Plug Power finds itself navigating turbulent waters once again. The hydrogen specialist faces mounting pressure despite reporting substantial revenue growth, as deep quarterly losses and a significant share sale by a major institutional investor unsettle the markets. While management projects it will finally reach profitability in the fourth quarter of 2025, investors are questioning whether this promised turnaround is achievable.
Soaring Revenue Fails to Offset Mounting Losses
The company’s second-quarter 2025 results highlight a continuing challenge. Plug Power reported revenue of approximately $174 million, a figure that surpassed analyst expectations and represented a 21% year-over-year increase. A particular bright spot was the electrolyzer business, where revenue tripled to about $45 million.
However, this positive performance was overshadowed by a net loss of $227 million. The loss per share came in at $0.20, a deeper deficit than the $0.15 loss per share forecast by market experts.
Gross Margin Shows Tentative Signs of Improvement
The state of the company’s gross margins remains a critical concern, though there are indications of progress. The figure stood at negative 31% for the quarter, a significant improvement from the catastrophic negative 92% recorded in the same period last year. According to the company, this enhancement was driven by optimized service costs and more favorable hydrogen pricing.
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Management has set an ambitious target of achieving a breakeven gross margin in the fourth quarter of 2025. Success in hitting this goal is viewed as crucial for restoring investor confidence in the hydrogen firm’s financial trajectory.
Major Shareholder Exit Adds to Selling Pressure
Adding to the stock’s headwinds, a key institutional investor has substantially reduced its stake. MIRAE ASSET GLOBAL ETFS HOLDINGS decreased its position by 3.3%, selling 185,468 shares. This move by a major holder has been closely watched as a signal of institutional sentiment.
The current analyst outlook reflects widespread market uncertainty. Among 16 published ratings, four recommend ‘Buy’, seven advise ‘Hold’, and five suggest ‘Sell’. This results in a consensus rating of ‘Reduce’, underscoring the prevailing skepticism surrounding the stock’s near-term prospects.
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