Executive Summary

Q3 revenue modestly beat consensus and rose sequentially: $177.055M vs S&P consensus $176.056M (+0.6%); Primary EPS (non‑GAAP/“Primary”) was ($0.12) vs S&P consensus ($0.126) while GAAP EPS was ($0.31) as Plug recorded ~$226M of mostly non‑cash charges tied to “Project Quantum Leap” restructuring and cleanup . S&P Global estimates marked with asterisks below.
Electrolyzer momentum and cash burn improved: GenEco electrolyzer revenue ~$65M (+46% q/q; +13% y/y), and net cash used in operating activities improved to ~($90)M; cash and equivalents ended at $165.9M .
Liquidity/capital actions: LOI to monetize electricity rights (partnering with a major U.S. data center developer) expected to drive >$275M liquidity improvement; company suspended DOE loan activities and later priced $375M 6.75% due 2033 converts to refinance high‑cost debt and repurchase a portion of 2026 converts .
Guidance/tone: Management reaffirmed 2025 revenue target of $700M and run‑rate gross‑margin breakeven in Q4’25; still targeting EBITDAS‑positive in 2H26 (with potential upside if sales cadence/costs improve), citing electrolyzer funnel and service/fuel margin progress as key levers .

What Went Well and What Went Wrong

What Went Well
- Electrolyzer growth and project execution: GenEco electrolyzer revenue ~$65M (+46% q/q; +13% y/y); first 10MW PEM to GALP (phase of 100MW) shipped; >230MW of programs mobilized across EU/Australia/North America .
- Operational cash burn improved: Net cash used in operating activities ~($90)M, a 53% sequential and 49% y/y improvement, reflecting pricing discipline, COGS actions, and working capital focus .
- Strategic liquidity initiatives: LOI to monetize electricity rights and collaboration with major U.S. data center developer (> $275M expected liquidity improvement); extended long‑term hydrogen supply agreement with improved economics .
- Quotes: “Plug continues to execute, follow through on its commitments, and prove the viability of hydrogen at scale.” – CEO Andy Marsh .
What Went Wrong
- GAAP profitability impacted by large non‑cash charges: ~$226M in impairments, restructuring, inventory valuation adjustments and other costs tied to Quantum Leap; GAAP gross loss ~($120.165)M; GAAP EPS ($0.31) .
- EBITDA materially below expectations on GAAP basis given charges (see estimates context): Q3 actual EBITDA (S&P) roughly ($236.7)M vs consensus ($101.6)M, highlighting the impact of non‑cash items in the quarter* .
- Fuel/network variability: Management cited plant/supplier network issues in fuel during Q3, though still noted sequential margin progress and expects a “step‑function” improvement in Q4 as new supply agreements flow through .

Financial Results

P&L snapshot vs prior quarters (oldest → newest)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$133.674	$173.970	$177.055
GAAP EPS ($)	($0.21)	($0.20)	($0.31)
Adjusted EPS ($)	—	—	($0.12)
Gross Loss ($USD Millions)	($73.861)	($53.465)	($120.165)
Operating Loss ($USD Millions)	($178.456)	($176.946)	($348.789)

Notes: Q3 results include ~$226M of mostly non‑cash charges related to Quantum Leap (impairment, restructuring, inventory and other) .

Revenue by business line (oldest → newest)

Revenue Line ($USD Millions)	Q1 2025	Q2 2025	Q3 2025
Sales of equipment, related infrastructure and other	$63.506	$99.173	$96.773
Services on fuel cells & infrastructure	$16.874	$16.367	$19.742
Power purchase agreements	$23.210	$23.633	$24.604
Fuel delivered & related equipment	$29.457	$34.399	$35.912
Other	$0.627	$0.398	$0.024
Total Revenue	$133.674	$173.970	$177.055

KPIs and operating metrics

GenEco electrolyzer revenue: ~$45M in Q2; ~$65M in Q3 (+46% q/q; +13% y/y) .
Electrolyzer programs mobilized: >230 MW across EU/AUS/NA (Q2 and reiterated in Q3) .
Georgia green hydrogen plant (August): 324 metric tons produced; 97% uptime; 99.7% availability; 92.8% efficiency (illustrative reliability KPIs) .
Net cash used in operating activities: ~($90)M in Q3 (49% y/y; 53% q/q improvement) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	—	Target ~$700M (reaffirmed)	Set/Reaffirmed
Gross margin (run‑rate)	Q4 2025 exit	Breakeven run‑rate in Q4’25	“We’re sticking with that”	Maintained
EBITDAS	2H 2026	End of 2026 previously referenced; focus on 2H’26	Target EBITDAS‑positive in 2H’26; could be sooner with volume/cost execution	Maintained/clarified
DOE Loan program	N/A	Previously active	Activities suspended; reallocating capital to higher‑return opportunities	Lowered (program activity)
Liquidity actions	Near term	—	LOI to monetize electricity rights; >$275M expected liquidity improvement	New action

