$PLUG earnings report

This Item 2.02 filing is a preliminary business update rather than a complete earnings release. Plug expects meaningful Q3 2026 revenue growth of greater than 10% versus Q3 2025 and says sales and pipeline progress keep it on track for previously communicated full-year revenue growth of approximately 15% to 16%. The company did not disclose a Q3 revenue dollar amount, segment revenue, or completed financial statements.

Margin is the second stated priority. Plug says it improved gross margin over the past two quarters and expects continued year-over-year progress in Q3 2026, citing cost reductions and improved operating leverage. The filing provides neither a gross-margin percentage nor a quantified year-over-year improvement, so the extent of margin recovery cannot be assessed from this update.

Cash performance is the most specific preliminary financial disclosure. Plug estimates Q3 2026 net cash usage of approximately $28 million and ended the quarter with approximately $134 million in cash and cash equivalents, excluding restricted cash. Management states that it raised no ATM proceeds and generated no proceeds from other equity or debt capital raises during the quarter, characterizing the cash usage as reflecting operating results and fundamental improvement. The release nonetheless highlights liquidity, working-capital, capital-expenditure and future-financing risks.

Commercial activity spans material handling, electrolyzers and hydrogen supply. The company cited the Arcadia eFuels, Hy2gen, Orica, Iberdrola and Galp projects, as well as an approximately $8 billion global electrolyzer opportunity funnel. These projects support the growth narrative, but Plug notes that timelines vary, especially for complex first-of-a-kind developments, and conversion into revenue remains dependent on execution and project milestones.

The immediate focus is the November 9, 2026 Q3 earnings release, when the company is scheduled to disclose final results. Investors will need the reported revenue, gross margin, profitability, cash flow and liquidity details to validate the preliminary sales, margin and cash-use statements and to assess progress toward the full-year revenue growth objective.

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.