Fuelcell Energy (FCEL) risk factors, FY2025 10-K

Risks Related to Our Business, Industry and Supply Chain

1. 01We have incurred losses and anticipate continued losses and negative cash flows
2. 02Our cost reduction strategy for manufacturing may not succeed or may be significantly delayed, which may result in our inability to deliver improved margins
3. 03As of October 31, 2025, our total consolidated debt and finance obligations outstanding (“indebtedness”) was $122.9 million ($119.6 million, net of deferred finance costs)
4. 04Unanticipated increases or decreases in business growth have resulted and may continue to result in adverse consequences to our financial condition and business strategy49% rewritten
5. 05We have a manufacturing and service facility in Taufkirchen, Germany that has the capability to perform final module assembly for up to 20 MW per year of carbonate sub-megawatt fuel cell power platforms to service the European market. Our European service activities are also operated out of this location80% rewritten
6. 06Our workforce reduction may cause unintended consequences and our results of operations may be harmedNew
7. 07If our intangible assets and long-lived assets (including project assets) become impaired in the future, we may again be required to record a significant charge to operations54% rewritten
8. 08Our Advanced Technologies contracts are subject to the risk of termination by the contracting party and we may not realize the full amounts allocated under some contracts due to the lack of Congressional appropriations or early termination
9. 09Utility companies may resist the adoption of distributed generation and could impose customer fees or interconnection requirements on our customers that could make our products less desirable
10. 10We depend on third party suppliers for the development and timely supply of key raw materials and components for our products
11. 11An increase in energy costs may materially adversely affect our business, financial condition, and results of operations
12. 12Failure to meet Environmental, Social, and Governance (“ESG”) expectations or standards or to achieve our ESG goals could adversely affect our business, results of operations, financial condition, and stock price

Risks Related to Sales of our Products

1. 13We have signed product sales contracts, EPCs, PPAs and long-term service agreements with customers subject to contractual, technology, operating, commodity (i.e. natural gas) and fuel pricing risks as well as market conditions that may negatively affect our operating results
2. 14We extend product warranties for our products, which products are complex and could contain defects and may not operate at expected performance levels, which could impact sales and market adoption of our products, affect our operating results or result in claims against us
3. 15We currently face and will continue to face significant competition, including from products using other energy sources that may be lower priced or have preferred environmental characteristics
4. 16Our plans are dependent on market acceptance of our products
5. 17If a sufficient market fails to develop or develops more slowly than we anticipate, we may be unable to recover the losses we will have incurred in the development of our products, and we may never achieve profitability82% rewritten
6. 18Our products use inherently dangerous, flammable fuels, operate at high temperatures and use corrosive carbonate material, each of which could subject our business to product liability claims

Risks Related to Privacy, Data Protection and Cybersecurity

1. 19well as the responsible processing and maintenance of this data, are essential to our business operations and strategic objectivesNew

Tax, Accounting, Compliance and Regulatory Risks

1. 20Our results of operations could vary as a result of changes to our accounting policies or the methods, estimates and judgments we use in applying our accounting policies
2. 21We may be affected by environmental and other governmental regulation
3. 22A negative government audit could result in an adverse adjustment of our revenue and costs and could result in civil and criminal penalties
4. 23Our 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 resultsNew

Risks Related to our Intellectual Property and Technology Licenses

1. 24We depend on our intellectual property, and our failure to protect that intellectual property could adversely affect our future growth and success
2. 25The U.S. government has certain rights relating to our intellectual property, including the right to restrict or take title to certain patents

Risks Related to Our Common and Preferred Stock

1. 26Our stock price has been and could remain volatile
2. 27Our failure to meet the continued listing standards of The Nasdaq Global Market could result in a delisting of our common stock, which could limit investors’ ability to make transactions in our common stock and subject us to additional trading restrictions
3. 28Future sales of substantial amounts of our common stock could affect the market price of our common stock
4. 29Provisions of Delaware and Connecticut law and of our certificate of incorporation and by-laws may make a takeover more difficult
5. 30The rights of our Series B Preferred Stock could negatively impact our cash flows and dilute the ownership interest of our stockholders
6. 31The Series B Preferred Stock ranks senior to our common stock with respect to payments upon liquidation, dividends, and distributions
7. 32Litigation could expose us to significant costs and adversely affect our business, financial condition, and results of operations
8. 33Financial markets worldwide have experienced heightened volatility and instability which may have a material adverse impact on our Company, our customers and our suppliers
9. 34Weakness in the economy and other conditions affecting the financial stability of our customers could negatively impact future sales of our products and our results of operations
10. 35Our results of operations could be adversely affected by economic and political conditions globally and the effects of these conditions on our customers’ businesses and levels of business activity40% rewritten
11. 36Our future success will depend on our ability to attract and retain qualified management, technical, and other personnel
12. 37We are subject to risks inherent in international operations