Bloom Energy 2025 Q2 Earnings Narrowed Losses Despite Ongoing Challenges

Bloom Energy (BE) reported its fiscal 2025 Q2 earnings on July 31, 2025. The company posted a 19.5% increase in total revenue, reaching $401.24 million, surpassing analysts' expectations of $376.50 million. Bloom Energy maintained its guidance for 2025, projecting revenue between $1.65 billion and $1.85 billion. The company expects a non-GAAP gross margin of approximately 29% and non-GAAP operating income ranging from $135 million to $165 million, in line with previous projections. This reflects confidence in sustained growth and operational improvement.

Revenue

Bloom Energy experienced a 19.5% rise in total revenue for 2025 Q2, amounting to $401.24 million, compared to $335.77 million in 2024 Q2. Specifically, product sales led the charge with $296.61 million in revenue. The installation segment followed, contributing $37.37 million. Service revenues accounted for $54.45 million, while the electricity segment added $12.81 million to the total. This diverse performance across segments underscores the company's robust market engagement.

Earnings/Net Income

Bloom Energy reduced its losses to $0.18 per share in 2025 Q2, marking a 33.3% improvement from the previous year's loss of $0.27 per share. The net loss narrowed to $-42.19 million, a 31.0% reduction from the $-61.19 million loss in 2024 Q2. This demonstrates progress in addressing ongoing financial challenges, though the company still reports a loss.

Price Action

The stock price of Bloom Energy increased by 1.05% during the latest trading day, surged 13.10% over the past week, and has ascended 56.31% month-to-date.

Post-Earnings Price Action Review

The investment strategy of purchasing Bloom Energy shares when earnings exceed expectations and selling after 30 days has yielded moderate returns but fell short of outperforming the benchmark. Over the observed period, this strategy achieved a compound annual growth rate (CAGR) of 10.84%, lagging behind the benchmark by 23.84%. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.46, the approach exhibited minimal risk yet conservative returns. This analysis suggests that while the strategy offers some stability, it may not provide the robust gains seen in broader market benchmarks, indicating the need for investors to weigh risk versus reward when considering this specific approach.

CEO Commentary

KR Sridhar, Founder, Chairman, and CEO of Bloom Energy, expressed optimism regarding the company's business performance, highlighting strong market demand for their products amid rapid AI growth. He emphasized that the company's offerings are specifically designed for the digital revolution, noting a significant partnership with Oracle to enhance efficiencies in power usage. Sridhar conveyed satisfaction with the company's trajectory, citing ongoing success in achieving record financial results and services profitability for six consecutive quarters as evidence of robust operational execution in a dynamic market environment.

Guidance

Bloom Energy reaffirms its outlook for full-year 2025, projecting revenue between $1.65 billion and $1.85 billion. The company anticipates a non-GAAP gross margin of approximately 29% and non-GAAP operating income ranging from $135 million to $165 million. This guidance reflects confidence in sustained growth and operational improvement as Bloom positions itself to meet increasing power demands.

Additional News

In recent developments, Bloom Energy announced a significant collaboration with Oracle Cloud Infrastructure to deploy its fuel cell technology at select data centers in the U.S. This partnership aims to enhance power efficiency for AI workloads, supporting Oracle's sustainability goals with clean and reliable energy solutions. Additionally, Bloom Energy exchanged a portion of its 2.50% Green Convertible Senior Notes due 2025 for new 3.00% notes due 2029, aiming to optimize its financial structure. Furthermore, the company expanded its power agreement with Equinix, now exceeding 100MW, showcasing the scalability of its fuel cell technology for data centers.