Financial Data and Key Metrics Changes - Reported revenue for Q4 2024 was $191 million, with full-year revenue of $629 million, reflecting a year-over-year decline despite significant improvements in the electrolyzer business [22][23] - Cash burn for the quarter decreased by over 70% year-over-year, and gross profit improved year-over-year when excluding non-cash charges [21][22] - Non-cash charges in the quarter amounted to approximately $971 million for asset impairments and bad debt, alongside $104 million in COGS for inventory valuation adjustments [28][29] Business Line Data and Key Metrics Changes - The material handling business saw significant margin improvements, expanding by approximately $120 million compared to 2023, excluding customer warrant charges [11][12] - The electrolyzer business experienced nearly six-fold revenue growth in Q4 2024 compared to Q4 2023, although it faced revenue impacts of up to $68 million due to customer delays and site readiness issues [24][25] - The cryogenic tanker and trailer business faced revenue impacts of about $16 million due to strategic decisions and production delays [23][24] Market Data and Key Metrics Changes - Customer demand for hydrogen production stands at approximately 55 tons per day, while Plug Power's capacity will reach 39 tons per day by the end of the month [13] - The company anticipates Q1 2025 revenue to be in the range of $125 million to $140 million, influenced by seasonal factors and revenue pushouts from Q4 2024 [26][27] Company Strategy and Development Direction - The company is focusing on three key areas: material handling, electrolyzers, and hydrogen generation to support material handling, aligning with market demand and profitability [10][17] - Project Quantum Leap aims to streamline costs, targeting annualized savings of $150 million to $200 million through staff reductions, product focus refinement, and facility consolidation [8][9] - The company plans to prioritize profitable cash-generating assets and will not pursue programs that are not tied to profitability or cash generation [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in hydrogen's role in the future energy mix, projecting it could contribute 10% to 20% of the world's energy supplies [10] - The slower-than-expected development in the hydrogen market is attributed to various factors, including policy implementation pace and geopolitical conflicts [9] - Management expects continued gross margin improvement and significant bookings in the electrolyzer business in 2025, while focusing on reducing cash burn and expanding margins [27][30] Other Important Information - The company ended 2024 with over $200 million in unrestricted cash and is exploring additional capital solutions with existing partners [32] - The DOE approval for the Limestone plant in Texas was secured, with project completion expected 18 to 24 months after the anticipated start in 2025 [14] Q&A Session Summary Question: Can you talk about the maturity of the financing for a number of the projects? - Management indicated that financing for large projects in Europe and North America is secured and not a concern, with a focus on final investment decisions [43][44] Question: Can you discuss spending patterns in warehouse automation? - Management noted that a major customer has committed funds for future business, indicating anticipated growth in material handling [47][48] Question: What is the status of the DOE loan package? - Management confirmed ongoing discussions with the DOE and expressed optimism about the loan package's support [57][58] Question: How do you see the policy environment in Washington evolving? - Management highlighted a supportive political environment for hydrogen initiatives, with ongoing engagement with local political teams [105][106] Question: What is the outlook for the electrolyzer business? - Management expects continued growth in the electrolyzer business, driven by existing backlog and potential new bookings [171][172]

Financial Performance - In Q4 2024, Plug Power reported revenue of $191.5 million, marking a significant commercial inflection point with a 583% year-over-year increase in electrolyzer revenue[6]. - Operating cash flow improved by 25% quarter-over-quarter and 46% year-over-year in Q4 2024, with a full-year cash flow burn improvement of 34% compared to 2023[7]. - The company recorded a gross margin loss of 122% in Q4 2024, impacted by $22.7 million in customer warrant charges and $104.2 million in inventory valuation adjustments[7]. - Plug closed 2024 with over $200 million in unrestricted cash, indicating improved cash management and reduced cash burn[9]. - The company recorded $971.3 million in non-cash charges for asset impairments and bad debt provision in Q4 2024 due to strategic shifts and market dynamics[7]. Strategic Initiatives - Plug Power initiated "Project Quantum Leap" aimed at reducing annual expenses by $150 million to $200 million through workforce reductions and operational optimizations[4]. - The company secured a significant purchase agreement to supply 3 gigawatts of electrolyzer capacity for Allied Green Ammonia's plant in Australia, enhancing growth prospects for 2025[7]. - Plug closed a $1.66 billion DOE Loan Guarantee program, with an additional estimated investment requirement of $600 million to complete the project[9]. Operational Developments - Plug's joint venture hydrogen plant in Louisiana is nearing full operation, expected to increase hydrogen production capacity to over 39 tons per day[9]. - The company completed the transfer of approximately $30 million in energy storage investment tax credits related to its hydrogen liquefier in Woodbine, GA[9].

