FuelCell Energy Inc. (FCEL) shares climbed Thursday after the company delivered fourth-quarter results that handily topped Wall Street's expectations, showing double-digit revenue growth while cutting its losses substantially.

The fuel cell developer posted revenue of $55.0 million for Q4 2025, up 12% from the prior year. The adjusted loss per share came in at 83 cents, considerably better than the $1.04 loss analysts had penciled in. Revenue also surprised to the upside, beating the $44.752 million consensus estimate by a comfortable margin.

Net loss per share narrowed dramatically to 85 cents from $2.21 in the year-ago quarter, while the adjusted figure improved to 83 cents from $1.85. Those are the kinds of numbers that suggest a company is making real progress on its path toward profitability.

Breaking Down the Quarter

Gross loss dropped to $6.6 million from $10.9 million, and operating loss improved to $28.3 million from $41.0 million. Net loss shrank to $30.7 million from $42.2 million, while adjusted EBITDA loss tightened to $17.7 million from $25.3 million. Across the board, the red ink is fading.

On the revenue side, product sales led the way at $30.0 million, driven primarily by a long-term service agreement in Korea. Service revenue came in at $7.3 million, generation revenue edged up to $12.2 million, and Advanced Technologies revenue slipped to $5.5 million.

Full-Year Performance

For the full fiscal year 2025, revenue jumped to $158.162 million from $112.132 million the prior year. Net loss per share improved to $7.42 from $7.83, while adjusted net loss per share tightened to $4.41 from $6.54. As of October 31, 2025, the company held cash and cash equivalents, restricted cash, and short-term investments totaling $341.8 million.

Growing Backlog and Data Center Focus

The backlog increased 2.6% to $1.19 billion, supported by a new 20-year power purchase agreement in Connecticut expected to generate $167.4 million in revenue. That's the kind of long-term contract visibility that investors in capital-intensive businesses love to see.

"We believe that our fourth quarter performance and ongoing cost reductions have positioned us well to meet the accelerating demand for electricity and data center projects in the U.S. and internationally," President and CEO Jason Few said.

The data center angle matters here. As AI and cloud computing drive exponential growth in electricity demand, companies that can provide reliable, on-site power generation are suddenly very interesting to hyperscalers looking to secure energy for their facilities.

Cash Runway for Growth

CFO Michael Bishop emphasized the company's financial position: "At fiscal year-end 2025, we had unrestricted cash and cash equivalents totaling $278.1 million and, coupled with our recent financing from the Export-Import Bank of the United States, we believe we have significant runway to pursue our strategy focused on opportunities in the rapidly growing data center markets."

The company did record $1.3 million in non-cash impairment expense in Q4 and $64.5 million in the third quarter related to restructuring, but those charges are part of the cost-cutting story that's helping improve the bottom line.

FuelCell Energy shares jumped 14.94% to $9.08 in premarket trading Thursday.