Bloom Energy Stock Faces Pressure Amid Cash Flow Concerns, Oppenheimer Says

11:33 AM EDT, 10/23/2026 (MT Newswires) -- Bloom Energy's (BE) share price faces near-term pressure as increased working capital needs pressured cash flow in the third quarter, Oppenheimer said Friday. The maker of fuel-cell technology late Thursday reported negative net cash flow from operating activities of $27.1 million, compared with the FactSet-polled consensus that called for a positive balance of $165.3 million. Shares of Bloom Energy tumbled 11% in Friday trade, but have gained 124% this year. Operating cash use in the third quarter was driven by a $430 million increase in contract assets related to product revenue that did not satisfy billing milestones, Oppenheimer Senior Research Analyst Colin Rusch said. Product sales are recognized upon delivery, while customer billings are tied to specific contract milestones, so the difference between cash collection and revenue recognition goes to contract assets and receivables, Chief Financial Officer Simon Edwards said during the earnings call Thursday, according to a FactSet transcript. "Net income was more than offset by an increase in working capital, driven primarily by inventory, contract assets and receivables," Edwards said. "We expect to continue investing in working capital to support future growth and scale alongside our customers." Cash flow concerns will likely be a drag on shares "until cash cycles for deployments are confirmed," Rusch said. Bloom Energy posted stronger-than-expected third-quarter results Thursday as a surge in product sales drove consolidated revenue to a record. It also raised the full-year earnings and revenue guidance. The company's carbon capture opportunity is substantial, Rusch said, as management estimated a total addressable market of $1 trillion. FuelCell Energy (FCEL) reported a bigger-than-expected fiscal third-quarter loss in September as revenue missed analysts' estimates. Price: 195.26, Change: -22.51, Percent Change: -10.34