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."
Consolidated Financial Metrics
Three Months Ended January 31,
(Amounts in thousands, except per share data)
2026
2025
Change
Total revenues
$30,531
$18,997
61%
Gross loss
(5,857)
(5,204)
13%
Loss from operations
(26,290)
(32,851)
(20%)
Net loss
(26,051)
(32,386)
(20%)
Net loss attributable to common stockholders
(23,660)
(29,126)
(19%)
Net loss per basic and diluted share attributable to common stockholders(1)
$(0.49)
$(1.42)
(65%)
EBITDA *
(15,772)
(22,905)
(31%)
Adjusted EBITDA *
$(17,029)
$(21,073)
(19%)
Adjusted net loss per basic and diluted share attributable to common stockholders(1)*
$(0.52)
$(1.33)
(61%)
(1) All historic per share figures have been retroactively adjusted to reflect the Company's reverse stock split that became effective on November 8, 2024.
* Reconciliations of non-GAAP measures EBITDA, Adjusted EBITDA and Adjusted net loss per basic and diluted share attributable to common stockholders are contained in the appendix to this press release.
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.
Backlog
As of January 31,
(Amounts in thousands)
2026
2025
Change
Product
$54,113
$111,211
$(57,098
)
Service
159,393
172,326
(12,933
)
Generation
939,525
997,397
(57,872
)
Advanced Technologies
18,210
31,566
(13,356
)
Total Backlog
$1,171,241
$1,312,500
$(141,259
)
Overall, backlog decreased by approximately 10.8% to $1.17 billion as of January 31, 2026, compared to $1.31 billion as of January 31, 2025, primarily as a result of revenue recognized over the period from January 31, 2025 through January 31, 2026, partially offset by new contract backlog. Backlog by revenue category is as follows:
Service agreements backlog totaled $159.4 million as of January 31, 2026, compared to $172.3 million as of January 31, 2025. Service agreements backlog includes future contracted revenue from maintenance and scheduled module exchanges for power plants under service agreements. Since January 31, 2025, the Company entered into a long-term service agreement ("LTSA") with CGN (the "CGN LTSA") for the CGN Platform. The contract value of the CGN LTSA totaled approximately $31.7 million, of which approximately $7.7 million was allocated to service backlog at the time of the execution of the CGN LTSA and is being recognized as revenue as the Company performs service at the CGN Platform over the term of the CGN LTSA.
Generation backlog totaled $939.5 million as of January 31, 2026, compared to $997.4 million as of January 31, 2025. Generation backlog represents future contracted energy sales under power purchase agreements ("PPAs") or approved utility tariffs.
Product backlog totaled $54.1 million as of January 31, 2026, compared to $111.2 million as of January 31, 2025. Product backlog decreased from January 31, 2025 primarily as a result of the product backlog that was recognized as revenue as the Company completed commissioning of certain replacement modules for the GGE Platform. Under the GGE LTSA, commissioning of 28 1.4-MW replacement fuel cell modules was completed prior to the end of fiscal year 2025. The Company completed the commissioning of 2 additional replacement modules for GGE during the first quarter of fiscal year 2026. The remaining 12 1.4-MW replacement fuel cell modules for GGE are expected to be commissioned during the remainder of fiscal year 2026, with 6 replacement modules scheduled for commissioning in the second fiscal quarter and 6 replacement modules scheduled for commissioning in the third fiscal quarter. Partially offsetting the decrease in product backlog was the CGN LTSA, which added $24.0 million to product backlog (representing 8 replacement modules) during the fourth quarter of fiscal year 2025, of which $6.0 million was recognized as revenue for the commissioning of 2 replacement modules for the CGN Platform during the first quarter of fiscal year 2026. The remaining 6 replacement modules are currently scheduled for commissioning in the fourth quarter of fiscal year 2026.
Advanced Technologies contract backlog totaled $18.2 million as of January 31, 2026, compared to $31.6 million as of January 31, 2025. Advanced Technologies contract backlog primarily represents remaining revenue under our Joint Development Agreement with EMTEC and remaining revenue under our government contracts.
