Plug Power Q3 Earnings Call Highlights

Plug Power (NASDAQ:PLUG) reported higher revenue and a sharply narrower gross margin loss in the third quarter of 2026, while reducing net cash usage to what management called a record low. The hydrogen company reaffirmed its full-year revenue growth outlook and said it remains focused on achieving positive EBITDAS in the fourth quarter.

Third-quarter revenue was approximately $201 million, up about 13% both from a year earlier and from the second quarter, CEO Jose Luis Crespo said on the earnings call. Gross margin improved to negative 2.7% from approximately negative 68% a year earlier, although it slipped from the second quarter.

Net income attributable to Plug was $99.8 million, or approximately $0.07 per basic share. CFO Paul Middleton said the result included $192 million in non-cash mark-to-market gains on convertible notes and a warrant liability. Without those gains, the company would have reported a net loss, he said.

Cash usage falls as asset sales contribute

Plug’s net cash usage declined to approximately $28 million from $61 million in the second quarter and $145 million in the first quarter, according to Middleton. The company raised no capital during the third quarter, Crespo said.

Asset monetizations helped fund the business. Middleton said Plug received approximately $51 million this year from a transaction with Stream, including $46 million in the third quarter. Remaining stages depend on regulatory and permitting steps in Texas and New York that have taken longer than expected. Plug has not included further Stream proceeds in its fourth-quarter forecast.

The company ended the quarter with $134 million in unrestricted cash and $469 million in restricted cash. It is also seeking to release approximately $62 million of restricted cash posted as collateral for power supply at its Texas plant, targeting the end of the first quarter of 2027.

Middleton said restricted cash associated with legacy power purchase agreement, or PPA, financing arrangements has been winding down at roughly $40 million per quarter. Plug is also buying out some arrangements early, and he expects most of the associated restricted cash to wind down over approximately two years.

Material handling drives equipment growth

Equipment revenue rose to $106 million from $97 million a year earlier, driven by material handling. Plug deployed 1,136 GenDrive fuel cell units in the quarter, more than double the 540 deployed a year earlier, and recognized nine hydrogen site installations, compared with none in the prior-year period.

Service revenue increased 47% to $29 million, while service margin reached 31%, up from negative 2% a year earlier. Middleton attributed the improvement to better equipment reliability, which allows technicians to cover more units, and lower parts consumption.

Fuel revenue rose 6% to $38 million, but its margin remained negative at 52%. Middleton said unplanned plant outages forced more external fuel purchases during the quarter. The issues have largely been resolved and sourcing has been rebalanced, he said, supporting an expected margin improvement in the fourth quarter.

Crespo said Plug expects to begin a new Walmart refresh cycle in the fourth quarter, with approximately 2,000 to 2,500 units refreshed. The company has previously identified approximately 20,000 units for refreshes over the next two to three years, he said.

Electrolyzer projects and fourth-quarter outlook

Electrolyzer revenue declined by approximately $40 million year over year, primarily because of deployment timing, Middleton said. Plug expects electrolyzer revenue for the full year to be slightly below last year as it shifts from smaller industrial systems toward larger projects.

At the end of September, Plug signed a 280-megawatt electrolyzer supply agreement with Arcadia eFuels for Project ENDOR in Denmark. Deliveries are expected to begin once the project issues a notice to proceed. A separate cooperation agreement positions Plug as the preferred electrolyzer supplier for four additional Arcadia projects representing more than 1 gigawatt of potential capacity, Crespo said.

Plug also secured a 50-megawatt order from Orica in July following a final investment decision on Australia’s Hunter Valley Hydrogen Hub. Commissioning continues on a 25-megawatt project with Iberdrola and BP in Spain and a 100-megawatt project with Galp in Portugal, Crespo said.

Management reaffirmed its forecast for full-year revenue growth of 15% to 16%, implying approximately $280 million in fourth-quarter revenue. Middleton said the expected increase is driven mainly by equipment, particularly material handling, and is supported by backlog and customer schedules.

Plug expects fourth-quarter net cash usage to be approximately flat and remains focused on positive EBITDAS for the quarter. Middleton said the outcome will depend heavily on sales volume and mix, while Crespo noted that some commercial items still need to close and that production, installation and commissioning remain key to execution.

About Plug Power (NASDAQ:PLUG)

Plug Power Inc develops hydrogen fuel cell and hydrogen-generation solutions for businesses seeking alternatives to conventional power and fuel sources. Its offerings include fuel cell systems, electrolyzers that produce hydrogen, hydrogen storage and handling equipment, and related infrastructure and services.

The company’s products are used in applications such as material-handling equipment, including warehouse forklifts, as well as stationary power and other industrial and mobility uses.