Bloom Energy Corp Q3 FY2025 Earnings Call

Ladies and gentlemen, thank you for joining us. My name is Colby and I will be your conference operator today. I would like to welcome you to the Bloom Energy Third Quarter 2025 Earnings Results. Thank you. I will now hand the call over to your host, Michael Tierney, Vice President of Investor Relations. Sir, you may begin.

Thank you, and good afternoon, everybody. Thank you for joining us for Bloom Energy's Third Quarter 2025 Earnings Call. To supplement this conference call, we furnished our third quarter 2025 earnings press release with the SEC on Form 8-K and have posted it along with supplemental financial information that we will reference throughout this call to our Investor Relations website. During this conference call, both in our prepared remarks and in answers to your questions, we may make forward-looking statements that represent our expectations regarding future events and our future financial performance. These include statements about the company's business results, products, new markets, strategy, financial position, liquidity and full year outlook for 2025 or 2026. These statements are predictions based upon our expectations, estimates and assumptions. However, as these statements deal with future events, they are subject to numerous known and unknown risks and uncertainties as discussed in detail in our documents filed with the SEC, including our most recently filed Forms 10-K and 10-Q. We assume no obligation to revise any forward-looking statements made on today's call. During this call and in our third quarter 2025 earnings press release, we refer to GAAP and non-GAAP financial measures. The non-GAAP financial measures are not prepared in accordance with U.S. generally accepted accounting principles and are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. A reconciliation between the GAAP and non-GAAP financial measures is included in our third quarter 2025 earnings press release available on our Investor Relations website. Joining me on the call today are K.R. Sridhar, Founder, Chairman and Chief Executive Officer; and Maciej Kurzymski, our Acting Principal Financial Officer. K.R. will begin with an overview of our progress, and then Maciej will review financial highlights for the quarter. After our prepared remarks, we will have time to take your questions. I will now turn the call over to K.R.

