FuelCell Energy reported financial results for the quarter ended January 31, 2026.

FuelCell Energy, Inc. (NASDAQ: FCEL) today reported financial results for its first quarter ended January 31, 2026.

First Quarter Fiscal 2026 Highlights

(All comparisons are year-over-year unless otherwise noted)

Revenue of $30.5 million, compared to $19.0 million, an increase of approximately 61%

Gross loss of $(5.9) million, compared to $(5.2) million, an increase of approximately 13%

Loss from operations of $(26.3) million, compared with $(32.9) million, a decrease of approximately 20%

Net loss per share attributable to common stockholders was $(0.49), compared with $(1.42)

Backlog of $1.17 billion, compared to $1.31 billion, a decrease of approximately 10.8%

"During the first fiscal quarter, we delivered strong revenue growth, sharpened operating discipline, and strengthened our liquidity position — all while positioning FuelCell Energy to capture the defining opportunity of the AI era," said Jason Few, President and Chief Executive Officer of FuelCell Energy.

Few added, "Data center developers and hyperscalers are prioritizing reliable, immediate power solutions—which is precisely what we provide. Our fuel cell systems deliver faster time to power than other sources and have consistently operated on a commercial scale for an average of 10 years, supplying clean, dependable baseload energy. No other distributed power option can match this proven track record in real-world conditions.

We are seeing strong commercial momentum from the data center space by delivering over 1.5 GW of new commercial proposals in the first quarter of fiscal 2026 and announcing a collaboration with Sustainable Development Capital LLP (SDCL), targeting up to 450 megawatts of identified projects. We are intensely focused on converting the robust pipeline of opportunities in front of us to definitive agreements.

It may sound counterintuitive for a power generation company to reduce power demand, but that is exactly what our platform enables. By integrating high temperature thermal output with absorption chilling, we can lower cooling load, free up more power for compute and improve overall PUE (Power Usage Effectiveness). In addition, our platform is the only fuel cell platform with an economically viable, integrated carbon-capture pathway. This is not a promise for tomorrow. This is proven power, ready today for the always-on demands of AI."

First Quarter of Fiscal 2026 Results

(All comparisons are between first quarter of fiscal 2026 and first quarter of fiscal 2025 unless otherwise noted)

First quarter revenue of $30.5 million represents an increase of 61% from the comparable prior year quarter.

Product revenues were $12.0 million compared to $0.1 million in the comparable prior year period. The increase was primarily driven by $6.0 million of revenue recognized under the Company's long-term service agreement with Gyeonggi Green Energy Co., Ltd. ("GGE") for the delivery and commissioning of 2 fuel cell modules for GGE's 58.8 MW fuel cell power plant platform in Hwaseong-si, Korea (the "GGE Platform") and $6.0 million of revenue recognized under the Company's long-term service agreement with CGN-Yulchon Generation Co., Ltd. ("CGN") for the delivery and commissioning of 2 fuel cell modules for CGN's Yulchon facility in South Korea (the "CGN Platform"). Revenue for the quarter was $6.0 million lower than planned, driven by the timing of commissioning for two delivered and installed modules that entered service in February 2026, which had previously been expected within the three months ended January 31, 2026.  

 

Service agreement revenues increased to $3.2 million from $1.8 million. The increase in service agreement revenues during the three months ended January 31, 2026 was primarily driven by revenue recognized under the Company's long-term service agreement with GGE ("GGE LTSA") for service provided by the Company to the GGE Platform.

 

Generation revenues decreased to $11.0 million from $11.3 million. The decrease in generation revenues for the three months ended January 31, 2026 reflects lower output from plants in the Company's generation operating portfolio during the quarter.

 

Advanced Technologies contract revenues decreased to $4.3 million from $5.7 million. Advanced Technologies contract revenues recognized under our Joint Development Agreement with ExxonMobil Technology and Engineering Company ("EMTEC") were approximately $1.7 million, revenues arising from the purchase order received from Esso Nederland B.V. ("Esso"), an affiliate of EMTEC and Exxon Mobil Corporation, related to the Rotterdam project were approximately $1.9 million and revenue recognized under government contracts and other contracts were approximately $0.7 million for the three months ended January 31, 2026. This compares to Advanced Technologies contract revenues recognized under our Joint Development Agreement with EMTEC of approximately $1.2 million, revenue recognized under the Esso purchase order of approximately $3.5 million and revenue recognized under government contracts and other contracts of approximately $1.1 million for the three months ended January 31, 2025.

