Plug Power (PLUG -3.21%) spent months building up momentum, only to watch the entire move unravel in a matter of weeks.
After a jaw-dropping 100% rally in the first five months of 2025, the hydrogen stock went on a grueling two-month slide, shedding 31% in June and another 24% in July, according to data provided by S&P Global Market Intelligence.
Aug. 10 is a crucial day for Plug Power as it announces its second-quarter numbers. Could the stock head back up?
Image source: Getty Images.
Why Plug Power stock is falling again
Investors were buying hard into Plug Power management's turnaround promises, improving gross margins, and expanding product sales. Yet, they face a reality check ahead of the company's Q2 numbers.
In recent years, Plug Power has relied heavily on share sales to raise capital to keep its operations running. The company's share count has risen by 130% over the past three years. Every time the stock rallies, the looming threat of additional share issuances or other capital-raising moves drags it back down.
In July, Plug Power scrambled to free up more cash. On one hand, the company announced commercial milestones such as a 50-megawatt (MW) electrolyzer order in Australia . On the other hand, it announced the sale of its Graham, Texas hydrogen project and a phased deal for its New York Gateway site to raise $80 million.
NASDAQ: PLUG
Key Data Points
As of June 30, 2026, Plug Power had only $162 million in cash and cash equivalents and expects to sell additional assets to raise up to $275 million (including the $80 million). Those electrolyzer deals simply don't move the needle when the business is bleeding cash every quarter and is forced to liquidate assets.
The Aug. 10 reality check: what to expect
It wasn't just the investors. Analysts turned nervous too after Plug Power's red-hot rally in early 2026, with some even slashing their price targets in July.
Analysts from Susquehanna, who were feeling generous enough to raise Plug Power's price target to $3.75 per share in May, slashed it down to $2.50 in July amid uncertain hydrogen markets and other things. BMO capital analyst Ameet Thakkar maintained a sell rating with a price objective of only $1.20 on the hydrogen stock.
It was an awkward mood shift considering that Plug Power reported a bumper first quarter, with revenue rising 22 % and gross margin climbing from a negative 55% to a negative 13%. Sure, losing money on every dollar is still losing money, but that's a massive improvement, nonetheless.
Can the company deliver again when it drops its Q2 numbers after the closing bell today? That's the question investors are asking. For now, Plug Power insists it is on track to meet its 2026 financial goals. That includes hitting positive EBITDAS by Q4 2026.
If that's left you scratching your head, EBITDAS stands for earnings before interest, taxes, depreciation, amortization, and stock-based compensation. I'm more interested to see whether Plug Power will become GAAP profitable by the end of 2028 as it aims to. Even if management reiterates its goals, I expect the stock to remain volatile.
