Bloom Energy Corporation

Ladies and gentlemen, thank you for standing by. My name is Colby and I'll be your conference operator today. At this time, I'd like to welcome you to the Bloom Energy third quarter 2025 earning results. All lines have been placed on mute to prevent any background noise. And after the speaker's remarks, there will be a question and answer session. If you'd like to ask a question at that time, please press star then the number one on your telephone keypad. If you'd like to withdraw your question at any time, please press star one again. Thank you. I'd like to turn the call over to your host today, to Michael Tierney, Vice President, Investor Relations. Sir, you may begin.

Michael Tierney, Vice President, Investor Relations, Thank you and good afternoon, everybody. Thank you for joining us for Bloom Energy's third quarter 2025 earnings call. To supplement this conference call, we furnished our third quarter 2025 earnings press release with the SEC on form 8K, and have posted it along with supplemental financial information that we will reference throughout this call to our investor relations website. During this conference call, both in our prepared remarks and in answers to your questions, we may make forward-looking statements that represent our expectations regarding future events and our future financial performance. These include statements about the company's business results, products, new markets, strategy, financial position, liquidity, and full-year outlook for 2025 or 2026. These statements are predictions based upon our expectations, estimates, and assumptions. However, as these statements deal with future events, they are subject to numerous known and unknown risks and uncertainties, as discussed in detail in our documents filed with the SEC, including our most recently filed Forms 10-K and 10-Q. We assume no obligation to revise any forward-looking statement made on today's call. During this call and in our third quarter 2025 earnings press releases, we refer to GAAP and non-GAAP financial measures. The non-GAAP financial measures are not prepared in accordance with U.S. generally accepted accounting principles and are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. A reconciliation between the GAAP and non-GAAP financial measures is included in our third quarter 2025 earnings press release available on our investor relations website. Joining me on the call today are K.R. Sridhar, Founder, Chairman, and Chief Executive Officer, and Maciek Korzynski, our Acting Principal Financial Officer. K.R. will begin with an overview of our progress, and then Maciek will review financial highlights for the quarter. After our prepared remarks, we will have time to take your questions. I will now turn the call over to K.R.

