Bloom Energy:

Keywords and Definitions

Solid Oxide Fuel Cells (SOFC): A type of fuel cell that converts chemical energy from fuels into electricity through an electrochemical reaction, typically using a solid oxide or ceramic electrolyte.

MW: Megawatt, a unit of power equal to one million watts, commonly used to measure the output of power plants or the consumption of large electrical loads.
GW: Gigawatt, a unit of power equal to one billion watts, often used to measure the capacity of power plants or energy consumption.

The GAAP gross margin measures the percentage of revenue remaining after subtracting the direct costs of producing goods or services (COGS).
The non-GAAP gross margin is similar to GAAP gross margin but excludes one-time or non-cash items (e.g., stock-based compensation) to reflect core operating profitability.
A GAAP operating loss occurs when a company’s operating expenses (SG&A, R&D, depreciation, etc.) exceed its gross profit, indicating that core business operations ran at a loss.
Non-GAAP operating profit adjusts operating income for items like one-time charges or stock-based compensation, showing profitability from ongoing operations without distortions from unusual expenses.
The GAAP diluted EPS divides net income (or loss) by the weighted-average number of shares outstanding plus all potential dilutive securities (options, warrants, convertibles).
The non-GAAP diluted EPS further adjusts diluted EPS by excluding non-recurring items (e.g., acquisition costs), giving a per-share profit figure that focuses on the company’s recurring earning power.

Company Overview

Bloom Energy develops solid oxide fuel cells (SOFC) and electrolyzers that generate on-site power and hydrogen with lower emissions. Its Energy Server platform serves enterprises, data centers, and utilities worldwide, offering both electricity and combined heat-and-power (CHP) configurations. The firm's strategy emphasizes partnerships (e.g., SK ecoplant in South Korea) and diversification into carbon capture and hydrogen.

With a current market capitalization of approximately $4.04 billion (as of May 13, 2025), Bloom has experienced a 27% decline over the past month. This valuation reflects investor caution around profitability, despite the company's robust top-line growth and strategic positioning in the clean energy sector.

Q1 2025 Financial Results

Bloom Energy reported its Q1 2025 results on April 30, 2025, showing significant year-over-year improvements across multiple metrics. The company achieved $326.0 million in revenue, representing a 38.6% increase compared to Q1 2024. Product and service revenue grew by 26.5% to $265.4 million.

Key Financial Metrics

GAAP gross margin improved dramatically to 27.2% (an 11.0 percentage point increase), while non-GAAP gross margin reached 28.7%. The company reported a GAAP operating loss of $(19.1) million, significantly reduced from $(49.0) million in the prior year. On a non-GAAP basis, Bloom achieved an operating profit of $13.2 million, compared to a loss of $(30.7) million in Q1 2024.

Earnings per share also showed improvement, with GAAP EPS at $(0.10) versus $(0.25) in the prior year, and non-GAAP EPS turning positive at $0.03 compared to $(0.17) a year ago. Importantly, Bloom reaffirmed its full-year 2025 guidance of $1.65 billion to $1.85 billion in revenue with approximately 29% non-GAAP gross margin.

Q2 2025 Guidance & Expectations

Bloom Energy is projected to release its Q2 2025 earnings on July 29, 2025. Consensus estimates anticipate revenue of approximately $384.6 million with an EPS of -$0.11. Analysts expect continued strong revenue growth driven by new installations, though margins may remain under pressure due to deployment costs.

Analyst Outlook

The average price target for Bloom Energy stock stands at $22.47, representing an 11.1% upside potential from current levels. The range of targets spans from $10.00 to $33.00, with the consensus rating from 21 tracked analysts being "Moderate Buy." Earnings are expected to improve from -$0.05 trailing twelve months to break-even by 2026.

Recent Contracts & Partnerships

American Electric Power (AEP)

Announced on November 14, 2024, Bloom secured an agreement with AEP for up to 1 GW of solid oxide fuel cells to power AI data centers and other large energy users. The initial order of 100 MW is firm, with options for incremental shipments through 2026. This represents one of the largest fuel-cell procurement agreements in the U.S., underpinning hundreds of millions in cumulative revenue over multiple years. AEP's focus on powering latency-sensitive AI workloads aligns perfectly with Bloom's positioning in on-site, reliable baseload power—critical as hyperscale computing grows globally. This endorsement by a top-tier utility enhances Bloom's credibility for future utility engagements.

