Bloom Energy (BE) risk factors, FY2025 10-K

Risks Related to Our Business, Industry and Sales

1. 01Distributed energy generation and hydrogen production are emerging markets, and they may not receive widespread market acceptance or demand may be lower than we expect, which may make evaluating our business and future prospects difficult25% rewritten
2. 02Our products involve a lengthy sales and installation cycle, and if we fail to close sales on a regular and timely basis, our business could be harmed
3. 03Our products have significant upfront costs, and, for some customers, we need to attract financiers to help them finance purchases
4. 04Our AI customer mix is increasing due to the continued adoption of AI tools, and the resulting growth in AI data centers and their resulting power needs to support our business expansionNew
5. 05The economic benefits of our Energy Server systems to our customers depend on both the price of gas available from the local gas utilities and the cost of electricity available from alternative sources, including local electric utility companies, and such cost structure is subject to change
6. 06If we are not able to reduce our costs or meet service performance expectations with respect to our products, our profitability may be impaired
7. 07Deployment of our fuel cell products can be affected by interconnection requirements, export tariff arrangements and utility tariff requirements that are each subject to change
8. 08Deployment of our Energy Server systems relies on fuel supply and fuel specification requirements, which are subject to change23% rewritten
9. 09We face significant competition23% rewritten
10. 10Our future growth will depend on expanding and diversifying our products and market opportunities, and if we are not successful, our operating results and future growth prospects could be adversely affected
11. 11Our ability to develop new solutions and enter into new markets could be negatively impacted by regulatory restrictions, market acceptance, or if we are unable to identify and successfully engage with partners to assist in such development or expansion
12. 12Our products may not be successful if we are unable to maintain alignment with evolving industry standards and requirements

Risks Related to Our Products and Manufacturing

1. 13Our future success depends in part on our ability to increase production capacity for our products, and we may not be able to do so in a timely or cost-effective manner54% rewritten
2. 14If our products contain manufacturing defects, our business and financial results could be harmed
3. 15The performance of our products may be affected by factors outside of our control, which could result in harm to our business and financial results
4. 16If our estimates of useful life for our products are inaccurate or we do not meet our performance warranties and guaranties, our business and financial results could be harmed40% rewritten
5. 17Our business is subject to project execution risks, including risks associated with construction, utility interconnection, fuel supply, cost overruns and delays, including those related to obtaining government permits and other contingencies that may arise in the course of completing installations30% rewritten
6. 18Certain features or characteristics of some of our supply agreements could expose us to risks, such as excess inventory, insufficient inventory (if one or more suppliers do not produce for any reason), or above market pricing or higher costs, which could negatively affect our results of operations88% rewritten
7. 19We face supply chain competition, including competition from businesses in other industries, which could result in insufficient inventory and negatively affect our results of operations
8. 20We, and some of our suppliers, obtain capital equipment used in our manufacturing process from sole suppliers, and if this equipment is damaged or otherwise unavailable, our ability to deliver our products on time will suffer
9. 21Trade tariffs could have a material adverse effect on our business22% rewritten
10. 22A failure to properly comply with foreign trade zone laws and regulations could increase the cost of our duties and tariffs including by causing us to have to pay deferred duties and tariffs on goods located within such foreign trade zones75% rewritten
11. 23Any significant disruption to the operations at our headquarters or manufacturing facilities could delay the production of our products, which would harm our business and results of operations
12. 24We may introduce and promote new technologies that have not yet been proven at commercial scale, and which may not work as intended, be delivered on a timely basis or at all, be developed according to specifications and/or received well by customers
13. 25Our limited history of manufacturing new products make it difficult to evaluate our future prospects and the challenges we may encounter48% rewritten

Risks Related to Government Incentive Programs

1. 26Our business currently benefits from the availability of rebates, tax credits and other financial programs and incentives, and changes to such benefits could cause our revenue to decline and harm our financial results
2. 27We utilize governmental rebates, tax credits, and other financial incentives to lower the effective price of our products to customers in the U.S. and Japan, India, Republic of Korea, and Taiwan (collectively, our “Asia Pacific region”)36% rewritten
3. 28In the U.S., we rely on tax equity financing arrangements to realize the benefits provided by federal tax benefits and accelerated tax depreciation and in the event these programs are terminated, our financial results could be harmed. We also rely on incentives in the Korean, European and other international markets22% rewritten

