Plug Power (NASDAQ: PLUG) shares plummeted 5.08% in Tuesday's trading session, despite the company reporting narrowing losses in its third-quarter results. The hydrogen fuel cell developer posted a quarterly loss of 12 cents per share, beating expectations by one cent, while revenue reached $177.05 million, slightly below analyst targets but up from $173.73 million a year ago.

The sharp decline in stock price suggests that investors may be focusing on certain aspects of the report that raised concerns. While the company highlighted improving operational discipline and progress across its hydrogen ecosystem, including advancements in fuel cells and electrolyzer shipments, the revenue miss and ongoing profitability challenges seem to have overshadowed these positive developments.

Management reaffirmed plans to approach gross-margin breakeven by the end of 2025 and aims for EBITDA positive in the second half of 2026. However, the company's decision to suspend work under the DOE loan program to shift capital toward higher-return projects may have raised questions about its growth strategy. Additionally, while Plug Power secured a long-term supply arrangement with a major industrial gas provider, this move reduces the need for near-term self-development of new hydrogen plants, which could be seen as a scaling back of previous ambitious expansion plans.