Bloom Energy Reports Record Third Quarter 2026 Financial Results and Raises Full
Bloom Energy Reports Record Third Quarter 2026 Financial Results and Raises Full Year 2026 Guidance
• Achieved record quarterly revenue of $1,235.8 million, delivering 138.1% year- over-year growth
• Raises full year 2026 revenue guidance to $4.4 billion - $4.6 billion, representing 122% year-over-year growth at the midpoint
• Added to the S&P 500, marking an important milestone for Bloom Energy as a public company
October 22, 2026—Bloom Energy Corporation (NYSE: BE) (“Bloom,” “Bloom Energy,” “We,” or the “Company”) today reported its financial results for the third quarter ended September 30, 2026.
• Revenue of $1,235.8 million increased 138.1%. Product revenue of $1,073.6 million increased 179.4%.
• Gross margin of 33.8% increased 453 basis points. Non-GAAP gross margin of 34.5% increased 412 basis points.
• Operating income of $225.4 million increased $217.6 million. Non-GAAP operating income of $285.7 million increased $239.4 million.
• EPS of $0.78 increased $0.88. Non-GAAP EPS of $0.94 increased $0.79. KR Sridhar, Founder, Chairman and Chief Executive Officer of Bloom Energy, said, “Electricity is the foundation of economic growth, human well-being and national competitiveness. Today, the world is moving from a century-old model of centralized power to a new architecture that includes firm, distributed onsite generation. Bloom is leading that transformation. What began with hyperscalers is rapidly moving across market segments because every business needs reliable power to grow. We are building the electricity platform for the digital era: power where it is needed, when it is needed, clean and always on.”
Simon Edwards, Chief Financial Officer of Bloom Energy, added, “Our third quarter results reflect strong execution across the business, with significant revenue growth and expanded operating margins. We continue to invest with discipline to build the capabilities and capacity needed to scale the business. Our year-to-date performance and customer demand give us confidence to raise our 2026 outlook for the third time this year.” 1
1. A detailed reconciliation of GAAP to Non-GAAP financial measures is provided at the end of this press release 2
Bloom Energy is increasing its financial guidance for full-year 2026 as follows:
Bloom Energy will host a conference call today, October 22, 2026, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its financial results. To participate in the live call, analysts and investors may call toll-free dial-in number: +1 833-461-5787 and toll-dial-in-number +1 585 542 9983. The conference ID is 713 024 124. A simultaneous live webcast will also be available under the Investor Relations section on our website at https://investor.bloomenergy.com. Following the webcast, an archived version will be available on Bloom Energy’s website for one year. A telephonic replay of the conference call will be available for one week following the call, by dialing +1 833 309 1852 or +1 929 828 5978 and entering passcode 713 024 124.
The Investor Relations section of Bloom Energy’s website at investor.bloomenergy.com contains a significant amount of information about Bloom Energy, including financial and other information for investors. Bloom Energy encourages investors to visit this website from time to time, as information is updated and new information is posted. The information contained on, or that may be accessed through Bloom Energy’s website is not incorporated by reference into, and is not part of, this press release.
This press release contains certain forward-looking statements relating to future events and expectations, including with respect to changes in the architecture to provide electricity to users, movement towards distributed onsite generation, building the electricity platform in an evolving marketplace, source of funding for investments to be made, and projections for our business outlook for the 2026 fiscal year, each of which is based on current expectations, estimates, and projections about our industry, management’s beliefs, and certain assumptions made by management based on information currently available to management at the time they are made. These forward- looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going forward basis.
Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual results, performance, and/or trends. In addition to general industry and global economic conditions, factors that could cause actual results, performance, and/or trends to differ materially from those discussed in the forward-looking statements made in this press release include, but are not limited to: (1) the emerging nature of distributed energy generation and rapidly evolving market trends; (2) the significant upfront costs of Bloom Energy’s Energy Servers and Bloom Energy’s ability to secure financing for its products; (3) Bloom Energy’s ability to drive cost reductions and to successfully mitigate against potential price increases; (4) Bloom Energy’s ability to service its existing debt obligations; (5) Bloom Energy’s ability to be successful in new markets; (6) the risk of manufacturing defects; (7) the accuracy of Bloom Energy’s estimates regarding the useful life of its Energy Servers, (8) 3 delays in the development and introduction of new products or updates to existing products; (9) supply constraints; (10) the availability of rebates, tax credits and other tax benefits; (11) the impact of the Inflation Reduction Act of 2022 and the One Big Beautiful Bill Act; (12) changes in the regulatory landscape; (13) Bloom Energy’s lengthy sales and installation cycle, construction, utility interconnection and other delays related to the installation of its Energy Servers; (14) evolution of Bloom’s approach to installation to a consult only model particularly for large load sites; (15) business and economic conditions and growth trends in commercial and industrial energy markets; (16) trade policies including tariffs; (17) the overall electricity generation market; (18) our ability to increase production capacity for our products in a timely and cost-effective manner; (19) any actual or perceived slowdown in the adoption of AI resulting in a slower expansion of AI data centers; (20) the availability of financing for data center developments, (21) air permitting delays which affect the ability to finance the use of Energy Servers for customers, (22) Bloom Energy’s ability to protect its intellectual property; (23) the ability of current product and service backlog to ultimately be recognizable as revenue; (24) commodity price volatility; (25) inflationary pressures and/or (26) the risks relating to forward-looking statements and other “Risk Factors” identified from time to time in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and subsequently filed reports, including on Form 10-Q, which filings are available from the SEC. Bloom Energy assumes no obligation to, and does not currently intend to, update information contained in these forward-looking statements, whether as a result of new information, future events or developments, or otherwise.
This press release includes certain non-GAAP financial measures as defined in the SEC rules. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Some numbers may not foot due to rounding. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non- GAAP financial measures as tools for comparison. As required by Regulation G, we have provided reconciliations of our non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures set forth in this press release. Bloom Energy urges you to review the reconciliations of its non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures set forth in this press release, and not to rely on any single financial measure to evaluate our business. With respect to Bloom Energy’s expectations regarding its 2026 outlook, Bloom Energy is not able to provide a quantitative reconciliation of non-GAAP gross margin, non-GAAP operating income, and non-GAAP EPS measures to the corresponding GAAP measures without unreasonable efforts due to the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. The variability of these items could significantly impact our future U.S. GAAP financial results and we believe that any reconciliation provided would imply a degree of precision that could be confusing or misleading to investors. 4
Bloom Energy empowers enterprises to meet soaring energy demands and responsibly take charge of their power needs. The company’s solid oxide fuel cell systems provide ultra-resilient, highly scalable onsite electricity for Fortune 500 customers around the world, including data centers, semiconductor manufacturing, large utilities, and other commercial and industrial sectors as well as mission- critical organizations in local communities, such as hospitals, college campuses and retailers. Headquartered in Silicon Valley, Bloom Energy employs more than 2,000 people worldwide and manufactures its systems in the United States. For more information, visit BloomEnergy.com .
