Bloom Energy Reports Third Quarter 2025 Financial Results
SAN JOSE, Calif.--( BUSINESS WIRE)--Bloom Energy Corporation (NYSE: BE) reported today its financial results for the third quarter ended September 30, 2025. The company reported revenue of $519.0 million for the third quarter of 2025.
Third Quarter Highlights
KR Sridhar, Founder, Chairman, and CEO of Bloom Energy, said: “Bloom is at the center of a once-in-a-generation opportunity to redefine how power is generated and delivered. Powerful tailwinds—surging demand for electricity driven by AI, nation-state priorities, and our relentless pace of innovation—are converging to accelerate our audacious journey to becoming a standard for onsite power globally.”
Maciej Kurzymski, Chief Accounting Officer and Acting Principal Financial Officer of Bloom Energy, added, “I want to thank the Bloom team for delivering its fourth consecutive quarter of record revenue and positive Cash Flow from Operating Activities. While our commercial success has been most visible, the work that our engineering, manufacturing, and support teams have done behind the scenes is evident in our financial results.”
Summary of Key Financial Metrics
Summary of GAAP Profit and Loss Statements
($000), except EPS data
Q3'25
Q2'25
Q3'24
Revenue
$
519,048
$
401,242
$
330,399
Cost of Revenue
367,373
294,119
251,665
Gross Profit
151,675
107,123
78,734
Gross Margin
29.2
%
26.7
%
23.8
%
Operating Expenses
143,829
110,626
88,385
Operating Income (Loss)
7,846
(3,503
)
(9,651
)
Operating Margin
1.5
%
(0.9
)%
(2.9
)%
Non-Operating Income
30,939
39,116
5,060
Net Loss to Common Stockholders
$
(23,093
)
$
(42,619
)
$
(14,711
)
GAAP EPS, Basic
$
(0.10
)
$
(0.18
)
$
(0.06
)
GAAP EPS, Diluted
$
(0.10
)
$
(0.18
)
$
(0.06
)
Summary of Non-GAAP Financial Information 1
($000), except EPS data
Q3'25
Q2'25
Q3'24
Revenue
$
519,048
$
401,242
$
330,399
Cost of Revenue
361,410
287,892
247,066
Gross Profit
157,637
113,350
83,332
Gross Margin
30.4
%
28.2
%
25.2
%
Operating Expenses
111,389
84,708
75,228
Operating Income
46,249
28,643
8,104
Operating Margin
8.9
%
7.1
%
2.5
%
EBITDA
$
59,049
$
41,239
$
21,344
Non-GAAP EPS, Basic
$
0.15
$
0.10
$
(0.01
)
Non-GAAP EPS, Diluted
$
0.15
$
0.10
$
(0.01
)
1.
A detailed reconciliation of GAAP to Non-GAAP financial measures is provided at the end of this press release
Conference Call Details
Bloom will host a conference call today, October 28, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its financial results. To participate in the live call, analysts and investors may call toll-free dial-in number: +1 (888) 596-4144 and toll-dial-in-number +1 (646) 968-2525. The conference ID is 5744085. A simultaneous live webcast will also be available under the Investor Relations section on our website at https://investor.bloomenergy.com. Following the webcast, an archived version will be available on Bloom’s website for one year. A telephonic replay of the conference call will be available for one week following the call, by dialing +1 (800) 770-2030 or +1 (609) 800-9909 and entering passcode 5744085.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures as defined by the Securities and Exchange Commission (“SEC”) rules. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Some numbers may not foot due to rounding. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As required by Regulation G, we have provided reconciliations of our non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures set forth in this press release. Bloom has not provided a quantitative reconciliation of non-GAAP gross margin and non-GAAP operating income measures to the corresponding GAAP measures because it is unable to do so without unreasonable efforts due to the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. The variability of these items could significantly impact our future U.S. GAAP financial results and we believe that any reconciliation provided would imply a degree of precision that could be confusing or misleading to investors.
About Bloom Energy
Bloom Energy empowers enterprises to meet soaring energy demands and responsibly take charge of their power needs. The company’s fuel cell system provides ultra-resilient, highly scalable onsite electricity generation for Fortune 500 companies around the world, including data centers, semiconductor manufacturing, large utilities, and other commercial and industrial sectors. Headquartered in Silicon Valley, Bloom Energy has deployed 1.5 GW of low-carbon power across more than 1,200 installations globally. For more information, visit www.BloomEnergy.com.
