Plug Power Narrows Loss by Leveraging In-House Hydrogen Production as $275 Million Asset Sale Plan Takes Shape

Plug Power Q1 2026 revenue $163.5M, gross margin improved 71 points to -13%. Electrolyzer sales up 343%. CEO aims for positive EBITDA by Q4 2026.

Plug Power has taken another step toward profitability as its first-quarter results show a dramatic improvement in gross margins, driven by a shift to self-produced green hydrogen rather than costly external purchases. The company's GAAP gross margin jumped from minus 55 percent to minus 13 percent year-over-year, a 71-percentage-point swing that reflects the cost discipline introduced by new CEO José Luis Crespo.

Revenue for the quarter ended March 2026 rose 22 percent to $163.5 million, topping analyst expectations. The standout performer was the electrolyzer segment, where sales exploded by 343 percent compared with the same period last year. Much of that growth came from two large European projects now in commissioning: a 25-megawatt facility with Iberdrola in Spain and a 100-megawatt installation with GALP in Portugal.

The margin recovery is no accident. Plug Power has ramped up its own hydrogen production capacity, reducing reliance on expensive third-party fuel. The fuel margin alone improved by 54 percentage points, the company said. The operating loss narrowed to $109.5 million, while the adjusted net loss came in at $0.08 per share, a figure that gives management confidence in hitting positive adjusted EBITDA by the fourth quarter of 2026.

Liquidity remains a central concern, but the company has taken steps to shore up its balance sheet without diluting shareholders. It is selling strategic assets to raise roughly $275 million, with the first deal — a $142 million transaction with Stream Data Centers — expected to close in June. Total available liquidity stood at more than $802 million at quarter-end, though only $223 million of that is immediately unrestricted. The rest is tied up in bonded cash that will be released over time.

The market has rewarded the turnaround so far. Shares traded near €3.07 midweek, up 61 percent since the start of the year and 322 percent over the past 12 months. But analysts remain split: the consensus price target of $2.83 sits below the current level, with estimates ranging from $0.75 to $7.00. Five analysts rate the stock a buy, while three recommend selling.

For the full year, management expects revenue growth of 13 to 15 percent, with second-quarter sales coming in slightly above the first quarter. The company also benefits from federal tax credits and fleet renewal programs at major customers such as Amazon. If the Stream Data Centers deal closes on schedule, Crespo's breakeven target will start to look less like a hope and more like a plan.