Shares of Plug Power (PLUG) tumbled 5.45% in pre-market trading on Friday, as investors reacted to the company's recently released second-quarter results, which underscored the ongoing challenges faced by the hydrogen fuel cell manufacturer.

Despite some improvements, Plug Power's Q2 results revealed persistent issues that continue to worry investors. The company reported a negative gross margin of 31%, which, although better than the negative 92% from a year ago, still indicates that Plug Power is selling its products and fuel at a loss. This ongoing struggle with profitability has led to significant cash burn, with the company reporting negative free cash flow of $230.4 million for the quarter.

However, it's not all doom and gloom for Plug Power. The company maintained its forecast to produce around $700 million in revenue this year and highlighted potential tailwinds from the recent U.S. budget reconciliation legislation, which includes support for the hydrogen industry. Plug Power expects to reach gross margin neutrality by the fourth quarter and aims for positive EBITDA by Q4 2026. The company also noted that a recently extended long-term hydrogen supply agreement could lead to "substantial" cost savings.

Despite these potential positives, the market's reaction suggests that investors remain skeptical about Plug Power's ability to turn things around quickly. With only $140.7 million in unrestricted cash and about $300 million in available debt capacity, the company's liquidity position is a significant concern given its current cash burn rate. As Plug Power continues its efforts to transform its business model and capitalize on the growing hydrogen industry, investors will be closely watching for signs of improvement in the coming quarters.