Forward-Looking Statements
This press release contains certain forward-looking statements relating to future events and expectations, including our belief that Bloom is at the center of a once-in-a-generation opportunity to redefine how power is generated and delivered and that we may become the global standard for onsite power generation and our expectations regarding our estimates and projections for our business outlook for the 2025 fiscal year, each of which is based on current expectations, estimates, and projections about our industry, management’s beliefs, and certain assumptions made by management based on information currently available to management at the time they are made. These forward-looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going forward basis.
Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual results, performance, and/or trends. In addition to general industry and global economic conditions, factors that could cause actual results, performance, and/or trends to differ materially from those discussed in the forward-looking statements made in this presentation include, but are not limited to: (1) the emerging nature distributed energy generation and hydrogen markets and rapidly evolving market trends; (2) the significant upfront costs of Bloom’s Energy Servers and Bloom’s ability to secure financing for its products; (3) Bloom’s ability to drive cost reductions and to successfully mitigate against potential price increases; (4) Bloom’s ability to service its existing debt obligations; (5) Bloom’s ability to be successful in new markets; (6) the ability of the Bloom Energy Server to operate on a fuel source customers want; (7) the success of the strategic partnership with SK ecoplant in the United States and international markets; (8) timing and development of an ecosystem for the hydrogen market, including in the South Korean market; (9) continued incentives in the South Korean market; (10) adapting to the new government bidding process in the South Korean market; (11) the timing and pace of adoption of hydrogen for stationary power; (12) the risk of manufacturing defects; (13) the accuracy of Bloom’s estimates regarding the useful life of its Energy Servers, including inventories with distributors; (14) delays in the development and introduction of new products or updates to existing products; (15) Bloom’s ability to secure partners in order to commercialize its electrolyzer and carbon capture products; (16) supply constraints; (17) the availability of rebates, tax credits and other tax benefits; (18) the impact of the Inflation Reduction Act of 2022 and the One Big Beautiful Bill Act; (19) changes in the regulatory landscape; (20) Bloom’s reliance upon a limited number of customers; (21) Bloom’s lengthy sales and installation cycle, construction, utility interconnection and other delays related to the installation of its Energy Servers; (22) business and economic conditions and growth trends in commercial and industrial energy markets; (23) trade policies including tariffs; (24) the overall electricity generation market; (25) our ability to increase production capacity for our products in a timely and cost-effective manner; (26) any actual or perceived slowdown in the adoption of AI resulting in a slower expansion of AI data centers; (27) Bloom’s ability to protect its intellectual property; and/or (28) the risks relating to forward-looking statements and other “Risk Factors” identified from time to time in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and subsequently filed reports, including on Form 10-Q, which filings are available from the SEC. Bloom assumes no obligation to, and does not currently intend to, update information contained in these forward-looking statements, whether as a result of new information, future events or developments, or otherwise.
The Investor Relations section of Bloom’s website at investor.bloomenergy.com contains a significant amount of information about Bloom Energy, including financial and other information for investors. Bloom encourages investors to visit this website from time to time, as information is updated and new information is posted.
Condensed Consolidated Balance Sheets (unaudited)
(in thousands, except share data)
September 30,
December 31,
2025
2024
Assets
Current assets:
Cash and cash equivalents 1
$
595,055
$
802,851
Restricted cash
8,474
110,622
Accounts receivable, less allowance for credit losses of $459 and $119 as of September 30, 2025, and December 31, 2024, respectively 1, 2
411,653
335,841
Contract assets 3
258,884
145,162
Inventories 1
704,996
544,656
Deferred cost of revenue
24,091
58,792
Prepaid expenses and other current assets 1, 4
44,743
46,203
Total current assets
2,047,896
2,044,127
Property, plant and equipment, net 1
400,360
403,475
Investments in unconsolidated affiliates 14
5,939
—
Operating lease right-of-use assets 1, 5
112,677
122,489
Restricted cash
23,486
37,498
Deferred cost of revenue
3,434
3,629
Other long-term assets 1, 6
44,407
46,136
Total assets
$
2,638,199
$
2,657,354
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable 1
$
167,382
$
92,704
Accrued warranty 7
14,682
16,559
Accrued expenses and other current liabilities 1, 8
168,404
138,450
Deferred revenue and customer deposits 9
56,065
243,314
Operating lease liabilities 1, 10
21,438
19,642
Financing obligations
36,556
11,704
Recourse debt
—
114,385
Non-recourse debt 1
1,424
—
Total current liabilities
465,951
636,758
Deferred revenue and customer deposits 11
32,254
43,105
Operating lease liabilities 1, 12
112,188
124,523
Financing obligations
209,768
244,132
Recourse debt
1,128,043
1,010,350
Non-recourse debt 1, 13
2,849
4,057
Other long-term liabilities
9,667
9,213
Total liabilities
$
1,960,720
$
2,072,138
Commitments and contingencies
Stockholders’ equity:
Common stock: $0.0001 par value; Class A shares — 600,000,000 shares authorized, and 236,356,829 shares and 229,142,474 shares issued and outstanding, and Class B shares — 470,092,742 shares authorized, and no shares issued and outstanding at September 30, 2025, and December 31, 2024, respectively
24
23
Additional paid-in capital
4,642,300
4,462,659
Accumulated other comprehensive loss
(1,179
)
(2,593
)
Accumulated deficit
(3,988,075
)
(3,897,618
)
Total equity attributable to common stockholders
653,070
562,471
Noncontrolling interest
24,409
22,745
Total stockholders’ equity
$
677,479
$
585,216
Total liabilities and stockholders’ equity
$
2,638,199
$
2,657,354
1
We have variable interest entity related to a joint venture in the Republic of Korea, which represents a portion of the consolidated balances recorded within these financial statement line items.