Investor Relations: Media: Michael Tierney Katja Gagen Bloom Energy Bloom Energy investor@bloomenergy.com press@bloomenergy.com
Assets September 30, December 31, Current assets: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 2,486,702 $ 2,454,108 equivalents1 Restricted cash 852 1,973 Accounts receivable, less allowance for credit losses of $2,998 and $460 as of 634,743 371,796 September 30, 2026 and December 31, 2025, respectively1 Contract assets 792,833 178,928 Inventories1 927,670 643,306 Deferred cost of 95,743 30,651 revenue Customer 90,967 — consideration asset Prepaid expenses and other current 178,244 49,805 assets1 Total current assets 5,207,754 3,730,567 Property, plant and 539,726 398,507 equipment, net1 Investments in unconsolidated 28,236 10,037 affiliates Operating lease 99,947 108,541 right-of-use assets1 Restricted cash 20,592 25,499 Contract assets 65,813 62,258 Deferred cost of 21,867 4,099 revenue Customer 215,533 — consideration asset Other long-term 372,115 57,203 assets1 Total assets $ 6,571,583 $ 4,396,711 Liabilities and stockholders’ equity Current liabilities: Accounts payable1 $ 493,033 $ 203,129 Accrued warranty 70,267 20,013 Accrued expenses and other current 479,782 222,254 liabilities1 Deferred revenue and 278,985 100,975 customer deposits Operating lease 24,022 22,000 liabilities1 Financing obligations 42,783 51,308 Non-recourse debt1 2,950 4,153 Total current 1,391,822 623,832 liabilities Deferred revenue and 475,395 42,840 customer deposits Operating lease 96,509 106,935 liabilities1 Financing obligations 142,212 192,460
September 30, December 31, 2026 2025 Recourse debt 2,473,499 2,613,726 Deferred profit in transactions with 20,062 13,928 unconsolidated affiliates Other long-term 8,974 10,027 liabilities Total liabilities $ 4,608,473 $ 3,603,748 Commitments and contingencies Stockholders’ equity: Common stock: 0.0001 par value; 600,000,000 shares authorized, and 295,537,217 shares and 280,045,459 shares 30 28 issued and outstanding, at September 30, 2026 and December 31, 2025, respectively2 Additional paid-in 5,403,998 4,755,965 capital Accumulated other -457 -369 comprehensive loss Accumulated deficit -3,470,694 -3,986,983 Total stockholders’ equity attributable 1,932,877 768,641 to common stockholders Noncontrolling 30,233 24,322 interest Total stockholders’ $ 1,963,110 $ 792,963 equity Total liabilities and stockholders’ $ 6,571,583 $ 4,396,711 equity
1 We have a variable interest entity related to a joint venture in the Republic of Korea, which represents a portion of the consolidated balances recorded within these financial statement line items.
2 On May 27, 2026, the Company filed with the Delaware Secretary of State a Certificate of Second Amendment to its Restated Certificate of Incorporation which (among other things) renamed its Class A common stock as common stock and eliminated outdated references to Class B common stock. Prior to such amendment, the Company had 470,092,742 shares of Class B common stock authorized, but as of December 31, 2025, no such shares were issued or outstanding. 7
Three Months Three Months Three Months Ended Ended September Ended June September 30, 2026 30, 2026 30, 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net income $ 248,976 $ 198,856 $ -22,960 (loss) Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: Depreciation and 13,805 13,746 12,800 amortization Non-cash lease 9,862 8,024 8,057 expense Equity in loss (earnings) of unconsolidated 2,897 -4,346 19,599 affiliates, net of distributions Stock-based compensation 57,209 52,217 37,255 expense Amortization of debt 3,180 3,372 1,814 issuance costs Net gain on failed -9,400 -4,122 — sale-and-leas… transactions Share-based consideration payable to -520 5,012 — customer’s customer Allowance for — 3,080 340 credit losses Inventory reserve and 3,143 — 21,846 assets impairment Unrealized foreign currency -1,083 -353 2,703 exchange (gain) loss Other12 792 869 407 Changes in operating assets and liabilities: Accounts -175,235 -101,372 54,223 receivable Contract -430,348 -122,964 -129,086 assets Inventories -170,401 -26,473 -36,562 Deferred cost -42,651 -47,168 4,310 of revenue Prepaid expenses and 3,894 -78,178 -4,673 other current assets Other long-term -178,028 -70,647 902 assets Operating lease right-of-use assets and -8,628 -8,545 -8,481 operating lease liabilities Financing lease 214 166 206 liabilities Accounts 184,664 63,460 23,385 payable Accrued -7,530 39,432 2,689 warranty Accrued expenses and 158,758 90,758 50,309 other current liabilities Deferred revenue and 309,333 211,693 -19,293 customer deposits Deferred profit with equity method investees and -50 -85 -121 other long-term liabilities Net cash (used in) provided -27,147 226,432 19,669 by operating activities Cash flows from investing activities: Purchase of property, -153,487 -51,641 -12,301 plant and equipment Proceeds from sale of property, 60 36 — plant and equipment Investments in unconsolidated -3,781 -2,948 -24,570 affiliates Net cash used in investing -157,208 -54,553 -36,871 activities Cash flows from financing activities: Repayment of — -1,347 — debt Repayment of financing -5,379 -3,844 -2,939 obligations Proceeds from issuance of 10,782 7,324 42,354 common stock Dividend paid — -925 — Other -37 18 — Net cash provided by 5,366 1,226 39,415 financing activities
Three Months Three Months Three Months Ended Ended September Ended June September 30, 2026 30, 2026 30, 2025 ────────────────────────────────────────────────────────────────────────────── Effect of exchange rate changes on cash, -1,373 -2,881 -1,245 cash equivalents, and restricted cash Net (decrease) increase in cash, cash -180,362 170,224 20,968 equivalents, and restricted cash Cash, cash equivalents, and restricted cash:
* These preliminary results are not a comprehensive statement of the Company’s financial results and should not be viewed as a substitute for full financial statements prepared in accordance with GAAP. 10
11 Reconciliation of GAAP Net Income (Loss) to non-GAAP Net Profit and Computation of non-GAAP Net Earnings per Share (EPS)
Q3'26 Q2'26 Q3'25 ────────────────────────────────────────────────────────────────────────────── Net Income (loss) to Common $ 250,271 $ 196,290 $ -23,093 Stockholders Non-GAAP adjustments: Add back: Net (loss) income attributable -1,295 2,566 133 to noncontrolling interest Stock-based compensation expense 60,109 56,402 38,153 Equity in loss (earnings) of 2,897 -4,346 19,599 unconsolidated affiliates Effect of Assets Buyout and -9,279 -4,243 — Repowering Restructuring 34 848 — (Gain) loss on derivative -10 539 411 liabilities Other 101 153 250 Adjusted Net Profit $ 302,828 $ 248,209 $ 35,453 Adjusted net earnings per share (EPS), $ 1.03 $ 0.86 $ 0.15 Basic Adjusted net earnings per share (EPS), $ 0.94 $ 0.78 $ 0.15 Diluted Weighted average shares outstanding attributable to common 294,757 287,288 234,931 stockholders, Basic Weighted-average shares outstanding attributable to common 324,289 323,331 312,479 stockholders, Diluted
To supplement Bloom Energy condensed consolidated financial statement information presented on a GAAP basis, Bloom Energy provides financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP net profit (non-GAAP net earnings), non-GAAP basic and diluted earnings per share and Adjusted EBITDA. Bloom Energy also provides forecasts of non-GAAP gross margin and non-GAAP operating margin. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States. • The GAAP measure most directly comparable to non-GAAP gross profit is gross profit.
