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Bloom Energy Corp (BE)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered another record quarter: revenue $401.2M, non-GAAP EPS $0.10, and adjusted EBITDA $41.2M, with gross margin expanding to 28.2% from 21.8% YoY .
  • Bloom beat Wall Street consensus: revenue $401.2M vs $378.9M*, and non-GAAP EPS $0.10 vs $0.018*, reiterating full-year guidance (revenue $1.65–$1.85B, ~29% non-GAAP GM, non-GAAP OpInc $135–$165M) .
  • Strategic catalysts: direct hyperscaler purchase order with Oracle (90-day power deployment), growing utility channel via AEP (part of 100MW purchase order), and plans to double factory capacity to 2GW by end of 2026 .
  • Non-GAAP services remained profitable for the 6th straight quarter; GAAP EPS (-$0.18) was impacted by a $32.3M loss on extinguishment from the convertible note exchange to 2029 .
  • Stock reaction catalysts: AI data center momentum, reiterated guidance, consensus beats, capacity expansion, and ITC visibility with safe harbor for 2025 installations supporting demand timing .

What Went Well and What Went Wrong

What Went Well

  • “Third straight quarter of quarterly record revenue and profits” driven by AI data center demand and strong execution; revenue grew 19.5% YoY to $401.2M; non-GAAP operating income improved to $28.6M .
  • Direct hyperscaler win: “purchase order” with Oracle to power AI data centers, with “power available…in 90 days,” underscoring time-to-power advantage and load-following capability .
  • Services durability: “6th straight quarter of non-GAAP services profitability,” with management citing double-digit service margins tied to reliability improvements .

What Went Wrong

  • GAAP EPS of -$0.18 and GAAP net loss (-$42.6M) due to a non-recurring $32.3M loss on extinguishment from exchanging 2025 converts into 2029 notes; operating loss was -$3.5M GAAP despite non-GAAP profitability .
  • Operating cash flow was negative (-$213.1M) as BE level-loaded factories and built inventory ahead of expected 2H shipments; receivables and inventory increased materially .
  • Electricity revenue fell QoQ ($12.8M vs $27.0M in Q1), and GAAP gross margin dipped modestly QoQ (26.7% vs 27.2% in Q1) despite strong YoY expansion .

Financial Results

Consolidated Results (GAAP and Non-GAAP)

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$335.8 $326.0 $401.2
GAAP Gross Margin %20.4% 27.2% 26.7%
Non-GAAP Gross Margin %21.8% 28.7% 28.2%
GAAP Operating Income (Loss) ($M)($23.1) ($19.1) ($3.5)
Non-GAAP Operating Income ($M)($3.2) $13.2 $28.6
GAAP EPS ($)($0.27) ($0.10) ($0.18)
Non-GAAP EPS ($)($0.06) $0.03 $0.10
Adjusted EBITDA ($M)$10.2 $25.2 $41.2

Segment and Revenue Mix

Revenue Line ($USD Thousands)Q2 2024Q1 2025Q2 2025
Product$226,308 $211,869 $296,611
Installation$42,733 $33,651 $37,372
Service$52,531 $53,548 $54,449
Electricity$14,195 $26,953 $12,810
Total Revenue$335,767 $326,021 $401,242

Actual vs Consensus (Wall Street)

MetricConsensus (Q2 2025)Actual (Q2 2025)
Revenue ($USD Millions)$378.9*$401.2
Primary EPS ($)$0.018*$0.10

Values retrieved from S&P Global.*

Cash Flow and Balance Sheet Highlights

MetricQ1 2025Q2 2025
Cash from Operations ($USD Thousands)($110,682) ($213,111)
Cash, Cash Equivalents & Restricted Cash ($USD Thousands)$831,358 $606,047
Accounts Receivable ($USD Thousands)$333,981 $467,038
Inventories ($USD Thousands)$612,504 $689,963
Total Recourse Debt ($USD Thousands)$1,012,113 $1,128,463 (current+long-term)

Guidance Changes

MetricPeriodPrevious Guidance (Q1 2025)Current Guidance (Q2 2025)Change
RevenueFY 2025$1.65B–$1.85B $1.65B–$1.85B Maintained
Non-GAAP Gross MarginFY 2025~29% ~29% Maintained
Non-GAAP Operating IncomeFY 2025$135M–$165M $135M–$165M Maintained
Cash from OperationsFY 2025Around FY 2024 level Around FY 2024 level Maintained
CapexFY 2025Around FY 2024 level Around FY 2024 level Maintained

