Plug Power finds itself in an unusual position: the hydrogen company is posting genuine operational progress while simultaneously stripping its balance sheet for cash. The market, however, remains deeply skeptical, demanding proof that the two narratives can converge into sustainable profitability.
The most recent cash-raising move came from an unexpected source. Plug Power sold tax credits worth roughly $39 million that were generated at a Louisiana hydrogen plant operated jointly with Olin Corporation. This followed a similar transaction in January 2025 that netted about $30 million, and the company has already flagged further sales for the first quarter of 2026. Together with a planned sale of the Gateway project to Stream Data Centers—a deal that could bring in as much as $142 million when the deadline expires on June 30—management aims to unlock more than $275 million in total cash from infrastructure and credit disposals.
These efforts are funding a business that is beginning to show operational teeth. In Denmark, a five-megawatt electrolyzer is now pumping out hydrogen, a milestone CEO Jose Luis Crespo described as evidence the company is shifting from one-off projects to scalable contracts. That claim is supported by a massive order from Canada: Plug Power will design a 275-megawatt system for Hy2gen Canada to produce decarbonised ammonium nitrate, one of the largest contracts in the company’s history.
The financial picture is similarly mixed. Revenue jumped 22% in the first quarter to nearly $164 million, while gross margins improved by a staggering 42 percentage points. For the fourth quarter of 2025, Plug even reported a positive gross profit for the first time—a sign that the core fuel-cell business may be nearing viability. Cash burn has been halved year-over-year, yet it still stands at $150 million per quarter, leaving current reserves sufficient for only about four and a half months.
Should investors sell immediately? Or is it worth buying Plug Power?
The stock market has absorbed this conflicting data with extreme volatility. Shares currently trade around €2.33, having shed roughly a third of their value over the past month. Over a 12-month horizon, however, the stock is still up nearly 97%, illustrating the wild swings that have produced an annualised volatility of 65%. Short interest remains elevated at 25.5%, representing almost 340 million shares sold short, while the RSI at 40.8 suggests little upward momentum.
Both bulls and bears can point to supporting evidence. Optimists note the consensus price target of €3.18, implying upside of roughly 35% from current levels, and argue that operational wins—like the Danish and Canadian projects—are shifting the narrative from cash-burning lab to commercial-scale producer. The company’s goal of reaching positive adjusted EBITDA by the fourth quarter of 2026, reaffirmed by Crespo in May, provides a tangible deadline.
Sceptics counter that Plug Power remains a desperate story of financial engineering. The company is generating cash faster by selling assets and tax credits than by running its core business. With quarterly cash burn still massive, any delay in closing the Gateway deal or other sales could quickly drain remaining reserves. The stock already sits just above its 100-day moving average of €2.38, a level that acted as support but is now wobbling. A break below that could trigger fresh selling pressure.
The next major catalyst will be the second-quarter earnings report due in the coming months. That release must show whether the profitability target for late 2026 remains within reach and whether the promised cash inflows are arriving on schedule. If the numbers confirm momentum, the gap to the 52-week high of €3.72 may begin to narrow. If not, Plug Power’s carefully constructed turnaround plan could unravel faster than any tax credit sale can patch.
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