Bloom Energy (BE) Q3 2026 Earnings Call: Q&A Summary

Q: Mark Strouse of JPMorgan asked why the company is expanding its Fremont real estate footprint now and if the 5 gigawatt capacity milestone will move to 10 gigawatts.

A: K.R. Sridhar explained that electricity demand is skyrocketing globally, necessitating preparation for growth beyond the 5 gigawatt milestone. He noted the company will scale incrementally to avoid bottlenecks rather than using a step function.

Q: Mark Strouse of JPMorgan asked about the gross margin outlook for the year and if further upside is expected as revenue ramps.

A: Simon Edwards stated that gross margin has expanded from 28.7% in 2024 to 34.5% in the third quarter. He noted that while the company is balancing margin expansion with near-term costs of ramping new production lines, the long-term view remains positive.

Q: Nick Amicucci of Evercore ISI asked about the free cash flow profile and the use of $27 million in cash during the quarter.

A: Simon Edwards explained that the business is self-funding, with operating performance supporting growth investments. He noted that year-to-date cash flow from operations is positive and that working capital investments are necessary to support customer deployments.

Q: Nick Amicucci of Evercore ISI asked about the opportunity and total addressable market within the regulated utility sector.

A: K.R. Sridhar explained that utilities are increasingly viewing Bloom as a distribution asset that allows them to reduce costs and avoid grid bottlenecks. This allows utilities to rate-base procurement of Bloom servers as a transmission and distribution asset.

Q: David Arcaro of Morgan Stanley asked about the commercial status of carbon capture, 800V DC, and combined heat and power initiatives.

A: K.R. Sridhar highlighted the AEP/Google deal as a key validation for carbon capture, noting Bloom's technology makes it viable at scale. He added that 800V DC adoption is inevitable and that combined heat and power is a value-add for commercial and industrial customers.

Q: Christopher Dendrinos of RBC Capital Markets asked if the time-to-power metric remains sub-90 days and for an update on the Nebius site.

A: K.R. Sridhar stated that Bloom will not be a bottleneck for the Nebius project, which is deploying power in blocks. He emphasized that for data centers, avoiding delays is the primary value proposition.

Q: Christopher Dendrinos of RBC Capital Markets asked about the opportunity to add automation and potential cost savings.

A: K.R. Sridhar noted that efficiency is in the company's DNA, citing that the same headcount of 600 employees will support 1 gigawatt of production as previously supported 100 megawatts.

Q: Manav Gupta of UBS asked about the total cost of ownership versus LCOE and the company's water usage advantage.

A: K.R. Sridhar explained that Bloom is the lowest cost leader when considering total rack power costs rather than just LCOE. He added that Bloom's water usage is negligible, consuming 1.4 million gallons compared to 25,000 million gallons for combustion technologies over the life of a gigawatt data center.

Q: Ben Kallo of Baird asked about capacity constraints as the company approaches 5 gigawatts and the strategy for international expansion.

A: K.R. Sridhar clarified that the company does not provide specific quarter-to-quarter growth numbers, as capacity is a dial adjusted based on load. He added that international markets are attractive due to higher natural gas costs and that news on this front is expected soon.

Q: Ameet Thakkar of BMO Capital Markets asked about the largest single site deployment currently operating in the U.S.

A: K.R. Sridhar stated that the company has 100-megawatt class sites operating, with the Wyoming project approaching 700 megawatts.

Q: Maheep Mandloi of Mizuho asked for interpretation of the backlog growth relative to revenue.

A: K.R. Sridhar replied that growth is solid and robust, and the company will provide specific guidance in the fourth quarter.

Q: Sunaina Ocalan of Bernstein asked about hyperscaler interest in carbon capture and the impact on delivered power costs.

A: K.R. Sridhar noted significant interest from hyperscalers, with customers likely to purchase carbon-capture-ready systems. He stated Bloom can deliver 0 carbon power at a 10% to 15% cost premium.

Q: Colin Rusch of Oppenheimer asked about contract asset growth and the strategy for monetizing carbon capture.

A: Simon Edwards explained that contract assets will turn as billing milestones are reached. K.R. Sridhar added that the company is agnostic to the monetization model and can work with partners or end-customers to divide proceeds.