Financial Performance - For the year ended December 31, 2024, the company reported a net loss of approximately $2.1 billion, compared to $1.4 billion in 2023 and $724 million in 2022, with an accumulated deficit of $6.6 billion as of December 31, 2024[261]. - The company recorded an impairment charge of $949.3 million for the year ended December 31, 2024, compared to $269.5 million in 2023, due to unmet sales and margin projections[307]. - Interest income decreased by $25.1 million, or 45.0%, for the year ended December 31, 2024, primarily due to the sale of higher-yielding U.S. treasury securities[310]. - The Company had a loss on extinguishment of convertible senior notes and debt of $16.3 million for the year ended December 31, 2024, driven by the exchange of $138.8 million in convertible senior notes[316]. - The Company recognized an income tax benefit of $2.7 million for 2024, down from $7.4 million in 2023, primarily due to changes in valuation allowances[319]. Cash Flow and Financing Activities - The net cash used in operating activities decreased to $728.6 million in 2024 from $1.1 billion in 2023, primarily due to cash inflows related to accounts receivables and inventory[256]. - The company experienced a net cash outflow of $402.4 million from investing activities in 2024, a significant change from a cash inflow of $728.1 million in 2023, mainly due to a decrease in proceeds from sales and maturities of available-for-sale securities[257]. - Financing activities provided net cash of $983.2 million in 2024, a substantial increase from $6.1 million in 2023, driven by proceeds from the At Market Issuance Sales Agreement and convertible debentures[259]. - The company has an "at-the-market" equity offering program allowing for gross sales of up to $1.0 billion, with 219,835,221 shares issued at a weighted-average price of $3.08 per share for net proceeds of $666.9 million in 2024[263]. - The Company sold 219,835,221 shares of common stock at a weighted-average price of $3.08 per share, generating gross proceeds of $677.2 million during 2024[323]. Revenue and Sales Performance - Revenue from sales of equipment, related infrastructure and other decreased by $321.1 million, or 45.1%, to $390.3 million for the year ended December 31, 2024, compared to $711.4 million for the year ended December 31, 2023[285]. - Revenue from services performed on fuel cell systems and related infrastructure increased by $13.1 million, or 33.5%, to $52.2 million for the year ended December 31, 2024, compared to $39.1 million for the year ended December 31, 2023[286]. - Revenue from power purchase agreements increased by $14.1 million, or 22.1%, to $77.8 million for the year ended December 31, 2024, compared to $63.7 million for the year ended December 31, 2023[287]. - Revenue associated with fuel delivered to customers increased by $31.7 million, or 47.9%, to $97.9 million for the year ended December 31, 2024, compared to $66.2 million for the year ended December 31, 2023[289]. - The number of GenDrive units sold decreased to 3,119 units for the year ended December 31, 2024, down from 6,392 units sold during the year ended December 31, 2023[285]. Cost Management - Cost of revenue from sales of equipment, related infrastructure and other decreased by $69.5 million, or 9.1%, to $696.1 million for the year ended December 31, 2024, compared to $765.6 million for the year ended December 31, 2023[290]. - The cost of revenue related to sales of hydrogen infrastructure decreased by $82.3 million, with 15 hydrogen site installations during the year ended December 31, 2024, compared to 52 installations in the previous year[291]. - Cost of revenue related to cryogenic storage equipment and liquefiers decreased by $83.1 million, primarily due to product mix and fewer projects[292]. - The cost of revenue from sales of fuel cell systems decreased by $15.5 million, with 3,119 units sold during the year ended December 31, 2024, compared to 6,392 units sold in 2023[293]. - Selling, general and administrative expenses decreased by $46.4 million, or 11.0%, to $376.1 million for the year ended December 31, 2024, mainly due to stock compensation expense reductions[304]. Research and Development - Research and development expenses decreased by $36.5 million, or 32.1%, to $77.2 million for the year ended December 31, 2024, primarily due to headcount reductions[303]. Strategic Initiatives and Future Plans - The company is targeting expansion in Asia, Australia, Europe, the Middle East, and