• The GAAP measure most directly comparable to non-GAAP gross margin is gross margin.
• The GAAP measure most directly comparable to non-GAAP service gross margin is service gross margin.
• The GAAP measure most directly comparable to non-GAAP operating income (non- GAAP earnings from operations) is operating income (earnings from operations).
• The GAAP measure most directly comparable to non-GAAP operating margin is operating margin.
• The GAAP measure most directly comparable to non-GAAP net profit (non-GAAP net earnings) is net income (loss) to common stockholders (net earnings (loss)).
• The GAAP measure most directly comparable to non-GAAP diluted earnings per share is diluted earnings per share.
• The GAAP measure most directly comparable to Adjusted EBITDA is net income (loss).
Reconciliations of each of these non-GAAP financial measures to GAAP information are included in the tables above or elsewhere in the materials accompanying this news release.
Non-GAAP gross profit and non-GAAP gross margin, including non-GAAP service gross margin, are defined to exclude charges relating to stock-based compensation expense, restructuring charges, and other charges. Non-GAAP net profit (non-GAAP net earnings) and non-GAAP diluted earnings per share consist of net income (loss) to common stockholders or diluted net income (loss) per share excluding charges relating to net (loss) income attributable to noncontrolling interest, charges relating to stock-based 14 compensation expense, equity in loss (earnings) of unconsolidated affiliates, effects of Assets Buyout and Repowering, restructuring charges, (gain) loss on derivative liabilities, loss on extinguishment of debt, and other charges. Adjusted EBITDA is defined as net income (loss) before interest income (expense), income tax provision, depreciation and amortization expense, net (loss) income attributable to noncontrolling interest, equity in loss (earnings) of unconsolidated affiliates, charges relating to stock-based compensation expense, restructuring charges, and other charges. Bloom Energy management uses these non-GAAP financial measures for purposes of evaluating Bloom Energy’s historical and prospective financial performance, as well as Bloom Energy’s performance relative to its competitors. Bloom Energy believes that excluding the items mentioned above from these non-GAAP financial measures allows Bloom Energy management to better understand Bloom Energy’s consolidated financial performance as management does not believe that the excluded items are reflective of ongoing operating results. More specifically, Bloom Energy management excludes each of those items mentioned above for the following reasons:
• Net (loss) income attributable to noncontrolling interest represents allocation to the noncontrolling interests under the hypothetical liquidation at book value (“HLBV”) method and is associated with the joint venture in the Republic of Korea and the ventures between Brookfield Asset Management and the Company.
• Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. Although stock-based compensation is a key incentive offered to our employees, Bloom Energy excludes these charges for the purpose of calculating these non-GAAP measures, primarily because they are non-cash expenses and such an exclusion facilitates a more meaningful evaluation of Bloom Energy current operating performance and comparisons to Bloom Energy operating performance in other periods.
• Equity-method investment adjustment—include (i) elimination of intra‑entity profit on sales to joint ventures formed with Brookfield Asset Management—deferred and recognized over the assets’ depreciable lives—and (ii) the Company’s equity pickup of those joint ventures’ net results under HLBV method. Equity-method investment adjustments are excluded from non-GAAP financial measures because these generally are non-cash, represent non-operating activity during the period of adjustment, relate to activity in entities outside of the operational control of the Company, and excluding such expense/gain provides meaningful supplemental information regarding core operations.
• (Gain) loss on derivatives liabilities represents non-cash adjustments to the fair value of the embedded derivatives.
• Effects of Assets Buyout and Repowering represents net gain on failed sale- and-leaseback transactions due to termination of multiple Managed Services sites, consisting of loss on impairment of related fixed assets offset against gain on extinguishment of debt as a result of derecognition of respective financing obligations adjusted by cash paid for assets buyback.
• Other represents site termination costs, amortization of acquired intangible assets, and sales property tax.
• Adjusted EBITDA is defined as Adjusted Net Profit before depreciation and amortization expense, income tax provision, interest income (expense), other (income) expense, net. We use Adjusted EBITDA to measure the operating performance of our business, excluding specifically identified items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations. 15 For more information about these non-GAAP financial measures, please see the tables captioned “Reconciliation of GAAP to Non-GAAP Financial Measures,” “Reconciliation of GAAP Net Income (Loss) to non-GAAP Net Profit and Computation of non-GAAP Net Earnings per Share (EPS),” “Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA,” and “Reconciliation of GAAP to non-GAAP Gross Profit (Loss) and Margin” set forth in this release, which should be read together with the preceding financial statements prepared in accordance with GAAP.
These non-GAAP financial measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Bloom Energy results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are:
• Items such as stock-based compensation expense that is excluded from non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP net profit (non-GAAP net earnings), and non-GAAP diluted earnings per share can have a material impact on the equivalent GAAP earnings measure.
• Income attributable to noncontrolling interest and (gain) loss on derivatives liabilities, though not directly affecting Bloom Energy’s cash position, represent the (gain) loss in value of certain assets and liabilities. The expense associated with this (gain) loss in value is excluded from non-GAAP net earnings, and non-GAAP diluted earnings per share and can have a material impact on the equivalent GAAP earnings measure.
• Other companies may calculate non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP service gross margin, non-GAAP net profit (non-GAAP net earnings), non-GAAP diluted earnings per share and Adjusted EBITDA differently than Bloom Energy does, limiting the usefulness of those measures for comparative purposes.
Bloom Energy compensates for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only as a supplement. Bloom Energy also provides a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP measure within this press release and in other written materials that include these non- GAAP financial measures, and Bloom Energy encourages investors to review those reconciliations carefully.
