The share price of Plug Power (PLUG +1.97%) has spiked nearly 80.4% over the past year (as of April 2, 2026), as early signs of a turnaround have begun to emerge. Still, the stock remains nearly 48% below its 52-week high, implying that investors are not fully convinced.
The key question now is whether the company's hydrogen fuel cell, electrolyzer, and hydrogen infrastructure business can translate into a sustainable and profitable model.
Here are three reasons investors may consider taking a small position in the stock in April 2026.
Image source: Getty Images.
1. Plug Power is showing improved profitability
Although Plug Power has historically struggled with negative profit margins, that trend appears to be reversing.
In the fourth quarter of 2025, the company reported a positive gross margin of 2.4%, a 125-percentage-point improvement from a negative 122.5% in the same quarter of the prior year. Management described this as a "meaningful milestone" and an "inflection point" in its operating performance. The improvement was driven by significant reductions in service costs, improved efficiency across its hydrogen production platform, and scaling benefits as sales volumes increase.
Hence, although Plug Power is not yet profitable, the shift to positive gross margins shows that Plug's business model is moving in the right direction.
2. Plu Power reduced its liquidity risks
Plug Power's biggest concern in recent years has been its cash burn. However, even that picture is improving gradually.
The company exited fiscal 2025 with around $368.5 million in unrestricted cash. The company has signed a definitive agreement with Stream Data Centers to sell its Project Gateway site and associated electrical infrastructure for at least $132.5 million as part of a broader plan to generate over $275 million in liquidity through asset sales, release of restricted cash, and lower maintenance costs. Management expects these resources, combined with lower capital expenditures and improving margins and cash flows, to be sufficient to fund operations through 2026.
The increasing reliance on internal funding has reduced the risk of near-term shareholder dilution.
NASDAQ: PLUG
Key Data Points
3. Plug Power improved its business strategy and revenue visibility
Plug Power's recent leadership transition marks a critical shift in strategy. The company is now focused on turning its hydrogen platform into a commercially viable and profitable business, rather than simply expanding its footprint. Under new CEO Jose Luis Crespo, management has outlined a clear roadmap, targeting positive earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2026, positive operating income in 2027, and full profitability by 2028.
Plug Power's growth outlook is also becoming more predictable. The company expects fiscal 2026 revenue growth to be similar to that of fiscal 2025, since roughly 80% of its expected revenue is already visible.
A large and growing installed base also supports this visibility. Plug has deployed over 72,000 fuel cell systems across over 275 fueling stations. The company generated around $710 million in revenue in 2025, while fourth-quarter sales reached $225.2 million.
Considering the focus on execution, visible revenue, and a large installed base, Plug Power may soon succeed in translating operational improvements into robust financial performance.
