Plug Power raised its full-year 2026 revenue growth guidance to 15% to 16%, citing an expanding electrolyzer pipeline, an improving conversion rate and a commercial backlog that management expects to translate into a more heavily weighted second half of the year.
The higher outlook follows Q2 revenue of approximately $178 million. Plug said revenue increased from both the prior-year quarter and Q1 as the company continued growing across material handling, hydrogen production and electrolyzers.
The electrolyzer business is particularly important to the outlook because management said its pipeline continues to expand while the rate at which opportunities convert into commercial business is increasing. The company also characterized its historical revenue pattern as second-half weighted, making the strength of the backlog an important component of the new 15% to 16% growth target.
Plug’s improved revenue outlook is occurring alongside a substantial change in gross economics. Q2 gross margin improved to approximately breakeven from negative 31% a year earlier and negative 13% in Q1 2026. The improvement suggests that Plug is generating higher sales while requiring a materially lower gross loss to support those revenues.
The cost structure also moved lower. Operating expenses declined 50% year over year to approximately $62 million, providing another lever toward management’s stated goal of reaching positive EBITDAS in the fourth quarter of 2026.
Net cash usage was approximately $61 million during Q2, another metric management highlighted as part of the company’s efforts to strengthen its financial profile. Plug described the quarter as delivering lower net cash usage alongside higher revenue, gross-margin expansion and lower operating expenses.
Material handling remains another important source of both current and recurring revenue. Plug said expansion of its installed material-handling base can subsequently generate revenue from equipment replacements, service and hydrogen fuel, meaning growth in equipment deployments can expand the recurring revenue opportunity associated with the installed fleet.
Taken together, the higher 2026 revenue forecast, improving electrolyzer conversion and movement toward breakeven gross margin give Plug several simultaneous execution targets for the second half. The company will need its backlog and pipeline to convert as expected while maintaining expense discipline and continuing to reduce the cash required to support growth.
KEY QUOTES:
“Our second quarter results demonstrate that Plug is executing its transformation into a stronger, more efficient and profitable company. We delivered revenue growth, improved gross margins, reduced operating expenses, strengthened liquidity, and advanced major commercial milestones across our core businesses. We continue to expand our installed material handling base, which also builds our recurring revenues through equipment replacements, service, and hydrogen fuel. Our electrolyzer pipeline continues to expand, and we see an increasing conversion rate. Given the historically second-half-weighted cadence of our business and the strength of our commercial backlog, we are raising our full-year 2026 revenue growth guidance to a range of 15% to 16%. We believe we are on track to achieve our positive EBITDAS target in the fourth quarter of 2026.”
Jose Luis Crespo, Chief Executive Officer of Plug Power