Good afternoon, and thank you for joining us today. I'm delighted that Bloom had its fourth consecutive quarter of record revenue. this seminal year for bloom positions us for an even stronger 2026 and beyond with higher growth and more profitability three major tailwinds benefiting bloom today have created a once in a generation opportunity for us to become the global standard for on-site power generation first The AI build-outs and their power demands are making onsite power generated by natural gas a necessity. Second, winning the AI race is a nation-state priority, driving government policy and removing barriers that had previously been headwinds for onsite power generation. Third, our product innovation is advancing at a pace more akin to semiconductor evolution than to that of traditional industrial products. Every year for over a decade, our fuel cells have seen double digit year over year cost reductions. While our costs are coming down, our performance is going up. Our fuel cells last longer, are more reliable, and are more efficient and today produce 10 times more power in the same footprint than they did 10 years ago. These improvements have opened up large market opportunities. For example, we historically sold exclusively in high-cost electricity markets such as California and the Northeast. We are now competitive in large power hungry markets of the Midwest, Mid-Atlantic, Mountain West, and Texas, and many European and Asian cities. Bloom is now positioned to become the standard in onsite power, which many of us believe will be a trillion dollar market. Becoming the standard means we will be the benchmark by which All others are measured. The reference point for speed, reliability, and performance in onsite power. When customers, partners, regulators, and governments think about dependable, dispatchable electricity, they should think about Bloom first. While we built Bloom with the conviction that this moment would arrive, We had no illusions of the difficulties we would face to gain acceptance as we embarked on this journey. To be even considered, we had to be better in every dimension. We persevered and delivered step by step. Now, after 24 years, we have robust supply chains, manufacturing processes, installation capabilities, and field performance data to show our customers we offer an unparalleled on-site power solution at speed and scale. We obsess about meeting our customers' needs and do not expect them to compromise. We do not offer them false choices, clean, reliable, or fast. Instead, we offer them an and solution. We ship on time and aim to ship faster than anyone else. We are more reliable and resilient and offer our customers superior price to performance value. Our mass produced modular power systems allow us to power sites as small as your neighborhood retail store. and as large as a giga AI factory that mass manufactures intelligence. Bloom Energy servers are safe, operate without consuming water, do not pollute the local air, and have curb appeal, all features that make them welcomed in the communities where they are installed. The precursor to becoming the standard is to first earn our place in the evaluation process alongside the well-entrenched and very capable competitors that have defined the market for decades. We are now executing on this phase, working to replicate in new markets the success we have achieved in sectors like semiconductor manufacturing and telecommunications, industries that demand the highest reliability. Today, we are the standard for onsite power in telecom and semiconductor manufacturing, as evidenced by the rapid adoption of our technology by the top-tier players and the strong sales pipeline in those segments. Our strategy is deliberate and simple. In each vertical, we establish our credibility with a Lighthouse account and then build on that success with other Tier 1 customers. For example, in telecommunications, we first secured AT&T as a Lighthouse customer in 2011. After they became convinced of our operational excellence, They deployed us in multiple sites in many states. Soon, we added Verizon and T-Mobile as customers and have sold over 100 megawatts of onsite power to telecoms. Today, we are a go-to onsite power choice for U.S. telecom companies. Now, we are following the same playbook to become the standard onsite power solution for AI. We are embedded in seven distinct AI ecosystem channels. In each channel, we have secured a Lighthouse customer and have robust pipelines. First, the hyperscalers. Back in August, we announced our first deal to power an AI factory with Oracle. We have fulfilled our delivery ahead of schedule. We promised to deliver in 90 days, and we delivered in 55 days. Second, electricity providers. Last year, we signed a gigawatt agreement with AEP, which purchased our fuel cell systems to power another big hyperscaler, AWS. Third, gas providers. We signed our first deal with a major gas provider who will convert its gas to electricity with Bloom fuel cells and sell that onsite power to a third hyperscaler. The hyperscaler will announce details of this installation when it is ready. Fourth, our co-location providers. We work with many, including Equinix, which has deployed over 100 megawatts across data centers in multiple states. Fifth, NeoClouds. Our systems are generating on-site power for top NeoCloud provider, CoreWeave, at a high-performance data center in Illinois. Sixth, data center developers. When an understanding has been reached on key terms, developers begin to file permits and permissions. You may have seen some of these public filings recently. Seventh, infrastructure owners. Large infrastructure funds are increasingly developing their own AI factories. Brookfield, the world's largest AI infrastructure investor, has invested $50 billion in AI opportunities and is tripling the size of its AI strategy over the next three years. It announced an AI infrastructure partnership with Bloom Energy and made an initial investment of $5 billion. Bloom will be the preferred on-site provider for Brookfield's trillion-dollar infrastructure portfolio of AI factories, data center operators, corporate facilities, and factories. Brookfield will also finance Bloom-sourced AI opportunities. We have already completed projects, and Brookfield plans to announce a Bloom-powered European AI Inference Data Center project by the end of the year. To recap, we have strong traction across all channels of the AI ecosystem. Each channel is anchored by a Lighthouse customer and accompanied by robust commercial activity. As we continue to penetrate new geographies and verticals, success builds upon itself and should make each new market entry easier than the first. The opportunity is vast and we are still in the early innings. So, what are we doing to make sure we are ready to handle growth as well as further advance our leadership position. As we have previously announced, we are doubling our capacity to two gigawatts by December 2026, which will support about four times our 2025 revenue. That expansion is all systems go. Bloom's capacity will not be a bottleneck for our customers. We are also investing in operational talent and capabilities needed for the expansion of our production capacity beyond the two gigawatts. We are building a commercial team that can capture opportunities across diverse market segments and geographies. And we are continuing to invest in R&D to increase our lead in onsite power. We are doing all of this while maintaining our focus on operational excellence and financial discipline to achieve margin expansion over time. Based on what we see today, we expect 2025 to be better than our previously stated annual guidance on our financial metrics. In addition, we expect double-digit product cost reductions to continue and keep us on a path of margin accretion. We look forward to a strong 2026 as we march forward and build a future where Bloom powers the digital age and is the recognized standard for onsite power globally. I'll turn over to Maciek now and I look forward to answering your questions.