Fuel cell technology Plug Power (NASDAQ: PLUG) met Wall Streets revenue expectations in Q3 CY2025, with sales up 1.9% year on year to $177.1 million. Its non-GAAP loss of $0.12 per share was 8.2% above analysts’ consensus estimates.

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Company Overview

Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ: PLUG) provides hydrogen fuel cells used to power electric motors.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Plug Power grew its sales at an incredible 17.1% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Plug Power’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 12.8% over the last two years.

This quarter, Plug Power grew its revenue by 1.9% year on year, and its $177.1 million of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 25.3% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and implies its newer products and services will fuel better top-line performance.

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Operating Margin

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

Plug Power’s high expenses have contributed to an average operating margin of negative 195% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.

On the plus side, Plug Power’s operating margin rose over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to reach long-term profitability.

Plug Power’s operating margin was negative 197% this quarter.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Plug Power’s earnings losses deepened over the last five years as its EPS dropped 31.8% annually. We’ll keep a close eye on the company as diminishing earnings could imply changing secular trends and preferences.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Plug Power, its two-year annual EPS growth of 18.5% was higher than its five-year trend. Its improving earnings is an encouraging data point, but a caveat is that its EPS is still in the red.

In Q3, Plug Power reported adjusted EPS of negative $0.12, up from negative $0.24 in the same quarter last year. This print beat analysts’ estimates by 8.2%. Over the next 12 months, Wall Street expects Plug Power to improve its earnings losses. Analysts forecast its full-year EPS of negative $1.00 will advance to negative $0.37.

Key Takeaways from Plug Power’s Q3 Results

It was good to see Plug Power beat analysts’ EPS expectations this quarter. We were also happy its revenue was in line with Wall Street’s estimates. Overall, this print had some key positives. The stock traded up 1.3% to $2.59 immediately after reporting.

Sure, Plug Power had a solid quarter, but if we look at the bigger picture, is this stock a buy? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.