Plug Power(US:PLUG)2025-08-11 21:02PART I. FINANCIAL INFORMATION Item 1 – Interim Condensed Consolidated Financial Statements (Unaudited) This section presents Plug Power Inc.'s unaudited interim condensed consolidated financial statements and detailed notes for Q2 2025 Condensed Consolidated Balance Sheets As of June 30, 2025, total assets decreased to $3.35 billion from $3.60 billion, and total liabilities decreased to $1.59 billion Condensed Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Assets | | | | Cash and cash equivalents | $140,736 | $205,693 | | Inventory, net | $643,926 | $682,642 | | Total current assets | $1,329,997 | $1,477,484 | | Total Assets | $3,353,780 | $3,602,846 | | Current Liabilities | | | | Accounts payable | $152,060 | $180,966 | | Current portion of convertible debt | $145,318 | $58,273 | | 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 For Q2 2025, net revenue increased to $174.0 million, and net loss improved to $227.1 million, or ($0.20) per share, from ($0.36) per share in Q2 2024 Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $173,970 | $143,350 | $307,644 | $263,614 | | Gross loss | $(53,465) | $(131,255) | $(127,326) | $(290,330) | | Operating loss | $(176,946) | $(244,673) | $(355,402) | $(504,082) | | Net loss attributable to Plug Power Inc. | $(227,099) | $(262,333) | $(423,755) | $(558,109) | | Net loss per share (Basic and diluted) | $(0.20) | $(0.36) | $(0.41) | $(0.81) | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities improved to $297.4 million, while investing cash use decreased and financing cash provided declined Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 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 | | Decrease in cash and cash equivalents | $(64,957) | $(72,674) | Notes to Interim Condensed Consolidated Financial Statements These notes detail the company's operations, liquidity, accounting policies, and financial items, including ongoing net losses, financing, and restructuring plans - The company incurred net losses of $228.7 million for Q2 2025 and $425.6 million for the first six months of 2025, with working capital of $494.2 million and $140.7 million in unrestricted cash as of June 30, 202523 - The company believes its current working capital, cash position, and access to financing, including an ATM program and Secured Debenture Purchase Agreement, are sufficient to fund operations for at least the next 12 months32 - In March 2025, the company initiated a restructuring plan to reduce its workforce and realign its manufacturing footprint, expecting significant annual savings from the second half of 202531159 Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's Q2 2025 financial condition and results of operations, analyzing revenue, costs, operating expenses, liquidity, and capital resources Overview Plug Power focuses on hydrogen and fuel cell solutions, offering a vertically integrated product ecosystem for industrial mobility and clean hydrogen production - The company's core focus is on industrial mobility applications and the production of clean hydrogen177 - Plug Power provides a vertically integrated product ecosystem including fuel cells, fueling infrastructure, service, electrolyzers, and liquefaction systems178179180182183 Results of Operations For Q2 2025, net revenue increased 21.4% to $174.0 million, gross loss improved to ($53.5) million, and operating loss narrowed to ($176.9) million Net Revenue and Gross Profit/(Loss) by Segment (Q2 2025 vs Q2 2024, in thousands) | Segment | Net Revenue Q2 2025 | Net Revenue Q2 2024 | Gross Profit/(Loss) Q2 2025 | Gross Profit/(Loss) Q2 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales of equipment, related infrastructure and other | $99,173 | $76,788 | $(18,107) | $(53,123) | | Services performed on fuel cell systems | $16,367 | $13,034 | $6,371 | $(696) | | Power purchase agreements | $23,633 | $19,674 | $(21,639) | $(34,638) | | Fuel delivered to customers | $34,399 | $29,887 | $(31,237) | $(28,430) | | Total | $173,970 | $143,350 | $(53,465) | $(131,255) | - Revenue from sales of equipment increased 29.2% year-over-year in Q2 2025, primarily due to a $29.8 million increase in electrolyzer system sales195 - Gross margin on services improved to 38.9% in Q2 2025 from (5.3%) in Q2 2024, driven by higher service rates and improved unit performance211 - The company recorded an other-than-temporary impairment loss of $42.5 million on an equity method investment in Q2 2025 due to declining market conditions241 Liquidity and Capital Resources Despite ongoing net losses, the company bolstered liquidity in 2025 through a $267.5 million direct offering and a $210.0 million secured debenture, maintaining sufficient resources - In March 2025, the company raised $267.5 million in net proceeds from a registered direct offering of common stock, pre-funded warrants, and common warrants256 - In May 2025, the company issued an initial tranche of a 15.00% Secured Debenture for $199.5 million in proceeds, with commitments for a second tranche of up to $105.0 million257 - The company has an 'at-the-market' (ATM) equity offering program with $986.2 million of aggregate gross sales price available as of June 30, 2025254 - On January 16, 2025, a subsidiary finalized a loan guarantee of up to $1.66 billion with the U.S. Department of Energy (DOE) to finance the construction of up to six green hydrogen production facilities148296 Item 3 – Quantitative and Qualitative Disclosures About Market Risk There have been no material changes to the quantitative and qualitative market risk disclosures from the 2024 Form 10-K - There has been no material change from the market risk disclosures provided in the Company's 2024 Form 10-K313 Item 4 – Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective317 - No material changes to the internal control over financial reporting occurred during the quarter ended June 30, 2025318 PART II. OTHER INFORMATION Item 1 – Legal Proceedings The company is involved in several securities class actions and stockholder derivative litigations alleging false statements, with some cases dismissed and others pending motions to dismiss - The 2021 Securities Action was dismissed with prejudice, and the related derivative litigation was also dismissed, with plaintiffs voluntarily dismissing their appeal in June 2025139140 - The company is facing a consolidated 2023 Securities Action and a 2024 Securities Litigation, both alleging misstatements about business operations, revenue goals, and hydrogen production progress, which the company is actively defending141145 Item 1A – Risk Factors There have been no material changes to the risk factors identified in the 2024 Form 10-K and the Q1 2025 Form 10-Q - There have been no material changes to the risk factors identified in the 2024 Form 10-K and the Q1 2025 Form 10-Q321 Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds On July 8, 2025, the company issued an unregistered warrant to YA II PN, Ltd. to purchase 31.5 million common shares at $1.37 per share, under the Secured Debenture Purchase Agreement - On July 8, 2025, the Company issued a warrant to YA II PN, Ltd. to purchase 31.5 million shares of common stock at an exercise price of $1.37 per share, expiring July 10, 2028322 - The warrant was issued as an unregistered security under the exemption provided by Section 4(a)(2) of the Securities Act322 Item 6 – Exhibits This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, warrants, and CEO/CFO certifications