Bloom Energy believes that providing financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP service gross margin, non-GAAP operating income (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP net profit (non-GAAP net earnings), non-GAAP diluted earnings per share in addition to the related GAAP measures provides investors with greater transparency to the information used by Bloom Energy management in its financial and operational decision making and allows investors to see Bloom Energy’s results “through the eyes” of management. Bloom Energy further believes that providing this information better enables Bloom Energy investors to understand Bloom Energy’s operating performance and to evaluate the efficacy of the methodology and information used by Bloom Energy management to evaluate and measure such performance. Disclosure of these non-GAAP financial measures also facilitates comparisons of Bloom Energy’s operating 16 performance with the performance of other companies in Bloom Energy’s industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner. 17
Full text with the tables
PRESS RELEASE
Bloom Energy Reports Record Third Quarter 2026 Financial Results and Raises Full
Year 2026 Guidance
• Achieved record quarterly revenue of $1,235.8 million, delivering 138.1% year-
over-year growth
• Raises full year 2026 revenue guidance to $4.4 billion - $4.6 billion,
representing 122% year-over-year growth at the midpoint
• Added to the S&P 500, marking an important milestone for Bloom Energy as a
public company
SAN JOSE, Calif.,
October 22, 2026—Bloom Energy Corporation (NYSE: BE) (“Bloom,” “Bloom Energy,”
“We,” or the “Company”) today reported its financial results for the third
quarter ended September 30, 2026.
Third Quarter 2026 Highlights
All comparisons are to the third quarter of 2025.
• Revenue of $1,235.8 million increased 138.1%. Product revenue of $1,073.6
million increased 179.4%.
• Gross margin of 33.8% increased 453 basis points. Non-GAAP gross margin of
34.5% increased 412 basis points.
• Operating income of $225.4 million increased $217.6 million. Non-GAAP
operating income of $285.7 million increased $239.4 million.
• EPS of $0.78 increased $0.88. Non-GAAP EPS of $0.94 increased $0.79.
KR Sridhar, Founder, Chairman and Chief Executive Officer of Bloom Energy, said,
“Electricity is the foundation of economic growth, human well-being and national
competitiveness. Today, the world is moving from a century-old model of
centralized power to a new architecture that includes firm, distributed onsite
generation. Bloom is leading that transformation. What began with hyperscalers
is rapidly moving across market segments because every business needs reliable
power to grow. We are building the electricity platform for the digital era:
power where it is needed, when it is needed, clean and always on.”
Simon Edwards, Chief Financial Officer of Bloom Energy, added, “Our third
quarter results reflect strong execution across the business, with significant
revenue growth and expanded operating margins. We continue to invest with
discipline to build the capabilities and capacity needed to scale the business.
Our year-to-date performance and customer demand give us confidence to raise our
2026 outlook for the third time this year.”
1
Summary of Key Financial Metrics
Summary of GAAP Financial Information
($000),
except
EPS data Q3'26 Q2'26 Q3'25
──────────────────────────────────────────────────────────────────────────────
Revenue $ 1,235,837 $ 1,065,3… $ 519,048
Cost of 818,733 709,793 367,373
Revenue
Gross 417,104 355,572 151,675
Profit
Gross 33.8 % 33.4 % 29.2 %
Margin
Operat… 191,655 173,335 143,829
Expens…
Operat… 225,449 182,237 7,846
Income
Operat… 18.2% 17.1% 1.5%
Margin
Non-op…
(Incom… -24,822 -14,053 30,939
Expens…
Net
Profit
(Loss) $ 250,271 $ 196,290 $ -23,093
to
Common
Stockh…
GAAP
EPS, $ 0.85 $ 0.68 $ -0.10
Basic
GAAP
EPS, $ 0.78 $ 0.62 $ -0.10
Diluted
Summary of Non-GAAP Financial Information
1
($000),
except
EPS data Q3'26 Q2'26 Q3'25
──────────────────────────────────────────────────────────────────────────────
Revenue $ 1,235,837 $ 1,065,3… $ 519,048
Cost of 809,621 700,002 361,410
Revenue
Gross 426,216 365,363 157,637
Profit
Gross 34.5 % 34.3 % 30.4 %
Margin
Operat… 140,525 125,721 111,389
Expens…
Operat… 285,691 239,642 46,249
Income
Operat… 23.1% 22.5% 8.9%
Margin
Adjust… $ 299,496 $ 253,388 $ 59,049
EBITDA
Non-GA…
EPS, $ 1.03 $ 0.86 $ 0.15
Basic
Non-GA…
EPS, $ 0.94 $ 0.78 $ 0.15
Diluted
1. A detailed reconciliation of GAAP to Non-GAAP financial measures is provided
at the end of this press release
2
Guidance
Bloom Energy is increasing its financial guidance for full-year 2026 as follows:
•Revenue: $4.4B - $4.6B
•Non-GAAP Gross Margin: ~34%
•Non-GAAP Operating Income: $960M - $1,030M
•Non-GAAP EPS: $3.10 - $3.40
Investor Conference Call/ Webcast Details
Bloom Energy will host a conference call today, October 22, 2026, at 2:00 p.m.
Pacific Time (5:00 p.m. Eastern Time) to discuss its financial results. To
participate in the live call, analysts and investors may call toll-free dial-in
number: +1 833-461-5787 and toll-dial-in-number +1 585 542 9983. The conference
ID is 713 024 124. A simultaneous live webcast will also be available under the
Investor Relations section on our website at https://investor.bloomenergy.com.
Following the webcast, an archived version will be available on Bloom Energy’s
website for one year. A telephonic replay of the conference call will be
available for one week following the call, by dialing +1 833 309 1852 or +1 929
828 5978 and entering passcode 713 024 124.
Additional Information and Where to Find It
The Investor Relations section of Bloom Energy’s website at
investor.bloomenergy.com contains a significant amount of information about
Bloom Energy, including financial and other information for investors. Bloom
Energy encourages investors to visit this website from time to time, as
information is updated and new information is posted. The information contained
on, or that may be accessed through Bloom Energy’s website is not incorporated
by reference into, and is not part of, this press release.
Forward-Looking Statements
This press release contains certain forward-looking statements relating to
future events and expectations, including with respect to changes in the
architecture to provide electricity to users, movement towards distributed
onsite generation, building the electricity platform in an evolving marketplace,
source of funding for investments to be made, and projections for our business
outlook for the 2026 fiscal year, each of which is based on current
expectations, estimates, and projections about our industry, management’s
beliefs, and certain assumptions made by management based on information
currently available to management at the time they are made. These forward-
looking statements are made pursuant to the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995 and relate to the Company’s
performance on a going forward basis.
