Financial Data and Key Metrics Changes - The company reported revenue of $174 million for Q2 2025, representing a 21% increase year-over-year, driven by strong demand across its platforms [6][10] - Gross margins improved significantly from negative 92% in Q2 2024 to negative 31% in Q2 2025, attributed to operational efficiencies and better pricing [6][7] - Net cash in operating and investing activities declined over 40% year-over-year, ending the quarter with over $140 million in cash and access to more than $300 million in additional debt capacity [10] Business Line Data and Key Metrics Changes - Electrolyzer sales more than tripled year-over-year, reaching approximately $45 million in the quarter, highlighting the growing demand for GenEco in industrial applications [6][10] - The service performance is improving due to unit-level enhancements and pricing adjustments, contributing to the overall margin profile [7][10] Market Data and Key Metrics Changes - The company is actively pursuing pre-FID agreements to secure value earlier in the process, with a robust electrolyzer pipeline expected to close additional deals this year [8][10] - Recent congressional legislation has provided long-term clarity on production and investment tax credits, which is expected to benefit the company's hydrogen production strategy [9][10] Company Strategy and Development Direction - The company is focused on six key priorities under Project Quantum Leap, including driving gross margin improvements, streamlining operations, and expanding the hydrogen generation network [4][5] - The company aims to achieve gross margin neutrality by Q4 2025, with tangible steps already in place to reach this goal [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to begin construction on DOE-supported projects by the end of the year, which will accelerate the expansion of the hydrogen generation network [10] - The management team is optimistic about the second half of the year, expecting sequential growth and continued improvements in gross margins [74][75] Other Important Information - The company has removed the equivalent of a medium-sized power plant from the grid as customers transition to hydrogen solutions, enhancing energy reliability and sustainability [9] - The company is maintaining strict cash discipline, with a focus on bridging to positive EBITDAS by 2026 [5][10] Q&A Session Summary Question: Can you talk about the electrolyzer pipeline and project cadence? - Management indicated a strong sales funnel for electrolyzers, with projects expected to close before the end of the year and others moving towards FID in 2026 [13][16] Question: What can you tell us about hydrogen production uptime and yield? - Management reported strong performance from hydrogen plants in Georgia and Louisiana, with expectations for continued improvement [19][20] Question: Can you discuss recent changes and customer conversations regarding tax credits? - Management noted that recent tax credit legislation has reignited customer interest and strengthened business cases for electrolyzers and material handling [28][29] Question: How do you expect margin improvement to play out over the next two quarters? - Management expects gradual improvement in margins, with significant benefits anticipated in Q4 due to increased sales and operational efficiencies [70][73] Question: What is the status of the Texas facility and potential partnerships? - Construction is expected to commence by the end of the year, with plans to bring in a partner by mid-Q4 [61][63] Question: How are tariffs impacting the business? - Management stated that the hydrogen generation business is unaffected by tariffs, while the impact on the electrolyzer business is minimal [56][58] Question: Are customers delaying orders to take advantage of the ITC? - Management indicated that many customers are mobilizing early to procure equipment, which allows them to benefit from the ITC upon commissioning [80][84] Question: What is the outlook for equipment cost improvements? - Management confirmed that improvements in equipment costs are expected, driven by volume growth and operational efficiencies [91][92]