North America, with a focus on becoming a leader in the European hydrogen economy[254]. - The company has received a conditional commitment for a loan guarantee of up to $1.66 billion from the U.S. Department of Energy to finance development and construction projects[272]. - The 2025 Restructuring Plan is expected to yield significant annual savings, beginning in the second half of 2025, through workforce reduction and operational realignment[267]. - The company continues to diversify its supply chain to mitigate risks related to material availability and labor shortages[275]. Revenue Recognition and Accounting Policies - Revenue from sales of fuel cell systems, related infrastructure, and equipment includes GenDrive units and hydrogen fueling infrastructure, with significant contributions from these segments[417]. - The company recognizes revenue on electrolyzer systems and solutions at the point of control transfer, typically upon shipment or delivery, with revenue recognized over time in certain cases[420][421]. - Payments received from customers are recorded as deferred revenue until control is transferred, impacting the timing of revenue recognition[422][427]. - Revenue from services performed on fuel cell systems is recognized over time on a straight-line basis, reflecting the simultaneous consumption of benefits by customers[428]. - Revenue from power purchase agreements (PPAs) is recognized on a straight-line basis over the life of the agreements, aligning with customer consumption of services[430][431].

Company and Industry Overview * **Plug Power Inc. (NASDAQ:PLUG)**: A company specializing in hydrogen solutions, including electrolyzers, cryo technology, and fuel cells. They have been in the hydrogen business for 25 years and offer end-to-end ecosystem solutions. * **Industry**: Hydrogen energy, focusing on green hydrogen production and fuel cell technology. Key Points and Arguments * **Revenue Growth**: Plug Power has experienced significant growth, with revenues expected to exceed $100 million in 2024, up from $20-25 million when Crespo joined the company 10 years ago. * **Hydrogen Production**: Plug Power produces hydrogen through electrolyzers at plants in Tennessee and Georgia, with a capacity of 10 and 15 tons per day respectively. They are also planning to start a new plant in Louisiana with a capacity of 15 tons per day in Q1 2025. * **DOE Loan**: Plug Power is seeking a DOE loan to support the construction of green hydrogen plants, including the Texas plant. The loan would cover up to 80% of the plant's cost. Crespo expressed optimism about the loan's approval, citing the bipartisan nature of hydrogen support and the positive economic impact of hydrogen production. * **Strategic Investors**: In the event that the DOE loan is not approved, Plug Power is actively seeking strategic investors for the Texas plant and other potential projects. * **Energy Business**: Plug Power's energy business is expected to grow at a 30% compound annual growth rate (CAGR) in the long term, driven by the Texas plant's low-cost hydrogen production and increased demand for green hydrogen. * **Margin Improvement**: Plug Power is focused on improving margins through cost reductions, operational efficiencies, and technology improvements. They expect to achieve margin positive for hydrogen production in 2025. * **Electrolyzer Sales**: Plug Power has provided over 8 gigawatts of basic engineering proposal (BEDP) contracts to customers, which could lead to significant revenue growth if converted into actual projects. * **Applications Business**: Plug Power is raising prices for hydrogen and fuel cell sales to customers, with the goal of achieving margin positive for hydrogen production in the middle of 2025. * **Middle Market Expansion**: Plug Power is exploring opportunities in the middle market for applications, targeting customers with fewer forklifts, which represents a significant portion of the material handling market. Additional Important Content * **Louisiana Plant**: The Louisiana plant is expected to come online in Q1 2025 and will produce 15 tons of hydrogen per day using a by-product from Olin, a partner in the plant. * **45V Credits**: Plug Power is hopeful that the final guidelines for the 45V credits will be less restrictive than the current version, which could benefit the hydrogen market and Plug Power. * **Technology Choices**: Plug Power has chosen PEM technology for its electrolyzers, based on its expertise and experience in this area.