Readers are cautioned that these forward-looking statements are only predictions
and may differ materially from actual results, performance, and/or trends. In
addition to general industry and global economic conditions, factors that could
cause actual results, performance, and/or trends to differ materially from those
discussed in the forward-looking statements made in this press release include,
but are not limited to: (1) the emerging nature of distributed energy generation
and rapidly evolving market trends; (2) the significant upfront costs of Bloom
Energy’s Energy Servers and Bloom Energy’s ability to secure financing for its
products; (3) Bloom Energy’s ability to drive cost reductions and to
successfully mitigate against potential price increases; (4) Bloom Energy’s
ability to service its existing debt obligations; (5) Bloom Energy’s ability to
be successful in new markets; (6) the risk of manufacturing defects; (7) the
accuracy of Bloom Energy’s estimates regarding the useful life of its Energy
Servers, (8)
3
delays in the development and introduction of new products or updates to
existing products; (9) supply constraints; (10) the availability of rebates, tax
credits and other tax benefits; (11) the impact of the Inflation Reduction Act
of 2022 and the One Big Beautiful Bill Act; (12) changes in the regulatory
landscape; (13) Bloom Energy’s lengthy sales and installation cycle,
construction, utility interconnection and other delays related to the
installation of its Energy Servers; (14) evolution of Bloom’s approach to
installation to a consult only model particularly for large load sites; (15)
business and economic conditions and growth trends in commercial and industrial
energy markets; (16) trade policies including tariffs; (17) the overall
electricity generation market; (18) our ability to increase production capacity
for our products in a timely and cost-effective manner; (19) any actual or
perceived slowdown in the adoption of AI resulting in a slower expansion of AI
data centers; (20) the availability of financing for data center developments,
(21) air permitting delays which affect the ability to finance the use of Energy
Servers for customers, (22) Bloom Energy’s ability to protect its intellectual
property; (23) the ability of current product and service backlog to ultimately
be recognizable as revenue; (24) commodity price volatility; (25) inflationary
pressures and/or (26) the risks relating to forward-looking statements and other
“Risk Factors” identified from time to time in our filings with the Securities
and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K
for the fiscal year ended December 31, 2025, and subsequently filed reports,
including on Form 10-Q, which filings are available from the SEC. Bloom Energy
assumes no obligation to, and does not currently intend to, update information
contained in these forward-looking statements, whether as a result of new
information, future events or developments, or otherwise.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures as defined in
the SEC rules. These non-GAAP financial measures are in addition to, and not a
substitute for or superior to, measures of financial performance prepared in
accordance with U.S. GAAP. Some numbers may not foot due to rounding. There are
a number of limitations related to the use of these non-GAAP financial measures
versus their nearest GAAP equivalents. For example, other companies may
calculate non-GAAP financial measures differently or may use other measures to
evaluate their performance, all of which could reduce the usefulness of our non-
GAAP financial measures as tools for comparison. As required by Regulation G, we
have provided reconciliations of our non-GAAP financial measures to the most
directly comparable U.S. GAAP financial measures set forth in this press
release. Bloom Energy urges you to review the reconciliations of its non-GAAP
financial measures to the most directly comparable U.S. GAAP financial measures
set forth in this press release, and not to rely on any single financial measure
to evaluate our business. With respect to Bloom Energy’s expectations regarding
its 2026 outlook, Bloom Energy is not able to provide a quantitative
reconciliation of non-GAAP gross margin, non-GAAP operating income, and non-GAAP
EPS measures to the corresponding GAAP measures without unreasonable efforts due
to the uncertainty regarding, and the potential variability of, reconciling
items such as stock-based compensation expense. The variability of these items
could significantly impact our future U.S. GAAP financial results and we believe
that any reconciliation provided would imply a degree of precision that could be
confusing or misleading to investors.
4
About Bloom Energy
Bloom Energy empowers enterprises to meet soaring energy demands and responsibly
take charge of their power needs. The company’s solid oxide fuel cell systems
provide ultra-resilient, highly scalable onsite electricity for Fortune 500
customers around the world, including data centers, semiconductor manufacturing,
large utilities, and other commercial and industrial sectors as well as mission-
critical organizations in local communities, such as hospitals, college campuses
and retailers. Headquartered in Silicon Valley, Bloom Energy employs more than
2,000 people worldwide and manufactures its systems in the United States. For
more information, visit BloomEnergy.com .
Investor Relations: Media:
Michael Tierney Katja Gagen
Bloom Energy Bloom Energy
investor@bloomenergy.com press@bloomenergy.com
5
Condensed Consolidated Balance Sheets *
(in thousands, except share data)
Assets September 30, December 31,
Current assets: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 2,486,702 $ 2,454,108
equivalents1
Restricted cash 852 1,973
Accounts receivable,
less allowance for
credit losses of
$2,998 and $460 as of 634,743 371,796
September 30, 2026
and December 31,
2025, respectively1
Contract assets 792,833 178,928
Inventories1 927,670 643,306
Deferred cost of 95,743 30,651
revenue
Customer 90,967 —
consideration asset
Prepaid expenses and
other current 178,244 49,805
assets1
Total current assets 5,207,754 3,730,567
Property, plant and 539,726 398,507
equipment, net1
Investments in
unconsolidated 28,236 10,037
affiliates
Operating lease 99,947 108,541
right-of-use assets1
Restricted cash 20,592 25,499
Contract assets 65,813 62,258
Deferred cost of 21,867 4,099
revenue
Customer 215,533 —
consideration asset
Other long-term 372,115 57,203
assets1
Total assets $ 6,571,583 $ 4,396,711
Liabilities and
stockholders’ equity
Current liabilities:
Accounts payable1 $ 493,033 $ 203,129
Accrued warranty 70,267 20,013
Accrued expenses and
other current 479,782 222,254
liabilities1
Deferred revenue and 278,985 100,975
customer deposits
Operating lease 24,022 22,000
liabilities1
Financing obligations 42,783 51,308
Non-recourse debt1 2,950 4,153
Total current 1,391,822 623,832
liabilities
Deferred revenue and 475,395 42,840
customer deposits
Operating lease 96,509 106,935
liabilities1
Financing obligations 142,212 192,460
6
September 30, December 31,
2026 2025
Recourse debt 2,473,499 2,613,726
Deferred profit in
transactions with 20,062 13,928
unconsolidated
affiliates
Other long-term 8,974 10,027
liabilities
Total liabilities $ 4,608,473 $ 3,603,748
Commitments and
contingencies
Stockholders’
equity:
Common stock:
0.0001 par value;
600,000,000 shares
authorized, and
295,537,217 shares
and
280,045,459 shares 30 28
issued and
outstanding, at
September 30, 2026
and
December 31, 2025,
respectively2
Additional paid-in 5,403,998 4,755,965
capital
Accumulated other -457 -369
comprehensive loss
Accumulated deficit -3,470,694 -3,986,983
Total stockholders’
equity attributable 1,932,877 768,641
to common
stockholders
Noncontrolling 30,233 24,322
interest
Total stockholders’ $ 1,963,110 $ 792,963
equity
Total liabilities
and stockholders’ $ 6,571,583 $ 4,396,711
equity
1 We have a variable interest entity related to a joint venture in the Republic
of Korea, which represents a portion of the consolidated balances recorded
within these financial statement line items.
