Bloom Energy Corp (BE.US), a provider of power generation and hydrogen production solutions, reported strong fiscal third-quarter 2025 results, surpassing market expectations. Revenue surged 57.1% year-over-year to $519 million, exceeding forecasts. Non-GAAP earnings per share (EPS) came in at $0.15, beating the consensus estimate of $0.10. Adjusted EBITDA reached $59.05 million, well above the anticipated $46.02 million.

The company’s operating margin improved to 1.5%, up from -2.9% in the prior-year period. Free cash flow turned positive at $7.37 million, a significant recovery from the -$83.76 million reported a year earlier.

Bloom Energy, which designs and manufactures solid oxide fuel cell systems for on-site power generation, has demonstrated resilience with an annualized revenue growth rate of 19.1% over the past five years—outpacing many industrial peers. This quarter’s performance, marked by beats on revenue, EBITDA, and EPS, underscores strong demand for its offerings.

Following the earnings release, shares surged 18.47% in after-hours trading to $134.20. While long-term growth remains a key focus, analysts note that Bloom Energy’s two-year annualized revenue growth of 12.4% trails its five-year average, though demand trends remain healthy.

A breakdown of revenue highlights two core segments: Products (74% of total revenue) and Services (11.3%). Over the past two years, product revenue (fuel cell servers and electrolyzers) grew at an 18.5% annualized rate, while service revenue (maintenance agreements) expanded by 14.7%.

Looking ahead, sell-side analysts project 12.6% revenue growth over the next 12 months, aligning with recent trends. Despite achieving profitability this quarter, Bloom Energy’s five-year average operating margin of -9% reflects historical challenges tied to high costs. However, its operating margin has improved by 17 percentage points over the past five years, driven by sales growth and operating leverage.

In Q3, the 1.5% operating margin marked a 4.4-point year-over-year improvement, with gross margin expansion contributing to efficiency gains.

EPS trends also signal a turnaround: Bloom Energy shifted from negative to positive EPS over five years, with a staggering 386% two-year annualized growth rate—far exceeding its 12.4% revenue growth. This suggests enhanced profitability per share as the business scales.

For the current quarter, adjusted EPS of $0.15 reversed a year-ago loss of -$0.01, easily topping estimates. Wall Street expects full-year EPS of $0.71, reflecting 2.5% growth.