FuelCell Energy, Inc. ( FCEL ) announced Monday its first-quarter fiscal 2026 results, reporting strong revenue growth. The company, however, continued to post losses as it invests in scaling its fuel cell platform and expanding commercial opportunities.

Shares fell after the release as revenue missed expectations despite strong growth.

FuelCell, Revenue And Earnings

Revenue rose 61% year over year to $30.5 million from $19 million but missed analyst estimates of $42.222 million. Adjusted loss per share was 52 cents, beating estimates of 65 cents.

GAAP net loss attributable to common stockholders was $23.7 million, or 49 cents per share, compared with $1.42 per share a year earlier.

Gross loss totaled $5.9 million versus $5.2 million in the prior-year quarter. Loss from operations improved to $26.3 million from $32.9 million. Adjusted EBITDA was $17 million compared with $21.1 million a year earlier.

Segment Performance

Product revenue increased to $12 million from $100,000. The growth was driven by module delivery and commissioning under long-term service agreements with Gyeonggi Green Energy Co., Ltd. in Korea and CGN-Yulchon Generation Co., Ltd. in South Korea.

Service agreement revenue rose to $3.2 million from $1.8 million.

Generation revenue declined slightly to $11 million from $11.3 million due to lower output from plants in the company's operating portfolio.

Advanced Technologies contract revenue decreased to $4.3 million from $5.7 million. The decline reflected lower contributions from agreements with ExxonMobil Technology and Engineering Company and Esso Nederland B.V., as well as from government contracts.

Costs And Liquidity

Operating expenses declined to $20.4 million from $27.6 million, primarily due to lower research and development spending and reduced administrative and selling costs.

FuelCell Energy ( FCEL ) reported a backlog of $1.17 billion as of Jan. 31, 2026, down 10.8% from $1.31 billion a year earlier. Cash and restricted cash totaled $379.6 million, up from $341.8 million at Oct. 31, 2025.

Capital Activity And Outlook

During the quarter, the company sold approximately 6.4 million shares under its open-market sale agreement. This generated net proceeds of about $54.9 million.

FCEL completed a new round of debt financing with the Export-Import Bank of the United States to support international power projects.

FuelCell Energy ( FCEL ) CEO Jason Few said the company is seeing “strong commercial momentum” from the data center space by delivering over 1.5 GW of new commercial proposals in the first quarter of fiscal 2026.

FuelCell is also announcing a collaboration with Sustainable Development Capital LLP to target up to 450 megawatts of identified projects.

“We are intensely focused on converting the robust pipeline of opportunities in front of us to definitive agreements,” Few added.

Price Action: FCEL shares are trading 13.4% lower at $6.58 as of Monday’s last check.