Plug Power (NASDAQ:PLUG) shares surged after the company announced strong preliminary revenue results for the first quarter of 2025 and the signing of a significant $525 million secured credit facility with Yorkville Advisors.
The company, which is developing green hydrogen and fuel cell technologies, said it expects first quarter revenue in the range of $130 million to $134 million, in line with the analyst consensus of $131.6 million.
The company’s net cash usage is expected to be about $142 million, a significant improvement from $268 million in Q1 2024.
It highlighted realized cost savings, with changes implemented during the quarter set to drive more than $200 million in annualized run-rate savings.
Further, Plug Power signed a definitive agreement with Yorkville Advisors for a secured debt facility of up to $525 million.
The facility includes an initial $210 million tranche, expected to close in early May, with the remainder available in additional tranches.
About $82.5 million from the initial tranche will be used to retire most of Plug Power’s existing convertible debenture principal, reducing potential share dilution.
“We’ve made the tough decisions and put the structure in place to deliver improved operating leverage and capital efficiency,” Plug Power CEO Andy Marsh said.
“Between strengthening our balance sheet, scaling hydrogen production, and streamlining operations, we’ve taken the right steps to position Plug for long-term success in the hydrogen economy.”
The company said its current cash resources, reduction in cash usage, additional cost-cutting initiatives and financing under the Yorkville credit facility will support its growth in the near to mid-term. It does not expect to raise additional equity this year.
Shares of Plug Power traded up 32.5% at $1.08 late morning on Monday.