Risks Related to Legal Matters and Regulations

1. 29We are subject to laws and regulations that could impose substantial costs upon us and cause delays in the delivery and installation of our products
2. 30In addition, the rules and regulations regarding the production, transportation, storage, and use of hydrogen, including with respect to safety, environmental and market regulations and policies, are in flux and may limit the market for our products that utilize hydrogen as a fuel source
3. 31We are in an unsettled regulatory and legal environment with compliance complexity and costs associated with legal and compliance matters
4. 32As we expand into international markets, we may be subject to local content requirements or pressures which could increase costs or reduce demand for our products
5. 33With respect to our products that run, in part, on fossil fuel, we may be subject to a heightened risk of regulation, the loss of certain incentives, and to changes in our customers’ energy procurement policies
6. 34Existing regulations and changes to such regulations may create technical, regulatory, and economic barriers, which could significantly reduce demand for our products or affect the financial performance of current sites27% rewritten
7. 35We may become subject to product liability claims47% rewritten
8. 36Litigation or administrative proceedings could have a material adverse effect on our business, financial condition and results of operations33% rewritten

Risks Related to Our Intellectual Property

1. 37Our inability to effectively protect and enforce our intellectual property rights may undermine our competitive position, and litigation to protect our intellectual property rights may be costly21% rewritten
2. 38Our patent applications may not result in issued patents, and our issued patents may be successfully challenged in litigation or post-grant proceedings, either of which may have a material adverse effect on our ability to prevent others from commercially exploiting products similar to ours
3. 39We may need to defend ourselves against claims that we infringed, misappropriated, or otherwise violated the intellectual property rights of others, which may be time-consuming and would cause us to incur substantial costs
4. 40Any of the foregoing could adversely affect our business, prospects, operating results, and financial condition. In addition, any litigation or claims, whether or not valid, could harm our brand and reputation, result in substantial costs and divert resources and management attention

Risks Related to Our Financial Condition and Operating Results

1. 41We have incurred significant losses in the past and we may not be profitable in future periods
2. 42Our financial condition and results of operations and other key metrics have fluctuated significantly in the past and may continue to fluctuate in the future due to a variety of factors, many of which are beyond our control
3. 43If we fail to manage our growth effectively, our business and operating results may suffer25% rewritten
4. 44If we fail to maintain effective internal control over financial reporting in the future, the accuracy and timing of our financial reporting may be adversely affected
5. 45Our ability to use deferred tax assets to offset future taxable income may be subject to limitations that could subject our business to higher tax liability

Risks Related to Our Liquidity

1. 46We must maintain the confidence of our customers in our liquidity, including our ability to timely service our debt obligations and grow our business over the long term21% rewritten
2. 47Our indebtedness, and restrictions imposed by the agreements governing our outstanding indebtedness, may limit our financial and operating activities and may adversely affect our ability to incur additional debt to fund future needs31% rewritten
3. 48We may not be able to generate sufficient cash to meet our debt service obligations or our growth plans

Risks Related to Our Operations

1. 49Expanding operations internationally could expose us to additional risks66% rewritten
2. 50We increasingly rely on the collection, processing, storage, sharing, and analysis of large volumes of data that requires strong data governanceNew
3. 51If we are unable to attract and retain key employees and hire qualified management, technical, engineering, finance and sales personnel, our ability to compete and successfully grow our business could be harmed
4. 52Competition for manufacturing employees is intense, and we may not be able to attract and retain the qualified and skilled employees needed to support our business

Risks Related to Ownership of Our Common Stock

1. 53The stock price of our common stock has been and may continue to be volatile
2. 54We may issue additional shares of our common stock in connection with future conversions of our outstanding convertible notes, which may dilute our existing stockholders and potentially adversely affect the market price of our common stock21% rewritten
3. 55Future sales of our common stock by current or potential future significant holders, or the perception that such sales could occur, may adversely affect the market price of our common stock87% rewritten
4. 56We do not intend to pay dividends for the foreseeable future26% rewritten
5. 57Provisions in our charter documents and under Delaware law could make an acquisition of us more difficult, limit stockholders’ rights, and limit the market price of our common stock
6. 58Moreover, Section 203 of the Delaware General Corporation Law may discourage, delay, or prevent a change in control of our Company. Section 203 imposes certain restrictions on mergers, business combinations, and other transactions between us and holders of 15% or more of our common stockNew
7. 59Scrutiny regarding ESG practices and disclosures could result in additional costs and adversely impact our business, brand and reputation52% rewritten
8. 60Geopolitical events and conditions could adversely affect our business, financial condition and operating resultsNew