PART I. FINANCIAL INFORMATION [Item 1 – Interim Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20%E2%80%93%20Interim%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited interim condensed consolidated financial statements reveal continued net losses, decreased assets and liabilities, and improved but still negative operating cash flow, supported by significant financing activities Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $93,940 | $135,033 | | Total current assets | $1,634,021 | $1,786,965 | | Total assets | $4,724,874 | $4,902,738 | | **Liabilities & Equity** | | | | Total current liabilities | $786,945 | $964,800 | | Total liabilities | $1,695,541 | $2,004,613 | | Total stockholders' equity | $3,029,333 | $2,898,125 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share) | Income Statement Item | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $198,711 | $198,711 | $437,344 | $669,179 | | Gross loss | ($100,025) | ($137,965) | ($390,355) | ($285,504) | | Operating loss | ($273,971) | ($273,971) | ($720,250) | ($717,612) | | Net loss | ($211,073) | ($283,479) | ($769,277) | ($726,438) | | Net loss per share | ($0.47) | ($0.47) | ($1.03) | ($1.22) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($597,402) | ($863,919) | | Net cash (used in)/provided by investing activities | ($358,529) | $460,488 | | Net cash provided by financing activities | $779,175 | $14,447 | [Notes to Interim Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, including a clean hydrogen tax credit, debt extinguishment, substantial equity financing, and a restructuring plan - The company qualifies for the clean hydrogen production tax credit (PTC) under the Inflation Reduction Act (IRA) starting in Q2 2024, reducing cost of revenue by approximately **$1.6 million** for the three months and **$2.9 million** for the nine months ended September 30, 2024[23](index=23&type=chunk)[24](index=24&type=chunk) - In March 2024, the company exchanged **$138.8 million** of 3.75% Convertible Senior Notes for **$140.4 million** of new 7.00% Convertible Senior Notes due 2026, resulting in a **$14.0 million** debt extinguishment loss[48](index=48&type=chunk)[49](index=49&type=chunk) - During the nine months ended September 30, 2024, the company sold **189.4 million** shares under its At-Market (ATM) agreement for gross proceeds of **$611.5 million**, and a public offering yielded **$191.0 million** in net proceeds from **78.7 million** shares[69](index=69&type=chunk)[70](index=70&type=chunk) - A restructuring plan approved in February 2024 incurred **$8.2 million** in costs for the nine months ended September 30, 2024, primarily from severance expenses, with completion expected in Q4 2024[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) - Subsequent to quarter-end, on November 11, 2024, the company entered into a Debenture Purchase Agreement to issue a **$200.0 million** unsecured convertible debenture for **$190.0 million** in cash[170](index=170&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=63&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a significant revenue decline due to slower hydrogen economy development, widening gross losses from inventory adjustments, and negative operating cash flow, offset by sufficient liquidity from recent equity financing [Results of Operations](index=69&type=section&id=Results%20of%20Operations) Net revenue decreased significantly due to lower sales volumes in key segments, while gross loss worsened from inventory adjustments and reduced production, partially offset by decreased operating expenses Revenue by Product/Service Line (in thousands) | Product/Service Line | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Sales of equipment, related infrastructure and other | $252,224 | $543,510 | (53.6)% | | Services performed on fuel cell systems | $40,205 | $27,088 | 48.4% | | Power purchase agreements | $58,437 | $44,135 | 32.4% | | Fuel delivered to customers | $77,964 | $47,391 | 64.5% | | **Total Net Revenue** | **$437,344** | **$669,179** | **(34.6)%** | - Revenue from sales of equipment for the nine months ended Sep 30, 2024, decreased by **$291.3 million** (**53.6%**) year-over-year, primarily due to declines in hydrogen infrastructure, cryogenic equipment, and fuel cell systems sales, reflecting a slower hydrogen economy development[203](index=203&type=chunk) - Gross loss from sales of equipment, related infrastructure and other was **(64.5%)** for the nine months ended Sep 30, 2024, a significant decline from a **7.1%** gross margin in the prior-year period, driven by inventory valuation adjustments, customer mix, lower margins on new products, and reduced production volume[226](index=226&type=chunk) - For the nine months ended Sep 30, 2024, R&D expenses decreased by **$19.5 million** (**23.4%**) and SG&A expenses decreased by **$55.9 million** (**18.0%**) year-over-year, mainly due to headcount reductions from the 2024 Restructuring Plan and lower stock-based compensation expense[237](index=237&type=chunk)[240](index=240&type=chunk) [Liquidity and Capital Resources](index=86&type=section&id=Liquidity%20and%20Capital%20Resources) Despite negative operating cash flow, the company maintains sufficient liquidity for the next 12 months, bolstered by significant equity financing and an amended ATM agreement - The company believes its working capital of **$847.1 