Good afternoon, and thank you for joining us today. I'm delighted that Bloom had its fourth consecutive quarter of record revenue. This seminal year for Bloom positions us for an even stronger 2026 and beyond with higher growth and more profitability. Three major tailwinds benefiting Bloom today have created a once-in-a-generation opportunity for us to become the global standard for on-site power generation. First, the AI buildouts and their power demands are making on-site power generated by natural gas a necessity. Second, winning the AI race is a nation-state priority, driving government policy and removing barriers that had previously been headwinds for on-site power generation. Third, our product innovation is advancing at a pace more akin to semiconductor evolution than to that of traditional industrial products. Every year, for over a decade, our fuel cells have seen double-digit year-over-year cost reductions. While our costs are coming down, our performance is going up. Our fuel cells last longer, are more reliable and are more efficient and today produce 10x more power in the same footprint than they did 10 years ago. These improvements have opened up large market opportunities. For example, we historically sold exclusively in high-cost electricity markets such as California and the Northeast. We are now competitive in large power-hungry markets of the Midwest, Mid-Atlantic, Mountain West and Texas, and many European and Asian cities. Bloom is now positioned to become the standard in on-site power, which many of us believe will be a trillion-dollar market. Becoming the standard means we will be the benchmark by which all others are measured. The reference point for speed, reliability and performance in on-site power. When customers, partners, regulators and governments think about dependable, dispatchable electricity, they should think about Bloom first. While we built Bloom with the conviction that this moment would arrive, we had no illusions of the difficulties we would face to gain acceptance as we embarked on this journey. To be even considered, we had to be better in every dimension. We persevered and delivered step by step. Now after 24 years, we have robust supply chains, manufacturing processes, installation capabilities and field performance data to show our customers we offer an unparalleled on-site power solution at speed and scale. We obsess about meeting our customers' needs and do not expect them to compromise. We do not offer them false choices: clean, reliable or fast. Instead, we offer them an 'and' solution. We ship on time and aim to ship faster than anyone else. We are more reliable and resilient and offer our customers superior price-to-performance value. Our mass-produced modular power systems allow us to power sites as small as your neighborhood retail store and as large as a giga AI factory that mass-manufactures intelligence. Bloom Energy servers are safe, operate without consuming water, do not pollute the local air and have curb appeal, all features that make them welcomed in the communities where they are installed. The precursor to becoming the standard is to first earn our place in the evaluation process alongside the well-entrenched and very capable competitors that have defined the market for decades. We are now executing on this phase, working to replicate in new markets the success we have achieved in sectors like semiconductor manufacturing and telecommunications, industries that demand the highest reliability. Today, we are the standard for on-site power in telecom and semiconductor manufacturing, as evidenced by the rapid adoption of our technology by the top-tier players and the strong sales pipeline in those segments. Our strategy is deliberate and simple. In each vertical, we establish our credibility with a lighthouse account and then build on that success with other Tier 1 customers. For example, in telecommunications, we first secured AT&T as a lighthouse customer in 2011. After they became convinced of our operational excellence, they deployed us in multiple sites in many states. Soon, we added Verizon and T-Mobile as customers and have sold over 100 megawatts of on-site power to telecoms. Today, we are a go-to on-site power choice for U.S. telecom companies. Now we are following the same playbook to become the standard on-site power solution for AI. We are embedded in seven distinct AI ecosystem channels. In each channel, we have secured a lighthouse customer in our robust pipelines. First, the hyperscalers. Back in August, we announced our first deal to power an AI factory with Oracle. We have fulfilled our delivery ahead of schedule. We promised to deliver in 90 days, and we delivered in 55 days. Second, electricity providers. Last year, we signed a gigawatt agreement with AEP, which purchased our fuel cell systems to power another big hyperscaler, AWS. Third, gas providers. We signed our first deal with a major gas provider who will convert its gas to electricity with Bloom fuel cells and sell that on-site power to a third hyperscaler. The hyperscaler will announce details of this installation when it is ready. Fourth are co-location providers. We work with many, including Equinix, which has deployed over 100 megawatts across data centers in multiple states. Fifth, neoclouds. Our systems are generating on-site power for a top neocloud provider, CoreWeave, at a high-performance data center in Illinois. Sixth, data center developers. When an understanding has been reached on key terms, developers begin to file permits and permissions. You may have seen some of these public filings recently. Seventh, infrastructure owners. Large infrastructure funds are increasingly developing their own AI factories. Brookfield, the world's largest AI infrastructure investor, has invested $50 billion in AI opportunities and is tripling the size of its AI strategy over the next 3 years. It announced an AI infrastructure partnership with Bloom Energy and made an initial investment of $5 billion. Bloom will be the preferred on-site provider for Brookfield's trillion-dollar infrastructure portfolio of AI factories, data center operators, corporate facilities and factories. Brookfield will also finance Bloom-sourced AI opportunities. We have already completed projects and Brookfield plans to announce a Bloom-powered European AI inference data center project by the end of the year. To recap, we have strong traction across all channels of the AI ecosystem. Each channel is anchored by a lighthouse customer and accompanied by robust commercial activity. As we continue to penetrate new geographies and verticals, success builds upon itself and should make each new market entry easier than the first. The opportunity is vast, and we are still in the early innings. So what are we doing to make sure we are ready to handle growth as well as further advance our leadership position? As we have previously announced, we are doubling our capacity to 2 gigawatts by December 2026, which will support about 4x our 2025 revenue. That expansion is all systems go. Bloom's capacity will not be a bottleneck for our customers. We are also investing in operational talent and capabilities needed for the expansion of our production capacity beyond the 2 gigawatts. We are building a commercial team that can capture opportunities across diverse market segments and geographies. And we are continuing to invest in R&D to increase our lead in on-site power. We are doing all of this while maintaining our focus on operational excellence and financial discipline to achieve margin expansion over time. Based on what we see today, we expect 2025 to be better than our previously stated annual guidance on our financial metrics. In addition, we expect double-digit product cost reductions to continue and keep us on a path of margin accretion. We look forward to a strong 2026 as we march forward and build a future where Bloom powers the digital age and is the recognized standard for on-site power globally. I'll turn over to Maciej now, and I look forward to answering your questions.

