0001628280-25-037074
SEC filingBloom Energy's Q2 revenue rose 19.5% to $401.2M, with gross margin expanding to 26.7%, though the company reported a net loss of $42.2M as it executed a debt exchange.
Bloom Energy reported strong revenue growth in the second quarter of fiscal 2025, with total revenue of $401.2 million, up 19.5% from $335.8 million in the same quarter last year. The increase was driven by a 31.1% rise in product revenue to $296.6 million, reflecting higher demand and a favorable shift toward non-U.S. markets. Installation revenue dipped 12.5% to $37.4 million due to project milestone timing, while service revenue edged up 3.7% to $54.4 million and electricity revenue declined 9.8% to $12.8 million.
Gross profit more than doubled to $107.1 million from $68.5 million, pushing gross margin to 26.7% from 20.4%. The improvement was primarily attributed to product margin expansion from cost reductions, manufacturing efficiencies, and better product mix. Operating expenses increased 20.7% to $110.6 million, largely due to higher stock-based compensation and employee costs. Consequently, operating loss narrowed to $3.5 million from $23.1 million a year ago.
Below the operating line, the company recognized a $32.3 million loss on extinguishment of debt, stemming from the exchange of $112.8 million of 2.5% convertible notes for $115.7 million of 3.0% notes due 2029. Interest expense declined slightly to $14.4 million, while interest income remained stable at $6.6 million. Other income improved to $2.4 million from a loss of $1.0 million, primarily due to favorable foreign currency movements. The net loss attributable to common stockholders narrowed to $42.6 million ($0.18 per share) from $61.8 million ($0.27 per share) in the prior-year quarter.
As of June 30, 2025, Bloom Energy held $574.8 million in cash and cash equivalents, down from $802.9 million at December 31, 2024. Restricted cash totaled $31.3 million (including $1.1 million current). Total assets were $2.53 billion, versus $2.66 billion at year-end 2024. Inventories increased to $690.0 million from $544.7 million, supporting anticipated future demand. Accounts receivable rose to $467.0 million from $335.8 million due to billing milestones and extended payment terms.
On the liability side, total debt (recourse and non-recourse) increased to $1.13 billion from $1.13 billion (virtually flat). Recourse debt totaled $1.13 billion, with $1.13 billion classified as long-term. The company's debt exchange reduced the near-term maturity risk by converting $112.8 million of notes due August 2025 into longer-dated notes due June 2029. Stockholders' equity improved to $619.4 million from $585.2 million, driven by additional paid-in capital increases from stock-based compensation and the debt premium.
For the six months ended June 30, 2025, net cash used in operating activities was $323.8 million, slightly higher than $322.8 million in the prior year period. Key working capital uses included a $142.6 million increase in inventory, a $129.9 million increase in accounts receivable, and a $178.8 million decrease in deferred revenue and customer deposits. These outflows were partially offset by a $52.8 million increase in accounts payable. Capital expenditures were $21.4 million, down from $33.4 million in the first half of 2024. Free cash flow (operating cash flow less capex) was negative $345.3 million, compared to negative $356.2 million in the prior year period.
Financing activities used $1.9 million in cash, primarily due to repayment of financing obligations and payment of debt issuance costs, partially offset by proceeds from stock issuance. The company did not draw on any new debt during the period (excluding the non-cash debt exchange). Dividends paid totaled $0.9 million.
Management highlighted several key trends shaping the business: rising demand for power from data centers and AI, lengthening utility interconnection queues, and increasing interest in islanded microgrid solutions. The company is focusing on utility partnerships and secured a landmark 1 GW supply agreement in 2024. The recently enacted One Big Beautiful Bill Act restored the 30% investment tax credit for fuel cell property for projects beginning construction after 2025, which is expected to support adoption. However, management cautioned about the potential 1% gross margin headwind from tariffs in fiscal 2025 and ongoing uncertainties around natural gas pricing and regulatory shifts.
No specific quantitative guidance was provided for future periods, but the company noted that bookings historically concentrate in the second half of the year, with a significant portion in Q4.
The company operates as a single reportable segment. Stock-based compensation totaled $30.2 million in Q2 2025 (up from $19.4 million), reflecting new grants to executives. The effective tax rate for Q2 was (2.5%), driven by a full valuation allowance against U.S. deferred tax assets. The company has $1.13 billion in total debt, including $2.2 million of 2.5% convertible notes due August 2025 that remain outstanding after the exchange. Operating lease liabilities were $138.7 million, with $117.5 million classified as non-current.