million** and cash position, along with its right to direct B. Riley to purchase shares under the Amended ATM Agreement, will be sufficient to fund operations for at least 12 months from the financial statement issuance date[275](index=275&type=chunk) - Net cash provided by financing activities increased to **$779.2 million** for the nine months ended Sep 30, 2024, up from **$14.4 million** in the prior year period, primarily driven by proceeds from the At Market Issuance Sales Agreement[269](index=269&type=chunk) - The company raised significant capital through equity offerings in 2024, including selling **189.4 million** shares for **$611.5 million** in gross proceeds under its ATM agreement and an additional **$191.0 million** in net proceeds from a public offering in July[279](index=279&type=chunk)[280](index=280&type=chunk) - Subsequent to the quarter, the company amended its ATM agreement to increase the aggregate gross sales price to **$1.0 billion** and entered into a Debenture Purchase Agreement to sell a **$200 million** convertible debenture for **$190 million** in cash[271](index=271&type=chunk)[272](index=272&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=107&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk disclosures were reported from the prior fiscal year's Annual Report on Form 10-K - There has been no material change from the market risk disclosures provided in the Company's 2023 Form 10-K[339](index=339&type=chunk) [Controls and Procedures](index=109&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2024[341](index=341&type=chunk) - There were no changes during the quarter ended September 30, 2024, in the company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, such controls[342](index=342&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=109&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company is involved in multiple legal proceedings, including consolidated stockholder derivative actions and securities class actions alleging misstatements about operations and financial performance - A consolidated stockholder derivative action related to the dismissed 2021 Securities Action is pending in Delaware, with a motion to dismiss argued on November 4, 2024[124](index=124&type=chunk) - The company is defending a consolidated 2023 securities class action in Delaware (In re Plug Power, Inc. Securities Litigation, No. 1:23-cv-00576-MN) alleging false and misleading statements about revenue goals, supply chain, and hydrogen plant construction, with a motion to dismiss pending[125](index=125&type=chunk) - A new securities litigation was filed in March 2024 in New York (Adote v. Plug Power, Inc. et al.) alleging misstatements about hydrogen production capacity and supply chain management between May 2023 and January 2024[130](index=130&type=chunk) [Risk Factors](index=109&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) Updated risk factors emphasize potential delays or non-occurrence of a **$1.66 billion** DOE loan guarantee and the significant costs and business impact of ongoing legal proceedings - An updated risk factor highlights that the funding of the up to **$1.66 billion** loan guarantee from the Department of Energy (DOE) is conditional and may be delayed or not occur if the company fails to satisfy all technical, legal, environmental, or financial conditions[345](index=345&type=chunk)[346](index=346&type=chunk) - The company emphasizes that it is subject to legal proceedings and compliance risks that could harm the business, noting that litigation outcomes are challenging to predict and could have a material adverse effect on financial results, even if resolved in the company's favor[347](index=347&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=111&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or specific uses of proceeds were reported for the period - The report indicates no unregistered sales of equity securities or use of proceeds during the period[348](index=348&type=chunk) [Other Information](index=111&type=section&id=Item%205%20%E2%80%93%20Other%20Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the third quarter of 2024 - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the third quarter of 2024[348](index=348&type=chunk) [Exhibits](index=112&type=section&id=Item%206%20%E2%80%93%20Exhibits) Key exhibits include an amended At Market Issuance Sales Agreement, a Debenture Purchase Agreement, and required CEO and CFO certifications - Exhibit 10.1 is Amendment No. 2 to the At Market Issuance Sales Agreement, dated November 7, 2024[349](index=349&type=chunk) - Exhibit 10.2 is the Debenture Purchase Agreement, dated November 11, 2024, with YA II PN, Ltd[349](index=349&type=chunk) - Exhibits 31.1, 31.2, 32.1, and 32.2 contain the required CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[349](index=349&type=chunk)

Plug Power Inc. (NASDAQ:PLUG) Q3 2024 Earnings Call Transcript November 12, 2024 8:30 AM ET Company Participants Meryl Fritz - Marketing and Communications Manager Andy Marsh - CEO Paul Middleton - CFO Sanjay Shrestha - GM, Energy Solutions & CSO Conference Call Participants Colin Rusch - Oppenheimer Saumya Jain - UBS George Gianarikas - Canaccord Genuity Eric Stine - Craig-Hallum Bill Peterson - JPMorgan Craig Irwin - Roth Capital Partners Dushyant Ailani - Jefferies Chris Senyek - Wolfe Research Amit Daya ...

