Shareholder Vote Looms as Plug Power Navigates Financial Crossroads

While operational metrics show signs of improvement, shares of hydrogen technology firm Plug Power continue to face significant downward pressure. The stock has declined in seven of the last ten trading sessions, shedding over 12 percent of its value. A further 5 percent drop occurred on Monday, absent any specific company news. Investor attention is now firmly fixed on a late-January shareholder vote that will determine the company's future financing strategy.

Contrasting the weak share price performance, Plug Power's underlying business is demonstrating progress. The company's third-quarter 2025 results surpassed analyst expectations, with revenue reaching $177 million. Its loss per share came in at $0.12, which was narrower than anticipated. Perhaps more importantly, operational cash outflow showed a substantial sequential improvement, declining by 53 percent to approximately $90 million.

A key bright spot is the electrolyzer business unit, which is gaining momentum:
* Revenue for the segment grew 46 percent sequentially to $65 million.
* The full-year forecast for electrolyzer sales stands at around $200 million, representing a 33 percent increase over the prior year.
* The company reports a project pipeline totaling 230 megawatts across active developments in North America, Australia, and Europe.

Should investors sell immediately? Or is it worth buying Plug Power?

Full-Year Target Hinges on Strong Finish

For the entire 2025 fiscal year, Plug Power's revenue target is approximately $700 million. With $485 million generated through the first nine months, the company must achieve about $215 million in sales during the fourth quarter to meet its goal. Recent contract wins, including an agreement with NASA worth up to $2.8 million and a 55-megawatt deal with Carlton Power in the UK, are expected to contribute to this crucial quarter-end push.

Profitability Remains a Future Goal

Plug Power is not yet profitable. For the first nine months of 2025, it recorded a net loss of $789 million against revenues of $485 million. Management's guidance indicates that a positive gross margin is not expected until the end of 2025, with positive EBITDA projected for the second half of 2026. The cost-reduction initiative, dubbed "Project Quantum Leap," is designed to generate annual savings of $150 to $200 million. In November, the company bolstered its balance sheet by securing $399 million in fresh capital, which included $375 million from convertible notes.

Dilution Risk on the Ballot

A critical decision awaits shareholders on January 29, 2026. They will vote on a proposal to double the number of authorized common shares from 1.5 billion to 3.0 billion. The company's management has framed this increase as essential for facilitating future capital-raising activities, noting that less than 0.4 percent of the currently authorized shares remain unissued. For existing investors, approval of the measure carries a substantial risk of share dilution. The original meeting date of January 15 was postponed to provide investors with additional time to recall loaned shares and participate in the vote.