Plug Power Soars 25.62% on $525M Credit Facility, Q1 Results

Plug Power's stock surged 25.62% in pre-market trading on April 28, 2025, driven by significant financial and operational developments.

Plug Power has secured a $525 million credit facility with Yorkville Advisors, which includes an initial $210 million tranche expected to close around May 2, 2025. The company plans to use $82.5 million to retire existing convertible debentures, reducing potential dilution by approximately 55 million shares. This move addresses immediate liquidity concerns and provides a financial lifeline for the company.

The company's preliminary Q1 2025 results show expected revenue of $130-134 million, with Q2 2025 projected at $140-180 million. Net cash usage improved to $142 million in Q1 2025, down from $268 million in Q1 2024, marking a 47% improvement. The company ended March 2025 with $296 million in unrestricted cash, further bolstering its financial position.

Plug Power has also completed a new 15TPD hydrogen production plant in Louisiana through its Hidrogenii joint venture with Olin. This plant strengthens the company's vertically integrated hydrogen network and serves anchor customers Amazon and Walmart, providing crucial offtake security and enhancing supply chain resilience.

Additionally, Plug Power has implemented cost-cutting measures expected to generate $200 million in annual savings. The company has confirmed that there are no planned equity raises in 2025, underscoring its focus on disciplined capital management and financial sustainability.