2
Including amounts from related parties of $38.5 million and $93.5 million as of September 30, 2025, and as of December 31, 2024, respectively.
3
Including amounts from related parties of $88.2 million and $0.8 million as of September 30, 2025, and as of December 31, 2024, respectively.
4
Including amount from related parties of $1.2 million as of December 31, 2024. There was no related party balance as of September 30, 2025.
5
Including amount from related parties of $1.4 million as of December 31, 2024. There was no related party balance as of September 30, 2025.
6
Including amount from related parties of $8.8 million as of December 31, 2024. There was no related party balance as of September 30, 2025.
7
Including amount from related parties of $1.2 million as of December 31, 2024. There was no related party balance as of September 30, 2025.
8
Including amounts from related parties of $3.5 million and $4.0 million as of September 30, 2025, and as of December 31, 2024, respectively.
9
Including amount from related parties of $8.9 million as of December 31, 2024. There was no related party balance as of September 30, 2025.
10
Including amount from related parties of $0.4 million as of December 31, 2024. There was no related party balance as of September 30, 2025.
11
Including amount from related parties of $3.3 million as of December 31, 2024. There was no related party balance as of September 30, 2025.
12
Including amount from related parties of $1.0 million as of December 31, 2024. There was no related party balance as of September 30, 2025.
13
Including amount from related parties of $4.1 million as of December 31, 2024. There was no related party balance as of September 30, 2025.
14
Represent related party investments in the joint ventures between Brookfield Asset Management and the Company.
Condensed Consolidated Statements of Operations (unaudited)
(in thousands, except per share data)
Three Months Ended September
30, 2025
Three Months Ended June
30, 2025
Three Months Ended September
30, 2024
Revenue:
Product
$
384,314
$
296,611
$
233,770
Installation
65,773
37,372
32,052
Service
58,607
54,449
50,761
Electricity
10,354
12,810
13,816
Total revenue 1
519,048
401,242
330,399
Cost of revenue:
Product
249,794
198,746
155,124
Installation
59,921
38,224
35,688
Service
51,834
49,408
51,363
Electricity
5,824
7,741
9,490
Total cost of revenue 2
367,373
294,119
251,665
Gross profit
151,675
107,123
78,734
Operating expenses:
Research and development
48,724
40,768
36,315
Sales and marketing
41,995
24,066
14,667
General and administrative 3
53,110
45,792
37,403
Total operating expenses
143,829
110,626
88,385
Income (loss) from operations
7,846
(3,503
)
(9,651
)
Interest income
5,292
6,623
6,456
Interest expense 4
(14,390
)
(14,440
)
(16,763
)
Equity in loss of unconsolidated affiliates 5
(19,599
)
—
—
Other (expense) income, net
(1,362
)
2,373
5,821
Loss on extinguishment of debt
—
(32,340
)
—
(Loss) gain on revaluation of embedded derivatives
(411
)
112
(386
)
Loss before income taxes
(22,624
)
(41,175
)
(14,523
)
Income tax provision
336
1,017
109
Net loss
(22,960
)
(42,192
)
(14,632
)
Less: Net income attributable to noncontrolling interest
133
427
79
Net loss attributable to common stockholders
$
(23,093
)
$
(42,619
)
$
(14,711
)
Net loss per share available to common stockholders, basic and diluted
$
(0.10
)
$
(0.18
)
$
(0.06
)
Weighted average shares used to compute net loss per share available to common stockholders, basic and diluted
234,931
232,542
227,957
1
Including related party revenue of $288.0 million, $27.1 million, and $126.6 million for the three months ended September 30, 2025, the three months ended June 30, 2025, and the three months ended September 30, 2024, respectively.
