) The company faces risks from performance penalties under service agreements, fuel price volatility under power purchase agreements, and other purchase commitments, with **$66.9 million** in material, supply, and service purchase commitments as of July 31, 2025, and derivative fair value risk related to natural gas purchase contracts, though management believes existing legal proceedings will not materially adversely affect financial statements - The company's service agreements require power plants to meet minimum operating levels, otherwise it may face performance penalties or need to replace fuel cell modules[108](index=108&type=chunk) - Power purchase agreements expose the company to fuel price volatility and fuel procurement risks, which are mitigated through fuel cost pass-through mechanisms, fixed-price supply contracts, and potential financial hedges[110](index=110&type=chunk) - As of July 31, 2025, the company had **$66.9 million** in material, supply, and service purchase commitments[112](index=112&type=chunk) - The company recognized net mark-to-market gains of **$1 million** and **$2 million** related to natural gas contract derivatives for the three and nine months ended July 31, 2025, respectively[111](index=111&type=chunk) [Note 19. Subsequent Events](index=43&type=section&id=Note%2019.%20Subsequent%20Events) Subsequent to the quarter-end, the company sold approximately **2.7 million** shares of common stock through its Amended Sales Agreement, generating net proceeds of approximately **$11.8 million**, with approximately **$139.4 million** of stock remaining available for sale under the agreement - Subsequent to the quarter-end, the company sold approximately **2.7 million** shares of common stock through its Amended Sales Agreement at an average price of **$4.55** per share, generating net proceeds of approximately **$11.8 million**[114](index=114&type=chunk)[199](index=199&type=chunk) - Following this sale, approximately **$139.4 million** of stock remained available for sale under the Amended Sales Agreement[114](index=114&type=chunk)[199](index=199&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%2E) [FORWARD-LOOKING STATEMENTS](index=44&type=section&id=FORWARD-LOOKING%20STATEMENTS) This report contains numerous forward-looking statements regarding the company's future financial condition, operating results, business plans, market developments, project completion timelines, financing capabilities, cost competitiveness, restructuring plan effectiveness, and sales targets, which are based on current beliefs and assumptions and involve inherent risks and uncertainties that could cause actual results to differ materially from expectations - Forward-looking statements cover the development and commercialization of fuel cell technologies and products, project completion timelines, business plans and strategies, anticipated operating results (such as revenue growth and profitability), liquidity, future funding under advanced technology contracts, project financing, and cost reduction targets[117](index=117&type=chunk) - Risks and uncertainties include those related to product development and manufacturing, economic conditions, interest rate changes, supply chain disruptions, changes in the regulatory environment, availability of government subsidies, unexpected costs or consequences of restructuring plans, technological changes, competition, and the ability to obtain additional financing[118](index=118&type=chunk) [OVERVIEW](index=46&type=section&id=OVERVIEW) FuelCell Energy is dedicated to providing clean energy solutions through its proprietary fuel cell technology, including power, heat, hydrogen, and carbon capture, having been founded in 1969 and commencing commercial sales of stationary fuel cell power plants in 2003, focusing on markets with high energy costs, poor grid reliability, and support for multi-value streams and emissions reduction policies - The company offers commercial technologies capable of producing clean electricity, heat, clean hydrogen, and water, with the ability to recycle and capture carbon[124](index=124&type=chunk) - The company continues to invest in product development and commercialization technologies to enhance the solid oxide technology platform's ability to provide hydrogen and long-duration hydrogen-based energy storage, and to augment existing platforms with carbon capture solutions[124](index=124&type=chunk) - The company primarily sells its products in the U.S., European, and South Korean markets, while also seeking opportunities in other countries globally[125](index=125&type=chunk) [RESULTS OF OPERATIONS](index=48&type=section&id=RESULTS%20OF%20OPERATIONS) This section discusses the company's results of operations for the three and nine months ended July 31, 2025 and 2024, focusing on changes in revenue, cost of sales, gross loss, operating expenses, and net loss [Comparison of the Three Months Ended July 31, 2025 and 2024](index=48&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20July%2031%2C%202025%20and%202024) For the three months ended July 31, 2025, total revenue increased by **97%** to **$46.7 million** year-over-year, primarily driven by a significant increase in product revenue, but operating and net losses expanded considerably due to **$64.5 million** in impairment charges and **$4.1 million** in restructuring expenses Consolidated Statements of Operations and Comprehensive Loss (USD in thousands) | Metric (USD in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Change (USD in thousands) | Change (%) | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------ | :--------- | | Total Revenue | 46,743 | 23,695 | 23,048 | 97% | | Total Cost of Sales | 51,877 | 29,897 | 21,980 | 74% | | Gross Loss | (5,134) | (6,202) | 1,068 | 17% | | Operating Loss | (95,364) | (33,617) | (61,747) | (184)% | | Net Loss | (91,896) | (35,123) | (56,773) | (162)% | Revenue by Category (USD in thousands) | Revenue Category (USD in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Change (USD in thousands) | Change (%) | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------ | :--------- | | Product Revenue | 26,000 | 250 | 25,750 | 10300% | | Service Agreement Revenue | 3,130 | 1,411 | 1,719 | 122% | | Power Generation Revenue | 12,355 | 13,402 | (1,047) | (8)% | | Advanced Technology Revenue | 5,258 | 8,632 | (3,374) | (39)% | - Administrative and selling expenses and research and development expenses both decreased, but were significantly offset by impairment and restructuring charges[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) [Comparison of the Nine Months Ended July 31, 2025 and 2024](index=57&type=section&id=Comparison%20of%20the%20Nine%20Months%20Ended%20July%2031%2C%202025%20and%202024) For