Revenue and Financial Performance - Q3 2024 revenue reached $173.7 million, driven by electrolyzer deployments and hydrogen network expansion[2] - Net revenue for the three months ended September 30, 2024, was $173,730 thousand, down from $198,711 thousand in the same period in 2023[21] - Plug anticipates 2024 revenue to range between $700 million and $800 million, driven by electrolyzer and material handling orders[12] - Net loss for the three months ended September 30, 2024, was $211,168 thousand, compared to $283,479 thousand in the same period in 2023[21] - Net loss for the nine months ended September 30, 2024, was $769.3 million, compared to $726.4 million in the same period in 2023[22] Margins and Profitability - Gross margin loss decreased by 37% QoQ, with equipment margins improving 42% and service margins improving 776%[4] - Gross loss for the three months ended September 30, 2024, was $100,025 thousand, compared to $137,965 thousand in the same period in 2023[21] - Operating loss for the three months ended September 30, 2024, was $216,168 thousand, compared to $273,971 thousand in the same period in 2023[21] - Hydrogen fuel margins improved, with higher utilization expected in Q4 2024 after planned downtime in Q3[7] Cash Flow and Liquidity - Operating cash flows improved by 31% QoQ, reflecting margin and working capital efficiency gains[3] - Net cash used in operating activities decreased to $597.4 million in 2024 from $863.9 million in 2023[22] - Net cash provided by financing activities increased significantly to $779.2 million in 2024 from $14.4 million in 2023[23] - Cash, cash equivalents, and restricted cash at the end of the period were $1.0 billion in 2024, down from $1.2 billion in 2023[23] - Decrease in cash and cash equivalents was $41.1 million in 2024, compared to a decrease of $579.8 million in 2023[23] Electrolyzer and Hydrogen Network Expansion - Electrolyzer sales increased 285% QoQ, with a major 25 MW order from bp and Iberdrola's joint venture in Spain[6] - Global BEDP contracts grew to over 8 GW, including a 3 GW agreement with Allied Green Ammonia in Australia[8] - The company completed installation of an 8 MW hydrogen fuel cell system for Energy Vault, marking a milestone in clean energy solutions[10] - Plug received a $10 million DOE grant to develop advanced hydrogen refueling stations in Washington State[11] Expenses and Cost Management - Research and development expenses for the three months ended September 30, 2024, were $19,712 thousand, down from $27,651 thousand in the same period in 2023[21] - Selling, general, and administrative expenses for the three months ended September 30, 2024, were $91,586 thousand, down from $105,451 thousand in the same period in 2023[21] - Stock-based compensation decreased to $64.1 million in 2024 from $129.1 million in 2023[22] - Inventory adjustments and provisions for excess and obsolete inventory increased to $67.8 million in 2024 from $33.9 million in 2023[22] Asset and Liability Changes - Total assets decreased from $4,902,738 thousand in December 2023 to $4,724,874 thousand in September 2024[20] - Cash and cash equivalents decreased from $135,033 thousand in December 2023 to $93,940 thousand in September 2024[20] - Inventory, net decreased from $961,253 thousand in December 2023 to $885,764 thousand in September 2024[20] - Total current liabilities decreased from $964,800 thousand in December 2023 to $786,945 thousand in September 2024[20] Capital Expenditures and Investments - Purchases of property, plant, and equipment decreased to $253.1 million in 2024 from $484.0 million in 2023[22] - Net cash used in investing activities was $358.5 million in 2024, compared to net cash provided by investing activities of $460.5 million in 2023[22] - Proceeds from public and private offerings, net of transaction costs, were $793.2 million in 2024, compared to none in 2023[22]

Table of Contents Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered Common Stock, par value $.01 per share PLUG The NASDAQ Capital Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PER ...