2 On May 27, 2026, the Company filed with the Delaware Secretary of State a
Certificate of Second Amendment to its Restated Certificate of Incorporation
which (among other things) renamed its Class A common stock as common stock and
eliminated outdated references to Class B common stock. Prior to such amendment,
the Company had 470,092,742 shares of Class B common stock authorized, but as of
December 31, 2025, no such shares were issued or outstanding.
7
Condensed Consolidated Statements of Operations
*
(in thousands, except per share data)
Three Months
Three Months Three Months Ended
Ended September Ended June September
30, 2026 30, 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Revenue:
Product $ 1,073,610 $ 935,413 $ 384,314
Installation 84,855 50,978 65,773
Service 67,557 69,023 58,607
Electricity 9,815 9,951 10,354
Total revenue 1,235,837 1,065,365 519,048
Cost of
revenue:
Product 666,978 593,957 249,794
Installation 88,954 52,829 59,921
Service 55,508 56,148 51,834
Electricity 7,293 6,859 5,824
Total cost of 818,733 709,793 367,373
revenue
Gross profit 417,104 355,572 151,675
Operating
expenses:
Research and 64,146 58,873 48,724
development
Sales and 52,409 43,045 41,995
marketing
General and 75,100 71,417 53,110
administrative
Total
operating 191,655 173,335 143,829
expenses
Income from 225,449 182,237 7,846
operations
Interest 22,129 20,881 5,292
income
Interest -7,525 -8,906 -14,390
expense
Equity in
(loss)
earnings of -2,897 4,346 -19,599
unconsolidated
affiliates
Other income 12,627 2,307 -1,362
(expense), net
Gain (loss) on
revaluation of 10 -539 -411
embedded
derivatives
Profit (loss)
before income 249,793 200,326 -22,624
taxes
Income tax 817 1,470 336
provision
Net profit 248,976 198,856 -22,960
(loss)
Less: Net
(loss) income
attributable -1,295 2,566 133
to
noncontrolling
interest
Net income
(loss)
attributable $ 250,271 $ 196,290 $ -23,093
to common
stockholders
Net earnings
(loss) per
share
available
to common
stockholders:
Basic $ 0.85 $ 0.68 $ -0.10
Diluted $ 0.78 $ 0.62 $ -0.10
Weighted
average shares
used to
compute
net earnings
(loss) per
share
available
to common
stockholders:
Basic 294,757 287,288 234,931
Diluted 324,289 323,331 234,931
8
Condensed Consolidated Statement of Cash Flows *
(in thousands)
Three Months
Three Months Three Months Ended
Ended September Ended June September
30, 2026 30, 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows
from operating
activities:
Net income $ 248,976 $ 198,856 $ -22,960
(loss)
Adjustments to
reconcile net
income
(loss) to net
cash (used in)
provided by
operating
activities:
Depreciation
and 13,805 13,746 12,800
amortization
Non-cash lease 9,862 8,024 8,057
expense
Equity in loss
(earnings) of
unconsolidated 2,897 -4,346 19,599
affiliates,
net of
distributions
Stock-based
compensation 57,209 52,217 37,255
expense
Amortization
of debt 3,180 3,372 1,814
issuance costs
Net gain on
failed -9,400 -4,122 —
sale-and-leas…
transactions
Share-based
consideration
payable to -520 5,012 —
customer’s
customer
Allowance for — 3,080 340
credit losses
Inventory
reserve and 3,143 — 21,846
assets
impairment
Unrealized
foreign
currency -1,083 -353 2,703
exchange
(gain) loss
Other12 792 869 407
Changes in
operating
assets and
liabilities:
Accounts -175,235 -101,372 54,223
receivable
Contract -430,348 -122,964 -129,086
assets
Inventories -170,401 -26,473 -36,562
Deferred cost -42,651 -47,168 4,310
of revenue
Prepaid
expenses and 3,894 -78,178 -4,673
other current
assets
Other
long-term -178,028 -70,647 902
assets
Operating
lease
right-of-use
assets and -8,628 -8,545 -8,481
operating
lease
liabilities
Financing
lease 214 166 206
liabilities
Accounts 184,664 63,460 23,385
payable
Accrued -7,530 39,432 2,689
warranty
Accrued
expenses and 158,758 90,758 50,309
other current
liabilities
Deferred
revenue and 309,333 211,693 -19,293
customer
deposits
Deferred
profit with
equity method
investees and -50 -85 -121
other
long-term
liabilities
Net cash (used
in) provided -27,147 226,432 19,669
by operating
activities
Cash flows
from investing
activities:
Purchase of
property, -153,487 -51,641 -12,301
plant and
equipment
Proceeds from
sale of
property, 60 36 —
plant
and equipment
Investments in
unconsolidated -3,781 -2,948 -24,570
affiliates
Net cash used
in investing -157,208 -54,553 -36,871
activities
Cash flows
from financing
activities:
Repayment of — -1,347 —
debt
Repayment of
financing -5,379 -3,844 -2,939
obligations
Proceeds from
issuance of 10,782 7,324 42,354
common stock
Dividend paid — -925 —
Other -37 18 —
Net cash
provided by 5,366 1,226 39,415
financing
activities
9
Three Months
Three Months Three Months Ended
Ended September Ended June September
30, 2026 30, 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Effect of
exchange rate
changes on
cash, -1,373 -2,881 -1,245
cash
equivalents,
and restricted
cash
Net (decrease)
increase in
cash, cash -180,362 170,224 20,968
equivalents,
and restricted
cash
Cash, cash
equivalents,
and restricted
cash:
Beginning of 2,688,508 2,518,284 606,047
period
End of period $ 2,508,146 $ 2,688,508 $ 627,015
*
* These preliminary results are not a comprehensive statement of the Company’s
financial results and should not be viewed as a substitute for full financial
statements prepared in accordance with GAAP.
