Is Plug Power Finally Turning the Corner? 3 Numbers That Matter.

Plug Power (NASDAQ: PLUG) is determined to show investors its turnaround is for real. The hydrogen fuel cell company has tested investors' patience over the past several years. Still, under new leadership, Plug is showing that its comeback strategy, internally called "Project Quantum Leap," is underway. Beyond the recent surge in the stock price, three numbers tell an important story and should catch investors' attention.

Gross margin is still negative, but improving

Plug's gross margin, based on generally accepted accounting principles (GAAP), swung 42% in the first quarter year over year. The number is still -13%, but that jump is significant. The driving force behind the improvement is a disciplined approach to cost-cutting, improved fuel-sourcing, and service execution.

This number matters because a company that's growing revenue but increasing its spend isn't helping shareholders over the long term. Marching toward profitability shows that Plug has solved its core issue of selling units at a loss. If the company can achieve and maintain a positive gross margin, it signals to investors that the business is viable.

Double-digit revenue growth

Plug Power's revenue beat Wall Street's expectations in the first quarter of the year. The company's legacy material-handling fuel cell business grew by about 20%, while the newer electrolyzer division quadrupled from the previous year to more than $40 million. The material-handling business makes hydrogen fuel cells that replace batteries in forklifts and warehouse equipment, allowing workers to refuel in minutes rather than waiting hours to recharge.

Their electrolyzer business, by contrast, makes the machines that produce hydrogen in the first place, using electricity to split water into hydrogen and oxygen. So one segment consumes hydrogen to power equipment, while the other actually manufactures the hydrogen fuel supply.

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Plug has diversified its revenue streams with electrolyzers, which better position the company for success, particularly as AI data centers look to hydrogen to meet their power needs. If the turnaround is successful, investors should keep an eye on the pace of revenue growth.

A strong liquidity position

Plug also ended the first quarter of 2026 with $802 million in cash, with another $275 million expected from planned asset sales. Part of Plug's turnaround story is targeting positive EBITDAS by the fourth quarter.

Plug has been criticized in the past for its cash burn and shareholder dilution. Hence, an increasing cash cushion is an important step toward stabilizing the company's finances and avoiding further dilution of existing shareholders.

While gross margin, revenue, and liquidity strength are three important indicators of success in the company's turnaround strategy, Plug still faces plenty of execution risk. With that said, Project Quantum Leap seems to be taking hold, and CEO Jose Luis Crespo is steering the ship in the right direction.

Investors will need continued patience as a full comeback for both the company and the stock is still a bit off in the distance. Shares of Plug Power have shed more than 90% of their value in the past five years. Plug will report its second-quarter results in the first half of August.

Catie Hogan has positions in Plug Power. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.