Plug Power’s $142 Million Stream Deal Buys a Cash Cushion as Q1 Margins Recover

Plug Power is buying itself time. The hydrogen specialist has locked in a $142 million liquidity injection from a contract with Stream Data Centers, expected to close in June — the centerpiece of a broader $275 million asset-sale push. The move underscores a shift in focus from pure revenue growth to financial staying power, as the company races toward a positive EBITDAS run-rate by the fourth quarter of 2026.

The urgency is understandable. At the end of the first quarter, Plug Power held $802 million in total cash, but just $223 million of that was unrestricted. The remainder is tied up in restricted accounts, leaving management with a thin cushion for a business that still burns through capital at a high quarterly rate. Alongside the Stream deal, the company expects to raise the remaining $133 million from additional project sales and hydrogen tax credits — including a double-digit-million-dollar tax refund due in late May.

Yet the headline numbers from Q1 offered genuine cheer. Revenue jumped 22 percent year over year to $163.5 million, easily beating the $141 million consensus estimate. Strong sales in materials handling and a modest uptick in hydrogen fuel deliveries drove the top line. More striking was the gross margin: it vaulted from negative 55 percent to negative 13 percent, a 42 percentage-point improvement powered by the internal cost programme that management has dubbed “Project Quantum Leap.”

Should investors sell immediately? Or is it worth buying Plug Power?

That programme, spearheaded by CEO Jose Luis Crespo — who took the helm in March 2026 — is delivering measurable cuts. Service costs per unit for GenDrive fuel cells have fallen more than 30 percent. The fuel margin improved by 54 percentage points, taking pressure off the income statement. Operating losses narrowed to $109.5 million from $178.5 million a year earlier, though the net loss still stood at roughly $245 million, driven largely by non-cash accounting charges linked to convertible notes.

The electrolyzer segment proved a standout. Revenue from the platform surged 343 percent to $40.8 million, up from $9.2 million in the prior-year period. That growth is tied to a pipeline of large-scale projects spreading across continents: a 275-megawatt initiative in Canada with Hy2gen, where front-end engineering and design work is already under way; a 25 MW project in Spain alongside Iberdrola and BP; and a 100 MW facility for Galp in Portugal. A massive venture in Uzbekistan also remains in the mix, and the company is advancing pre-feasibility studies for plants in Spain and Portugal.

Wall Street has taken notice. B. Riley raised its price target to $5, reiterating a buy rating. Clear Street and Canaccord Genuity followed with upgrades to $4. Even previously neutral analysts are highlighting the stabilisation in the electrolyzer business. The stock, which trades at around €3.09, has rallied roughly 62 percent year to date. The large short interest continues to fuel volatility, but the momentum is clearly with the bulls.

For the full year, Plug Power maintains its guidance for revenue growth of 13 to 15 percent, with about 60 percent of sales weighted to the second half. Management also aims to reduce inventory by at least $100 million by year-end. The overarching target remains unchanged: a positive EBITDAS run-rate by the fourth quarter of 2026. The Stream Data Centers cheque, if it arrives on schedule, will give the company the breathing room it needs to get there.

Ad

Plug Power Stock: New Analysis - 12 May

Fresh Plug Power information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Plug Power analysis...

en | US72919P2020 | PLUG | boerse | 69315607 |