10
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
(in thousands, except percentages)
Q3'26 Q2'26 Q3'25
──────────────────────────────────────────────────────────────────────────────
GAAP revenue $ 1,235,837 $ 1,065,365 $ 519,048
GAAP cost of revenue 818,733 709,793 367,373
GAAP gross profit 417,104 355,572 151,675
Non-GAAP adjustments:
Stock-based compensation 9,048 9,675 5,719
expense
Restructuring — — 31
Other 64 116 213
Non-GAAP gross profit $ 426,216 $ 365,363 $ 157,637
GAAP gross margin % 33.8 % 33.4 % 29.2 %
Non-GAAP adjustments 0.7 % 0.9 % 1.1 %
Non-GAAP gross margin % 34.5 % 34.3 % 30.4 %
Q3'26 Q2'26 Q3'25
──────────────────────────────────────────────────────────────────────────────
GAAP operating income $ 225,449 $ 182,237 $ 7,846
Non-GAAP adjustments:
Stock-based compensation 60,109 56,402 38,153
expense
Restructuring 34 848 —
Other 101 153 250
Non-GAAP operating income $ 285,691 $ 239,642 $ 46,249
GAAP operating margin % 18.2 % 17.1 % 1.5 %
Non-GAAP adjustments 4.9 % 5.4 % 7.4 %
Non-GAAP operating margin % 23.1 % 22.5 % 8.9 %
11
Reconciliation of GAAP Net Income (Loss) to non-GAAP Net Profit and Computation
of non-GAAP Net Earnings per Share (EPS)
(unaudited)
(in thousands, except share data)
Q3'26 Q2'26 Q3'25
──────────────────────────────────────────────────────────────────────────────
Net Income (loss) to Common $ 250,271 $ 196,290 $ -23,093
Stockholders
Non-GAAP adjustments:
Add back: Net (loss) income
attributable -1,295 2,566 133
to noncontrolling interest
Stock-based compensation expense 60,109 56,402 38,153
Equity in loss (earnings) of 2,897 -4,346 19,599
unconsolidated affiliates
Effect of Assets Buyout and -9,279 -4,243 —
Repowering
Restructuring 34 848 —
(Gain) loss on derivative -10 539 411
liabilities
Other 101 153 250
Adjusted Net Profit $ 302,828 $ 248,209 $ 35,453
Adjusted net earnings per share
(EPS), $ 1.03 $ 0.86 $ 0.15
Basic
Adjusted net earnings per share
(EPS), $ 0.94 $ 0.78 $ 0.15
Diluted
Weighted average shares
outstanding
attributable to common 294,757 287,288 234,931
stockholders,
Basic
Weighted-average shares
outstanding
attributable to common 324,289 323,331 312,479
stockholders,
Diluted
12
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
(unaudited)
(in thousands)
Q3'26 Q2'26 Q3'25
──────────────────────────────────────────────────────────────────────────────
Net Income (loss) to Common $ 250,271 $ 196,290 $ -23,093
Stockholders
Add back: Net (loss) income
attributable -1,295 2,566 133
to noncontrolling interest
Stock-based compensation expense 60,109 56,402 38,153
Equity in loss (earnings) of 2,897 -4,346 19,599
unconsolidated affiliates
Effect of Assets Buyout and -9,279 -4,243 —
Repowering
Restructuring 34 848 —
(Gain) loss on derivative -10 539 411
liabilities
Other 101 153 250
Adjusted Net Profit 302,828 248,209 35,453
Depreciation & amortization 13,805 13,746 12,800
Income tax provision 817 1,470 336
Interest expense, Other (income) -17,952 -10,039 10,460
expense, net
Adjusted EBITDA $ 299,496 $ 253,388 $ 59,049
Reconciliation of GAAP to non-GAAP Gross Profit (Loss) and Margin
(unaudited)
(in thousands, except percentages)
GA… No… No…
gr… St… Ot… gr… GA… gr…
pr… co… No… pr… Gr… ma…
Re… (l… ex… Q3… ad… (l… Ma… %
──────────────────────────────────────────────────────────────────────────────
P… $ 1,… $ 40… $ 5,… $ 2 $ 41… 37… % 38… %
I… 84… -4… 1,… — -3… -4… % -3… %
S… 67… 12… 2,… 63 14… 17… % 21… %
E… 9,… 2,… — — 2,… 25… % 25… %
T… $ 1,… $ 41… $ 9,… $ 64 $ 42… 33… % 34… %
GA… No… No…
gr… St… Ot… gr… GA… gr…
pr… co… No… pr… Gr… ma…
Re… (l… ex… Q2… ad… (l… Ma… %
──────────────────────────────────────────────────────────────────────────────
P… $ 93… $ 34… $ 6,… $ — $ 34… 36… % 37… %
I… 50… -1… 1,… 1 -7… -3… % -1… %
S… 69… 12… 2,… 116 15… 18… % 22… %
E… 9,… 3,… — -1 3,… 31… % 31… %
T… $ 1,… $ 35… $ 9,… $ 116 $ 36… 33… % 34… %
13
No…
GA… St… Ot… No… GA… gr…
gr… co… No… gr… Gr… ma…
Re… pr… ex… Q3… ad… pr… Ma… %
──────────────────────────────────────────────────────────────────────────────
P… $ 38… $ 13… $ 3,… $ 30 $ 13… 35… % 35… %
I… 65… 5,… 752 1 6,… 8.9 % 10… %
S… 58… 6,… 1,… 213 8,… 11… % 14… %
E… 10… 4,… — — 4,… 43… % 43… %
T… $ 51… $ 15… $ 5,… $ 244 $ 15… 29… % 30… %
Use of non-GAAP financial measures
To supplement Bloom Energy condensed consolidated financial statement
information presented on a GAAP basis, Bloom Energy provides financial measures
including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating
income (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP
net profit (non-GAAP net earnings), non-GAAP basic and diluted earnings per
share and Adjusted EBITDA. Bloom Energy also provides forecasts of non-GAAP
gross margin and non-GAAP operating margin.
These non-GAAP financial measures are not computed in accordance with, or as an
alternative to, GAAP in the United States.
• The GAAP measure most directly comparable to non-GAAP gross profit is gross
profit.
• The GAAP measure most directly comparable to non-GAAP gross margin is gross
margin.
• The GAAP measure most directly comparable to non-GAAP service gross margin is
service gross margin.
• The GAAP measure most directly comparable to non-GAAP operating income (non-
GAAP earnings from operations) is operating income (earnings from operations).
• The GAAP measure most directly comparable to non-GAAP operating margin is
operating margin.
• The GAAP measure most directly comparable to non-GAAP net profit (non-GAAP net
earnings) is net income (loss) to common stockholders (net earnings (loss)).
• The GAAP measure most directly comparable to non-GAAP diluted earnings per
share is diluted earnings per share.
• The GAAP measure most directly comparable to Adjusted EBITDA is net income
(loss).
Reconciliations of each of these non-GAAP financial measures to GAAP information
are included in the tables above or elsewhere in the materials accompanying this
news release.
