BE · 10-Q · 2026Q1 · Full report

Interest Rate and Refinancing Exposure

Bloom Energy Corp · 2026-04-29 · Importance 60 · Surprise 60

Interest income for Q1 2026 increased by $12.0 million versus prior year largely due to refinancing debt to a 0% coupon to 2030, which added $2.4 billion to average cash balances in money market funds. The Company currently has no floating-rate notes on its balance sheet but warns its overall cost of capital could increase if interest rates rise and fixed-rate convertible notes are refinanced. Interest expense decreased $5.8 million year-over-year, driven by induced conversions and a prior settlement of lower coupon notes, partially offset by debt issuance costs related to the 0% Notes and the new revolving credit facility. Management flags potential refinancing risk and possible higher funding costs in future financings.