Equinix

On February 20, 2025, Bloom announced an expansion of its agreement with Equinix to deploy over 100 MW of next-generation solid-oxide fuel cells across 19 International Business Exchange (IBX) data centers in six U.S. states. This 10-year collaboration covers equipment, installation, and services, ensuring steady service-contract revenue and deepening the operational relationship. The on-site fuel cells add redundancy and resiliency for Equinix's global network, enhancing uptime guarantees for mission-critical customers while supporting Equinix's carbon-neutral goals by reducing Scope 2 emissions and bolstering ESG credentials.

Chart Industries

Announced on February 13, 2025, Bloom formed a groundbreaking carbon-capture partnership with Chart Industries to develop carbon-capture modules integrated with Bloom fuel cells. This targets virtually carbon-free on-site power for data centers and industrial facilities. Initial test installations are planned for Q2 2025, with scale-up through year-end contingent on pilot success. This partnership combines Bloom's non-combustion SOFCs with Chart's CO₂ capture technology, creating one of the first commercial, baseload power plus carbon-capture offerings. It allows customers to meet stricter emissions regulations without sacrificing reliability—critical in manufacturing, data centers, and campus settings—while opening recurring revenue from capture-service contracts and potential technology licensing.

CoreWeave

Announced on July 16, 2024, Bloom is deploying its SOFC energy servers to power CoreWeave's Illinois AI data center, leveraging natural gas or hydrogen operation modes. Equipment deliveries are scheduled for late Q2 2025, with commissioning set for Q3 2025. This partnership positions Bloom as a key energy partner to GPU-heavy AI compute firms, a fast-growing and high-margin market segment. CoreWeave's backing by Nvidia and rapid expansion provide Bloom a marquee case study for future AI data-center wins, while successful operation can catalyze similar deals with other AI and cloud-service providers seeking clean, reliable baseload power.

Strategic Importance

These partnerships demonstrate Bloom's versatility across diverse end markets—from utilities (AEP) to hyperscale data centers (Equinix, CoreWeave) and industrial carbon solutions (Chart). The multi-year, multi-hundred-megawatt contracts enhance revenue visibility by underpinning returning service and maintenance revenues. Each partnership not only drives hardware sales but also establishes Bloom's platform for future offerings like hydrogen electrolyzers and expanded carbon-capture systems. For investors, these high-profile deals with blue-chip players bolster analyst sentiment and support the path to sustained profitability as deployments scale.

Investment Considerations

When evaluating Bloom Energy as an investment opportunity, there are several key strengths and risks to consider:

Strengths

• Robust Revenue Growth: 38.6% year-over-year increase in Q1 2025
• Strategic Contracts: Large-scale deals with AEP, Equinix, and Chart Industries boost credibility and future revenue visibility
• Technological Leadership: Solid oxide platform and carbon capture integration position Bloom at the forefront of clean energy innovation

Risks

• Profitability: Still only lightly profitable on a non-GAAP basis; deployment costs can pressure margins
• Execution Complexity: Large projects carry installation, interconnection, and regulatory risks
• Market Competition: Alternative clean-energy solutions (battery storage, solar+wind) create an increasingly competitive landscape

Conclusion

Bloom Energy's strong top-line momentum, blue-chip partnerships, and favorable long-term outlook on AI and industrial electrification make it a compelling growth play in the clean energy sector. The company's focus on distributed generation and hydrogen positions it well to benefit from the ongoing energy transition and increasing demand for reliable, clean power solutions.

However, profitability remains modest on a GAAP basis, and execution risks persist as the company scales up to meet growing demand. Overall, Bloom Energy rates as a good option for investors seeking exposure to distributed generation and hydrogen technologies, provided they can tolerate earnings volatility and project execution risk while waiting for the company's long-term growth strategy to fully materialize.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.

Key Sources

• Investor Presentation & Q1 2025 Results: Bloom Energy
• Market Cap & Stock Data: Yahoo Finance
• Contracts & Partnerships: Data Center Dynamics Bloom Energy
• Q2 2025 Estimates: Moomoo