Use and economic substance of non-GAAP financial measures used by Bloom Energy
Non-GAAP gross profit and non-GAAP gross margin, including non-GAAP service
gross margin, are defined to exclude charges relating to stock-based
compensation expense, restructuring charges, and other charges. Non-GAAP net
profit (non-GAAP net earnings) and non-GAAP diluted earnings per share consist
of net income (loss) to common stockholders or diluted net income (loss) per
share excluding charges relating to net (loss) income attributable to
noncontrolling interest, charges relating to stock-based
14
compensation expense, equity in loss (earnings) of unconsolidated affiliates,
effects of Assets Buyout and Repowering, restructuring charges, (gain) loss on
derivative liabilities, loss on extinguishment of debt, and other charges.
Adjusted EBITDA is defined as net income (loss) before interest income
(expense), income tax provision, depreciation and amortization expense, net
(loss) income attributable to noncontrolling interest, equity in loss (earnings)
of unconsolidated affiliates, charges relating to stock-based compensation
expense, restructuring charges, and other charges. Bloom Energy management uses
these non-GAAP financial measures for purposes of evaluating Bloom Energy’s
historical and prospective financial performance, as well as Bloom Energy’s
performance relative to its competitors. Bloom Energy believes that excluding
the items mentioned above from these non-GAAP financial measures allows Bloom
Energy management to better understand Bloom Energy’s consolidated financial
performance as management does not believe that the excluded items are
reflective of ongoing operating results. More specifically, Bloom Energy
management excludes each of those items mentioned above for the following
reasons:
• Net (loss) income attributable to noncontrolling interest represents
allocation to the noncontrolling interests under the hypothetical liquidation at
book value (“HLBV”) method and is associated with the joint venture in the
Republic of Korea and the ventures between Brookfield Asset Management and the
Company.
• Stock-based compensation expense consists of equity awards granted based on
the estimated fair value of those awards at grant date. Although stock-based
compensation is a key incentive offered to our employees, Bloom Energy excludes
these charges for the purpose of calculating these non-GAAP measures, primarily
because they are non-cash expenses and such an exclusion facilitates a more
meaningful evaluation of Bloom Energy current operating performance and
comparisons to Bloom Energy operating performance in other periods.
• Equity-method investment adjustment—include (i) elimination of intra‑entity
profit on sales to joint ventures formed with Brookfield Asset
Management—deferred and recognized over the assets’ depreciable lives—and (ii)
the Company’s equity pickup of those joint ventures’ net results under HLBV
method. Equity-method investment adjustments are excluded from non-GAAP
financial measures because these generally are non-cash, represent non-operating
activity during the period of adjustment, relate to activity in entities outside
of the operational control of the Company, and excluding such expense/gain
provides meaningful supplemental information regarding core operations.
• (Gain) loss on derivatives liabilities represents non-cash adjustments to the
fair value of the embedded derivatives.
• Restructuring charges are represented by severance expense and other costs.
• Effects of Assets Buyout and Repowering represents net gain on failed sale-
and-leaseback transactions due to termination of multiple Managed Services
sites, consisting of loss on impairment of related fixed assets offset against
gain on extinguishment of debt as a result of derecognition of respective
financing obligations adjusted by cash paid for assets buyback.
• Other represents site termination costs, amortization of acquired intangible
assets, and sales property tax.
• Adjusted EBITDA is defined as Adjusted Net Profit before depreciation and
amortization expense, income tax provision, interest income (expense), other
(income) expense, net. We use Adjusted EBITDA to measure the operating
performance of our business, excluding specifically identified items that we do
not believe directly reflect our core operations and may not be indicative of
our recurring operations.
15
For more information about these non-GAAP financial measures, please see the
tables captioned “Reconciliation of GAAP to Non-GAAP Financial Measures,”
“Reconciliation of GAAP Net Income (Loss) to non-GAAP Net Profit and Computation
of non-GAAP Net Earnings per Share (EPS),” “Reconciliation of GAAP Net Income
(Loss) to Adjusted EBITDA,” and “Reconciliation of GAAP to non-GAAP Gross Profit
(Loss) and Margin” set forth in this release, which should be read together with
the preceding financial statements prepared in accordance with GAAP.
Material limitations associated with use of non-GAAP financial measures
These non-GAAP financial measures have limitations as analytical tools, and
these measures should not be considered in isolation or as a substitute for
analysis of Bloom Energy results as reported under GAAP. Some of the limitations
in relying on these non-GAAP financial measures are:
• Items such as stock-based compensation expense that is excluded from non-GAAP
gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP
operating income (non-GAAP earnings from operations), non-GAAP operating margin,
non-GAAP net profit (non-GAAP net earnings), and non-GAAP diluted earnings per
share can have a material impact on the equivalent GAAP earnings measure.
• Income attributable to noncontrolling interest and (gain) loss on derivatives
liabilities, though not directly affecting Bloom Energy’s cash position,
represent the (gain) loss in value of certain assets and liabilities. The
expense associated with this (gain) loss in value is excluded from non-GAAP net
earnings, and non-GAAP diluted earnings per share and can have a material impact
on the equivalent GAAP earnings measure.
• Other companies may calculate non-GAAP gross profit, non-GAAP gross profit
margin, non-GAAP operating profit (non-GAAP earnings from operations), non-GAAP
operating margin, non-GAAP service gross margin, non-GAAP net profit (non-GAAP
net earnings), non-GAAP diluted earnings per share and Adjusted EBITDA
differently than Bloom Energy does, limiting the usefulness of those measures
for comparative purposes.
Compensation for limitations associated with use of non-GAAP financial measures
Bloom Energy compensates for the limitations on its use of non-GAAP financial
measures by relying primarily on its GAAP results and using non-GAAP financial
measures only as a supplement. Bloom Energy also provides a reconciliation of
each non-GAAP financial measure to its most directly comparable GAAP measure
within this press release and in other written materials that include these non-
GAAP financial measures, and Bloom Energy encourages investors to review those
reconciliations carefully.
Usefulness of non-GAAP financial measures to investors
Bloom Energy believes that providing financial measures including non-GAAP gross
profit, non-GAAP gross margin, non-GAAP service gross margin, non-GAAP operating
income (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP
net profit (non-GAAP net earnings), non-GAAP diluted earnings per share in
addition to the related GAAP measures provides investors with greater
transparency to the information used by Bloom Energy management in its financial
and operational decision making and allows investors to see Bloom Energy’s
results “through the eyes” of management. Bloom Energy further believes that
providing this information better enables Bloom Energy investors to understand
Bloom Energy’s operating performance and to evaluate the efficacy of the
methodology and information used by Bloom Energy management to evaluate and
measure such performance. Disclosure of these non-GAAP financial measures also
facilitates comparisons of Bloom Energy’s operating
16
performance with the performance of other companies in Bloom Energy’s industry
that supplement their GAAP results with non-GAAP financial measures that may be
calculated in a similar manner.
17