Bloom Energy (BE) Q2 Revenue Jumps 20%
Key Points
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Revenue (GAAP) rose 19.5% to $401.2 million in Q2 2025, exceeding analyst estimates by 6.7%.
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Non-GAAP EPS of $0.10 beat expectations by $0.09, swinging from a loss last year.
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Bloom Energy reiterated full-year 2025 non-GAAP financial guidance despite tariff and margin pressures.
Bloom Energy (NYSE:BE), a maker of solid oxide fuel cell power systems, reported second quarter results on July 31, 2025. The announcement highlighted a sharp rise in GAAP revenue, which increased by 19.5% to $401.2 million in Q2 2025 compared to $335.8 million in Q2 2024, stronger gross margins, and all coming in above analyst forecasts. Revenue (GAAP) reached $401.2 million, up 19.5% year over year and ahead of the $376.0 million GAAP consensus. Non-GAAP earnings per share climbed to $0.10, compared to a loss in Q2 2024, and well above the $0.01 non-GAAP estimate. Despite ongoing cash-flow and GAAP net loss concerns, there was meaningful operating improvement amid rising customer demand for distributed power solutions.
|
Metric |
Q2 2025 |
Q2 2025 Estimate |
Q2 2024 |
Y/Y Change |
|---|---|---|---|---|
|
Revenue (Non-GAAP) |
N/A |
N/A |
N/A |
N/A |
|
EPS (Non-GAAP) |
$0.10 |
$0.01 |
($0.06) |
NM |
|
Gross Margin (Non-GAAP) |
28.2 % |
21.8 % |
6.4 pp |
|
|
Operating Income (Non-GAAP) |
$28.6 million |
($3.2 million) |
NM |
|
|
Adjusted EBITDA |
$41.2 million |
$10.2 million |
304.9 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management’s guidance, as provided in Q1 2025 earnings report.
Business Overview and Focus Areas
Bloom Energy develops and sells Energy Server systems, a type of solid oxide fuel cell that generates electricity onsite for commercial and industrial customers. Its platforms target reliable, distributed power supply for sectors including data centers, manufacturing, and healthcare, meeting energy needs while aiming for improved efficiency and lower emissions.
The company’s recent focus areas align with trends such as rising electricity demand from artificial intelligence (AI) and data centers, shortening the time-to-power for new deployments, and enabling customers to source fuel flexibly—using natural gas, biogas, or hydrogen. Growth depends on scaling these solutions, forming partnerships with utilities and large enterprises, and maintaining product innovation protected by a strong patent portfolio.
Quarter in Detail: Financial and Operational Highlights
Revenue (GAAP) rose 19.5% compared to Q2 2024, surpassing GAAP projections by $25.2 million. Much of this year-over-year growth resulted from increased product deployments, with product revenue up 31.0% to $296.6 million (GAAP). This reflects heightened activity across data centers and manufacturing customers, as demand for scalable, onsite power climbed amid infrastructure constraints and grid delays.
The company split revenue across four main groups. Product sales led, followed by service revenues (GAAP), which increased 3.7% compared to Q2 2024. Installation and electricity segments contracted, declining 12.5% and 9.7%, respectively, compared to Q2 2024 (GAAP). Service profitability (non-GAAP) was maintained for the sixth consecutive quarter.
Operating performance demonstrated marked improvement. Non-GAAP gross margin widened to 28.2%, up 6.5 percentage points over Q2 2024. Non-GAAP operating income hit $28.6 million versus a loss previously, and adjusted EBITDA (non-GAAP) quadrupled year-on-year. Operating expenses increased 20.6% to $110.6 million (GAAP) as the company continued its investments in research, development, and market expansion.
Despite stronger non-GAAP metrics, Bloom Energy posted a net loss to common stockholders of $42.6 million on a GAAP basis, though this was narrower than the prior year’s $61.8 million GAAP loss. Operating cash outflow (GAAP) was $213.1 million, underlining the company’s ongoing working capital needs and investment in inventory and receivables.
The company continued to develop its partnerships and innovation pipeline. Notably, it announced new collaborations with companies like Oracle to provide energy solutions for AI data centers. International presence expanded, particularly in South Korea. The patent portfolio grew to 358 active U.S. patents and an additional 148 pending as of December 31, 2024, reflecting a continued focus on intellectual property protection.
There was a leadership change with the transition of the CFO, though executives emphasized that operational continuity would be maintained. Management stated plans to offset tariff impacts and reiterated non-GAAP gross margin guidance of 29% for FY2025, but stated plans to offset this through ongoing cost-reduction projects.
Outlook and What to Watch
Management reiterated its full-year 2025 guidance, including revenue of $1.65B–$1.85B, non-GAAP gross margin of approximately 29%, and non-GAAP operating income of $135M–$165M, even as industry tariffs and supply chain questions persist. The refreshed outlook calls for revenue in the range of $1.65 billion to $1.85 billion, with non-GAAP gross margin of approximately 29% and non-GAAP operating income between $135 million and $165 million.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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