the nine months ended July 31, 2025, total revenue increased by **64%** to **$103.1 million** year-over-year, driven by growth in product and service revenue, but operating and net losses significantly widened due to impairment and restructuring charges Consolidated Statements of Operations and Comprehensive Loss (USD in thousands) | Metric (USD in thousands) | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | Change (USD in thousands) | Change (%) | | :------------------------ | :------------------------------ | :------------------------------ | :------------------------ | :--------- | | Total Revenue | 103,146 | 62,806 | 40,340 | 64% | | Total Cost of Sales | 122,922 | 87,807 | 35,115 | 40% | | Gross Loss | (19,776) | (25,001) | 5,225 | 21% | | Operating Loss | (164,025) | (117,456) | (46,569) | (40)% | | Net Loss | (162,031) | (117,178) | (44,853) | (38)% | Revenue by Category (USD in thousands) | Revenue Category (USD in thousands) | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | Change (USD in thousands) | Change (%) | | :-------------------------------- | :------------------------------ | :------------------------------ | :------------------------ | :--------- | | Product Revenue | 39,099 | 250 | 38,849 | 15540% | | Service Agreement Revenue | 13,122 | 4,397 | 8,725 | 198% | | Power Generation Revenue | 35,825 | 38,013 | (2,188) | (6)% | | Advanced Technology Revenue | 15,100 | 20,146 | (5,046) | (25)% | - Administrative and selling expenses and research and development expenses both decreased, but were significantly offset by impairment and restructuring charges[176](index=176&type=chunk)[177](index=177&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=66&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company primarily obtains cash through product sales, power generation revenue, R&D contracts, equity issuances, and debt financing, with unrestricted cash and cash equivalents of **$174.7 million** as of July 31, 2025, and continues to raise capital through its at-the-market sales agreement, expecting sufficient liquidity for the next **12 months**, though long-term liquidity remains dependent on project completion, cash flow growth, financing access, and cost reductions, with detailed disclosures on various loans and restricted cash [Overview, Cash Position, Sources and Uses](index=66&type=section&id=Overview%2C%20Cash%20Position%2C%20Sources%20and%20Uses) The company primarily obtains cash through product sales, power generation revenue, R&D contracts, equity issuances, and debt financing, with unrestricted cash and cash equivalents of **$174.7 million** as of July 31, 2025, and all short-term U.S. Treasury securities having matured, while continuing to raise capital through its at-the-market sales agreement and expecting sufficient liquidity for the next **12 months** - As of July 31, 2025, unrestricted cash and cash equivalents were **$174.7 million**, an increase from **$148.1 million** as of October 31, 2024[196](index=196&type=chunk) - For the first nine months of fiscal year 2025, the company received **$4 million** in noncontrolling interest contributions through a tax equity financing transaction with East West Bank[197](index=197&type=chunk) - For the nine months ended July 31, 2025, approximately **9.2 million** shares of common stock were sold through the Amended Sales Agreement, generating net proceeds of approximately **$51.6 million**[198](index=198&type=chunk) - The company expects its unrestricted cash and cash equivalents, anticipated revenue from its contract backlog, and the release of short-term restricted cash to be sufficient to meet its obligations for the next **12 months**[204](index=204&type=chunk) [Generation Operating Portfolio, Project Assets, and Backlog](index=70&type=section&id=Generation%20Operating%20Portfolio%2C%20Project%20Assets%2C%20and%20Backlog) The company expands its power generation operating portfolio by investing in the development and construction of fuel cell projects, with a total operating capacity of **62.8 MW** as of July 31, 2025, and its total backlog increased to **$1.24 billion**, driven by the Hartford project and long-term service agreements with CGN and GGE - As of July 31, 2025, the company's power generation operating portfolio had a total capacity of **62.8 MW**, consistent with July 31, 2024[140](index=140&type=chunk)[214](index=214&type=chunk) Power Generation Operating Portfolio | Project Name | Location | Rated Capacity (MW) | PPA Term (Years) | | :----------- | :------- | :------------------ | :--------------- | | CCSU | CT | 1.4 | 15 | | Riverside | CA | 1.4 | 20 | | Pfizer, Inc. | CT | 5.6 | 20 | | Santa Rita Jail | CA | 1.4 | 20 | | Bridgeport Fuel Cell Project | CT | 14.9 | 15 | | Tulare BioMAT | CA | 2.8 | 20 | | San Bernardino | CA | 1.4 | 20 | | LIPA Yaphank Project | NY | 7.4 | 20 | | Groton Project | CT | 7.4 | 20 | | Toyota | CA | 2.3 | 20 | | Derby - CT RFP-2 | CT | 14.0 | 20 | | SCEF - Derby | CT | 2.8 | 20 | | **Total** | | **62.8** | | - The company has ceased development and expenditures for the Trinity College and UConn solid oxide projects and removed them from the contract backlog[217](index=217&type=chunk)[218](index=218&type=chunk) Backlog by Category (USD in thousands) | Backlog Category (USD in thousands) | July 31, 2025 | July 31, 2024 | | :-------------------------------- | :------------ | :------------ | | Service Agreements | 169,400 | 178,400 | | Power Generation | 955,000 | 839,500 | | Products | 96,200 | 136,700 | | Advanced Technology Contracts | 24,300 | 42,500 | | **Total** | **1,244,900** | **1,197,100** | [Factors that may impact our liquidity](index=75&type=section&id=Factors%20that%20may%20impact%20our%20liquidity) Factors impacting the company's liquidity include cash reserves, long decision cycles for large projects, productivity management, extended project cycles requiring upfront investment, fluctuations in accounts receivable and unbilled receivables, inventory levels, project asset investments, fuel procurement risks, capital expenditures, R&D spending, performance guarantees, and the ability to continuously implement cost-saving measures - As of July 31, 2025, unrestricted cash and cash equivalents were **$174.7 million**[225](index=225&type=chunk) - The company's annualized production rate for the first nine months of fiscal year 2025 was **30.5 MW**, slightly lower than **31.1 MW** for the first nine months of fiscal year 2024, primarily due to adjusting production levels based on contractual demand[163](index=163&type=chunk)[225](index=225&type=chunk) - As of July 31, 2025, total accounts receivable and unbilled receivables were **$108.1 