Financial Data and Key Metrics Changes - In Q2 2024, Plug Power reached the final commissioning stage of 55 megawatts of electrolyzers, representing an expected $70 million in revenue, although much of this revenue was not recognized in the quarter [9][11] - Net cash used in operations, combined with CapEx, decreased year-over-year by 30% due to lower CapEx and inventory reductions [23] - The company expects to improve cash burn rates further in the second half of the year as it continues to curtail CapEx and leverage working capital [23] Business Line Data and Key Metrics Changes - The hydrogen fuel cell market has not progressed as rapidly as expected, but the company remains committed to strengthening its leadership position and focusing on operational improvements [11] - The company has scaled up numerous product offerings, including electrolyzer products, hydrogen storage, and distribution solutions, setting the stage for continued sales expansion in the latter half of 2024 and into 2025 [17] - The first green hydrogen plant has been commissioned, providing 25 tons per day of capacity, with a third facility in Louisiana expected to add another 15 tons per day by year-end [18] Market Data and Key Metrics Changes - The electrolyzer market in Europe is beginning to see demand, with final investment decisions coming along, indicating a growing market [12] - The company has secured 7.5 gigawatts in basic design and engineering package contracts, with potential revenue exceeding $1.5 billion if a quarter of this activity leads to revenue [13] Company Strategy and Development Direction - Plug Power is focused on operational improvements and cash management while building its leadership position in the hydrogen economy [9] - The company aims to enhance hydrogen production capabilities and accelerate the adoption of clean energy solutions across various sectors through partnerships, such as with Olin Corporation [10] - The company is committed to strengthening cash management practices and ensuring profitable growth, with a focus on operational efficiency and reducing operational expenses [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that government policy ambiguity has impacted the timing of customer decision-making processes, but expresses confidence in strategic initiatives ensuring profitable growth as the market develops [11] - The company anticipates continuous improvement in margins driven by price increases and increased output from operational facilities [34] - Management is optimistic about the potential for looser regulations post-election, which could accelerate the hydrogen economy [80] Other Important Information - The company has reduced its global workforce by over 15% to optimize resources and maximize leverage [19] - Significant progress has been made in remediating material weaknesses in accounting processes, which will be reflected in the second quarter 10-Q filing [21] Q&A Session All Questions and Answers Question: Confirmation of unrecognized revenue from electrolyzer sales - Yes, it is just over $50 million that reflects a significant change in the deployment of electrolyzers and will be recognized in the second half [31] Question: Improvement in hydrogen fuel sales margins - Continuous improvement in margins is expected due to price increases and operational efficiency from facilities in Tennessee and Georgia [34] Question: Supply chain challenges and supplier commitments - There are challenges, particularly on the fuel cell side, but no suppliers have backed away from commitments [36] Question: Diversity of hydrogen customers and off-take sizes - The company is working with a diverse range of customers, starting with smaller deals that could grow into larger agreements [39] Question: Level of PTC for Georgia and eligibility for other plants - The PTC amounts to about $2.60 per kilogram, and the company is optimistic about eligibility for other facilities [42] Question: Cash management and restricted cash - The company is exploring ways to leverage restricted cash for liquidity and may approach institutions for flexibility [46][47] Question: Revenue guidance and factors driving towards the top end - Key factors include the timely commissioning of electrolyzers, demand in the material handling industry, and successful transitions to third-party leasing partners [48][50] Question: Core materials handling business performance - The company expects material handling revenues in the second half to be significantly higher than the first half, with new customer engagements driving growth [58] Question: Cost efficiency and low-hanging fruit - Focus areas include reducing inventory and improving cost structures in manufacturing and hydrogen production [62] Question: Inventory levels and product line context - The company aims to reduce inventory to about $700 million by year-end, supporting all product lines [78]

Exhibit 99.1 Plug Power Announces Key Developments and Strategic Milestones in Second Quarter 2024 SLINGERLANDS, N.Y., August 8, 2024 — Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions for the green hydrogen economy, today announced significant progress and strategic initiatives in the second quarter of 2024. These developments underscore the Company's commitment to advancing the hydrogen economy and solidifying its leadership position in the industry. Financial Highlights ...