Is it worth buying Plug Power stock presently?
Plug Power's Progress Towards Hydrogen Profitability
Plug Power, a company specializing in hydrogen technology, is making strides in the clean energy market. The company operates hydrogen production plants in Charleston, Tennessee, and Kingsland, Georgia, and has a joint venture with Olin Corporation called Hidrogenii, operating a hydrogen production plant in St. Gabriel, Louisiana.
Plug Power's primary customers include industry giants like Amazon and Walmart, and the company manufactures hydrogen liquefiers capable of processing 15 to 30 tons per day. In a bid to revolutionize the green hydrogen sector, Plug Power provides advanced cryogenic solutions for safe storage and transportation of hydrogen.
In Q2 2025, Plug Power reported revenue of approximately $174 million, a 21% increase year-over-year, and narrowed its net loss to $227.1 million. The company aims to achieve gross margin neutrality by the fourth quarter of 2025, an important milestone toward profitability, and it is working toward positive EBITDA thereafter. Plug Power forecasts around $700 million in revenue for 2025 and projects $1.4 billion in revenue and about $139 million in earnings by 2028, implying a steep annual revenue growth rate of about 26.6%.
However, liquidity remains a concern. The company burned through $191.8 million in operating cash flow in Q2 and ended the period with $140.7 million in cash and approximately $300 million in additional debt capacity. This cash burn and negative margins keep bankruptcy risk on the table, though improving fundamentals and supportive government policies (production and investment tax credits for hydrogen) offer some tailwinds.
Plug Power's management projects to achieve positive operating income in 2027 and overall profitability in 2028. Despite this promising outlook, Plug Power's history of consistent losses and shareholder dilution suggests caution for potential investors. The company has financed its operations primarily through share dilution, with the average number of diluted shares outstanding soaring over the past decade.
Analysts project an improvement in Plug Power's bottom line, with a net loss per share of $0.38 in 2026. Plug Power has secured a $1.66 billion loan from the U.S. Department of Energy to construct up to six state-of-the-art clean hydrogen factories across the United States. In May 2025, the company established a $525 million secured credit facility with Yorkville Advisors, drawing an initial $210 million tranche. Plug Power also raised nearly $280 million through an upsize underwritten offering in March 2025.
Despite these efforts, Plug Power's losses have only increased over the past few years. The company's fuel cell technology powers various vehicles and power stations, and Plug Power produces proton exchange membrane (PEM) fuel cell systems like GenDrive and GenSure. Plug Power's investors are better off waiting to see visible improvements to its bottom line before buying the stock.
In valuation terms, Plug Power is still considered undervalued by about 28–61%, but with high volatility and risk due to its ongoing losses and cash needs. Overall, Plug Power is showing progress toward improving its bottom line but must continue to narrow losses, improve margins, and strengthen liquidity to validate a sustainable turnaround. The positive long-term growth drivers in hydrogen infrastructure and government support offer promising prospects, but short-term risks remain high.
- Plug Power's focus on hydrogen technology and clean energy, along with its investments in science and technology, aim to revolutionize the environmental-science sector.
- In the realm of finance, Plug Power has been seeking to raise capital through various means such as loans, credit facilities, and underwritten offerings to fund its operations and future projects.
- As Plug Power works towards profitability, potential investors should consider the company's history of losses, shareholder dilution, and the ongoing need for money to manage its cash burn rate and debt.
- The environmental-science field, specifically in hydrogen production and infrastructure, presents long-term growth prospects for Plug Power, due to supportive government policies and technological advancements, despite the short-term risks associated with the company's financial challenges.