Earnings Call Themes & Trends

TopicQ4 2024 (Prev-2)Q1 2025 (Prev-1)Q2 2025 (Current)Trend
AI/Hyperscalers“Solution of choice for powering AI…ready to deploy at GW scale” Demand robust; AI super-cycle; margin mitigation despite tariffs Direct hyperscaler PO with Oracle; 90-day deployment; watts-to-FLOPS optimization Accelerating execution and bookings
Utility partnershipsAEP partnership emerging Utility route preferred for large loads; multiple utilities engaged AWS/Coralogix deployments via AEP; 100MW PO includes AWS; pipeline toward 1GW Scaling channel
Tariffs & supply chain2024 tariff risks detailed; diversified sourcing ~100bps GM impact expected; mitigation via cost reductions; no China sourcing Guidance reiterated despite tariff headwinds; domestic content clarifications Managed headwind; guidance intact
Time-to-power & microgridGW readiness Islanded power; no batteries required for load-following microgrids Oracle PO with 90-day power; modular “grid-to-go” skids; fragment/aggregate flexibility Strong differentiator
CHP & efficiencyNot highlightedFramework for margin stability CHP “add-on app”; ~20% power equivalent saved via waste heat for cooling Growing engagement
InternationalKorea strength, early EU expansion Focus: Italy, Germany, UK, Taiwan International ~30% of business; expanding geographies Gradual build
Tax credits/ITCIRA/ITC context ITC expiration risks noted in PR ITC visibility restored via BBB from 2026; 2025 safe harbor secured—no purchase push-outs needed Policy tailwind clarity

Management Commentary

  • “As onsite power becomes increasingly self-evident, given rapid AI growth…our products are purpose-built for the digital revolution…delighted to engage with…Oracle…optimize the watts to flops ratio.” – KR Sridhar, CEO .
  • “Q2 is the latest in a string of record financial quarters…executing well in a robust, rapidly changing environment.” – Maciej Kurzymski, Acting PFO .
  • “We will double our factory capacity from 1 gigawatt…to 2 gigawatts a year by the end of next year.” – KR Sridhar .
  • “Adjusted EBITDA was $41.2 million versus $10.2 million in Q2 of 2024 while EPS was a positive $0.10 versus a loss of $0.06 a year ago.” – Maciej Kurzymski (non-GAAP) .

Q&A Highlights

  • Oracle hyperscaler PO: Bloom is “primary source” in an islanded, load-following configuration; power in 90 days; confirms large-scale load following .
  • Capacity expansion: plan to 2GW; estimated ~$100M capex over quarters; “well funded” to execute .
  • Margin trajectory: disciplined OpEx and procurement; level-loading factories; mix drives variability; continued improvement expected; services now at double-digit margins .
  • ITC clarity: BBB reinstates fuel cell ITC from Jan 2026; Bloom has sufficient 2025 safe harbor volume—no need to delay purchases/installs .
  • Utility channel: AEP projects included in 100MW PO, with active pipeline toward the 1GW service agreement .
  • Microgrid and mobility: modular skid-based systems enable “grid-to-go,” fragmentation/aggregation across locations; no battery required for load-following .

Estimates Context

  • Q2 2025 revenue beat: $401.2M actual vs $378.9M consensus*; non-GAAP EPS beat: $0.10 actual vs $0.018 consensus*. Management reiterated full-year guidance and highlighted bookings that can be booked-built-shipped-recognized within the year .
  • Implications: Street likely raises revenue/EPS for 2H given AI momentum, Oracle/AEP execution, and maintained ~29% non-GAAP gross margin despite tariffs .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Bloom is transitioning from pipeline visibility to direct hyperscaler execution (Oracle PO, 90-day power), strengthening narrative as an AI infrastructure enabler with speed-to-power and load-following advantages .
  • Beat-and-raise type quarter on actuals-plus-reiterated guidance: revenue and EPS beats vs consensus alongside non-GAAP margin resilience support near-term estimate revisions .
  • Non-GAAP profitability broadening (services and operating income) while GAAP remains noisy due to convertible debt accounting (extinguishment loss and leverage profile) .
  • Level-loaded manufacturing and inventory build suggest 2H revenue acceleration consistent with ~40/60 seasonality; watch working capital normalization and cash generation cadence .
  • Utility channel (AEP) provides scalable go-to-market for large loads; regulatory progress and ITC safe harbor reduce timing risk for 2025 deployments .
  • Capacity expansion to 2GW and ~$100M capex indicates confidence in secular AI power demand; monitor execution, supply chain cost reductions, and tariff effects on margins .
  • Medium-term thesis: Bloom’s modular, clean onsite power is increasingly favored over turbines/engines for islanded data centers due to permitting ease, lower OpEx, and reliability; expect continued hyperscaler and advanced manufacturing traction .

Appendix: Additional Q2 2025 Disclosures and Prior-Quarter Context

  • Q2 2025 8-K furnished the press release and full reconciliations; reiterated 2025 outlook (Revenue $1.65–$1.85B, ~29% non-GAAP GM, non-GAAP OpInc $135–$165M) .
  • Q1 2025: revenue $326.0M; non-GAAP GM 28.7%; non-GAAP OpInc $13.2M; non-GAAP EPS $0.03; guidance reiterated .
  • Q4 2024: revenue $572.4M; non-GAAP GM 39.3%; non-GAAP OpInc $133.4M; non-GAAP EPS $0.43 diluted; strong cash from operations $484.2M .
  • Other Q2 2025 press releases: Board appointment (Jim Snabe) on Aug 6, 2025; earnings date announcement; community event; and Oracle collaboration noted in Q2 press release .