It was less than three years ago that hydrogen fuel cell company Plug Power (PLUG +12.54%) warned its cash might not be sufficient to fund its operations. It resulted in a crippling performance in 2023 as the company's shares plummeted by 64%. And they would go on to lose another 53% the following year. In 2025, they also declined, but at a more modest rate of just under 8%.
The company has been doing better, and given its beaten-down valuation, there's been some room for it to climb. Thus far in 2026, shares of Plug Power are up by 9%, and it's coming off some solid fourth-quarter results. But is the cash flow risk surrounding the business gone, and can this make for a safe long-term investment?
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The company remains deeply unprofitable
Plug Power may possess a lot of potential in the long term, but simply getting there may not be easy. Last year, the hydrogen company incurred an operating loss of $1.5 billion. And while that's technically an improvement from its loss of more than $2 billion in the previous year, it's still a deeply concerning result.
Meanwhile, it has also continued to burn through a lot of cash. In 2025, it used up $535.8 million from its day-to-day operating activities. That is also an improvement from a year ago, when it used up $728.6 million. The key thing to consider, however, is how significant the cash burn is in relation to its overall cash position. As of the end of the year, the company's cash position totaled $555.3 million, which includes its restricted cash. That's not much of a buffer for the business if it continues going at that rate, and it heightens the risk of offerings and share dilution in the near future.
NASDAQ: PLUG
Key Data Points
There's still plenty of risk with Plug Power stock
Although the company believes it's on a path to profitability and it has been improving its cash flow, investors shouldn't assume it'll be an easy road ahead for Plug Power. It still has a lot to prove in terms of its bottom line to suggest that it's a safe investment to hang on to. And in recent years, its share count has been rising significantly -- a trend that could continue for the foreseeable future.
Plug Power stock may be showing signs of stability this year, but it's far too early to say that it's a safe growth stock to own. Its cash position isn't all that high in relation to how much cash it's been burning, and investors should take that into account before deciding to invest in the stock.
