Plug Power reported stronger third-quarter sales and a sharp reduction in cash usage on Monday, November 9, as the hydrogen company continued efforts to improve margins and move closer to sustainable profitability.
The company posted approximately US$201 million in revenue for the quarter ended September 30, up about 13 per cent from roughly US$177 million a year earlier.
Plug Power also said quarterly net cash usage fell to approximately US$28 million, a sequential reduction of about 54 per cent.
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Plug Power revenue and margin improvement
Plug Power’s equipment, infrastructure and other sales reached US$105.7 million in the quarter, compared with US$96.8 million in the same period of 2025.
Revenue from services performed on fuel-cell systems and related infrastructure rose to US$29.0 million from US$19.7 million, an increase of roughly 47 per cent year over year.
The company reported a gross margin of approximately negative 3 per cent, compared with approximately negative 68 per cent in the third quarter of 2025.
Plug Power attributed the improvement to cost reductions, better operating leverage and lower inventory valuation adjustments, while operating expenses declined by approximately 69 per cent year over year to about US$70 million.
Those figures show meaningful progress from last year, but the company remains below break-even at the gross-margin level and continues to rely on improved execution across several business lines.
Reported profit requires closer examination
Plug Power recorded net income of approximately US$99.8 million in the quarter, compared with a net loss of approximately US$361.9 million in the third quarter of 2025.
The reported profit was helped substantially by non-cash fair-value gains tied to convertible debt instruments and warrant liabilities, meaning the headline earnings figure does not represent the same amount of cash generated by operations.
That distinction is important for investors because the company’s operating performance is still being measured against its ability to reduce cash consumption, improve gross margins and convert projects into recurring revenue.
Company maintains 2026 outlook
Plug Power reaffirmed its full-year 2026 revenue-growth guidance of approximately 15 to 16 per cent.
Management has also been targeting positive EBITDAS in the fourth quarter, while continuing to focus on material-handling equipment, electrolyzers and hydrogen supply.
The company highlighted a 280-megawatt supply agreement with Arcadia eFuels, a 50-megawatt electrolyzer order connected to Australia’s Hunter Valley Hydrogen Hub and continuing work on projects in Europe and North America.
Plug Power has said customer deployments and material-handling activity are expected to support a stronger final quarter, although the timing of large projects can affect when revenue is recognized.
What investors will watch next
The next test for Plug Power will be whether the company can maintain lower cash usage while increasing shipments and service revenue.
Investors will also be watching the pace of electrolyzer project deliveries, the company’s progress toward positive operating earnings and whether margin improvements continue without relying on one-time accounting benefits.
Plug Power is scheduled to hold its 2026 Plug Symposium digitally on November 19, where additional information on its hydrogen and electrolyzer pipeline may be provided.
For Canadian investors, Plug Power shares trade on the Nasdaq under the symbol PLUG and are exposed to movements in the U.S. dollar as well as the company’s operating results.
Frequently Asked Questions
What did Plug Power report for the third quarter of 2026?
Plug Power reported approximately US$201 million in revenue, up about 13 per cent year over year, and quarterly net cash usage of approximately US$28 million.
Did Plug Power make a profit in the quarter?
Yes. The company reported approximately US$99.8 million in net income, although the result was significantly helped by non-cash fair-value gains.
Did Plug Power improve its gross margin?
Yes. Gross margin improved to approximately negative 3 per cent from approximately negative 68 per cent in the third quarter of 2025.
What is Plug Power’s 2026 revenue guidance?
Plug Power reaffirmed its expectation for approximately 15 to 16 per cent revenue growth in 2026.
What is Plug Power’s next scheduled event?
The company’s 2026 Plug Symposium is scheduled to take place digitally on November 19, 2026.
Fact-Checked: Key financial figures, guidance and scheduled company events were checked against Plug Power’s official release, investor-relations materials and SEC filing.
Disclaimer: This article is for general information only and is not investment advice.