million**, with **$53.4 million** classified as "other assets"[225](index=225&type=chunk) - Capital expenditures for fiscal year 2025 are projected to be between **$15 million** and **$20 million**, revised downward due to the June 2025 restructuring plan[230](index=230&type=chunk) - Company-funded research and development expenditures are expected to be between **$35 million** and **$40 million** for fiscal year 2025, also revised downward due to the restructuring plan[238](index=238&type=chunk) [Cash Flows](index=83&type=section&id=Cash%20Flows) For the nine months ended July 31, 2025, cash used in operating activities decreased to **$102.4 million**, cash provided by investing activities turned into **$89.9 million**, and cash provided by financing activities decreased to **$40.5 million**, with total cash, cash equivalents, and restricted cash at period-end increasing to **$236.9 million** Cash Flow Activities (USD in thousands) | Cash Flow Activities (USD in thousands) | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Net Cash Used in Operating Activities | (102,427) | (158,751) | | Net Cash Provided by (Used in) Investing Activities | 89,970 | (18,978) | | Net Cash Provided by Financing Activities | 40,537 | 96,238 | | Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 27,971 | (81,395) | - The decrease in cash used in operating activities was primarily due to non-cash adjustments to net loss and a reduction in accounts receivable[240](index=240&type=chunk) - Cash provided by investing activities primarily resulted from **$772.4 million** in maturities of U.S. Treasury securities, partially offset by U.S. Treasury security purchases and capital expenditures[243](index=243&type=chunk) - The decrease in cash provided by financing activities was mainly due to reduced noncontrolling interest contributions and increased debt repayments, despite continued funding from common stock issuances[246](index=246&type=chunk)[247](index=247&type=chunk) [Commitments and Significant Contractual Obligations](index=85&type=section&id=Commitments%20and%20Significant%20Contractual%20Obligations) As of July 31, 2025, the company's total commitments and contractual obligations amounted to **$270.5 million**, primarily including purchase commitments, term loans (principal and interest), operating lease commitments, sale-leaseback financing obligations, and natural gas and biomethane supply contracts Commitments and Contractual Obligations (USD in thousands) | Commitment Category (USD in thousands) | Total (USD in thousands) | Less than 1 Year (USD in thousands) | 1-3 Years (USD in thousands) | 3-5 Years (USD in thousands) | More than 5 Years (USD in thousands) | | :----------------------------------- | :----------------------- | :---------------------------------- | :--------------------------- | :--------------------------- | :----------------------------------- | | Purchase Commitments | 66,861 | 58,464 | 4,274 | 2,825 | 1,298 | | Term Loans (Principal and Interest) | 136,315 | 18,543 | 31,567 | 60,930 | 25,275 | | Operating Lease Commitments | 24,449 | 1,313 | 3,179 | 2,340 | 17,617 | | Sale-Leaseback Financing Obligations | 7,133 | 1,394 | 2,583 | 2,562 | 594 | | Natural Gas and Biomethane Supply Contracts | 35,727 | 9,504 | 17,672 | 8,551 | - | | **Total** | **270,485** | **89,218** | **59,275** | **77,208** | **44,784** | - The company pays **$3.2 million** annually in Series B Preferred Stock dividends, which are not included in this table as it is not reasonably determinable when they might convert to common stock[250](index=250&type=chunk) [Outstanding Loans as of July 31, 2025](index=86&type=section&id=Outstanding%20Loans%20as%20of%20July%2031%2C%202025) As of July 31, 2025, the company's outstanding loans include EXIM financing, Derby and Groton back-leverage loans, the OpCo financing facility, and the Connecticut loan, with EXIM financing supporting the GGE long-term service agreement, Derby and Groton back-leverage loans for project financing, the OpCo financing facility secured by six operational fuel cell power generation projects, and the Connecticut loan facing an accelerated repayment penalty for not meeting employment obligations - The EXIM financing, completed on October 31, 2024, generated approximately **$10.1 million** in gross proceeds to support the long-term service agreement with GGE, with a fixed interest rate of **5.81%** over a **7-year** term[251](index=251&type=chunk) - The Derby Senior and Subordinate Back-Leverage Facilities, completed on April 25, 2024, totaled **$13 million** and bear interest at **7.25%** and **8%**, respectively[254](index=254&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) - The OpCo financing facility, completed on May 19, 2023, includes an **$80.5 million** term loan and a **$6.5 million** letter of credit, secured by six operational fuel cell power generation projects[261](index=261&type=chunk)[262](index=262&type=chunk) - The Connecticut loan is expected to incur a **$2.1 million** accelerated repayment penalty due to the company's failure to meet revised employment obligations by October 31, 2024[298](index=298&type=chunk)[300](index=300&type=chunk) [Restricted Cash](index=102&type=section&id=Restricted%20Cash) As of July 31, 2025, the company has pledged approximately **$62.2 million** in cash and cash equivalents as collateral for performance guarantees and letters of credit, including reserves for letters of credit, sale-leaseback transactions, Groton and Derby back-leverage loans, and the OpCo financing facility - As of July 31, 2025, the company has pledged approximately **$62.2 million** in cash and cash equivalents as collateral for performance guarantees and letters of credit[302](index=302&type=chunk) - Restricted cash includes **$14.2 million** for outstanding letters of credit, **$2.9 million** for the Crestmark sale-leaseback transaction, **$14 million** for the Groton Senior Back-Leverage Facility, **$1.8 million** for the Derby Senior and Subordinate Back-Leverage Facilities, and **$20.9 million** for the OpCo financing facility[302](index=302&type=chunk) [Service and warranty agreements](index=104&type=section&id=Service%20and%20warranty%20agreements) The company provides standard warranties for its products and enters into service contracts with customers to ensure power plants meet minimum operating levels for terms up to **20 years**, with service contract pricing based on future cost

