FuelCell Energy has bolstered its cash position through equity sales, boosting shares outstanding by approximately 2.4 times over the past year. Management plans to invest $30 million, roughly 10% of its cash balance, in new capacity with further expansion contingent on demand and funding.

Despite a 5% year-to-date equity improvement, the company continues to burn cash heavily with green hydrogen accounting for less than 2% of global capacity. Profitability is not expected until well into the next decade, raising questions about the timing of future capital raises.

First-quarter revenue rose 61% year-over-year but missed consensus by 25% sequentially, while backlog fell 11%. FuelCell has submitted 1.5 GW in data center power proposals but faces stiff competition from established players like Bloom Energy and emerging SMR technologies.