2
Related party cost of revenue for the three months ended September 30, 2024, was inconsequential. There were no related party cost of revenue for the three months ended September 30, 2025, and the three months ended June 30, 2025.
3
Including related party general and administrative expenses of $0.1 million, $0.2 million, and $0.2 million, for the three months ended September 30, 2025, the three months ended June 30, 2025, and the three months ended September 30, 2024, respectively.
4
Including related party interest expense of $0.1 million and $0.1 million, for the three months ended June 30, 2025, and the three months ended September 30, 2024, respectively. Related party interest expense for the three months ended September 30, 2025, was inconsequential.
5
Represent related party equity in loss of the joint ventures between Brookfield Asset Management and the Company.
Condensed Consolidated Statement of Cash Flows (unaudited)
(in thousands)
Three Months Ended September
30, 2025
Three Months Ended June
30, 2025
Three Months Ended September
30, 2024
Cash flows from operating activities:
Net loss
$
(22,960
)
$
(42,192
)
$
(14,632
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization
12,800
12,596
13,240
Non-cash lease expense
8,057
8,384
9,175
Equity in loss of unconsolidated affiliates, net of distributions
19,599
—
—
Loss (gain) on disposal of property, plant and equipment
1
(22
)
(17
)
Revaluation of derivative contracts
411
(112
)
386
Stock-based compensation expense
37,255
29,284
17,689
Amortization of debt issuance costs
1,814
1,864
1,862
Loss on extinguishment of debt
—
32,340
—
Net gain on failed sale-and-leaseback transactions
—
(60
)
(5,003
)
Allowance for credit losses
340
—
—
Inventory reserve and other assets impairment
21,846
—
—
Unrealized foreign currency exchange loss (gain)
2,703
(2,587
)
(1,496
)
Other
(5
)
—
105
Changes in operating assets and liabilities:
Accounts receivable 1
54,223
(132,161
)
(67,064
)
Contract assets 2
(129,086
)
13,821
(30,687
)
Inventories
(36,562
)
(77,025
)
(64,141
)
Deferred cost of revenue 3
4,310
34,600
7,796
Prepaid expenses and other
(4,673
)
11,236
(8,716
)
Other long-term assets 4
902
(1,430
)
4,646
Operating lease right-of-use assets and operating lease liabilities 5
(8,481
)
(8,419
)
(9,325
)
Financing lease liabilities
206
531
173
Accounts payable 6
23,385
226
23,882
Accrued warranty 7
2,689
1,710
2,621
Accrued expenses and other liabilities 8
50,309
12,295
13,819
Deferred revenue and customer deposits 9
(19,293
)
(108,005
)
36,231
Other long-term liabilities
(121
)
15
(13
)
Net cash provided by (used in) operating activities
19,669
(213,111
)
(69,469
)
Cash flows from investing activities:
Purchase of property, plant and equipment
(12,301
)
(7,245
)
(14,292
)
Proceeds from sale of property, plant and equipment
—
33
14
Investments in unconsolidated affiliates
(24,570
)
—
—
Net cash used in investing activities
(36,871
)
(7,212
)
(14,278
)
Cash flows from financing activities:
Proceeds from issuance of debt
—
—
—
Payment of debt issuance costs
—
(3,348
)
(438
)
Repayment of debt
—
—
—
Proceeds from financing obligations
—
—
464
Repayment of financing obligations
(2,939
)
(2,794
)
(9,767
)
Proceeds from issuance of common stock
42,354
30
4,141
Dividend paid
—
(947
)
—
Other
—
—
—
Net cash provided by (used in) financing activities
39,415
(7,059
)
(5,600
)
Effect of exchange rate changes on cash, cash equivalent, and restricted cash
(1,245
)
2,071
694
Net increase (decrease) in cash, cash equivalents, and restricted cash
20,968
(225,311
)
(88,653
)
Cash, cash equivalents, and restricted cash:
Beginning of period
606,047
831,358
637,804
End of period
$
627,015
$
606,047
$
549,151
1
Including changes in related party balances of $52.4 million, $9.5 million, and $1.4 million for the three months ended September 30, 2025, the three months ended June 30, 2025, and the three months ended September 30, 2024, respectively.