[Third Quarter Fiscal 2025 Summary](index=1&type=section&id=Third%20Quarter%20Fiscal%202025%20Summary) FuelCell Energy reported significant Q3 FY2025 revenue growth and strategic execution, improving platform efficiency and focusing on distributed generation and data center markets, while restructuring actions aim for cost reduction and future profitability [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Jason Few highlighted Q3 FY2025 revenue growth, improved carbonate platform efficiency, expanded distributed generation, and data center focus, with restructuring efforts yielding cost reductions and strategic positioning for future growth - Achieved meaningful revenue growth and advanced long-term strategy execution[2](index=2&type=chunk) - Improved core carbonate platform efficiency above **50%** and focused on expanding distributed generation opportunities and deepening sales pipeline, particularly with data center customers[2](index=2&type=chunk) - Decisive restructuring actions in June are lowering costs, sharpening focus on distributed power generation, and positioning for investment in growth technologies and partnerships[2](index=2&type=chunk) - Modular power block solutions are uniquely positioned to scale with surging power demand from data centers, offering reliability and flexibility[2](index=2&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Q3 FY2025 saw 97% revenue growth to $46.7 million, but increased losses from operations and net income due to non-cash impairment and restructuring, though adjusted net loss per share improved Key Financial Highlights (Millions) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | Change (%) | | :--------------------------------------- | :------------------- | :------------------- | :--------- | | Revenue | $46.7 | $23.7 | 97% | | Gross loss | $(5.1) | $(6.2) | (17%) | | Loss from operations | $(95.4) | $(33.6) | 184% | | Net loss attributable to common stockholders | $(92.5) | $(33.5) | 176% | | Net loss per share attributable to common stockholders | $(3.78) | $(1.99) | 90% | | Adjusted net loss per share attributable to common stockholders | $(0.95) | $(1.74) | (45%) | | Backlog | $1,240.0 | $1,200.0 | 4% | - Net loss per share was primarily driven by restructuring expenses and non-cash impairment expenses[3](index=3&type=chunk) [Consolidated Financial Metrics & Results](index=2&type=section&id=Consolidated%20Financial%20Metrics%20%26%20Results) FuelCell Energy's Q3 FY2025 total revenues increased by 97%, but significant impairment and restructuring expenses led to widened losses, though adjusted non-GAAP metrics showed improvement [Overall Financial Metrics](index=2&type=section&id=Overall%20Financial%20Metrics) Q3 FY2025 total revenues rose 97% to $46.7 million, but substantial impairment and restructuring expenses widened losses from operations and net loss, while Adjusted EBITDA and Adjusted net loss per share improved Overall Financial Metrics (Amounts in thousands) | Metric (Amounts in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Change | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----- | | Total revenues | $46,743 | $23,695 | 97% | | Gross loss | $(5,134) | $(6,202) | (17%) | | Loss from operations | $(95,364) | $(33,617) | 184% | | Net loss | $(91,896) | $(35,123) | 162% | | Net loss attributable to common stockholders | $(92,456) | $(33,460) | 176% | | Net loss per basic and diluted share attributable to common stockholders | $(3.78) | $(1.99) | 90% | | EBITDA | $(85,618) | $(24,379) | 251% | | Adjusted EBITDA | $(16,380) | $(20,134) | (19%) | | Adjusted net loss per basic and diluted share attributable to common stockholders | $(0.95) | $(1.74) | (45%) | [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Total revenues increased by 97% to $46.7 million in Q3 FY2025, primarily driven by significant product revenue growth from GGE platform module deliveries and a sales contract with Ameresco, despite decreases in generation and advanced technologies revenues Revenue by Category (Millions) | Revenue Category | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | Change | | :----------------------- | :------------------- | :------------------- | :----- | | Product revenues | $26.0 | $0.3 | Significant Increase | | Service agreements revenues | $3.1 | $1.4 | Increase | | Generation revenues | $12.4 | $13.4 | Decrease | | Advanced Technologies contract revenues | $5.3 | $8.6 | Decrease | - Product revenue increase was primarily driven by **$24.0 million** from the Gyeonggi Green Energy Co., Ltd. (GGE) long-term service agreement for fuel cell module delivery and commissioning, and **$2.0 million** from Ameresco, Inc[6](index=6&type=chunk) - Service agreements revenue increase was primarily due to services provided under the GGE long-term service agreement[6](index=6&type=chunk) - Generation revenues decreased due to lower output from plants in the Company's generation operating portfolio resulting from routine maintenance activities[12](index=12&type=chunk) - Advanced Technologies contract revenues decreased, with contributions from the Joint Development Agreement with ExxonMobil Technology and Engineering Company (EMTEC) and the Rotterdam project purchase order from Esso Nederland B.V[12](index=12&type=chunk) [Gross Loss](index=3&type=section&id=Gross%20Loss) Q3 FY2025 gross loss decreased to $(5.1) million, mainly due to reduced losses from generation and product revenues, partially offset by lower gross margins in Advanced Technologies and service agreements Gross Loss (Millions) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | Change | | :--------- | :------------------- | :------------------- | :----- | | Gross loss | $(5.1) | $(6.2) | (17%) | - Decrease in gross loss primarily related to decreased gross loss from generation revenues and product revenues[7](index=7&type=chunk) - Partially offset by reduced gross margin on Advanced Technologies contract revenues and service agreements revenues[7](index=7&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses) Operating expenses significantly increased to $90.2 million in Q3 FY2025, primarily due to $64.5 million in non-cash impairment and $4.1 million in restructuring expenses, while administrative, selling, and R&D expenses decreased Operating Expenses (Millions) | Expense Category (Millions) | Q3 FY2025 | Q3 FY2024 | Change | | :-------------------------- | :-------- | :-------- | :----- | | Operating expenses | $90.2 | $27.4 | Increase | | Administrative and selling expenses | $14.1 | $14.6 | Decrease | | Research and development expenses | $7.6 | $12.8 | Decrease | | Impairment expense | $64.5 | $- | N/A | | Restructuring expense | $4.1 | $- | N/A | - Administrative and selling expenses decreased due to lower compensation expense from restructuring actions in September 2024, November 2024, and June 2025[9](index=9&type=chunk) - Research and development expenses decreased due to reduced spending on commercial development efforts for solid oxide power