Plug Power(PLUG) - 2025 Q2 - Quarterly Results

Q2 2025 Financial & Operational Highlights Financial Performance Plug Power's Q2 2025 revenue grew 21% to $174 million, with gross margin improving to -31% due to cost reductions | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $174 million | ~$143.8 million | +21% YoY | | Gross Margin | -31% | -92% | +61 p.p. | | Electrolyzer Revenue | ~$45 million | ~$15 million | +200% YoY | - The company's cost-saving initiative, Project Quantum Leap, contributed to margin improvements through workforce optimization, facility consolidation, reduced professional services, and renegotiated supply contracts[4] - The second quarter included approximately $80 million in non-cash charges primarily associated with Project Quantum Leap, a significant increase from the $6 million in similar charges in Q2 2024[4] Cash Flow and Liquidity Cash management improved with over 40% reduction in net cash used for operations and investing, ending Q2 with over $140 million unrestricted cash - Net cash used in operating and investing activities saw a year-over-year decline of over 40%[4] - The company exited Q2 with a strong liquidity position, holding over $140 million in unrestricted cash and cash equivalents[4] - Plug has a platform to access over $300 million in additional debt capacity from its secured debt facility and is positioned to benefit from the monetization of tax credits under Sections 45V and 48E[4] Strategic and Market Highlights GenEco Electrolyzer Growth and Global Expansion GenEco electrolyzer business shows strong global demand, mobilizing over 230 megawatts of programs and setting a production record at the Georgia plant - Over 230 MW of GenEco electrolyzer programs are currently being mobilized in Europe, Australia, and North America[7] - The Georgia hydrogen plant set a U.S. production record using GenEco systems, showcasing the technology's scalability and reliability[7] - The sales funnel for GenEco electrolyzers remains strong, with multiple large-scale projects moving toward final investment decisions in 2026[7] Business Segment Developments Increased GenDrive demand from ITC extension and expansion into renewable diesel and SAF markets are expected to drive new revenue in H2 2025 - The extension of the Investment Tax Credit (ITC) through 2026 is stimulating customer demand for GenDrive fuel cells, with new bookings expected in H2 2025[5] - The Energy Transition business is gaining traction by supporting customers in renewable diesel and sustainable aviation fuel (SAF) industries, with new revenue opportunities anticipated in H2 2025[5] - A major hydrogen supply agreement was extended with improved economics, which is expected to support better margins in the second half of the year[7] Regulatory Impact and Outlook Solidified tax credits (Sections 45V and 48E) create a favorable regulatory environment, with the company targeting gross margin breakeven on a run-rate basis in Q4 2025 - The passage of the "One Big Beautiful Bill" in July solidified the Section 45V Clean Hydrogen Production Tax Credit and the Section 48E Investment Tax Credit, providing significant policy support[8] - Plug Power expects to achieve gross margin breakeven on a run-rate basis in Q4 2025, driven by cost discipline, service execution, and scale benefits[8] Financial Statements Condensed Consolidated Balance Sheets As of June 30, 2025, total assets decreased to $3.35 billion and total liabilities to $1.59 billion | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $140,736 | $205,693 | | Total current assets | $1,329,997 | $1,477,484 | | Total assets | $3,353,780 | $3,602,846 | | Total current liabilities | $835,766 | $748,489 | | Total liabilities | $1,589,820 | $1,795,090 | | Total stockholders' equity | $1,763,960 | $1,807,756 | Condensed Consolidated Statements of Operations Q2 2025 net revenue reached $174.0 million, with gross loss significantly reduced and net loss improving to $227.1 million | (In thousands, except per share) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Net revenue | $173,970 | $143,350 | | Gross loss | $(53,465) | $(131,255) | | Operating loss | $(176,946) | $(244,673) | | Net loss attributable to Plug Power Inc. | $(227,099) | $(262,333) | | Net loss per share (Basic and diluted) | $(0.20) | $(0.36) | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities improved to $297.4 million for the six months ended June 30, 2025, with investing activities significantly lower at $87.3 million | (In thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(297,378) | $(422,466) | | Net cash used in investing activities | $(87,316) | $(268,658) | | Net cash provided by financing activities | $226,064 | $526,751 | Company Information and Disclosures About Plug Plug Power is a key player in the global hydrogen economy, offering an integrated ecosystem from production to power generation - Plug Power provides a fully integrated hydrogen ecosystem, including electrolyzers, liquid hydrogen, fuel cell systems, and fueling infrastructure[10] - The company has deployed over 72,000 fuel cell systems and 275 fueling stations and has a hydrogen production capacity of 40 tons per day from its plants in Georgia, Tennessee, and Louisiana[11] Earnings Call Details A conference call and live webcast to discuss Q2 2025 financial results are scheduled for August 11, 2025, at 4:30 PM ET - An earnings call is scheduled for August 11, 2025, at 4:30 PM ET to discuss the financial results[15] Safe Harbor This report contains forward-looking statements regarding the company's financial profile, strategic objectives, and anticipated benefits of initiatives and tax credits - The document includes forward-looking statements concerning Project Quantum Leap, financial outlook, sales growth, and the impact of tax credits[14] - Investors are cautioned that these statements are not guarantees of future performance and are subject to risks outlined in the company's SEC filings, including its Form 10-K and 10-Q reports[14]