FuelCell Energy, Inc.

What does it do?

FuelCell Energy builds power plants that run on fuel cells — devices that generate electricity through a chemical reaction rather than burning fuel. Think of it like a giant, super-efficient battery that runs on natural gas or hydrogen and produces electricity with far fewer emissions than a traditional power plant. Their systems are installed on-site at places like hospitals, universities, and data centers that need reliable, clean power. They also have technology in development for producing hydrogen, which is increasingly seen as a clean fuel of the future.

How does it make money?

FuelCell makes money in a few ways: selling or leasing its fuel cell power systems, operating those systems for customers under long-term service agreements, and earning revenue from electricity those plants generate. In its latest fiscal year, the company brought in about $200 million in revenue, up from roughly $100 million the prior year — so revenue is growing fast. The problem is that it still costs them more to deliver that revenue than they earn from it, resulting in a net loss of around $200 million. In short, they're spending heavily to grow, and profitability is not yet in the picture.

Why do investors care?

Investors are betting that FuelCell is in the early, expensive phase of a company that could become essential infrastructure for clean power. The growth story hinges on scaling up manufacturing so costs fall, winning large long-term contracts, and benefiting from government clean energy incentives. For the thesis to work, FuelCell needs to convert its growing revenue into actual profits — something it has not yet done. Investors who buy in now are essentially making a bet on the future, not the present.