generation, electrolysis platforms, and carbon separation/recovery solutions[10](index=10&type=chunk) - Non-cash impairment expenses of **$64.5 million** included **$42.1 million** for property, plant and equipment, **$9.0 million** for inventory, **$9.3 million** for in-process R&D intangible assets, and **$4.1 million** for goodwill[11](index=11&type=chunk) [Net Loss and EPS](index=4&type=section&id=Net%20Loss%20and%20EPS) Net loss attributable to common stockholders surged to $(92.5) million in Q3 FY2025, resulting in a net loss per share of $(3.78), predominantly due to non-cash impairment and restructuring expenses Net Loss and EPS (Millions) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | Change | | :--------------------------------------- | :------------------- | :------------------- | :----- | | Net loss | $(91.9) | $(35.1) | 162% | | Net loss attributable to common stockholders | $(92.5) | $(33.5) | 176% | | Net loss per share attributable to common stockholders | $(3.78) | $(1.99) | 90% | - The increase in net loss per share was primarily due to non-cash impairment expenses and restructuring expenses recognized during Q3 FY2025, partially offset by the benefit of a higher number of weighted average shares outstanding[15](index=15&type=chunk) - Non-cash impairment and restructuring expenses negatively impacted net loss per share by **$(2.80)** for Q3 FY2025[15](index=15&type=chunk) [Adjusted Non-GAAP Metrics](index=4&type=section&id=Adjusted%20Non-GAAP%20Metrics) Adjusted EBITDA improved to $(16.4) million and Adjusted net loss to $(23.2) million in Q3 FY2025, reflecting early benefits from cost-saving actions and a sharpened focus on the core carbonate platform Adjusted Non-GAAP Metrics (Millions) | Metric (Millions) | Q3 FY2025 | Q3 FY2024 | Change | | :--------------------------------------- | :-------- | :-------- | :----- | | Adjusted EBITDA | $(16.4) | $(20.1) | (19%) | | Adjusted net loss attributable to common stockholders | $(23.2) | $(29.2) | (21%) | | Adjusted net loss per share attributable to common stockholders | $(0.95) | $(1.74) | (45%) | - Improvements in Adjusted EBITDA and Adjusted net loss attributable to common stockholders reflect early benefits of cost-saving actions and a sharper focus on the core carbonate platform[14](index=14&type=chunk) [Liquidity and Capital Resources](index=4&type=section&id=Liquidity%20and%20Capital%20Resources) Total cash, restricted cash, and short-term investments decreased to $236.9 million as of July 31, 2025, with unrestricted cash increasing while short-term investments were fully utilized, supplemented by common stock sales [Cash, Restricted Cash and Short-Term Investments](index=4&type=section&id=Cash%2C%20Restricted%20Cash%20and%20Short-Term%20Investments) Total cash, restricted cash, and short-term investments decreased to $236.9 million as of July 31, 2025, primarily due to the full utilization of short-term investments, despite an increase in unrestricted cash Cash, Restricted Cash and Short-Term Investments (Millions) | Metric (Millions) | July 31, 2025 | October 31, 2024 | Change | | :--------------------------------------- | :------------ | :--------------- | :----- | | Total Cash, Restricted Cash, and Short-Term Investments | $236.9 | $318.0 | $(81.1) | | Unrestricted cash and cash equivalents | $174.7 | $148.1 | $26.6 | | Restricted cash and cash equivalents | $62.2 | $60.8 | $1.4 | | Short-term investments | $- | $109.1 | $(109.1) | [Common Stock Sales](index=4&type=section&id=Common%20Stock%20Sales) The company generated $38.1 million in net proceeds from selling 6.8 million common shares in Q3 FY2025, with an additional $11.8 million from 2.7 million shares sold post-quarter Common Stock Sales | Period | Shares Sold (Millions) | Average Sale Price | Net Proceeds (Millions) | | :--------------------------------------- | :--------------------- | :----------------- | :---------------------- | | Three months ended July 31, 2025 | 6.8 | $5.70 | $38.1 | | Subsequent to quarter end | 2.7 | $4.55 | $11.8 | [Backlog Analysis](index=5&type=section&id=Backlog%20Analysis) Total backlog increased by 4.0% to $1.24 billion as of July 31, 2025, driven by the Hartford Project and long-term service agreements with CGN and GGE, despite decreases in product and advanced technologies backlogs [Total Backlog Overview](index=5&type=section&id=Total%20Backlog%20Overview) Total backlog increased by 4.0% to $1.24 billion as of July 31, 2025, primarily driven by the Hartford Project and long-term service agreements with CGN and GGE Total Backlog Overview (Amounts in thousands) | Backlog Category (Amounts in thousands) | As of July 31, 2025 | As of July 31, 2024 | Change | | :--------------------------------------- | :------------------ | :------------------ | :------- | | Product | $96,183 | $136,708 | $(40,525) | | Service | $169,384 | $178,387 | $(9,003) | | Generation | $955,033 | $839,532 | $115,501 | | Advanced Technologies | $24,254 | $42,480 | $(18,226) | | **Total Backlog** | **$1,244,854** | **$1,197,107** | **$47,747** | - Overall backlog increased by approximately **4.0%** to **$1.24 billion**, primarily due to the Hartford Project, CGN LTSA, and GGE LTSA[19](index=19&type=chunk) [Service Agreements Backlog](index=5&type=section&id=Service%20Agreements%20Backlog) Service agreements backlog decreased to $169.4 million as of July 31, 2025, despite new LTSAs with CGN and GGE adding significant value, which is recognized as revenue over time Service Agreements Backlog (Millions) | Metric (Millions) | As of July 31, 2025 | As of July 31, 2024 | Change | | :----------------------- | :------------------ | :------------------ | :----- | | Service agreements backlog | $169.4 | $178.4 | $(9.0) | - CGN LTSA added approximately **$7.7 million** to service backlog during Q3 FY2025[19](index=19&type=chunk) - GGE LTSA added approximately **$33.6 million** to service backlog in Q4 FY2024, with revenue being recognized as service is performed[19](index=19&type=chunk) [Generation Backlog](index=5&type=section&id=Generation%20Backlog) Generation backlog increased to $955.0 million as of July 31, 2025, primarily due to the new 20-year Power Purchase Agreement for the Hartford Project, expected to generate $167.4 million in revenue Generation Backlog (Millions) | Metric (Millions) | As of July 31, 2025 | As of July 31, 2024 | Change | | :---------------- | :------------------ | :------------------ | :------- | | Generation backlog | $955.0 | $839.5 | $115.5 | - The Hartford Project, a **7.4 MW** carbonate fuel cell power plant, added approximately **$167.4 million** to Generation backlog through a **20-year PPA** with Eversource and United Illuminating[19](index=19&type=chunk) [Product