Plug Power Beats Revenue Estimates, But JPMorgan Flags Cash Burn, Margin Uncertainty

JPMorgan analyst Bill Peterson maintained a Neutral rating on Plug Power (NASDAQ:PLUG) on Monday.

The stock has continued to trade lower since Monday.

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Peterson said Plug Power delivered second-quarter revenue of $174 million, beating his $150 million estimate and the $159 million consensus, though cash burn exceeded expectations at $230 million versus the $161 million consensus.

Also Read: Plug Power Extends Key Hydrogen Partnership, Powering Future Growth Through 2030

He noted that Plug narrowed its full-year revenue guidance to about $700 million — slightly below pre-call estimates of $730 million to $723 million but still implying 12% year-over-year growth. That outlook points to roughly $390 million in second-half revenue, supported by an additional $80 million from new electrolyzer and material handling orders.

Peterson expects sequential gross margin improvement, with the most significant gains in the fourth-quarter, driven by higher volumes, restructuring savings, targeted cost cuts and pricing benefits from a renegotiated fuel contract. Plug aims to reach breakeven gross margins exiting the fourth quarter, but Peterson remains cautious on the trajectory. Second-quarter gross margins came in at -37%, in line with his -37.5% forecast.

He highlights operational updates, including a Louisiana ramp-up, service margin gains and progress on Project Quantum Leap, as well as plans to restart construction in Texas by year-end — optimistically backed by a Department of Energy loan or alternatively through project finance or strategic partners.

Plug is also targeting $200 million annually in unlocked restricted cash, $100 million-plus in inventory reduction, and tax credit monetization to ease cash burn.

While Peterson sees progress and a potential return to growth in material handling and other projects, he maintains a Neutral rating, citing ongoing margin uncertainty, the need for balance sheet clarity, and challenging market conditions. He says sustained stock outperformance would require multiple quarters of strong execution and stable growth in core markets.

PLUG Price Action: Plug Power shares were trading lower by 9.89% at $1.44 at publication on Tuesday.

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