After-hours surge! Bloom Energy (BE.US) turned its Q3 losses into profits compared to the previous year, with revenue and profits both exceeding expectations.

The power generation and hydrogen production company Bloom Energy (BE.US) announced its performance for the third quarter of the 2025 fiscal year, with revenue exceeding market expectations, increasing by 57.1% year-on-year to reach $519 million. Its non-GAAP earnings per share were $0.15, higher than analysts' general expectation of $0.10. Adjusted EBITDA was $59.05 million, while analysts expected $46.02 million. The operating profit margin was 1.5%, an increase from -2.9% in the same period last year. Free cash flow was $7.37 million, an increase from -$83.76 million in the same period last year. Bloom Energy has been operating in a steady mode for eight years, designing, manufacturing, and selling solid oxide fuel cell systems for on-site power generation. Fortunately, Bloom Energy has achieved an annualized revenue growth rate of 19.1% over the past five years. Its growth rate exceeds the average level of most industrial companies, indicating that its products are highly favored by customers. The company successfully exceeded analysts' expectations in revenue, EBITDA, and earnings per share for this quarter. From a more macro perspective, analysts believe that this performance was exceptional and there is some room for improvement to be optimistic. Following the announcement of its performance, the company's stock price surged 18.47% after hours, reaching $134.20 at press time. Long-term growth is the most important factor, but in the industrial sector, looking only at the past five years may lead to missing out on new industry trends or demand cycles. Bloom Energy's annualized revenue growth rate over the past two years has been 12.4%, lower than its five-year average growth trend, but analysts still believe these results indicate a healthy demand. Bloom Energy's recent performance indicates that it is one of the better-performing renewable energy companies, as many peers are facing declining sales due to cyclical unfavorable factors. Analyzing the company's two most important business segments - products and services, can provide a clearer understanding of its revenue situation. These two businesses account for 74% and 11.3% of total revenue respectively. In the past two years, Bloom Energy's product business revenue (energy servers and electrolyzers) has grown at an annual rate of 18.5%, while service business revenue (operating and maintenance agreements) has grown at an annual rate of 14.7%. Looking ahead, sell-side analysts predict a 12.6% growth in revenue over the next 12 months, close to the growth rate of the past two years. This forecast is optimistic, indicating that the market expects success for its products and services. Although Bloom Energy achieved profitability in the third quarter operationally, over a longer time span, it has not been performing well. Its high cost structure has resulted in an average operating profit margin of negative 9% over the past five years. Industrial companies that operate at a loss need to be especially cautious, as they may face unprepared challenges once market conditions reverse. However, on the positive side, Bloom Energy's operating profit margin has improved by 17 percentage points over the past five years, thanks to the operating leverage effect brought about by its sales growth. Nonetheless, the company still needs to do more work to achieve sustained profitability. In the third quarter, Bloom Energy's operating profit margin reached 1.5%, an increase of 4.4 percentage points from the same period last year. As the growth rate of its gross profit margin exceeds that of the operating profit margin, it can be inferred that the leverage effect of its sales costs is the main reason for the recent efficiency improvements. Revenue trends can indicate a company's past growth, but the long-term changes in earnings per share (EPS) reflect the profitability of this growth - for example, a company may inflate its sales by overspending on advertising and promotions. Bloom Energy's EPS has turned positive from negative values over the past five years. This is a good sign indicating that the company is at a turning point. Bloom Energy's earnings per share has grown at an astonishing compound annual growth rate of 386% over the past two years, a growth rate higher than its 12.4% annualized revenue growth rate. This indicates that as the business expands, the company's earnings per share level is increasing. Bloom Energy's operating profit margin has also improved over the past two years. In the third quarter, Bloom Energy's adjusted earnings per share were $0.15, higher than the previous year's -$0.01. This data easily exceeded analysts' expectations. Over the next 12 months, Wall Street expects Bloom Energy's full-year EPS to reach $0.71, a 2.5% increase.