BE · 10-Q · 2026Q1 · Full report
Gross Margin Drivers
Bloom Energy Corp · 2026-04-29 · Importance 88 · Surprise 82
Total gross profit for Q1 2026 increased $136.8 million to $225.5 million, driven principally by a $151.8 million increase in product gross profit. Product gross profit improvement reflects higher Energy Server volumes from Brookfield-executed projects (including a hyperscaler) and manufacturing efficiency gains from automation, partially offset by increased product warranty costs. Service gross profit rose by $7.5 million due to fewer field replacement units (cost savings of $3.2 million) and $9.4 million higher maintenance revenue. Electricity gross profit decreased $13.0 million primarily because of a one-time settlement tied to redeployed assets in Q1 2025.
Key facts
- Total cost of revenue increased $288,196 thousand, or 121.4%, for the three months ended March 31, 2026 versus prior year
- Cost of product revenue increased $289,659 thousand, or 207.5%, for the three months ended March 31, 2026 versus prior year
- Total cost of revenue for the three months ended March 31, 2026: $525,510 thousand
- Total cost of revenue for the three months ended March 31, 2025: $237,314 thousand
- Cost of product revenue for the three months ended March 31, 2026: $429,232 thousand
- Cost of product revenue for the three months ended March 31, 2025: $139,573 thousand
- Product gross profit for the three months ended March 31, 2026: $224,116 thousand
- Product gross profit increased $151,820 thousand for the three months ended March 31, 2026 versus prior year
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -38.6% | Cost of product revenue increased $289,659 thousand, or 207.5%, for the three months ended March 31, 2026 versus prior year |
| operating_income | positive | realized | +20.2% | Product gross profit for the three months ended March 31, 2026: $224,116 thousand |
| operating_income | positive | realized | +18.2% | Total gross profit increased $136,837 thousand for the three months ended March 31, 2026 versus prior year |