Plug Power Continues to Struggle with Margin Issues: Is a Turnaround Possible?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Source: NASDAQ.COM
Plug Power's Financial Struggles: Plug Power Inc. continues to face significant margin challenges, with its gross margin worsening from negative 57.6% to negative 67.9% year-over-year, resulting in a gross loss of $120 million in Q3 2025.
Impairment Charges and Asset Write-Downs: The company incurred over $97 million in impairment charges due to project execution issues and customer disputes, leading to reductions in the value of various assets.
Long-Term Recovery Plans: Despite ongoing difficulties, Plug Power is focused on long-term recovery by reducing input costs, tightening spending, and expanding its electrolyzer capacity and hydrogen plant development.
Comparative Industry Performance: While Plug Power's shares have only gained 1.4% year-to-date, peers like Bloom Energy have seen significant gross profit increases, highlighting the competitive challenges Plug Power faces in the industry.
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Analyst Views on PLUG
Wall Street analysts forecast PLUG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLUG is 2.46 USD with a low forecast of 0.75 USD and a high forecast of 7.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
4 Buy
8 Hold
3 Sell
Hold
Current: 2.340
Low
0.75
Averages
2.46
High
7.00
Current: 2.340
Low
0.75
Averages
2.46
High
7.00
About PLUG
Plug Power Inc. is engaged in offering end-to-end green hydrogen ecosystem, from production, storage, and delivery to energy generation, to help its customers meet their business goals. The Company develops commercially viable hydrogen and fuel cell product solutions. It provides electrolyzers that allow customers, such as refineries, producers of chemicals, steel, fertilizer and commercial refueling stations, to generate hydrogen on-site. It focuses on industrial mobility applications, including electric forklifts and electric industrial vehicles, at multi-shift high volume manufacturing and high throughput distribution sites and environmental benefits; stationary power systems that supports critical operations, such as data centers, microgrids and generation facilities, in either a backup power or continuous power role and replace batteries, diesel generators or the grid for telecommunication logistics, transportation, and utility customers; and production of hydrogen.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Plug Power Adjourns Special Stockholder Meeting to Increase Vote Participation
- Voting Status: As of the Special Meeting date, Proposals 1 and 2 received approximately 92.63% and 89.09% support respectively, yet only about 36.93% and 46.86% of shares were represented, indicating insufficient shareholder participation that could hinder proposal approval.
- Approval Requirements: The company estimates that an additional 13.07% of shares are needed to support Proposal 1 and an additional 3.14% for Proposal 2; if Proposal 2 fails, the company will proceed with a reverse stock split to increase its authorized common stock.
- CEO's Call for Participation: CEO Andy Marsh noted that if just over half of the shares currently voted against Proposal 2 had instead voted in favor, it would have passed, highlighting the importance of shareholder feedback and encouraging reconsideration of votes.
- Importance of Voting: The company urges all eligible shareholders to vote promptly to ensure their views are represented, emphasizing that every vote is crucial, particularly for those who previously voted 'no' or abstained to reconsider their choices.
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Plug Power Faces Short-Term Financial Risks Amid Long-Term Hydrogen Potential
- Key Shareholder Vote: A crucial shareholder vote for Plug Power will determine the company's strategic direction, potentially impacting its competitiveness in the hydrogen market, especially given its current financial risks.
- Improving Execution: The management is enhancing execution capabilities, and if effectively implemented, this could help reduce financial losses and boost investor confidence, leading to a potential stock price recovery.
- Loss Reduction Efforts: Plug Power is actively working to shrink its short-term losses, and if successful, this will lay the groundwork for future growth and may attract more investor interest.
- Significant Hydrogen Potential: Despite facing short-term challenges, Plug Power's long-term potential in the hydrogen sector remains promising, and if management can effectively navigate current risks, a significant business turnaround could be achieved.
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