Bloom Energy Corporation

Ladies and gentlemen, thank you for standing by my name is abby and I will be your conference operator today at this time, I would like to welcome everyone to the bloom energy first quarter 2026 conference call. All lines have been placed on mute to prevent any background noise after the speakers remarks, there will be a question and answer session. If you would like to ask a question during this time simply press star, followed by the number one on your telephone keypad if you would like to withdraw your question press star one a second time, thank you. And I would now like to turn the conference over to Michael Tierney, Vice President, Investor Relations. You may begin.

Thank you, and good afternoon, everybody. Thank you for joining us for Bloom Energy's first quarter 2026 earnings call. To supplement this conference call, we furnished our first quarter 2026 earnings press release and supplemental financial information with the SEC on Form 8K, and have posted these materials, which we will reference throughout this call, to our Investor Relations websites. 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, technology, customers, new markets, strategy, financial and competitive position, investments, liquidity, and full year outlook for 2026. These statements, which relate to matters including time to both power and market, the standard for onsite power, cost efficiency, capacity expansion, innovation, affordability, and community acceptance as we look to keep pace with the rapid evolution of our markets, our 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 first quarter 2026 earnings press release and supplemental financial information, 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 these materials, which are available on our investor relations website. Joining me today are K.R. Sridhar, founder, chairman, and chief executive officer, and Simon Edwards, our chief financial officer. K.R. will begin with an overview of our progress, and then Simon 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 K.R.