The CGN Platform is comprised of four SureSource 3000 molten carbonate fuel cells (each, a "CGN Plant"). Each CGN Plant is comprised of two carbonate fuel cell modules. Pursuant to the CGN LTSA, CGN and the Company have agreed that (i) CGN will purchase from the Company eight carbonate fuel cell modules to replace existing fuel cell modules at the CGN Platform, (ii) the Company will provide certain balance of plant replacement components if and to the extent the parties reasonably determine existing components should be replaced, and (iii) the Company will provide long term operations and maintenance services for the CGN Platform. The total amount payable by CGN under the CGN LTSA for the eight replacement fuel cell modules, balance of plant replacement components, and service is $31.7 million USD, with payments being made and to be made over time as such replacement fuel cell modules are commissioned and the service obligations under the CGN LTSA for such CGN Plants commence. This amount was recorded as backlog concurrent with the execution of the CGN LTSA on July 30, 2025 and has since been reduced as revenue has been recognized under the CGN LTSA, which commenced in the first quarter of fiscal year 2026.
Backlog represents definitive agreements executed by the Company and our customers. Projects for which we have an executed PPA are included in generation backlog, which represents future revenue under long-term PPAs. The Company's ability to recognize revenue in the future under a PPA is subject to the Company's completion of construction of the project covered by such PPA. Should the Company not complete the construction of the project covered by a PPA, it will forgo future revenues with respect to the project and may incur penalties and/or impairment expenses related to the project. Projects sold to customers (and not retained by the Company) are included in product sales and service agreements backlog, and the related generation backlog is removed upon sale. Together, the service and generation portion of backlog had a weighted average term of approximately 15 years as of January 31, 2026, with weighting based on the dollar amount of backlog and utility service contracts of up to 20 years in duration at inception.
Conference Call Information
FuelCell Energy will host a conference call today beginning at 10:00 a.m. ET to discuss first quarter 2026 results as well as key business highlights. Participants can access the live call via webcast on the Company's website or by telephone as follows:
(1) The live webcast of the call and supporting slide presentation will be available at www.fuelcellenergy.com. To listen to the call, select "Investors" on the home page located under the "Our Company" pull-down menu, proceed to the "Events & Presentations" page and then click on the "Webcast" link listed under the March 9th earnings call event, or click here.
Alternatively, participants can dial 888-330-3181 and state FuelCell Energy or the conference ID number 1099808.
The replay of the conference call will be available via webcast on the Company's Investors' page at www.fuelcellenergy.com approximately two hours after the conclusion of the call.
Cautionary Language
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding future events or our future financial performance that involve certain contingencies and uncertainties. The forward-looking statements include, without limitation, statements with respect to the Company's anticipated financial results and statements regarding the Company's plans and expectations regarding the continuing development, commercialization and financing of its current and future fuel cell technologies, the Company's business plans and strategies, the Company's plan to reduce operating costs, the capabilities of the Company's products, the Company's potential sales pipeline, opportunities, and partners, and the markets in which the Company expects to operate. Projected and estimated numbers contained herein are not forecasts and may not reflect actual results. These forward-looking statements are not guarantees of future performance, and all forward-looking statements are subject to risks and uncertainties, known and unknown, that could cause actual results and future events to differ materially from those projected. Factors that could cause such a difference include, without limitation: general risks associated with product development and manufacturing; general economic conditions; changes in interest rates, which may impact project financing; supply chain disruptions; changes in the utility regulatory environment; changes in the utility industry and the markets for distributed generation, distributed hydrogen, and fuel cell power plants configured for carbon capture or carbon separation; potential volatility of commodity prices that may adversely affect our projects; availability of government subsidies and economic incentives for alternative energy technologies; our ability to remain in compliance with U.S. federal and state and foreign government laws and regulations; our ability to maintain compliance with the listing rules of The Nasdaq Stock Market; rapid technological change; competition; the risk that our bid awards will not convert to contracts or that our contracts will not convert ...