2
Including changes in related party balances of $88.2 million, $0.7 million, and $0.1 million for the three months ended September 30, 2025, the three months ended June 30, 2025, and the three months ended September 30, 2024, respectively.
3
Including changes in related party balances of $1.0 million, $0.6 million, and $0.2 million for the three months ended September 30, 2025, the three months ended June 30, 2025, and the three months ended September 30, 2024, respectively.
4
Including changes in related party balances of $8.7 million, $0.3 million, and $0.4 million for the three months ended September 30, 2025, the three months ended June 30, 2025, and the three months ended September 30, 2024, respectively.
5
Including changes in related party balances of $0.2 million for the three months ended June 30, 2025. There were no changes in related party balances for the three months ended September 30, 2025, and the three months ended September 30, 2024.
6
Including changes in related party balances of $0.04 million and $0.04 million for the three months ended September 30, 2025, and the three months ended June 30, 2025, respectively. There were no changes in related party balances for the three months ended September 30, 2024.
7
Including changes in related party balances of $1.3 million, $0.1 million, and $0.2 million for the three months ended September 30, 2025, the three months ended June 30, 2025, and the three months ended September 30, 2024, respectively.
8
Including changes in related party balances of $4.0 million, $1.8 million, and $1.8 million for the three months ended September 30, 2025, the three months ended June 30, 2025, and the three months ended September 30, 2024, respectively.
9
Including changes in related party balances of $8.1 million, $0.5 million, and $0.5 million for the three months ended September 30, 2025, the three months ended June 30, 2025, and the three months ended September 30, 2024, respectively.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
(in thousands, except percentages)
Q3'25
Q2'25
Q3'24
GAAP revenue
$
519,048
$
401,242
$
330,399
GAAP cost of sales
367,373
294,119
251,665
GAAP gross profit
151,675
107,123
78,734
Non-GAAP adjustments:
Stock-based compensation expense
5,719
5,714
3,778
Restructuring
31
336
90
Other
213
177
731
Non-GAAP gross profit
$
157,637
$
113,350
$
83,332
GAAP gross margin %
29.2
%
26.7
%
23.8
%
Non-GAAP adjustments
1.1
%
1.6
%
1.4
%
Non-GAAP gross margin %
30.4
%
28.2
%
25.2
%
Q3'25
Q2'25
Q3'24
GAAP income (loss) from operations
$
7,846
$
(3,503
)
$
(9,651
)
Non-GAAP adjustments:
Stock-based compensation expense
38,153
30,177
17,057
Restructuring
—
1,755
(70
)
Other
250
214
768
Non-GAAP income from operations
$
46,249
$
28,643
$
8,104
GAAP operating margin %
1.5
%
(0.9
)%
(2.9
)%
Non-GAAP adjustments
7.4
%
8.0
%
5.4
%
Non-GAAP operating margin %
8.9
%
7.1
%
2.5
%
Reconciliation of GAAP Net Loss to non-GAAP Net Profit (Loss) and Computation of non-GAAP Net Earnings (Loss) per Share (EPS)
(unaudited)
(in thousands, except share data)
Q3'25
Q2'25
Q3'24
Net loss to Common Stockholders
$
(23,093
)
$
(42,619
)
$
(14,711
)
Non-GAAP adjustments:
Add back: Net income attributable to noncontrolling interest
133
427
79
Loss (gain) on derivative liabilities
411
(112
)
386
Loss on extinguishment of debt
—
32,340
—
Stock-based compensation expense
38,153
30,177
17,057
Equity in loss of unconsolidated affiliates
19,599
—
—
Effects of assets buyout and repowering
—
(60
)
(4,991
)
Restructuring
—
1,755
(70
)
Other
250
214
768
Adjusted Net Profit (Loss)
$
35,453
$
22,122
$
(1,481
)
Adjusted net earnings (loss) per share (EPS), Basic and Diluted
$
0.15
$
0.10
$
(0.01
)
Adjusted net earnings (loss) per share (EPS), Diluted
$
0.15
$
0.10
$
(0.01
)
Weighted average shares outstanding attributable to common stockholders, Basic
234,931
232,542
227,957
Weighted average shares outstanding attributable to common stockholders, Diluted
312,479
232,542
227,957
Reconciliation of GAAP Net Loss to Adjusted EBITDA
(unaudited)
(in thousands)
Q3'25
Q2'25
Q3'24
Net Loss to Common Stockholders
$
(23,093
)
$
(42,619
)
$
(14,711
)
Add back: Net income attributable to noncontrolling interest
133
427
79
Loss (gain) on derivative liabilities
411
(112
)
386
Loss on extinguishment of debt
—
32,340
—
Stock-based compensation expense
38,153
30,177
17,057
Equity in loss of unconsolidated affiliates
19,599
—
—
Effects of assets buyout and repowering
—
(60
)
(4,991
)
Restructuring
—
1,755
(70
)
Other
250
214
768
Adjusted Net Profit (Loss)
35,453
22,122
(1,481
)
Depreciation & amortization
12,800
12,596
13,240
Income tax provision
336
1,017
109
Interest expense, Other income, net
10,460
5,504
9,476
Adjusted EBITDA
$
59,049
$
41,239
$
21,344
Use of non-GAAP financial measures
To supplement Bloom Energy condensed consolidated financial statement information presented on a GAAP basis, Bloom Energy provides financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP net profit (loss) (non-GAAP net earnings (loss)), non-GAAP basic and diluted earnings (loss) per share and Adjusted EBITDA. Bloom Energy also provides forecasts of non-GAAP gross margin and non-GAAP operating margin.