Thank you, K.R., and good afternoon, everyone. As K.R. mentioned, Bloom is now positioned to become a standard in on-site power. Our announced customer base and financial results are a testament to this. On today's call, I will discuss our Q3 financial performance and make a few comments about fiscal 2025. The last four quarters have been a record operational and financial performance and Q3 was no exception. While our commercial success has been most visible, the work our engineering, manufacturing and support teams have done behind the scenes to drive product cost reductions is evident in our financial results. Highlights include record third quarter revenue, positive cash flows from operating activities and our seventh consecutive quarter of profitability in our service business. As a reminder, I will focus my discussion on non-GAAP adjusted financial metrics. For a reconciliation of GAAP to non-GAAP, please see our press release and the supplemental deck on our website. Revenue for the quarter was $519 million, up 57% year-over-year. Time-to-power needs are creating demand for on-site power. This, together with the advantages of our fuel cell technology for AI factories, is driving our revenue growth. Gross margin was 30.4%, 510 basis points higher than the 25.2% gross margin in Q3 of 2024, driven by continued focus on product costs and manufacturing efficiencies. Our operating income was $46.2 million versus $8.1 million in Q3 last year. Adjusted EBITDA was $59 million versus $21 million in Q3 of 2024 while EPS was a positive $0.15 versus $0.01 loss a year ago. Again, these are all non-GAAP results. Our product margins were 35.9%, while our service margins were 14.4%. This is the second straight quarter of double-digit margins in the service business, and we expect this trend to continue. As we have talked about on each call this year, we took advantage of our balance sheet and our visibility into customer demand to level load our factory. We expect to work down inventory in Q4 as our shipments of product accelerate. Cash flow from operating activities was an inflow of $20 million, primarily due to working capital improvements. We ended the quarter with $627 million in total cash on the balance sheet. Turning to the full year, as K.R. mentioned, based on what we see today, we expect fiscal 2025 to be better than our previously stated annual guidance on our financial metrics. To conclude, Bloom is focused on not just on scale but on showing sustainable profitability as we grow. We are uniquely positioned to benefit from this unprecedented market dynamic, and I could not be more excited about the opportunity in progress. Operator, we are now happy to take questions.

Your first question comes from David Arcaro from Morgan Stanley.

I was wondering if you could discuss the pace of commercial activity you're experiencing. You've had success with several agreements in a short time. How do you anticipate this developing as we look forward to the next agreements in the pipeline, considering the market demand you are observing?

David, thanks for that call. Look, I think we've been saying in the last three earnings calls that the commercial momentum is robust. And all that I can tell you, if I looked at it this week and last week, and if I walk over to the commercial section of our offices is that momentum is clearly accelerating and it's palpable. So forget questions of, is it static or is it slowing down? It's accelerating. That's all we see. And we see that across the board. And by the way, it's accelerating not just in AI, our traditional commercial and industrial segments are doing the same. So it's across the board. And the larger the deals get, the more the actors that get involved, as I explained in the entire AI value chain. These are complex deals. And each one goes to a different phase, different momentum. Some close extremely fast because of the need. Some take a little longer. But make no mistake, the commercial momentum is absolutely accelerating.

Okay. Excellent. And I was wondering, we've seen other technologies emerging in recent data center deals, small-scale gas turbines, gas engines. I'm wondering if you could describe what you're seeing with the competitive environment, how your product compares to some of the other solutions? And just is the competition heating up? Or how do you see it playing out?

I believe the supply-demand imbalance is so significant that any viable solution currently available has a market opportunity. Data center developers and hyperscalers will seek out every possible solution. However, it's clear that our technologies are specifically designed for data centers. The additional benefits and value we provide are substantial compared to traditional solutions that were developed for older mechanical systems, which struggle with modern digital and AI challenges. We consistently benefit whenever we enhance our customers' experience with our technology. When comparing us to other technologies, ours does not produce air pollution or require mechanical components that hinder on-site power generation. Unlike those systems, our solid-state power solution doesn’t need batteries and can deliver power efficiently. We can scale up our capacities much quicker than others facing supply chain issues. We are preparing our customers for future advancements in technology, including DC power, carbon capture, and green molecules, unlike others who lack these options. If you consider the same amount of gas available, our technology can generate significantly more power, enabling hyperscalers to produce a higher volume of tokens. Ultimately, the key is converting energy into tokens effectively. We can generate more tokens from the same resources and space than any other technology currently available, delivering end-to-end solutions. Therefore, the value for hyperscalers isn't just about the price of power; it's about the overall cost across the entire value chain. We can compete effectively on price-performance ratios with anyone. That's the summary, David. Thank you.

