FuelCell Energy Revenue Jumps 97%, Analyst Warns Shares Look Overvalued

FuelCell Energy reported a 97% YoY revenue jump to $46.7 million, beating expectations, but analysts warn that shares look richly valued compared to clean energy peers. The company's adjusted net loss narrowed to $0.95 per share, but GAAP net loss widened to $3.78 per share. Cash and investments fell to $236.9 million, and shares climbed 14.86% despite ongoing losses and cash burn.

FuelCell Energy (FCEL) reported a significant 97% year-over-year (YoY) revenue increase to $46.7 million for the third quarter of fiscal 2025, surpassing Wall Street's expectations FuelCell Energy Grows Revenue But Misses Wall Street Targets^[1]. The company's adjusted net loss per share narrowed to $0.95, beating the consensus estimate of $1.59 per share FuelCell Energy (FCEL) Reports Q3 Loss, Tops Revenue Estimates^[2]. However, the company's gross loss widened to $5.1 million, and the GAAP net loss per share increased to $3.78, reflecting restructuring and non-cash impairment expenses FuelCell Energy Inc Reports Q3 EPS of $(3.78) and Revenue of $46.7M, Missing Estimates^[3].

The revenue growth was driven by a major deal with Korea’s Gyeonggi Green Energy, which contributed $26 million in product revenue FuelCell Energy Grows Revenue But Misses Wall Street Targets^[1]. Service revenue climbed 35% to $3.1 million, while generation revenue dipped due to temporary plant downtime FuelCell Energy Grows Revenue But Misses Wall Street Targets^[1]. Despite the operational challenges, the company's backlog increased by 4% to $1.24 billion, indicating potential future growth, particularly in the face of rising data center demand and advances in carbonate technology FuelCell Energy Grows Revenue But Misses Wall Street Targets^[1].

FuelCell Energy's shares climbed 14.86% to $4.22 on September 8, 2025, despite ongoing losses and cash burn. The company's cash and investments fell to $236.9 million as of July 31, 2025 FuelCell Energy Inc Reports Q3 EPS of $(3.78) and Revenue of $46.7M, Missing Estimates^[3]. Analysts remain cautious, with most sticking to a "hold" rating, citing the company's path to profitability as uncertain FuelCell Energy Grows Revenue But Misses Wall Street Targets^[1]. While the median price target suggests a possible 43% upside, the stock's immediate price movement will largely depend on management's commentary on the earnings call and future earnings expectations FuelCell Energy (FCEL) Reports Q3 Loss, Tops Revenue Estimates^[2].

The broader picture highlights the growing demand for innovative clean energy solutions. FuelCell Energy's work with carbonate technology positions it as a key player in the transition to cleaner energy, as global data centers and businesses increasingly seek decentralized power sources FuelCell Energy Grows Revenue But Misses Wall Street Targets^[1]. However, the company must address its financial challenges and operational inefficiencies to sustain its growth trajectory and achieve long-term profitability.

Investors should closely monitor FuelCell Energy's earnings calls and future financial reports to gauge the company's progress in turning things around and addressing its ongoing operational challenges.