Gross loss for the first quarter of fiscal 2026 totaled $(5.9) million, compared to a gross loss of $(5.2) million in the comparable prior quarter. The increase in gross loss for the first quarter of fiscal 2026 was primarily related to increased gross loss from manufacturing variances and lower gross profit from Advanced Technologies contracts, partially offset by higher gross profit for service agreement revenues and lower gross loss from generation revenues.

Operating expenses for the first quarter of fiscal 2026 decreased to $20.4 million from $27.6 million in the first quarter of fiscal 2025, primarily due to a $4.1 million decrease in research and development expenses, a decrease of $1.5 million in administrative and selling expenses and no restructuring expense recorded in the first quarter of fiscal year 2026, compared to $1.5 million of restructuring expense included in the first quarter of fiscal year 2025.

Administrative and selling expenses decreased to $13.5 million during the first quarter of fiscal 2026 from $15.0 million during the first quarter of fiscal 2025. The decrease in administrative and selling expenses is primarily due to lower compensation expense resulting from the restructuring actions taken in November 2024 and June 2025.

Research and development expenses decreased to $7.0 million during the first quarter of fiscal 2026 compared to $11.1 million in the first quarter of fiscal 2025. The decrease in research and development expenses is primarily due to a decrease in spending on the Company's commercial development efforts related to our solid oxide power generation and electrolysis platforms and related lower compensation expense as a result of the restructuring actions in November 2024 and June 2025.

Net loss was $(26.1) million in the first quarter of fiscal 2026, compared to net loss of $(32.4) million in the first quarter of fiscal 2025.

Net loss attributable to common stockholders was $(23.7) million in the first quarter of fiscal 2026, compared to net loss attributable to common stockholders of $(29.1) million in the first quarter of fiscal 2025.

Adjusted EBITDA totaled $(17.0) million in the first quarter of fiscal 2026, compared to Adjusted EBITDA of $(21.1) million in the first quarter of fiscal 2025. Please see the discussion of non-GAAP financial measures, including Adjusted EBITDA, in the appendix at the end of this release.

The net loss per share attributable to common stockholders in the first quarter of fiscal 2026 was $(0.49), compared to $(1.42) in the first quarter of fiscal 2025. The decrease in net loss per share attributable to common stockholders is primarily due to the benefit of the higher number of weighted average shares outstanding due to share issuances since January 31, 2025, and the decrease in net loss attributable to common stockholders.

Cash and Restricted Cash

Cash and cash equivalents and restricted cash and cash equivalents totaled $379.6 million as of January 31, 2026, compared to $341.8 million as of October 31, 2025. Of the $379.6 million as of January 31, 2026, unrestricted cash and cash equivalents totaled $311.8 million and restricted cash and cash equivalents totaled $67.8 million. Of the $341.8 million total as of October 31, 2025, unrestricted cash and cash equivalents totaled $278.1 million and restricted cash and cash equivalents totaled $63.7 million.

During the three months ended January 31, 2026, approximately 6.4 million shares of the Company's common stock were sold under the Company's Open Market Sale Agreement, as amended, at an average sale price of $8.82 per share, resulting in gross proceeds of approximately $56.3 million and net proceeds to the Company of approximately $54.9 million after deducting sales commissions and fees totaling approximately $1.4 million. Subsequent to the end of the quarter, approximately 0.3 million shares of the Company's common stock were sold under the Company's Open Market Sale Agreement, as amended, at an average sale price of $7.67 per share, resulting in gross proceeds of approximately $2.6 million and net proceeds to the Company of approximately $2.5 million after deducting sales commissions and fees totaling approximately $0.1 million.

During the first quarter of fiscal year 2026, the Company closed a new round of debt financing with the Export-Import Bank of the United States ("EXIM"), which we believe marks a continued commitment from EXIM to support the Company's goal of expanding its delivery of utility grade power in international markets through long-term service agreements with companies like GGE in Korea.

 

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