Your next question comes from the line of Chris Dendrinos from RBC Capital Markets.

Congratulations on the strong quarter. I wanted to follow up on the Brookfield partnership here. And I'm hoping you could just expand a little bit on the relationship and provide some more details around the potential development time line? And then just how should we think about this partnership financially and how that benefits you?

Chris, thank you. Brookfield is an exceptional partner for Bloom. They are central to the AI value chain and have invested over $50 billion in AI, aiming to triple that investment in the next 2 to 3 years. To provide some context, they are one of the largest infrastructure owners globally, managing over $1 trillion in assets, which includes 140 data centers that operate with around 1 gigawatt of critical load capacity, and they intend to significantly expand this in AI. Additionally, they possess a portfolio of factories and commercial real estate that will benefit from AI advancements, requiring increased power as they automate and integrate robotics. Brookfield is leveraging their balance sheet and their relationship with us as the preferred power provider for all their portfolio companies, including their data centers. Furthermore, they see themselves becoming a major AI infrastructure developer, planning to utilize our services. If there are any Bloom-sourced deals that require financing, they are prepared to step in as the financier for those transactions. It's important to note that they have emphasized this $5 billion investment is just the beginning. We have already completed some deals with Brookfield, and they have indicated plans to announce a European AI inference data center powered by Bloom before year-end. This relationship is incredibly significant for us.

Got it. And I guess maybe just as a follow-up, sticking with the European opportunity here, can you maybe just expand on the global opportunity? And are you seeing the same kind of power limitations globally as you are in the U.S.? And does that present a strong opportunity for more international growth?

Yes. Chris, that's a great question. Look, I have been to these capitals, whether it is Frankfurt, whether it's Munich, whether it's Dublin, whether it's Taipei, okay? They all have a power shortage problem. And they all clearly recognize that their central power plants along with transmission and distribution cannot keep up with AI speed. That's across the board. This is true in Delhi. This is true in Mumbai, okay? So now what is happening in Europe and Asia, if you take as an example, I was just recently in Tokyo. And what I heard there is finally the sentiment of natural gas not just being a short-term bridge, but a long-term solution. And the agreements the U.S. is reaching with our friendly countries, our friendly allies to say, we will supply you long-term LNG, is now making them take a very different look at natural gas. And once that policy unlock happens of saying natural gas projects can move forward, we think there will be a tremendous acceleration in those places, and we are extremely well positioned to be able to play and the interest in Europe for our carbon capture solutions where you can go to almost net zero using natural gas as a fuel, tremendous interest there. No other technology, the turbines and the engines cannot do that. We can. So tremendous interest there.

Your next question comes from the line of Manav Gupta from UBS.

Generally, when you tell a customer, I can deliver the order in 90 days, the customer is happy to get the order in 360 days. So incredible feat delivering it in 55 days. My first question, sir, here is last week, the Energy Secretary sent a draft proposal to FERC that would limit the regulatory review period for data center connections to power grid to just 60 days, expediting a process that can currently extend up to years. Help us understand how this could help Bloom Energy.

Thank you for your kind words, Manav, and a shout out to our team for their hard work. To start, it's important to note that the Energy Secretary has requested FERC to initiate a hearing process and implement rule changes to enable rapid interconnection for large consumers like data centers and AI factories, which has been a challenge. We commend the policymakers and regulators for this decision as it's essential for the country. Additionally, the announcement clearly states that even with interconnection, operators must ‘bring your own power’; otherwise, they could face curtailment. Large AI data centers won’t operate where utilities impose such restrictions based on demand fluctuations. This aspect is crucial. Our ability to provide power quickly aligns with utilities that want to connect and supply energy to data centers or factories. This mirrors what AEP is pursuing, and we believe it will incentivize other utilities to follow suit, positively impacting our business. For those in the utility sector listening, it’s straightforward. You don’t manufacture nuclear plants, gas turbines, or fuel cells. Instead, you can rapidly purchase our fuel cells, install them at customer locations, and enjoy additional benefits. One such advantage is the ancillary support for the grid, which is complex yet vital. Engines and turbines can generate reactive power, a byproduct that can stabilize the local grid almost at no extra cost. However, traditional devices have limitations in this regard, whereas Bloom's technology offers a significant advantage in that power factor range. In areas like PJM, facing grid congestion and instability, or in California, where renewable energy can disrupt the grid, our systems serve as a stabilizing force. Moreover, we can quickly supply additional power to the grid on demand, thanks to our systems being in hot standby mode. This allows us to export power when not used by data centers, unlike turbines that need time to ramp up. Thus, we provide significant advantages: ensuring swift construction of data centers, assisting utilities in their operations, offering ancillary services, and contributing positively to the environment by reducing pollution. This is a win-win-win scenario, and we are excited about this opportunity.

