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    BE
    Earnings call· Sep 2025(Q3 FY25)

    Bloom Energy Corp BE

    Oct 28, 2025 Source

    Executive summary

    Bloom Energy Q3 FY25 — Record Revenue and Accelerating AI Momentum

    Bloom Energy reported record Q3 FY25 revenue and strong profitability, driven by accelerating demand for on-site power from AI buildouts and data centers. The company is expanding its manufacturing capacity to 2 GW by 2026 and leveraging strategic partnerships to become the global standard for digital power generation, with a focus on continued cost reductions and margin expansion. Management expects FY25 financial metrics to be better than previously guided.

    Highlights

    5

    • Record Q3 revenue of $519 million, up 57% year-over-year.

    • Gross margin expanded to 30.4%, a 510 basis point increase year-over-year.

    • Adjusted EBITDA reached $59 million, up from $21 million in Q3 FY24.

    • Positive cash flow from operating activities of $20 million.

    • Service margins were 14.4%, marking the seventh consecutive quarter of profitability in the service business.

    Guidance & targets

    2
    CategoryTargetConfidence
    Full-year 2025 Financial Metrics
    Better than previously stated annual guidance
    high materiality
    High
    Product Cost Reductions
    Double-digit year-over-year cost reductions
    medium materiality
    High

    Operational metrics

    10
    Revenue growth
    57YoY
    Q3 FY25

    Revenue for the quarter was $519 million, up 57% year-over-year.

    Gross margin
    30.4up 510 bps YoY
    Q3 FY25

    Gross margin was 30.4%, 510 basis points higher than the 25.2% gross margin in Q3 of 2024, driven by continued focus on product costs and manufacturing efficiencies.

    Adjusted operating income
    $46.2Mvs $8.1M in Q3 FY24
    Q3 FY25

    Our operating income was $46.2 million versus $8.1 million in Q3 last year. Adjusted EBITDA was $59 million versus $21 million in Q3 of 2024 while EPS was a positive $0.15 versus $0.01 loss a year ago. Again, these are all non-GAAP results.

    Adjusted EBITDA
    $59Mvs $21M in Q3 FY24
    Q3 FY25

    Adjusted EBITDA was $59 million versus $21 million in Q3 of 2024

    Adjusted EPS
    $0.15vs ($0.01) loss YoY
    Q3 FY25

    EPS was a positive $0.15 versus $0.01 loss a year ago.

    Product margin
    35.9
    Q3 FY25

    Our product margins were 35.9%, while our service margins were 14.4%.

    Service margin
    14.4
    Q3 FY25

    Our product margins were 35.9%, while our service margins were 14.4%. This is the second straight quarter of double-digit margins in the service business, and we expect this trend to continue.

    Total cash
    $627M
    Q3 FY25

    We ended the quarter with $627 million in total cash on the balance sheet.

    Related party revenues
    $288M
    Q3 FY25

    Your 10-Q kind of refers to $288 million of related power -- related party revenues during the quarter. I was just wondering, is that related to Brookfield? Or is that related to SK? ... As part of the contracts with Brookfield, we've made equity investments into this vehicle. And because of those equity investments, those JVs became a related party to Bloom, and that's what created the disclosure around the related party revenue.

    Product cost reductions
    double-digit year-over-year
    Ongoing

    Every year, for over a decade, our fuel cells have seen double-digit year-over-year cost reductions. ... we expect double-digit product cost reductions to continue and keep us on a path of margin accretion.

    Industry KPIs

    7
    MetricValueDetails
    Book to bill ratio—
    Orders bookings growthaccelerating
    Gigawatts under contractGigawatt agreementGW
    M a acquisition contribution—
    Backlog by segment end market—
    Data center exposure pipeline7 distinct AI ecosystem channels
    Incremental flow through margin—

    Deals & partnerships

    6
    OraclePowering an AI factory

    First deal to power an AI factory; delivery fulfilled in 55 days, ahead of 90-day promise. Oracle stated this was 'the first of many'.

    AEP (for AWS)Gigawatt agreement for fuel cell systems to power a hyperscalerGigawatt agreement

    AEP purchased fuel cell systems to power AWS, another big hyperscaler.

