second quarter 2026
Filed Aug 10, 2026Plug Reports Revenue of ~$178 Million, ~Break-Even Gross Margin, Net Cash Usage of ~$61 Million and Increases Revenue Guidance for 2026
Revenue grew sequentially, gross margin improved to ~breakeven, operating expenses declined ~50% year over year, and the Company raised its full-year 2026 revenue growth guidance to 15% to 16%. The quarter remained loss-making on both GAAP and adjusted EPS measures and liquidity execution remains dependent on further asset monetization and non-dilutive financing.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueGAAP | ~$178 million | ~9% | – |
| Gross marginGAAP | ~breakeven | – | – |
| Operating expensesGAAP | ~$62 million | – | ~50% |
| GAAP EPSGAAP | $(0.14) | – | – |
| Adjusted EPSnon-GAAP | ($0.07) | – | – |
| GenDrive fuel cell units deployedother | 1,666 GenDrive fuel cell units | – | 125% year over year |
| Service marginother | 27% positive | – | – |
| Fuel gross marginother | ~(48%) | – | – |
| Unrestricted cashother | ~$162 million | – | – |
| Net cash usageother | ~$61 million | ~58% sequentially | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ServiceThe Company cited the expanding installed base and growing recurring aftermarket revenue. | ~$30 million | – | 82% year over year |
| FuelThe Company cited continued growth in hydrogen consumption across Plug's expanding customer base. | ~$39 million | – | ~15% year over year |
full-year 2026 outlook
- Revenue15% to 16%
- Notepositive EBITDAS target in Q4 2026
- Note$275 million total target for this asset monetization and non-dilutive financing initiative
What drove it
- Gross margin improved to ~breakeven from ~(31%) in the prior-year period and ~(13%) in the first quarter of 2026.
- Operating expenses declined ~50% year over year to ~$62 million, which the Company attributed to cost discipline and asset monetization.
- Service revenue grew 82% year over year to ~$30 million, supported by the expanding installed base and recurring aftermarket revenue.
- Fuel revenue increased ~15% year over year to ~$39 million, reflecting higher hydrogen consumption across the customer base.
- Fuel gross margin improved to ~(48%) from ~(91%) in the prior-year quarter, reflecting improved plant utilization, production efficiency, and hydrogen network optimization.
- The Company deployed 1,666 GenDrive fuel cell units, up 125% year over year from 739 units in Q2 2025.
- Plug announced the FID of the 30 MW Barrow Green Hydrogen project, selection for the 275 MW GenEco FEED scope on Hy2gen's Courant Project, and a 50 MW GenEco electrolyzer order for Orica's Hunter Valley Hydrogen Hub.
Concerns
- GAAP EPS was $(0.14) and adjusted EPS was ($0.07).
- Fuel gross margin remained negative at ~(48%).
- The Company described its business cadence as historically second-half-weighted.
- Achieving the liquidity target depends on additional asset monetization and non-dilutive financing initiatives.
- The Company targets positive EBITDAS in Q4 2026 rather than reporting positive EBITDAS for the second quarter.
What to watch
- Conversion of the commercial and electrolyzer pipeline into revenue-generating projects.
- Progress toward the positive EBITDAS target in Q4 2026.
- Execution against the updated full-year 2026 revenue growth target of 15% to 16%.
- Additional proceeds toward the $275 million total target for asset monetization and non-dilutive financing.
- Material-handling fleet refresh plans involving more than 20,000 GenDrive units over the next three years.
- Commissioning progress on the 100 MW GALP project in Portugal and the 25 MW Iberdrola and BP project in Spain.
Balance sheet and cash flow
- Unrestricted cash was ~$162 million at quarter end.
- Net cash usage improved to ~$61 million for the quarter, down ~58% sequentially.
- Transactions announced subsequent to quarter end are expected to generate $80 million of near-term liquidity through the sale of the Graham, Texas project and the staged closing of the New York Gateway project.
- Over July and August to date, ~$47 million has been received given a release of associated escrowed funds and the sale of certain power assets.
- This brings the total since inception of this effort of funds collected to ~$52 million.
- The Company is pursuing a $275 million total target for its asset monetization and non-dilutive financing initiative.
Analysis
Plug reported sequential revenue growth, with net revenue of ~$178 million and quarterly growth of ~9%. The operational picture showed stronger activity in material handling, where 1,666 GenDrive fuel cell units were deployed, up 125% year over year from 739 units in Q2 2025. Recurring activity also expanded, with service revenue of ~$30 million, up 82% year over year, and fuel revenue of ~$39 million, up ~15% year over year.
The most important financial improvement was margin. Gross margin improved to ~breakeven from ~(31%) in the prior-year period and ~(13%) in the first quarter of 2026. Fuel gross margin improved to ~(48%) from ~(91%) in the prior-year quarter as the Company cited better plant utilization, production efficiency, and hydrogen network optimization. Service margin was 27% positive, while operating expenses declined ~50% year over year to ~$62 million, reflecting the stated cost-discipline and asset-monetization focus.
Profitability has not yet reached breakeven. GAAP EPS was $(0.14), compared with $(0.20) in the prior year, and adjusted EPS was ($0.07), compared with ($0.18) in the prior year. The Company is therefore framing the current quarter as a transition toward its positive EBITDAS target in Q4 2026. The remaining negative fuel gross margin and the execution required to sustain company-level gross-margin improvement remain central considerations.
Liquidity improved sequentially, with unrestricted cash of ~$162 million at quarter end and net cash usage of ~$61 million, down ~58% sequentially. Subsequent transactions are expected to generate $80 million of near-term liquidity, while ~$47 million had been received over July and August to date and total funds collected since inception of the effort were ~$52 million. Plug continues to target $275 million in aggregate liquidity from asset monetization and non-dilutive financing, making the timing and closing of additional transactions material.
Management raised full-year 2026 revenue growth guidance to 15% to 16% and reiterated a positive EBITDAS target in Q4 2026. The guide is supported by a historically second-half-weighted business cadence and commercial backlog, alongside announced electrolyzer milestones including the 30 MW Barrow project FID, the 275 MW Hy2gen Courant FEED selection, and the 50 MW Orica order. Investors will need to monitor project conversion, commissioning progress, recurring service and fuel growth, margin durability, and further liquidity proceeds.
Management, verbatim
Our second quarter results demonstrate that Plug is executing its transformation into a stronger, more efficient and profitable company,
Jose Luis Crespo, Chief Executive Officer of Plug Power
Given the historically second-half-weighted cadence of our business and the strength of our commercial backlog, we are raising our full-year 2026 revenue growth guidance to a range of 15% to 16%.
Jose Luis Crespo, Chief Executive Officer of Plug Power
We believe we are on track to achieve our positive EBITDAS target in the fourth quarter of 2026.
Jose Luis Crespo, Chief Executive Officer of Plug Power
Not in the filing
stated, not guessed- Fiscal quarter period-end date
- Total revenue prior-year amount
- Total revenue year-over-year change
- Total revenue prior-quarter amount
- Gross profit or loss
- Operating income or loss
- Net income or loss
- Diluted share count
- GAAP operating cash flow
- Free cash flow
- Capital expenditures
- Debt balance
- Total cash and cash equivalents balance
- Share repurchases
- Dividends
- Formal reportable-segment revenue table
- Prior-quarter adjusted EPS
- Full-year 2026 revenue guidance expressed as a dollar amount
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Previous-quarter outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.