Plug Power Inc.

Q2 net revenue was $178 million, up approximately 9% sequentially; first-half revenue was $342 million, up 11% year over year. Gross margin improved to about breakeven, or roughly -0.9%, versus -30.7% a year ago and -13% last quarter. GAAP EPS was a loss of $0.14 versus a loss of $0.20 a year ago, and adjusted EPS was a loss of $0.07 versus a loss of $0.18 a year ago. Operating expenses were $62 million, down approximately 50% year over year, and net cash usage was $61 million, down about 58% sequentially. Management raised full-year revenue growth guidance to 15% to 16% from 13% to 15% and reiterated positive EBITDA in Q4.

Jose Luis Crespo framed Q2 as a strong step forward and said the company is seeing execution across revenue, margins, and cash burn. He emphasized that gross margin improvement, lower OpEx, and better plant utilization are structural, not one-off, and said the company’s breakeven thresholds are coming down. His tone was confident and upbeat, with repeated references to a stronger second half, the Q4 EBITDA target, and regulatory tailwinds for electrolyzers in Europe.

Paul Middleton highlighted that the gross margin turnaround was driven by multiple platforms, including positive equipment margin, a 27% service margin, improved PPA loss rates, and a better fuel margin of roughly -48% from -91% a year ago. He said GAAP operating expenses of $62 million included a $39.7 million recovery of previously impaired assets, principally a $37 million gain from settling a customer contract dispute, and said the expected OpEx run rate is roughly $75 million a quarter. He also said unrestricted cash was $162 million, restricted cash was $510 million, over $115 million of restricted cash was released in the first half, about $155 million remains scheduled to release over the next 12 months, capex was under $9 million in the first half, and inventory was down about $28 million from year end with at least $100 million of inventory reduction expected for the full year.

Analysts focused on what is driving service margin improvement, the timing of hydrogen and electrolyzer project conversions to FID, and whether the company’s Q4 EBITDA target depends mainly on equipment sales. Management said service margins are benefiting from better unit reliability, improved stack performance, lower technician needs, and pricing actions, and said the 27% margin looks sustainable. On electrolyzers, management pointed to projects such as Carlton Power, Eric, Quebec, and the Axiona JV, saying many projects are moving toward FID by late 2026 or early 2027; on cash and capital, they said non-dilutive asset monetization and a sizable cash balance reduce the need for immediate debt reduction.