    Major gas providerGas-to-electricity conversion with Bloom fuel cells for a third hyperscaler

    Gas provider will convert gas to electricity with Bloom fuel cells and sell on-site power to a third hyperscaler. Hyperscaler to announce details when ready.

    EquinixDeployment of on-site power across data centersOver 100 megawatts

    Deployed over 100 megawatts across data centers in multiple states.

    CoreWeaveOn-site power for a high-performance data center

    Powering a high-performance data center in Illinois.

    BrookfieldAI infrastructure partnership and preferred on-site power provider$5 billion (initial investment)

    Brookfield, world's largest AI infrastructure investor, invested $50 billion in AI opportunities and is tripling its AI strategy. Initial investment of $5 billion. Brookfield plans to announce a Bloom-powered European AI inference data center project by the end of the year.

    Capital programs

    1
    Manufacturing Capacity Expansionunderway

    Benefit: 2 gigawatts (doubling current capacity), supporting 4x FY25 revenue

    As we have previously announced, we are doubling our capacity to 2 gigawatts by December 2026, which will support about 4x our 2025 revenue. That expansion is all systems go.

    What to watch in Q4 FY25

    4

    European AI Inference Data Center Announcement

    By year-end (Q4 FY25)
    CurrentBrookfield plans to announce by year-end.
    TargetAnnouncement of Bloom-powered European AI inference data center.

    Why it matters

    Signals progress in the Brookfield partnership and international expansion into the AI market.

    Brookfield plans to announce a Bloom-powered European AI inference data center project by the end of the year.

    Q&A highlights

    6

    How is the commercial momentum, especially for new agreements, given recent successes?

    K.R. Sridhar stated that commercial momentum is clearly accelerating across all segments, including AI and traditional commercial/industrial. Deals are complex, with some closing very fast and others taking longer, but the overall trend is upward.

    “if I looked at it this week and last week, and if I walk over to the commercial section of our offices is that momentum is clearly accelerating and it's palpable, okay?”

    asked by David Arcaro · answered by K. Sridhar

    2 min read5 chapters

    Detailed Narrative

    01

    AI Ecosystem Traction

    Bloom Energy is deeply embedded in 7 distinct AI ecosystem channels, including hyperscalers (Oracle, AWS via AEP), gas providers, co-location providers (Equinix), neoclouds (CoreWeave), data center developers, and infrastructure owners (Brookfield). Each channel is anchored by a lighthouse customer, demonstrating strong commercial momentum and robust pipelines. The company noted fulfilling an Oracle delivery ahead of schedule and powering over 100 megawatts for Equinix.

    02

    Strategic Partnerships

    The Brookfield partnership is highlighted as a significant development, with Brookfield investing $50 billion in AI and tripling its AI strategy. Bloom will be the preferred on-site power provider for Brookfield's $1 trillion infrastructure portfolio, including data centers and corporate facilities, and Brookfield will finance Bloom-sourced AI opportunities. An inaugural $5 billion investment was made, with a European AI inference data center project to be announced by year-end.

    03

    Product Innovation & Competitive Advantage

    Bloom's fuel cells have seen double-digit year-over-year cost reductions for over a decade, while performance has increased (10x more power in the same footprint than 10 years ago). This allows competitiveness in new markets beyond high-cost regions and offers advantages over traditional solutions, such as no air pollution, solid-state power not requiring batteries, faster deployment, and future-proofing for DC power and carbon capture.

    04

    Capacity Expansion

    The company is doubling its manufacturing capacity to 2 gigawatts by December 2026, which is expected to support approximately 4x its 2025 revenue. This expansion is 'all systems go,' with investments in operational talent and capabilities to potentially expand beyond 2 GW, ensuring Bloom is not a bottleneck for customer growth.

    05

    DC Power Architecture for AI

    Bloom's architecture is purpose-built for the evolving power demands of AI chips, which are moving towards 800-volt DC. The company's systems can directly feed at 800V DC, offering a significant efficiency advantage over legacy AC systems that require multiple conversions and cannot handle the high voltage/current density required by next-generation AI chips.

    AI-generated summary of the company’s earnings call. Not investment advice.