My second question, and I apologize in advance, I am an electronics engineer, but it's been two decades since I graduated. So in case it's an invalid question, please just ignore it. Sir, I recently read somewhere that some chip makers are looking to move from 400-volt AC to 800-volt DC by 2027. I think it was NVIDIA. I'm just trying to understand, if that does happen, would it make your fuel cell even more efficient? Would DC/DC power be even more efficient than DC/AC power because of transmission losses? If you could just talk about that.

Don't underestimate your technical knowledge; it's quite accurate. It's crucial to address your question, and I realize we didn't cover it, which might have been my oversight in the script. Let me take a moment to clarify this for everyone. It's essential. We are transitioning from converting 400-volt AC to 48-volt DC, which is how server racks, roughly the size of refrigerators, operate in data centers. These machines create intelligence. Historically, data centers have used low voltage, like 48-volt DC, which has sufficed. Think of power entering the rack as a thirsty person trying to drink water through a straw. That straw served its purpose when CPU racks operated at 13 kilowatts. We've made various adjustments to accommodate Blackwell chips nearing 130 kilowatts using that same straw. However, Rubin chips and those beyond are going to require 5 to 10 times that power. It's impossible to supply that much fluid through such a limited opening, meaning we must increase the pressure of the water, which translates to needing higher voltage. The laws of physics dictate that to support AI chips with greater power density, an 800-volt DC architecture is essential for advancing AI technology. This isn't optional; it's necessary. On the flip side, our legacy power systems that served us well in the mechanical age were designed for that era. They resemble Niagara Falls but lack the capacity to generate the high voltage we need. Without significant voltage, you can't effectively transport all that power through a reasonably sized conduit. Even a 50-megawatt on-site turbine can't directly generate 800 volts without requiring an impractically large amount of copper. At Bloom, we've anticipated this need since our architecture was created back in 2000. We designed a system capable of delivering that power at 800 volts. Every unit we've shipped over the past 15 years has been built accordingly. However, we've also developed an additional component that converts DC to AC, akin to producing color television images when the world was still consuming black and white. Others might create the black and white images, but we already have the capability for high-definition color. We're very excited about this development. To me, it’s clear that this must become the standard, and Bloom is positioned to lead the way in the digital age of power.

Your next question comes from the line of Nicholas Amicucci from Evercore ISI.

I just wanted to expand on the planned doubling of capacity by the end of 2026 and the commentary that suggests a fourfold increase in fiscal year 2025 revenue. How should we approach the utilization of that capacity as we move into 2027 with the two gigawatts operational? Given that we are exploring ways to exceed the two gigawatts, it appears that reaching four times the full year 2025 revenue could be achievable relatively quickly. I just wanted to clarify this further.

Yes. So here is a simple way to think about it, right? We didn't get to where we are today to deliver what I just explained, this purpose-built factory based on just meeting a market demand as we see it right now, we just prepared ourselves. What is the beauty of Bloom being able to expand its capacity and offer what we do? Is the return on investment like invested capital? So we are fiscally very disciplined, and we only make decisions based on that added cost and its absorption, will it have a great rate of return. So we have a very disciplined process on this. And on top of that, we have a very clear understanding right now given time to power shortages and the importance of this as a nation-state issue for AI. We are committing to strive and work as hard as we need to and stay ahead such that we will never be the constraint to our customer on growing their data center. That's what we are positioned for. And we will increase capacity. We will increase it in whatever steps necessary as we see fit. But as you saw, this 2-gigawatt capacity, all systems go based on that. Would we use it for peak capacity? When we use it, will we use it for steady capacity? All that you'll hear from us as we talk about our backlog and other things next year. But we are now using our OpEx wisely to invest in capability and talent to think about how do we expand beyond 2 gigawatts. That's all I can say right now. Thanks for that question.

