The company’s product revenue took the hardest hit, falling to $18 million from $26 million a year ago, driven primarily by a reduction in module shipments to South Korean customers. Compounding the decline, generation revenue dropped to $8.8 million as output across the firm's portfolio waned. A significant contributor to this shortfall was the 7.4-megawatt Groton Project at the Navy’s submarine base, which remained offline throughout the quarter to accommodate essential equipment upgrades.

Despite the top-line contraction, FuelCell managed to narrow its net loss to $45.3 million, or 64 cents per share, compared to the $92.5 million loss reported in the same period last year. However, the adjusted per-share loss still exceeded the 41-cent deficit projected by analysts. Investors reacted sharply to the results, sending shares down 9% to $15.49 in premarket trading.