These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States.
Reconciliations of each of these non-GAAP financial measures to GAAP information are included in the tables above or elsewhere in the materials accompanying this news release.
Use and economic substance of non-GAAP financial measures used by Bloom Energy
Non-GAAP gross profit and non-GAAP gross margin are defined to exclude charges relating to stock-based compensation expense, restructuring charges, and other charges. Non-GAAP net profit (loss) (non-GAAP net earnings (loss)) and non-GAAP diluted earnings (loss) per share consist of net loss or diluted net loss per share excluding charges relating to net income attributable to noncontrolling interest, loss (gain) on derivative liabilities, loss on extinguishment of debt, charges relating to stock-based compensation expense, investments in loss of unconsolidated affiliates, effects of assets buyout and repowering, restructuring (expense reversals) charges, and other charges. Adjusted EBITDA is defined as net loss before interest income (expense), income tax provision, depreciation and amortization expense, net income attributable to noncontrolling interest, loss on extinguishment of debt, investments in loss of unconsolidated affiliates, charges relating to stock-based compensation expense, restructuring (expense reversals) charges, and other charges. Bloom Energy management uses these non-GAAP financial measures for purposes of evaluating Bloom Energy’s historical and prospective financial performance, as well as Bloom Energy’s performance relative to its competitors. Bloom Energy believes that excluding the items mentioned above from these non-GAAP financial measures allows Bloom Energy management to better understand Bloom Energy’s consolidated financial performance as management does not believe that the excluded items are reflective of ongoing operating results. More specifically, Bloom Energy management excludes each of those items mentioned above for the following reasons:
For more information about these non-GAAP financial measures, please see the tables captioned “Reconciliation of GAAP to Non-GAAP Financial Measures,” “Reconciliation of GAAP Net Loss to non-GAAP Net Profit (Loss) and Computation of non-GAAP Net Earnings (Loss) per Share (EPS),” and “Reconciliation of GAAP Net Loss to Adjusted EBITDA” set forth in this release, which should be read together with the preceding financial statements prepared in accordance with GAAP.
Material limitations associated with use of non-GAAP financial measures
These non-GAAP financial measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of Bloom Energy results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are:
Compensation for limitations associated with use of non-GAAP financial measures
Bloom Energy compensates for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only as a supplement. Bloom Energy also provides a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP measure within this news release and in other written materials that include these non-GAAP financial measures, and Bloom Energy encourages investors to review those reconciliations carefully.
Usefulness of non-GAAP financial measures to investors
Bloom Energy believes that providing financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (non-GAAP earnings from operations), non-GAAP operating margin, non-GAAP net profit (loss) (non-GAAP net earnings (loss)), non-GAAP diluted earnings (loss) per share in addition to the related GAAP measures provides investors with greater transparency to the information used by Bloom Energy management in its financial and operational decision making and allows investors to see Bloom Energy’s results “through the eyes” of management. Bloom Energy further believes that providing this information better enables Bloom Energy investors to understand Bloom Energy’s operating performance and to evaluate the efficacy of the methodology and information used by Bloom Energy management to evaluate and measure such performance. Disclosure of these non-GAAP financial measures also facilitates comparisons of Bloom Energy’s operating performance with the performance of other companies in Bloom Energy’s industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.