Understood. That makes sense. In the current situation, the power demand is evident, and your team is prepared to meet it. However, as we look ahead, I want to highlight your mention of an inference data center in Europe. Could you elaborate on the additional value in relation to inference, especially when latency becomes a concern in AI reasoning, and how Bloom is involved in that?

Thank you for your question. It's really significant. The beauty lies in our architecture, which uses fewer components. Each of our Bloom power systems can be thought of as a component. With fewer components, we can create an inference data center, and if we scale that up, it can also serve as a training data center. There’s no other technology that can achieve that. This showcases the strength of our modular and fault-tolerant architecture. Moreover, inference data centers will be situated close to where people live and work. It's crucial that these centers do not contribute to pollution or noise. We aim to be the preferred power provider for these inference data centers.

Your next question comes from the line of Ben Kallo from Baird.

K.R., could you discuss the major project you announced, which is 80 megawatts with SK? Can you elaborate on how your customers have become comfortable with your technology over time, particularly in relation to the permits for larger projects? How do you view your capacity for project sizes, and where do you see your company fitting in, whether that's at 100 megawatts or 900 megawatts?

Ben, that's a very good question. And look, again, our architecture was purpose-built. Our factories do copy exact modules. And the boxes don't know whether they are sitting along with 5 other boxes or 5,000 other boxes. Nothing in our scaling has scaling risk, right? So yes, we are talking to customers with lot bigger stamps right now and working with them on ideas and projects and various stages of negotiations of much larger sizes. We can do that, and we can do your neighborhood retail store, and we are talking to customers about that, too. So that is the flexibility of our architecture. You're adding no additional risk. In fact, think about it because these are hot-swappable LEGO blocks, the more LEGO blocks you have, the more reliable our system gets. So large block power becomes a lot more reliable than small block power. Thank you.

Maybe a follow-up. Just as we think about capacity, I think other people asked about this, but we see these big numbers out there. What's the go/no-go decision from going 2 gigawatts more? And how fast can you do that?

Look, we get accused of you're building capacity too fast. We get accused of we don't think you can build too fast. Let me be very clear. We are going to strive to make sure we are able to provide power for our customers before they are ready for it. We will not be the bottleneck. And we designed our factories; we built it with that in mind. Thank you.

Your next question comes from the line of Mark Strouse from JPMorgan.

So K.R., things obviously are changing very rapidly here. It's been a bit since you've provided kind of long-term margin targets. So kind of to the earlier point about your capacity expanding, but also as the utilization of that capacity increases, how we should think about kind of gross or operating margins under that scenario?

Thank you. So look, here's how I'd answer it. Wait till 90 days from now to hear our annual guidance for next year. But in the meantime, if you want to think about it, here's how you can think about it. For over a decade, every single year, we have pulled our costs down in double digits, number one. Number two, when we transact on electricity as we grow our volume, the pricing pressure on electricity is going to be based on the macros and there's a shortage of electricity. So you go figure out what that pricing pressure would be. And we have tremendous operating discipline within the company that you have seen us exercise these last 3, 4 quarters, and that's how we'll continue going forward. Our factories are not capital intensive. We have made that statement very clear. You know what those numbers are. Where is it that we will spend? Investment. We'll invest in our people. We'll continue to invest in our technology. We will invest in the talent necessary for scaling our operations. We'll invest in the skills needed, in our commercial team to go capture opportunity. And we will continue to invest in technology to further enhance our leadership position on on-site power. So those are the things to take away.

Your next question comes from the line of Michael Blum from Wells Fargo.

You've given us some good information on how to think about the Brookfield partnership and the scope of that. But can you give something similar with Oracle? Can you give us a sense of the size of that opportunity set? And how exactly Bloom will play a role in that partnership because they also obviously have pretty big ambitions as well?

