Bloom Energy Corporation

Ladies and gentlemen, thank you for standing by. My name is Desiree and I will be your conference operator today. At this time, I would like to welcome everyone to the Bloom Energy fourth quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question again, press the star one. I would now like to turn the conference over to Michael Tierney, Vice President of Investor Relations. You may begin.

Thank you and good afternoon, everybody. Thank you for joining us for Bloom Energy's fourth quarter and full year 2025 earnings call. To supplement this conference call, we furnished our fourth quarter and full year 2025 earnings press release with the SEC on Form 8K. and have posted 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 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 statements made on today's call. During this call and in our fourth quarter and full year 2025 earnings press release, 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 fourth quarter and full year 2025 earnings press release available on our investor relations website. Joining me on the call today are KR Sridhar, Founder, Chairman, and Chief Executive Officer, and Maciej Krasinski, our Acting Principal Financial Officer, and also our Principal Accounting Officer. KR will begin with an overview of our progress, and then Maciej will review financial highlights for the quarter. After our prepared remarks, we will have time to take your questions. I now turn the call over to KR.

Good afternoon, and thank you for joining us today. Bloom is rapidly becoming the standard for onsite power. as evidenced by our excellent fourth quarter, capping our best year yet. We delivered record revenue, gross margin, and operating margin for the year. Our product backlog increased 140% year over year to about $6 billion. Our service business has been profitable for eight quarters in a row, and in the fourth quarter, we achieved 20% gross margin in service. with around $14 billion of service backlog and a growing product backlog that is 100% attached to service. Bloom is well positioned for durable growth in service revenue and profits in the years ahead. Our growth has been fueled by seismic changes in customer attitudes towards power. Bring your own power has become the mantra for data centers and power hungry factories. On-site power has moved from being a decision of last resort to a vital business necessity. This shift has led large power users to seek Bloom to fulfill their needs. Our demand from data center and commercial and industrial or CNI customers is secular and growing. In 2026, We will further invest in our commercial team to capitalize on growing sales opportunities. AI is a huge tailwind for the power industry and a big catalyst for Bloom's growth. The backlog we reported today includes half a dozen hyperscale and NeoCloud end customers compared to just one a year ago. Bloom has a master contract structure to enable these customers to keep returning to us for repeat orders, much as we have expanded with our CNI customers. And we are also experiencing surging demand in our CNI business. CNI backlog grew over 135% year over year, and it consists of several verticals, telecom, manufacturing, logistics, retail, healthcare, and education. Digitization, automation, electrification, and reshoring are driving CNI customers to seek onsite power. And our CNI sales pipeline is stronger than ever. The geographic mix of our U.S. backlog is noteworthy. Two years ago, over 80% of our U.S. backlog was composed of installations in California and the Northeast, traditionally the high cost of power states. But this year, over 80% of our backlog comes from other states with lower power costs. This geographic shift highlights two important dynamics at play. First, companies are locating factories and data centers in states where they can quickly secure reliable and affordable power, either from the grid or onsite. The states where we are growing fastest have robust natural gas infrastructure and favorable regulatory and policy frameworks for onsite power generation. Second, in these states with lower power costs, Bloom is cost competitive. Our value proposition, fast time to power, high reliability, and lower emissions strongly resonates for our customers. In short, our customer base is diversified with numerous customers in every key sector, including AI. We are rapidly becoming the standard for onsite power. Given our healthy backlog and our robust funnel, I'm sure your questions will now shift from why we are expanding manufacturing capacity to when we will expand even more. Let me address that with some background. At the core, Bloom is a technology innovator that rapidly delivers cost-competitive platform products at meaningful scale to satisfy customers' current and future needs. We are building solid state digital power for the digital age. We are not an industrial era energy company. Bloom's manufacturing IP and supply chain diversity enable us to scale without facing the multi-year delivery backlogs plaguing traditional suppliers. Our ability to scale also comes with a high ROI and low risk profile. Capacity expansion requires a significantly lower upfront investment, a fraction of what legacy players need. Our return on invested capital for capacity expansion is a few months, not years. This gives us the freedom to expand without predicting market size many years into the future to justify our deployment of capital. The simplicity of our manufacturing process is anything but simple. It represents years of innovation, thought, and intellectual property. We have created a differentiated asset-light approach to manufacturing with the control and execution afforded only by in-house production and complemented with a diversified and global supply chain that flexes to meet market demand, much like a tech supplier. So my answer to questions on capacity expansion is simple. The Bloom Energy team reiterates its clear and simple promise to potential customers that have large time to power needs. Bloom will not be the bottleneck to your growth, and you can count on us to deliver timely power. We will deliver our power platform faster than you can build your greenfield facilities, be it an AI factory or a CNI facility. We demonstrated this recently by delivering a hyperscale AI factory order in 55 days against a 90-day commitment and power for a large factory before they could complete construction and commence operation. That is quick time to power, the Bloom way. In short, we will continue to expand deliberately and with discipline. At a fraction of the cost and time, it'll take traditional legacy vendors. And we will offer our customers quickly deployable power that's reliable, clean, and price competitive to meet their present and future needs. Speaking of future needs, Let me address 800-volt DC. First, what is 800 volts DC, and why does it matter? The electric grid, turbines, and engines were designed for the electricity loads of the 20th century factories and process industries. Large amounts of alternating current, or AC power, delivered at high voltage. 35,000 to 69,000 volts. Contrast that to the needs of the digital age. Computer chips, devices, and other semiconductor equipment, everything digital in our modern world, run on low voltage, direct current, or DC power. The upcoming AI computer racks will consume almost 100 times more power than traditional CPU compute racks of ester years. To reduce copper use, increase efficiency, and enhance compute density, AI racks will be architected to receive 800 volts DC. This switch to 800 volts DC is a necessity and not a choice and will happen at the compute track level irrespective of whether power is being supplied from an electric grid or on-site power. 800 volts DC will soon be the data center standard because physics requires it. Any AI data center using grid, turbines, or engines will need to install numerous transformers, rectifiers, and power conditioning tools to convert high-voltage AC to 800 volts DC. This at significant cost reduces reliability and increases emissions. Bloom, and only Bloom, natively produces 800 volts DC today. No band-aids or adapters needed. Starting now, every Bloom server we ship will be 800 volts DC ready with a removable adapter that allows customers to deploy in legacy AC environments and migrate to DC on their own timeline. This is a compelling future-proofed offering. We also offer to convert any servers we have shipped in the past to 800 volts DC with simple modifications, highlighting backward compatibility of this new future. 800 volts DC is one of our many innovative apps that integrates seamlessly on our energy platform, much like an app installed to a smartphone. We'll continue to make healthy investments in technology advancements this year and further strengthen our position as the innovative leader in the power sector. While we invest in the future, We'll continue to reduce costs of our core platform, keeping us on a path of anticipated margin accretion and further increasing our advantage over traditional solutions. We look forward to a strong 2026 as we continue our journey to become the standard for onsite power, a benchmark for speed, reliability, and customer value in the digital age. Over to Maciek now for a financial overview. I'll join you in a few minutes to answer questions. Maciek?