Backlog](index=5&type=section&id=Product%20Backlog) Product backlog decreased to $96.2 million as of July 31, 2025, mainly due to revenue recognition from GGE Platform module commissioning, partially offset by the CGN LTSA Product Backlog (Millions) | Metric (Millions) | As of July 31, 2025 | As of July 31, 2024 | Change | | :-------------- | :------------------ | :------------------ | :------- | | Product backlog | $96.2 | $136.7 | $(40.5) | - Decrease primarily resulted from revenue recognition as the company completed commissioning of replacement modules for the GGE Platform[19](index=19&type=chunk) - CGN LTSA added **$24.0 million** to product backlog during Q3 FY2025[20](index=20&type=chunk) [Advanced Technologies Contract Backlog](index=6&type=section&id=Advanced%20Technologies%20Contract%20Backlog) Advanced Technologies contract backlog decreased to $24.3 million as of July 31, 2025, primarily comprising remaining revenue from the EMTEC Joint Development Agreement, an Esso purchase order, and government contracts Advanced Technologies Contract Backlog (Millions) | Metric (Millions) | As of July 31, 2025 | As of July 31, 2024 | Change | | :------------------------------ | :------------------ | :------------------ | :------- | | Advanced Technologies contract backlog | $24.3 | $42.5 | $(18.2) | - Backlog includes remaining revenue under the Joint Development Agreement with EMTEC and a purchase order from Esso valued at **$15.6 million** (with a **$4.0 million** increase from change orders)[20](index=20&type=chunk) [Backlog Definition and Terms](index=6&type=section&id=Backlog%20Definition%20and%20Terms) Backlog represents definitive customer agreements, including future contracted energy sales and product/service sales, with revenue recognition from PPAs contingent on project completion and a weighted average term of approximately 16 years for service and generation - Backlog represents definitive agreements, with PPA projects included in generation backlog and customer-sold projects in product sales and service agreements backlog[22](index=22&type=chunk) - Revenue recognition under PPAs is subject to the completion of project construction; failure to complete may result in forgone revenues, penalties, and/or impairment expenses[22](index=22&type=chunk) - The weighted average term of the service and generation portion of backlog was approximately **16 years** as of July 31, 2025, with utility service contracts up to **20 years**[22](index=22&type=chunk)[23](index=23&type=chunk) [Conference Call Information](index=7&type=section&id=Conference%20Call%20Information) FuelCell Energy hosted a conference call on September 9, 2025, to discuss Q3 FY2025 results and business highlights, accessible via webcast or telephone, with a replay available online [Conference Call Details](index=7&type=section&id=Conference%20Call%20Details) FuelCell Energy held a conference call on September 9, 2025, at 10:00 a.m. ET to discuss Q3 FY2025 results and business highlights, with live webcast and telephone access, and an online replay - Conference call held on September 9, 2025, at **10:00 a.m. ET** to discuss Q3 FY2025 results and key business highlights[24](index=24&type=chunk) - Access available via live webcast on www.fuelcellenergy.com or by dialing **888-330-3181** (Conference ID: **1099808**)[24](index=24&type=chunk)[26](index=26&type=chunk) - Replay available via webcast on the Company's Investors' page approximately two hours after the call[24](index=24&type=chunk) [Cautionary Language](index=7&type=section&id=Cautionary%20Language) This section highlights that the news release contains forward-looking statements subject to various known and unknown risks and uncertainties, including economic, regulatory, and operational factors, with no obligation to update [Forward-Looking Statements and Risks](index=7&type=section&id=Forward-Looking%20Statements%20and%20Risks) The news release contains forward-looking statements subject to various known and unknown risks and uncertainties, including general economic conditions, supply chain disruptions, regulatory changes, and the ability to convert bids to contracts or contracts to revenue, with no obligation to update - The news release contains forward-looking statements regarding future events or financial performance, which are not guarantees and are subject to risks and uncertainties[25](index=25&type=chunk) - Key risks include general economic conditions, changes in interest rates, supply chain disruptions, regulatory and utility industry changes, commodity price volatility, availability of government incentives, rapid technological change, competition, and the ability to convert bid awards to contracts or contracts to revenue[25](index=25&type=chunk) - Additional risks include the ability to maintain compliance with listing rules, market acceptance of products, factors affecting liquidity, government contract termination rights, intellectual property protection, litigation, commercialization delays, need for additional financing, ability to generate positive cash flow, and the impact of restructuring plans[27](index=27&type=chunk) - The company expressly disclaims any obligation to publicly update or revise any forward-looking statements[27](index=27&type=chunk) [About FuelCell Energy](index=8&type=section&id=About%20FuelCell%20Energy) FuelCell Energy, Inc. is a global leader providing environmentally responsible distributed baseload energy solutions through proprietary fuel cell technology, addressing critical global challenges in energy access, security, and environmental stewardship [Company Overview](index=8&type=section&id=Company%20Overview) FuelCell Energy, Inc. is a global leader in environmentally responsible distributed baseload energy solutions, utilizing proprietary fuel cell technology to address critical global challenges in energy access, security, reliability, affordability, safety, and environmental stewardship across various sectors - FuelCell Energy is a global leader in delivering environmentally responsible distributed baseload energy platform solutions using proprietary fuel cell technology[28](index=28&type=chunk) - Focuses on advancing sustainable clean energy technologies to address global challenges in energy access, security, resilience, reliability, affordability, safety, and environmental stewardship[28](index=28&type=chunk) - Serves industrial and commercial businesses, utilities, governments, municipalities, and communities worldwide[28](index=28&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show a decrease in total assets and equity as of July 31, 2025, primarily due to reduced short-term investments and impairment, while total revenues increased for