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Electrolyzer momentum	Q1: Global electrolyzer growth, 3GW Allied Green agreement, 575% y/y ELX revenue growth; commissioning LA plant . Q2: ELX revenue ~$45M; >230MW mobilizing; strong funnel .	~$65M ELX revenue; first 10MW to GALP; majority of 100MW shipping by YE; >230MW mobilizing; strong $8B funnel .	Improving scale and execution
Fuel supply/margins	Q2: Extended hydrogen supply agreement with improved economics .	Fuel margin progressing q/q; Q4 step‑up expected; mid‑2026 break‑even target for fuel business .	Improving with new supply deal
Liquidity/capital	Q1: $525M secured facility; improved cash use . Q2: Access to >$300M debt capacity .	LOI to monetize electricity rights (> $275M); Q4 priced $375M 2033 converts to refinance/pay down higher‑cost debt .	Strengthening balance sheet
Policy/regulatory	Q2: ITC/PTC clarity (“One Big Beautiful Bill”) supportive; 30% ITC 2026–2032 .	Continued references to policy clarity aiding material handling demand .	Supportive backdrop sustained
Data centers/AI	—	Monetizing electricity rights with data center developer; hydrogen backup power potential; closing expected in Q1 .	Emerging adjacency
Material handling	Q2: ITC drives bookings momentum into 2H’25/2026 .	Pedestal customers “moving again” (Amazon, Walmart); new customer deployment (Floor & Decor) .	Re‑accelerating demand

Management Commentary

“Plug continues to execute, follow through on its commitments, and prove the viability of hydrogen at scale.” – Andy Marsh, CEO .
“This was a strong quarter that demonstrates Plug’s global growth and commercial traction… Our revenue performance reflects accelerating customer adoption…” – José Luis Crespo, President & Incoming CEO .
“Operating cash burn improved by more than 50% from the prior quarter, driven by pricing discipline, better execution, and tighter working capital management… tangible impact of Project Quantum Leap.” – Andy Marsh .
“We expect this transaction [electricity rights monetization] to generate more than $275 million in liquidity… and position Plug in the rapidly growing data center market.” – Andy Marsh .

Q&A Highlights

Fuel margin trajectory: Despite some plant/network issues, Q3 showed progression; management expects a “big step function improvement in Q4” and targets break‑even mid‑2026 for fuel margins .
Electrolyzer cadence: Strong activity; majority of GALP 100MW expected to ship by YE with residual into Q1; growth expected in 2026 though project timing can shift .
Data center opportunity: LOI to monetize electricity rights with closing targeted mid‑Q1; positions Plug for hydrogen backup power in data centers over time .
Guidance reaffirmations: Run‑rate gross‑margin breakeven in Q4’25 reaffirmed (“we’re sticking with that”); EBITDAS‑positive in 2H’26 remains the target .
2025 revenue: Reaffirmed ~$700M target .

Estimates Context

Metric	Q3 2025 Consensus	Q3 2025 Actual
Revenue ($USD Millions)	$176.056*	$177.055
Primary EPS ($)	($0.126)*	($0.12) (Primary/Adjusted)
EBITDA ($USD Millions)	($101.559)*	($236.742)*

Interpretation:

Top line slightly beat consensus by ~$1.0M (~0.6%). Primary EPS modestly better than consensus by ~$0.006, as non‑GAAP adjustments excluded ~$226M in mostly non‑cash charges .
EBITDA materially missed due to the non‑cash charges in Q3; management framed charges as part of a strategic cleanup to improve margins/cash flow ahead .

Asterisk note: Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Sequential revenue growth with a small top‑line beat and non‑GAAP EPS in line/better, while GAAP metrics were weighed by ~$226M in non‑cash cleanup charges; the quality of earnings should improve if cost and mix actions sustain .
Electrolyzer execution is a bright spot (GALP progress, $8B funnel), supporting 2026 growth potential even as project timing can shift quarter‑to‑quarter .
Margin trajectory hinges on three levers: higher Q4 volume (equipment), continued service cost improvements, and fuel cost/margin progress under the extended supply agreement—management expects a Q4 step‑up and run‑rate gross‑margin breakeven exiting 2025 .
Liquidity is improving via asset monetization (>$275M expected), extended supply agreements, and the new 2033 converts aimed at retiring higher‑cost debt and repurchasing 2026 converts, reducing balance‑sheet risk heading into 2026 .
2025 revenue target ($700M) and 2H’26 EBITDAS‑positive remain intact; upside depends on electrolyzer shipment timing and pace of service/fuel margin improvements .
Near‑term catalysts: closing of the electricity‑rights monetization, Q4 margin progression evidence, further electrolyzer project milestones/FIDs, and materials handling bookings with pedestal customers .

Appendix: Additional Details

Q3 2025 non‑GAAP reconciliations

Adjusted gross loss: ($36.510)M vs GAAP gross loss ($120.165)M; adjustments include inventory NRV/obsolescence and product warranty expenses .
Adjusted EPS: ($0.12) after adjusting for impairment, restructuring, supplier contract modification, bad debt, inventory/warranty (net of tax valuation allowance) .

Select liquidity and balance‑sheet data (Q3)

Cash & cash equivalents: $165.895M at 9/30/25 .
Post‑quarter actions: Priced $375M 6.75% converts due 2033; intent to repay 15% secured debentures and repurchase ~$138M of 2026 converts; net proceeds ~$347.2M (or ~$399.4M if greenshoe exercised) .

S&P Global estimates disclaimer: All values marked with * are retrieved from S&P Global.

PLUG POWER INC (PLUG)·Q3 2025 Earnings Summary