New York, July 28, 2026 — Plug Power (NASDAQ:PLUG) shares continued their downward trajectory on Tuesday, falling 3.9% to $1.98 in afternoon trading. The decline marks the fifth straight session of losses for the fuel-cell company, which has seen its stock retreat approximately 52% from its late May peak of $4.14.
The latest selloff comes as investors scrutinize the company's near-term liquidity position. Plug Power has announced that it anticipates receiving more than $80 million in short-term cash from a series of transactions with Stream Data Centers. This expected inflow represents roughly half of the company's preliminary cash balance as of June 30, which stood at $162 million.
Texas Transaction Details
The cornerstone of the liquidity plan is a deal involving Plug Power's facility in Graham, Texas, scheduled to close around July 31. Under the terms, Stream Data Centers will provide $50 million upon closing, with an additional $26.5 million contingent on the final secured grid capacity. Plug Power also expects to release approximately $14 million in cash collateral as part of the transaction.
Combined, the Texas-related liquidity could reach as high as $90.5 million, equivalent to 56% of the company's June cash holdings. This initiative is part of a broader optimization program that Plug Power aims to exceed $275 million in total benefits.
Cash Burn and Operational Trends
Plug Power's cash position has been under pressure, declining from $223 million as of March 31 to an estimated $162 million by the end of June, a 27% drop. The first quarter alone saw operating outflows of $150 million. However, there are signs of improvement: first-quarter revenue climbed 22% year-over-year to $163.5 million, while gross margin improved to negative 13% from negative 55% in the prior-year period.
Chief Executive Jose Luis Crespo emphasized the company's focus on margin improvement, liquidity management, and sales pipeline growth. "The improvement in margins, effective management of our liquidity, and the growth of our sales pipeline remain our critical focus," Crespo said in a statement.
Sector-Wide Weakness
Tuesday's selloff was not limited to Plug Power. The broader fuel-cell sector experienced significant declines, with Bloom Energy (NYSE:BE) dropping 14.0% to $161.84 ahead of its second-quarter earnings release after the market close. FuelCell Energy (NASDAQ:FCEL) fell 8.2% to $19.72, and Ballard Power Systems (NASDAQ:BLDP) declined 7.1% to $2.67.
Bloom Energy's results are expected to influence sentiment across the sector. The company posted a 130% surge in first-quarter revenue, compared with Plug Power's 22% growth, and reported a gross margin of 30% with $73.6 million in operating cash inflow. In contrast, Plug Power's negative gross margin and $150 million operating outflow highlight the challenges it faces.
Risks and Outlook
The Texas transaction remains subject to closing conditions, and the contingent payout depends on the final load capacity outcome. Additionally, a second closing in New York is pending regulatory approval, with a long-stop date of March 31, 2027. Plug Power has announced that its second-quarter results will be released soon, and investors will be looking for evidence that margin improvements are translating into reduced cash outflows.
For now, the success of asset sales is viewed as more critical than the expansion of the project pipeline. The company's ability to secure near-term liquidity will be a key focus for shareholders as the deadline approaches.