Good afternoon, and thank you for joining us today. bloom delivered a record first quarter revenue gross margin and operating income all came in materially about our prior outlook based on what we are seeing across the business we are also raising our full year guidance and raising it materially we will walk through the numbers in a few minutes but first i want to talk about what is happening in our market because the headline numbers as strong as they are, are a lagging indicator and don't convey the whole story. We at Bloom are ushering in the era of digital power for the digital age. Now the marketplace is recognizing and embracing our proposition of clean, reliable onsite power that is community friendly and deployed at the speed of AI. Bloom is rapidly becoming the standard and go-to choice for on-site power. Last night, Oracle announced a new power paradigm for Project Jupyter, a multi-gigawatt AI factory to be built in New Mexico. We are thrilled to partner with Oracle and applaud them for their visionary leadership. This up to 2.45 gigawatt power block will replace Project Jupiter's previously planned gas turbines and backup diesel generators with Bloom energy servers. It will be 100% Bloom. When completed, it will be one of the largest islanded microgrid power facilities in the world. Oracle pivoted to Bloom-only solution for two main reasons. First, be a responsible corporate citizen and partner by being responsive to residents' concerns about air quality, water use, noise, and increasing electricity rates. Second, to stand up their grid-independent and clean AI factory with even greater reliability and speed. Bloom is the cleanest commercially available on-site power generation option for such data centers and the most water efficient. Given Bloom's community-friendly attributes, Oracle should be able to energize the campus materially faster than any other available alternative solution in the market. At a time where every quarter of delay translates into hundreds of millions in foregone AI revenue and loss of competitive advantage, speed of powered infrastructure development is the difference between leading and following. Becoming the sole power provider for Project Jupyter is a milestone for Bloom, but it's not going to be a one-off project. Where Oracle is going is where the broader market is headed. On our Q3 call, I described our playbook for becoming the standard. In each vertical, we establish credibility with the Lighthouse customer, then build on that success with other Tier 1 customers. Two quarters later, that's exactly what's happening across the AI ecosystem. Oracle is rightfully getting headline attention today. But well more than half of our current data center backlog comes from other hyperscalers, neoclouds, and colocation providers. Just like the Oracle Jupyter project, these microgrid installations will use no grid no dirty diesel generators for backup, no battery banks for load following, no engines, no turbines, just bloom and bloom alone. We are continuing to engage with more hyperscalers and neoclouds by signing new contracts and slot reservations and working with them to evaluate many new opportunities. Our pipeline today is diverse and robust in the AI segment. Parenthetically, let me also remind you that this is a rinse and repeat of our CNI business playbook. That segment is also experiencing strong demand, is diverse, and continuing to grow. I want to give you a perspective on why we are experiencing this hypergrowth, because it will shape how you think of Bloom going forward. For over 25 years, we built this company around the conviction that clean, reliable, affordable onsite power would become essential to a digital world. The market is now validating that vision at scale. And AI power demand is simply accelerating it. Time to power has gone from a procurement consideration to an existential necessity. The companies driving the AI transformation are racing against each other on the one hand and on the other, bumping into the bottlenecks common to building conventional infrastructure, such as permissions, permits, and community acceptance. The winner will be the one who can grow and deploy faster and on the schedule the market demands. You see, That's a different game than the one the legacy power industry is set up to play. Their model is industrial. Long cycle times, capital heavy capacity additions, product improvement measured over decades rather than quarters. Our model is different at every layer. We innovate and improve continuously, be it in our technology, in our product, in how we manufacture, in our capital intensity, in how we deploy, in how we operate and service our systems, and in time to market. That is what allows us to deliver double digit cost reductions year after year, expand capacity with materially less capital than industrial era players, and meet our customers' schedule needs. Our differentiated and unique operating rhythm and mindset will be obvious to you if you visited our factory floor. It's a state-of-the-art production facility, a busy construction zone, and a buzzing innovation hub. We are manufacturing product on schedule to meet customer needs, adding lines and expanding capacity to meet growing demand, and innovating to reduce cycle times, space needs, and costs. Product manufacturing, capacity expansions, and innovation all occurring concurrently all the time all under the same roof, and all with factory floor team members and engineers working as one team for one common purpose, to be better tomorrow than we are today and keep marching towards the North Star of maximum entitlement. This is an example of our operating model. We call it the Bloom Way. As a result of this approach, the contrast in outcomes is simple. Their supply to current orders arrives only in 2029 or later, irrespective of the customer's needs. Ours arrives this year or the next or whenever the customer is ready. Based on demand profile, we have now shifted to adding capacity continuously, hundreds of megawatts a quarter, as opposed to lumpy one-off additions to be completed in a year's time. How we think about and execute on capacity addition is one of the clearest ways to see what makes Bloom different. The traditional power industry has spent the past two years celebrating its backlog that is four and five years out. Backlog at that scale and timeframe in the age of AI is a result of their constrained supply. At Bloom, we see it differently. Our ability to expand capacity is our competitive advantage. We want to rapidly build capacity, build product, help build productive AI factories, help build commercial and industrial facilities, and help build our economy, not just be satisfied with simply building backlog. Our current manufacturing footprint will allow us to deliver five gigawatts of product annually. We will expand to that capacity and meet the delivery dates needed by our customers. In other words, today, we are not order constrained and not capacity constrained. The pace of our revenue growth is decided by how fast our customers can build their greenfield sites, not how fast we can power them. We will never be the bottleneck to our customers. We built our business around that promise. Going beyond the five gigawatt capacity, our supply chain and manufacturing strategy and planning allows us to build that capacity significantly faster than any other option in the market using our copy exact model. We will strive to bring power to our customers faster than they can stand up their greenfield facilities we were able to make that promise because we invested deliberately ahead of demand we expanded manufacturing capacity built inventory diversified our supply chain strengthened our balance sheet and assembled an ecosystem of long-term supply partners that scales with us given our low capital intensity those investments carried materially lower risk for shareholders than they would have for an industrial era supplier. They were disciplined decisions made with conviction that this market shift was coming. While our new orders that we are telling you today are news to you, we have advanced visibility and anticipated such wins for months. So, We planned out our capacity expansions accordingly. Our strategy and judicious investments have positioned us to become the standard for both onsite power and time to power. Beyond speed, our architecture creates real flexibility for our customers. Our modular copy exact systems are portable and fungible and meet air quality requirements in virtually all jurisdictions. If a customer needs to shift deployment from one site to another, our master services agreement is structured to enable that. With the master service agreement, our hyperscale customers have the geographic flexibility to move a bloom deployment from one site to another based on a speed up at one site or a delay in another. Bloom moves with the customer to the location where the GPUs are ready to convert the power to tokens of intelligence and revenue dollars. Unlike a traditional power plant, our platform is also a different kind of neighbor in a community. We are community friendly. As more onsite generation gets deployed to support AI and industrial growth, communities care deeply about what kind of infrastructure shows up next door. Bloom preserves local air quality. We do not combust and pollute the air like conventional technologies. We use minimal water at startup and none during normal operations. We are quiet, compact, and efficient with land use. We integrate well with environments rather than disrupt them and become an eyesore. As permits and permissions become the gating factor for AI infrastructure, community acceptance matters increasingly. Our fully islanded, grid independent, one stop full stack power solution does not raise the monthly electricity bill for community residents and brings them economic development without compromises. The cost equation has also shifted in our favor. We have spent years driving down product cost while improving performance. That work is meeting the market at exactly the right time. Our energy servers are now cost-competitive with grid power in most US markets and with off-grid alternatives in nearly all markets. With over a decade of double-digit cost reductions, we remain the only onsite generation solution with a sustained downward sloping cost curve. As affordability of power becomes a national issue, we expect to become the solution of choice from that perspective also. Bloom delivers a value proposition built on the principle of and, not or. Customers can have the power that is clean and reliable and fast and affordable. Now, to our outlook for the year. To say that the commercial landscape is fluid and dynamic would be a massive understatement. The strength of the quarter and the commercial momentum we see across the board gives us conviction and confidence to raise guidance materially. We are raising 2026 revenue guidance of 3.1 to 3.3 billion to 3.4 to 3.8 billion. At the midpoint, that takes growth from 60% year-over-year to 80%. We're also raising our gross margin outlook from 32% to 34%, barring any global shock or exogenous factors. You can see We are prioritizing growth and profitability in equal measure. Now, I want to introduce Simon Edwards, who recently joined Bloom as our chief financial officer. Over the past year, we have been deliberate in our search. It was important to us that we not only find the right CFO for Bloom today, but the right leader and business partner to help Bloom scale for the future. Simon brings a rare combination of capabilities. With a systems engineering background, he has built disciplined operating models and scaled manufacturing operations for complex systems. As CFO of leading software franchises, he has applied a digitally native approach to building businesses, leveraging data and analytics. as competitive advantage and employed automation for speed and efficiency. His time at Grok has given him a front row seat to the explosive growth occurring across AI. All of that translates directly to where Bloom is headed. I also want to thank Maciek and the finance team for their outstanding work in supporting the business without missing a beat during last year. Their performance speaks to the depth of the Bloom talent at all levels. I'm proud. Finally, to the Bloom team, thank you. What you have built over more than two decades is meeting the market at exactly the right moment. You believed and always knew that an inflection point would come. None of what we see today would be possible, but for your faith, dedication, diligence and discipline. Much gratitude. With that, Simon, a very warm welcome and the mic is yours.