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Bloom Energy Corp: revenue up 2.4-fold, but free cash flow turned negative

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Bloom Energy Corp

On 22 October, Bloom Energy Corp released its third-quarter 2026 results. Revenue reached $1,231.0 million, up 137.2% year on year, EBITDA came in at $239.3 million with a margin of 19.4% versus 4.0% a year earlier, and net profit was $249.0 million. However, operating cash flow was negative at -$27.1 million, and capital expenditure rose to $153.5 million. Our conclusion: rather unattractive – on the portal's model, the upside to fair value is -13%. Our view: the share is rather unattractive at the current price; upside on the portal model -13%.

Our view: is there upside

Our view in numbers

MetricOur read
VerdictRather unattractive
Upside on the portal model-13%
How the model worksfundamental value-creation model: EBITDA growth times the target multiple, against market cap
Net debt / EBITDA0.28 – low leverage
Strongest case forRevenue is growing 137.2%, and the company raised its 2026 guidance to $4.4–4.6 billion.
Strongest case againstValuation is extremely high: LTM EV/EBITDA 102.6, and the portal model's upside is -13%.
What would change the viewIf operating cash flow turns sustainably positive and revenue growth accelerates, the verdict could improve by one notch.

Key takeaways

— Revenue grew 137.2% on product sales, but growth decelerated from 164.4% in the second quarter

— EBITDA margin rose to 19.4% as gross margin expanded to 33.8%

— Net profit of $249.0 million includes one-off items that inflated the result

— Operating cash flow turned negative at -$27.1 million due to working capital growth

— Leverage is low: net debt of $148.1 million against LTM EBITDA of $537.7 million

— Valuation is extremely high: EV/EBITDA LTM 102.6, P/E LTM 122.1

Key figures, USD bn

MetricQ3 2025Q3 2026Change
Revenue0.521.23+137.2%
EBITDA0.020.24+1058.8%
Operating profit0.010.23+2773.4%
Net profit-0.020.25to profit
Operating cash flow0.02-0.03-238.0%
Capex0.010.15+1147.8%
EBITDA margin4.0%19.4%+15.4 pp
Net margin-4.4%20.2%+24.6 pp

Revenue grew 137.2% on product sales, but growth decelerated from 164.4% in the second quarter

Revenue for the third quarter of 2026 was $1,231.0 million, up 137.2% year on year. Product revenue was the main driver at $1,073.6 million, up 179.4%. Installation and service grew more modestly: installation brought in $84.9 million, service $67.6 million.

Growth decelerated from the second quarter, when revenue rose 164.4%. The slowdown reflects a higher base: a year earlier, third-quarter revenue was $519.0 million versus $401.2 million in the second quarter of 2025.

The company raised its full-year 2026 revenue guidance to $4.4–4.6 billion, implying 122% growth at the midpoint. This is the third guidance increase this year.

Revenue and EBITDA by quarter

EBITDA margin

EBITDA margin rose to 19.4% as gross margin expanded to 33.8%

EBITDA for the third quarter was $239.3 million, with an EBITDA margin of 19.4% versus 4.0% a year earlier. Gross margin rose to 33.8% from 29.2%, mainly driven by the product segment, where margin reached 37.9%.

Operating profit was $225.4 million at an 18.2% margin. Operating expenses rose to $191.7 million, but their share of revenue declined. Adjusted EBITDA, as defined by the company, was $299.5 million, higher than the GAAP figure due to the exclusion of stock-based compensation and other items.

Net profit by quarter

Net profit of $249.0 million includes one-off items that inflated the result

Net profit was $249.0 million versus a loss of $23.0 million a year earlier. However, the profit includes one-off items: a gain on revaluation of embedded derivatives of $10 thousand and other income. In addition, non-GAAP net profit was $302.8 million, higher than GAAP profit, as the company excluded stock-based compensation ($60.1 million) and other items.

Thus, GAAP profit was understated by one-off charges rather than inflated. The main contribution to profit came from operations, not one-off factors.

Operating cash flow turned negative at -$27.1 million due to working capital growth

Operating cash flow for the third quarter was negative at -$27.1 million versus positive $19.7 million a year earlier. The reason is a significant working capital outflow: accounts receivable rose by $175.2 million, contract assets by $430.3 million, inventories by $170.4 million. This was partly offset by an increase in accounts payable of $184.7 million and deferred revenue of $309.3 million.

Capital expenditure rose to $153.5 million from $12.3 million a year earlier. Free cash flow was therefore negative. The company is investing in capacity expansion.

Leverage is low: net debt of $148.1 million against LTM EBITDA of $537.7 million

Net debt as of 30 September 2026 was $148.1 million. The ratio of net debt to LTM EBITDA is 0.28. This is a low level. Cash and equivalents stand at $2,486.7 million, significantly exceeding debt.

Interest expense for the quarter was $7.5 million, interest income $22.1 million. The company is a net interest creditor.

Share price, three years

close, last point 2026-11-10

Valuation is extremely high: EV/EBITDA LTM 102.6, P/E LTM 122.1

LTM EV/EBITDA is 102.6, P/E is 122.1. These are very high multiples that imply significant future growth. Market capitalisation is $54.9 billion.

On the portal's model, the upside to fair value is -13%. This means the share is valued above our estimate of fair value. Following the release, the share fell 8.7%, and from the release to 10 November it fell 22.2%.

Valuation on the latest reported figures

MetricValue
Market cap54.9 bn USD
P/E (LTM)122.1
EV/EBITDA (LTM)102.6
Net debt / EBITDA (LTM)0.28
Operating cash flow (LTM)0.62 bn
ROE18.7%

Bottom line

Bloom Energy Corp delivered strong revenue and profit growth, but the quality of earnings is questionable: operating cash flow is negative and capital expenditure is rising. The valuation is extremely high, leaving no margin for error. Our conclusion: rather unattractive – the portal model's upside is -13%. Our view: the share is rather unattractive at the current price; upside on the portal model -13%.