Michael, I can't speak to any one customer. You should be asking them about that question. But I think what I can refer you to there would be their statement when we had the press release saying that what we did for them earlier was the first of many, right? So we think they are going to play an extremely big role in this space, and they are going to be growing in many, many geographies. And they are not only looking at how we have executed on the first year, but they're intimately familiar with what's in our technology roadmap and all the value we can bring to them. So we just obsess on pleasing the customer; then the customer will do the right thing. So that's what we do. Thank you.

Your next question comes from the line of Ameet Thakkar from BMO Capital Markets.

I've just got a quick kind of housekeeping question. Your 10-Q kind of refers to $288 million of related party revenues during the quarter. I was just wondering, is that related to Brookfield or is that related to SK?

Yes. This is Maciej. As part of the contracts with Brookfield, we've made equity investments into this vehicle. And because of those equity investments, those JVs became a related party to Bloom, and that's what created the disclosure around the related party revenue. And again, it's important to note that the equity investments are fairly small. The way the contract is being set up is that we put a little bit of ceiling on those investments to be very significant. That said, there's a criteria to go through. And if you meet the criteria of equity investment, you get into the related party disclosure.

Your next question comes from the line of Colin Rusch from Oppenheimer.

No, it's Colin Rusch, but I am from Oppenheimer. So just in terms of the balance of 2025 and looking into '26, can you talk a little bit about the mix shifts from direct product sales into some of these financing options with partners or related parties? And then also if we could get a quick update on the CFO search and that coming to conclusion?

Yes. I'll take the CFO search. Look, it's a very important position for us. We take it very seriously. And so we have a process in place, and that search is going on. We have a sense of urgency but no sense of rush. So we will let you know when we hire one. Thank you.

Yes. As far as the financing goes, if you go back and we talk about this in pretty good detail in our 10-Ks, where there are three ways of going to market. There is a direct sale, which we refer to as CapEx, which is effectively a customer showing up and writing a big check, which effectively is like prepaying for electricity for a number of years. There's a PPA financing structure in place and the managed services, which is the sale-leaseback transaction. We haven't done managed service transactions in quite some time. We don't expect to do those going forward. And I would say, the majority of the transactions we get into are actually through the PPA structures, although there are some CapEx deals every quarter from time to time where the customer is wanting to finance the deal themselves.

Your next question comes from the line of Maheep Mandloi from Mizuho.

Most of the high-levels are answered, but just like housekeeping on the guidance for Q4. Could you just talk about the reason to not disclose that? Is it just timing of these lumpy installations you have in December or January or something else over there?

Yes. I think you just answered your question, Maheep. We have said that at the beginning of the year, why do we give a range? Because project-based installations, many of them being greenfield for changes in variations. Lots of things could happen on the customer end. We have no difficulty supplying our boxes on time, ahead of time, as you saw. But the customer has to be ready to take the power, which is when we ship. So a project can fall a few days in front of or on the other side of December 31, which is just a deadline, and it has no impact on that project or that revenue other than a pure timing issue. And yes, with 365 days in the year, we would give you one guidance. Now 300 of those are gone, and we have 65 days left. So we're giving you a slightly better guidance, but we can't pinpoint it. That's exactly right. Thank you.

Your next question comes from the line of Sherif Elmaghrabi from BTIG.

For the Brookfield partnership, you mentioned they're bringing a substantial balance sheet to the equation. But any capital commitments for Bloom under those joint ventures or other costs related to that, obviously, besides the Fremont CapEx that you're already investing?

Yes. Other than the equity investments that we agreed to make for the respective projects, very small equity investment, there is none.

Okay. With that, I just want to bring this to a close as we are getting to the top of the hour. Thank you all. We are delighted with our results in Q3. Our commercial activity is robust and the momentum is accelerating across the board. This year has been a big transition year for Bloom. I want to thank our team inside for stepping up and contributing to our success in such a great way. We appreciate the trust of our long-term shareholders, and we welcome our newest shareholders. And thanks to all of you for placing trust in us. And I think we have an exciting journey ahead of us together as we go forward to become the standard for on-site power. Thank you, and have a great day.

This concludes today's conference call. You may now disconnect.