Plug Power [PLUG] is a US-based company building an end-to-end green hydrogen ecosystem, from electrolyzers and liquefiers, to fuel cells and hydrogen fuel supply.
The company’s hydrogen fuel cells power material-handling forklifts at Amazon’s [AMZN] and Walmart’s [WMT] distribution and fulfillment centers. Its electrolyzers allow energy clients to readily convert water into hydrogen fuel.
Over the last five years, Plug Power shareholders have had a tough time, having seen PLUG stock price lose over 90% of its value.
More recently, Plug has gained attention for positioning its hydrogen systems as clean, on-site power solutions for artificial intelligence (AI) and cloud data centers, which are expected to drive global energy demand growth over the next decade. Is it time to buy PLUG?
Debt Restructuring and AI Push
Plug Power is in turnaround mode, with management focused on cutting debt and tightening operations, even at the cost of near-term growth.
That shift took formal shape in March 2025 with “Project Quantum Leap,” a restructuring effort aimed at improving margins and reducing cash burn. The plan included headcount reductions, lower discretionary spending and scaled-back capital expenditures, with management targeting $150m to $200m in annual cost savings.
Early signs of progress are visible. In the first nine months of 2025, the company lowered its net cash used in operating activities by over 35%, to $387.19m from $597.40m reported in the same period a year ago.
To maintain liquidity, the company has frequently tapped into capital markets. It raised about $983m in 2024 via at-the-market issuance and a convertible debenture. In April 2025, Plug also entered into a deal with investment manager Yorkville Advisors to issue up to $525m in secured debentures.
In November 2025, the company raised $375m through convertible notes, which was used to retire high-cost 15% debt, refinance convertible notes due in 2026, and eliminate first lien previously held by a former debt provider.
Shareholder dilution concerns have grown after Plug asked investors to approve an increase in authorized common stock from 1.5 billion to 3 billion shares by January 2026. In mid-November, management announced that fewer than 0.4% of authorized shares remain available, warning that a rejection could limit Plug’s ability to raise equity or execute strategic transactions.
Looking for long-term growth, Plug is directing capital toward higher-return opportunities, with AI-driven power demand emerging as a key focus. In November 2025, the company announced plans to monetize electricity rights in New York and another location through a partnership with a US-based data center developer.
The unnamed partner is expanding its data center platforms across the country, with Plug expected to provide auxiliary and back-up power solutions to its operations. Plug hopes to generate more than $275m from the deal.
PLUG Stock Rebounds After Extended Slump
PLUG has experienced substantial share-price volatility over time, as persistent liquidity risks have overshadowed its decarbonization narrative and energy-growth outlook.
Shares of Plug Power are up about 150% in the last six months, as of the November 26 close, buoyed by a multi-year liquid hydrogen supply agreement signed with a US-based industrial gas company through 2030. Meanwhile, record monthly production of 324 metric tons of green hydrogen in August at its Georgia plant also boosted investor appetite.
However, those gains were not enough to see PLUG through to year-to-date gains in 2025 as liquidity and debt concerns pulled the stock back in November, after the company issued new debt to pay down higher-interest obligations.
At the time of writing, PLUG’s stock was down 7% year-to-date.
PLUG stock has lost about 92% of its value over the last five years.
Poor Revenue Growth, Unprofitable Business and Ballooning Debt
Plug Power is battling on three fronts: negative revenue growth, continued losses and ballooning debt.
In 2024, the company reported a 29% drop in full year net revenue to $628.81m from $891.34m in 2023, and lower than the $701.44m earned in 2022.
Revenue from equipment and infrastructure sales, which accounted for 62% of revenue in 2024, dropped 45% year-over-year to $390.33m as fewer fuel-cell systems, liquefiers and hydrogen site installations were delivered in a slower-than-expected hydrogen rollout.
Walmart was Plug’s biggest customer, accounting for 16.6% of full year revenue in 2024.
The company remains unprofitable, with net losses of $2.10bn, $1.37bn and $724m reported in 2024, 2023 and 2022, respectively. At the end of September 2025, Plug had an accumulated deficit of $7.38bn.
Plug’s total debt stood at $991.43m at the end of Q3 2025, TradingView data showed, compared to $928.63m a year ago.
Here is a table comparing Plug’s valuation and growth metrics against advanced fuel cell technology rivals Bloom Energy [BE] and Ballard Power [BLDP].
| PLUG | BE | BLDP |
Market Cap | $2.76bn | $23.92bn | $835.88m |
P/S Ratio | 3.03 | 12.88 | 9.24 |
Estimated Sales Growth (Current Fiscal Year) | 11.62% | 28.59% | 38.45% |
Estimated Sales Growth (Next Fiscal Year) | 21.74% | 29.11% | 18.85% |
Source: Yahoo Finance
PLUG Stock: The Investment Case
The Bull Case for Plug: Clean Energy to Power AI
Plug is a play on hydrogen’s role in powering AI-era infrastructure and providing low-carbon energy to hard-to-decarbonize industries such as heavy-duty transportation, heavy manufacturing, stationary power generation and aviation.
AI and cloud data centers are driving a surge in electricity demand, with Gartner forecasts suggesting global data center power needs could double between 2025 and 2030, pressuring grids and forcing operators to seek on-site, low-carbon power solutions.
Green hydrogen fuel technology got a major vote of confidence in October 2025 when investment firm Brookfield committed to invest up to $5bn to deploy rival Bloom’s advanced fuel cell technology at AI data centers globally.
The Bear Case for Plug: Policy Risk Adds to Financial Woes
Plug’s poor financial track record — marked by years of negative gross margins, cumulative losses and reliance on equity and convertible debt — overshadows its AI-infrastructure growth potential.
Shareholder dilution remains a major issue, with management in November 2025 proposing an increase in authorized common stock from 1.5 billion to 3 billion shares to preserve future funding flexibility.
Political headwinds add further pressure. The Trump administration’s “Unleashing American Energy” order paused clean energy funding and has put Plug’s previously announced Biden-era Department of Energy loan package, worth up to $1.66bn for six clean hydrogen plants, at risk.
Conclusion
Rising demand for clean power to support AI data centers has given Plug Power renewed visibility as a potential beneficiary of the AI infrastructure boom. But its heavy reliance on external financing, inconsistent revenue growth and long history of losses make it a high-risk investment. The company trades at a discount to peers on a price-to-sales basis, yet that lower valuation likely reflects the execution, liquidity and policy risks at play.
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