both the three and nine months ended July 31, 2025, despite significant net losses from impairment and restructuring [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of July 31, 2025, total assets decreased to $830.5 million, driven by reductions in short-term investments, project assets, and property, plant and equipment, while total liabilities and equity also decreased Consolidated Balance Sheets (Amounts in thousands) | Metric (Amounts in thousands) | July 31, 2025 | October 31, 2024 | | :--------------------------------------- | :------------ | :--------------- | | **ASSETS** | | | | Total current assets | $370,397 | $444,458 | | Restricted cash and cash equivalents – long-term | $46,100 | $48,589 | | Project assets, net | $224,482 | $242,131 | | Property, plant and equipment, net | $97,761 | $130,686 | | Goodwill | $- | $4,075 | | Intangible assets, net | $4,215 | $14,779 | | **Total assets** | **$830,535** | **$944,124** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $69,027 | $73,904 | | Long-term debt and other liabilities | $119,320 | $130,850 | | **Total liabilities** | **$205,458** | **$216,658** | | Redeemable Series B preferred stock | $59,857 | $59,857 | | **Total equity** | **$565,220** | **$667,609** | - Goodwill was fully impaired, decreasing from **$4.075 million** to **$0**[31](index=31&type=chunk) - Total assets of Variable Interest Entities (VIEs) were **$322.4 million** as of July 31, 2025, which can only be used to settle VIE obligations[31](index=31&type=chunk) [Consolidated Statements of Operations and Comprehensive Loss](index=10&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The consolidated statements of operations show increased total revenues for both the three and nine months ended July 31, 2025, primarily from product and service revenues, but also a substantial rise in net loss and loss per share due to impairment and restructuring expenses [Three Months Ended July 31, 2025 and 2024](index=10&type=section&id=Three%20Months%20Ended%20July%2031%2C%202025%20and%202024) For Q3 FY2025, total revenues increased 97% to $46.7 million, with product revenues surging, but operating expenses, driven by impairment and restructuring, led to a net loss of $(91.9) million and a net loss per share of $(3.78) Consolidated Statements of Operations (Amounts in thousands) | Metric (Amounts in thousands) | July 31, 2025 | July 31, 2024 | | :--------------------------------------- | :------------ | :------------ | | Total revenues | $46,743 | $23,695 | | Product revenues | $26,000 | $250 | | Service revenues | $3,130 | $1,411 | | Generation revenues | $12,355 | $13,402 | | Advanced Technologies revenues | $5,258 | $8,632 | | Gross loss | $(5,134) | $(6,202) | | Operating expenses | $90,230 | $27,415 | | Impairment expense | $64,467 | $- | | Restructuring expense | $4,051 | $- | | Net loss | $(91,896) | $(35,123) | | Net loss attributable to common stockholders | $(92,456) | $(33,460) | | Net loss per share attributable to common stockholders | $(3.78) | $(1.99) | [Nine Months Ended July 31, 2025 and 2024](index=11&type=section&id=Nine%20Months%20Ended%20July%2031%2C%202025%20and%202024) For the nine months ended July 31, 2025, total revenues increased to $103.1 million, with product revenues significantly higher, but operating expenses more than doubled due to impairment and restructuring, resulting in a net loss of $(162.0) million and a net loss per share of $(7.22) Consolidated Statements of Operations (Amounts in thousands) | Metric (Amounts in thousands) | July 31, 2025 | July 31, 2024 | | :--------------------------------------- | :------------ | :------------ | | Total revenues | $103,146 | $62,806 | | Product revenues | $39,099 | $250 | | Service revenues | $13,122 | $4,397 | | Generation revenues | $35,825 | $38,013 | | Advanced Technologies revenues | $15,100 | $20,146 | | Gross loss | $(19,776) | $(25,001) | | Operating expenses | $144,249 | $92,455 | | Impairment expense | $64,467 | $- | | Restructuring expense | $5,593 | $- | | Net loss | $(162,031) | $(117,178) | | Net loss attributable to common stockholders | $(160,431) | $(86,993) | | Net loss per share attributable to common stockholders | $(7.22) | $(5.56) | [Appendix: Non-GAAP Financial Measures](index=12&type=section&id=Appendix%3A%20Non-GAAP%20Financial%20Measures) This appendix defines non-GAAP financial measures like EBITDA and Adjusted net loss, which management uses to analyze operating performance by excluding non-cash or non-recurring items, providing a comparative view within the fuel cell sector [Non-GAAP Measures Explanation](index=12&type=section&id=Non-GAAP%20Measures%20Explanation) This section defines non-GAAP measures such as EBITDA and Adjusted net loss, which management uses to analyze operating performance and trends by excluding non-cash or non-recurring items, offering a comparative view within the fuel cell sector - Non-GAAP measures (EBITDA, Adjusted EBITDA, Adjusted net loss, Adjusted net loss per share) are used by management to analyze operating decisions and assess performance[36](index=36&type=chunk)[37](index=37&type=chunk) - Adjusted EBITDA and Adjusted net loss exclude stock-based compensation, impairment and restructuring expenses, non-cash (gain) loss on derivative instruments, and other unusual items[37](index=37&type=chunk) - These non-GAAP measures are not prepared in accordance with GAAP and should not be considered in isolation or as a substitute for comparable GAAP financial measures[38](index=38&type=chunk) [EBITDA and Adjusted EBITDA Reconciliation](index=12&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) For Q3 FY2025, Adjusted EBITDA improved to $(16.4) million, and for the nine months, it improved to $(56.8) million, reflecting the impact of non-cash and non-recurring adjustments from the net loss EBITDA and Adjusted EBITDA Reconciliation (Amounts in thousands) | Metric (Amounts in thousands) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss | $(91,896) | $(35,123) | $(162,031) | $(117,178) | | EBITDA | $(85,618) | $(24,379) | $(133,443) | $(90,067) | | Stock-based compensation expense | $1,691 | $3,350 | $8,657 | $9,227 | | Unrealized (gain) loss on natural gas contract derivative assets | $(971) | $895 | $(2,037) | $5,072 | | Impairment expense | $64,467 | $- | $64,467 | $- | | Restructuring expense | $4,051 | $- | $5,593 | $- | | **Adjusted EBITDA** | **$(16,380)** | **$(20,134)** | **$(56,763)** | **$(75,768)** | - Depreciation and amortization for the three months ended July 31, 2025, was **$9.7 million**, and for the nine months, it was **$30.6 million**[42](index=42&type=chunk) - The company recorded a non-cash impairment expense of **$64.5 million** for both the three and