Oct 22, 2026 earnings call — Record quarter and raised full-year guidance
Reported revenue of $1.24 billion and raised full-year revenue outlook to $4.4 billion to $4.6 billion.
Revenue $1.2B (est $1.1B) · EPS $0.94 (est $0.69) · Next-quarter revenue outlook $4.4B–$4.6B
Key quotes
"Fuel cell based on-site power will become a preferred choice and complement to the grid for power delivery."
"The third quarter was another record quarter for Bloom. Revenue of $1.24 billion was up 138% year-over-year."
"We see CCS as critical to meeting decarbonization goals and as a potential trillion dollar market opportunity."
Analyst Q&A 10
Factory expansion and gross margin
Q (Mark Strouse · JPMorgan): Why expand the Fremont real estate now and will capacity exceed 5 gigawatts once that facility opens? Also, why is gross margin guidance unchanged despite higher revenue and should margins keep improving as revenue ramps?
A: KR said electricity demand is set to skyrocket globally and Bloom is preparing past the 5-gigawatt milestone so it will not become a bottleneck for customers, but gave no timeline. Simon said product margins and pricing are strong, cost reductions are showing up, but scaling and ramping new lines create near-term costs; he expects margin benefits to grow as production and utilization mature.
"But we will never be slow enough that we are the bottleneck to our customer getting the power." — K. R. Sridhar (CEO·CHAIR)
Free cash flow and utility opportunity
Q (Nicholas Amicucci · Evercore): Can you explain the free cash flow use of $27 million this quarter and any one-offs or puts and takes? Also, what is the opportunity with utilities and regulated behind-the-meter deployments?
A: Simon said Bloom views itself as a self-funding business and prefers to judge cash generation over the full year; this quarter used operations cash but they have generated positive CFOA year-to-date and believe the business will be free cash flow positive. KR said utilities see Bloom as a distribution asset they can rate base and buy ahead of specific customers to reduce total cost, and regulators are allowing inclusion of these on-site assets.
"So when you think about the operating performance of the business, that is what is funding the investments required to grow," — Simon Edwards (CFO)
Carbon capture, 800V DC, and CHP
Q (David Arcaro · Morgan Stanley): Where do carbon capture, combined heat and power, and 800V DC stand commercially and what near-term market adoption are you seeing?
A: KR highlighted the AEP announcement as evidence Bloom can provide near net-zero on-site power and said Bloom uniquely produces a concentrated CO2 stream that enables affordable, scalable carbon capture. He said 800V DC adoption is already happening and can save over $5 billion in the first five years for a gigawatt data center, and that CHP is a clear additional value for industrial and commercial customers.
"Combustion technologies, do not offer a affordable and scalable pathway to carbon capture today." — K. R. Sridhar (CEO·CHAIR)
Time to power and factory automation
Q (Christopher Dendrinos · RBC): With demand ramping, is time to power still sub-90 days or extended? How quickly did you deliver power to the Nebius site and how are you thinking about automation and cost savings in manufacturing?
A: KR said Bloom has servers ready for 300 MW and will not be the bottleneck; data centers build block by block and the customer timing dictates overall stand-up, not Bloom. He added that Bloom has driven labor efficiency in production (about 600 employees per line regardless of scale) and is using automation and AI to reduce costs as they scale.
"We will be there for every other block that they build." — K. R. Sridhar (CEO·CHAIR)
Total cost and water advantage
Q (Manav Gupta · UBS): How should we think about LCOE versus delivered/rack/token cost for data centers, and does Bloom have a water-use advantage versus competitors?
A: KR said Bloom uses far less water than combustion plants and described the water advantage as very large, saying Bloom's water use is negligible by comparison. He explained data centers should think beyond LCOE to delivered rack and token electricity cost and said when you include those factors Bloom is the lowest total cost provider.
"We are not even in the rounding error of the second decimal." — K. R. Sridhar (CEO·CHAIR)
Production pacing and international demand
Q (Ben Kallo · Baird): How should we think about quarterly production growth as you approach 5 gigawatts and any supply constraints? Also, how do you view developers moving internationally and Bloom's advantages there?
A: KR declined to provide quarter-by-quarter numbers and said capacity will be adjusted like a dial based on customer load; he does not expect to dial down. He said international markets are attractive because higher natural gas costs overseas enhance Bloom's delivered cost advantage, and Bloom is pursuing international expansion with announcements expected in the near future.
"What we have said is it is a dial, and we will dial it up or dial it down depending on where that need is." — K. R. Sridhar (CEO·CHAIR)
Largest and smallest deployments
Q (Ameet Thakkar · BMO): What is the largest single Bloom deployment operating in the U.S. today and how do the new projects compare in size?
A: KR said Bloom already has projects in the 100 megawatt class and the Wyoming project is in that class as part of a 700 MW deployment approaching gigawatt scale. He added Bloom's smallest systems are 150 kilowatts and its largest systems are approaching gigawatt scale.
"We are in the 100 megawatt class already, and the Wyoming is also a 100 megawatt class approaching the gigawatt class because 700 MW." — K. R. Sridhar (CEO·CHAIR)
Interpreting backlog growth
Q (Maheep Mandloi · Mizuho): Backlog is said to be growing faster than revenue; how should we interpret backlog growth this quarter versus revenue growth?
A: KR said they will provide exact guidance at the beginning of the year and that he prefers to give disciplined numbers they can deliver. He described backlog growth as solid and robust but declined to give a directional bracket now.
"I think the growth is growth is solid. It is it is robust." — K. R. Sridhar (CEO·CHAIR)
Hyperscaler interest and CCS optionality
Q (Sunaina Ocalan · Bernstein): After the AEP-Google deal, are hyperscalers asking about carbon capture more and what does CCS do to delivered power cost?
A: KR said there is significant interest from hyperscalers and many customers will buy systems that are carbon capture-ready so they can connect to CO2 pipelines when available. He estimated hyperscalers would accept a 10% to 15% cost increase to get zero-carbon power and said Bloom can deliver carbon capture in that cost range.
"Almost all our customers would very soon, at a minimum, start buying systems from us that are carbon capture-ready." — K. R. Sridhar (CEO·CHAIR)
Contract assets and carbon capture monetization
Q (Colin Rusch · Oppenheimer): How will contract asset growth turn into billings and collections? And how do you plan to monetize carbon capture — via server sales, new products, or partner models?
A: Simon said he expects contract assets to turn into billing milestones and cash collections and that a key focus is turning receivables and contract assets while managing working capital as they scale. KR said Bloom will offer multiple monetization pathways for carbon capture — partnering with others, selling capture-ready systems, or having customers take credits — and will be flexible to fit customer needs.
"I would say to characterize the contract assets, what I do expect is they are gonna turn." — Simon Edwards (CFO)