Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $777.7 million, up 35.9% year-over-year, while full-year revenue reached a record $2 billion, up 37.3% from 2024 [16][18] - Adjusted EBITDA for Q4 was $146.1 million, slightly down from $147.3 million in Q4 2024, indicating strong operating leverage as the company scales [17] - Non-GAAP gross margin for Q4 was 31.9%, down from 39.3% in Q4 2024, while full-year non-GAAP gross margin improved to 30.3% from 28.7% in 2024 [16][18] - Operating income for Q4 was $133 million, nearly flat compared to $133.4 million in the same quarter last year [17] Business Line Data and Key Metrics Changes - The service business achieved approximately 20% non-GAAP gross margin for the first time, marking the third consecutive quarter of double-digit margins [15][17] - Product backlog increased 140% year-over-year to about $6 billion, while service backlog reached approximately $14 billion [5][19] - CNI (Commercial and Industrial) backlog grew over 135% year-over-year, driven by digitization, automation, and electrification trends [7][46] Market Data and Key Metrics Changes - The geographic mix of the U.S. backlog shifted significantly, with over 80% now coming from states with lower power costs, compared to over 80% from California and the Northeast two years ago [7][8] - The demand from data center and CNI customers is secular and growing, with a strong sales pipeline noted [6][46] Company Strategy and Development Direction - The company aims to become the standard for on-site power, focusing on rapid deployment and reliability, particularly in the context of increasing demand from AI and data centers [5][10] - Investments will continue in R&D and commercial efforts to capitalize on growth opportunities, with a focus on expanding manufacturing capacity as needed [10][19] - The transition to 800 Volts DC is highlighted as a key innovation, positioning the company ahead of competitors in meeting future power needs [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to scale operations without the lengthy delivery backlogs faced by traditional suppliers, emphasizing a capital-light approach to expansion [9][10] - The outlook for 2026 anticipates revenue between $3.1 billion and $3.3 billion, with continued improvements in gross margins and operating income [19][20] - The company is optimistic about the future, citing significant increases in capital expenditures from major tech companies as a positive indicator for growth in digital infrastructure [43][60] Other Important Information - The company has a strong balance sheet with $2.5 billion in total cash and a focus on maintaining operational efficiencies to drive cost reductions [17][59] - The service business is expected to grow significantly, supported by a large backlog and continuous improvements in technology and operational efficiency [39][41] Q&A Session Summary Question: Follow-on opportunities at existing customers - Management noted that over two-thirds of business comes from repeat customers, indicating strong customer satisfaction and ongoing engagement [22][23] Question: Milestones for capacity expansion - The company can quickly ramp up capacity based on market demand, with decisions made continuously as opportunities arise [24][25] Question: Deployment of HVDC architecture - Management is optimistic about the competitive advantage of 800-volt DC technology and anticipates strong demand for this solution [26][27] Question: Progress on combined heat and power solutions - On-site power generation allows for more efficient cooling solutions, potentially reducing electricity usage significantly in data centers [31][32] Question: Competitive landscape against legacy technologies - The company is seeing project wins against traditional technologies, emphasizing its ability to compete on efficiency and adaptability [35][36] Question: Life of fuel cell stacks and service margins - Continuous improvements in technology and service operations are expected to enhance profitability in the service business [38][39] Question: Supplier growth projections - Management acknowledged the enthusiasm from supply chain partners but clarified that long-term guidance has not been provided [42][43] Question: U.S. vs. international market opportunities - The company sees the U.S. as the primary focus for growth in the near term, with plans to expand internationally as infrastructure develops [46]

Core Insights - The demand for on-site power for data centers is driven by the growing trend in AI and infrastructure spending, which is expected to last for a long time [2][3] - The U.S. needs 100 gigawatts of firm, reliable power by 2030, with a significant portion required to be on-site power for data centers [3][4] - Bloom Energy claims to be a leading provider of on-site power solutions, emphasizing their unique technology and ability to deliver power quickly [4][7] Industry Overview - The infrastructure build-out for data centers is critical, with hyperscalers projected to invest approximately $2 billion in capital expenditures daily by 2025 [4] - There is skepticism regarding the speed at which companies can meet the growing demand for power, particularly in relation to their valuations [5] - The supply-demand gap for power is expected to widen over the next five years, necessitating on-site power solutions [10] Company Performance - Bloom Energy recently announced its first installation for Oracle, committing to deliver power within 90 days of signing [6] - The company is planning to double its manufacturing capacity from 1 to 2 gigawatts by the end of 2026, with potential future expansion to 5 gigawatts [8][9] - Bloom Energy's technology is claimed to be 75% more efficient than traditional turbines, providing a significant competitive advantage in power delivery [12]