nine months ended July 31, 2025, related to solid oxide technology, goodwill, in-process R&D, property, plant and equipment, and solid oxide inventory[45](index=45&type=chunk) [Adjusted Net Loss Reconciliation](index=13&type=section&id=Adjusted%20Net%20Loss%20Reconciliation) Adjusted net loss attributable to common stockholders improved to $(23.2) million for Q3 FY2025 and $(83.8) million for the nine months, with Adjusted net loss per share also improving, after excluding specific non-cash and non-recurring items Adjusted Net Loss Reconciliation (Amounts in thousands except per share) | Metric (Amounts in thousands except per share) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss attributable to common stockholders | $(92,456) | $(33,460) | $(160,431) | $(86,993) | | Stock-based compensation expense | $1,691 | $3,350 | $8,657 | $9,227 | | Unrealized (gain) loss on natural gas contract derivative assets | $(971) | $895 | $(2,037) | $5,072 | | Impairment expense | $64,467 | $- | $64,467 | $- | | Restructuring expense | $4,051 | $- | $5,593 | $- | | **Adjusted net loss attributable to common stockholders** | **$(23,218)** | **$(29,215)** | **$(83,751)** | **$(72,694)** | | Net loss per share attributable to common stockholders | $(3.78) | $(1.99) | $(7.22) | $(5.56) | | **Adjusted net loss per share attributable to common stockholders** | **$(0.95)** | **$(1.74)** | **$(3.77)** | **$(4.65)** | - Other (income) expense, net includes gains/losses from foreign currency transactions, interest rate swap income, and other periodic non-normal business items[43](index=43&type=chunk) - The company recorded a mark-to-market net gain of **$1.0 million** (Q3) and **$2.0 million** (9M) for natural gas contract derivative assets in FY2025, compared to losses in FY2024[44](index=44&type=chunk)

Third Quarter Fiscal 2025 Summary (All comparisons are year-over-year unless otherwise noted) Revenue of $46.7 million, compared to $23.7 million, an increase of approximately 97%Gross loss of $(5.1) million compared to $(6.2) million, a decrease of approximately 17%Loss from operations of $(95.4) million compared with $(33.6) million, an increase of approximately 184%Net loss attributable to common stockholders of $(92.5) million, compared to $(33.5) million, an increase of approximately 176%Net loss per s ...

Company Announcement - FuelCell Energy, Inc. will release its third quarter 2025 results on September 9, 2025, before the stock market opens [1] - Following the results announcement, the company will host a conference call with investors at 10:00 a.m. Eastern Time on the same day [1] Conference Call Details - The conference call will be accessible via webcast on the company's website or by telephone [1] - A replay of the conference call will be available approximately two hours after the conclusion of the call on the company's Investors' page [2] Company Overview - FuelCell Energy provides clean and reliable energy solutions that enable customers to access power quickly and manage emissions [3] - The company's systems are efficient, scalable, and fuel-flexible, operating on natural gas, biofuels, or hydrogen, and provide steady baseload electricity [3] - With over 55 years of expertise and nearly 200 modules deployed, FuelCell Energy assists customers in achieving their energy goals [3]

Core Insights - FuelCell Energy has signed a seven-year agreement with CGN-Yulchon Generation Co., Ltd. for the purchase of eight advanced carbonate fuel cell modules and maintenance services, reinforcing its position as a utility-scale electric power producer [1][2][4] - The CGN-Yulchon facility will utilize four fuel cell units, each consisting of two modules, producing a total of 10 megawatts of low carbon baseload power, contributing to CGN's decarbonization goals and South Korea's Hydrogen Economy Roadmap [2][3] - This agreement enhances FuelCell Energy's strategic presence in Asia's advanced fuel cell market, alongside other projects, demonstrating momentum in repowering utility-scale assets [4] Company Operations - FuelCell Energy is the only provider delivering utility-scale power and steam, with applications in district heating and industrial processes, offering a scalable, clean energy platform [5][6] - The company has operated a dedicated service team in Korea since 2018, supporting over 100 megawatts of installed capacity, with a service model that includes 24/7 monitoring and preventative maintenance [7] - FuelCell Energy's technology is positioned to meet the growing global demand for electricity, providing high-efficiency, low-emission baseload power [6][8]

Core Insights - Plug Power Inc. (PLUG) and FuelCell Energy, Inc. (FCEL) are key players in the fuel cell technology market, focusing on innovative product solutions and electrolysis platforms [1][2] Group 1: Plug Power (PLUG) - PLUG has experienced a high cash burn rate and negative gross margins, with lower revenues from hydrogen equipment sales impacting performance [3][11] - The company is investing in hydrogen plants, anticipating the green hydrogen market to grow to $30 billion by 2030 [4] - PLUG aims to increase green hydrogen production through a new plant in Georgia and a joint venture with Olin Corporation in Louisiana, supported by a $1.66 billion loan guarantee from the U.S. Department of Energy [5][20] - The deployment of proton exchange membrane (PEM) electrolyzer systems highlights PLUG's expertise in the sector [6] - Cost management efforts have reduced the cash burn rate by nearly 50% year-over-year in Q1 2025, with Project Quantum Leap targeting over $200 million in annualized savings [7][8] Group 2: FuelCell Energy (FCEL) - FCEL continues to receive orders for clean energy solutions, including a contract for a 7.4 MW fuel cell power plant expected to generate over $160 million in future revenues [9] - The company's backlog reached $1.26 billion, reflecting an 18.7% year-over-year growth [9] - FCEL is restructuring operations to lower costs and enhance its competitive position, despite facing negative gross margins of -26% in the first half of fiscal 2025 [10][11] - The company's long-term debt stands at $124.1 million, raising concerns given its cash and cash equivalents of $116.1 million [12] - The Zacks Consensus Estimate for FCEL's fiscal 2025 sales is approximately $144.6 million, indicating a year-over-year growth of 28.9% [13] Group 3: Market Performance and Valuation - Over the past three months, Plug Power's shares surged by 91.8%, while FuelCell Energy's stock gained 37.4% [17] - PLUG is trading at a forward price-to-earnings ratio of -4.13X, compared to FCEL's -1.06X [18] - Both companies hold a Zacks Rank 3 (Hold), complicating the decision for investors [19]