ProductNarrow moat

Bloom Energy (BE) — moat facet

Volume quadrupled and the margin stayed at 35%: the product sells, but its price has not risen with the scarcity.

Product is the sale of the Energy Server itself, and it is nearly the whole of Bloom's profit. The line had revenue of $1,531.3 million in 2025, from $1,085.2 million in 2024 and $975.2 million in 2023 1, 75.7% of revenue 2. Its cost was $992.8 million, a gross margin of 35.2% 3.

Product revenue and gross margin$401M · 29.8%2018$519M · 35.8%2020$881M · 30.0%2022$1,085M · 36.8%2024$1,531M · 35.2%2025Bloom Energy 10-Ks FY2019-FY2025; bar height is revenue, label adds gross margin
Revenue nearly quadrupled from 2018 while the margin moved only between about 30% and 37%.

It is paid per system, mostly outright. Direct purchase, including third-party power purchase agreements and international channels, was 99% of revenue in the first half of 2026, against 97% a year earlier 4. The buyer is often a financier that owns the machine rather than the company using the power, an arrangement covered under The Customer Is Usually a Financier.

The history is a long climb and a sudden jump. Product revenue was $157.2 million in 2017 and $557.3 million in 2019 5, fell to $518.6 million in 2020, and was $880.7 million in 2022 6. From 2018 it compounded at about 21% a year to 2025 7.

The margin has been steadier than the revenue. Product gross margin was 29.8% in 2018 and 21.9% in 2019 8, and has stayed between about 29% and 37% since 2020; it was 36.5% in the June 2026 quarter 9. The AI surge quadrupled the volume without buying a scarcity premium.

The latest half is extraordinary. Product revenue was $1,588.8 million in the first six months of 2026 against $508.5 million, up 212%, and $935.4 million in the June quarter 10. It was also the most concentrated in Bloom's history: one customer, not a related party, accounted for about 73% of total revenue in the half 11.

The number that would change the verdict is product gross margin as volume keeps rising. Holding above 35% while a single buyer takes most of the output would mean the technology has pricing power; falling toward 30% would mean the buyer has it.

Moat trajectory: Widening

Product revenue rose 212% in the first half of 2026 at a margin above 34%, though one customer took about 73% of revenue.

The number that tests this moat
Moat Explorer calc
Product gross margin, first half
35.6% in H1 2026, from 33.5%

Holding above 35% while one buyer takes most of the output would mean pricing power; falling toward 30% would mean the buyer has it.

How it's calculated: (Product revenue - product cost) / product revenue: ($1,588.8M - $1,023.2M) / $1,588.8M and ($508.5M - $338.3M) / $508.5M
Source: Bloom Energy 10-Q Q2 2026 ↗
References
  1. ReportedThe line had revenue of $1,531.3 million in 2025, from $1,085.2 million in 2024 and $975.2 million in 2023 , 75.7% of revenue .
    Bloom Energy Form 10-K FY2025 - consolidated statements of operations (revenue and cost by category for 2025, 2024 and 2023), service gross profit drivers, O&M contract terms and performance-guarantee payments — FY2023-FY2025 · publ. 9 February 2026 · source ↗
  2. Moat Explorer calcThe line had revenue of $1,531.3 million in 2025, from $1,085.2 million in 2024 and $975.2 million in 2023 , 75.7% of revenue .
    Moat Explorer calculation from Bloom Energy's Forms 10-K FY2019-FY2025 and Q2 2026 10-Q: shares of revenue, gross margins and gross profit by category, compound growth rates — FY2017 to H1 2026 · publ. 2026-09-23 · source ↗
  3. Moat Explorer calcIts cost was $992.8 million, a gross margin of 35.2% .
    Moat Explorer calculation from Bloom Energy's Forms 10-K FY2019-FY2025 and Q2 2026 10-Q: shares of revenue, gross margins and gross profit by category, compound growth rates — FY2017 to H1 2026 · publ. 2026-09-23 · source ↗
  4. ReportedDirect purchase, including third-party power purchase agreements and international channels, was 99% of revenue in the first half of 2026, against 97% a year earlier .
    Bloom Energy Form 10-Q for the quarter ended 30 June 2026 - revenue and cost by category for the quarter and half, purchase options, customer concentration, installation revenue drivers, lease electricity revenue — Q2 2026 · publ. 28 July 2026 · source ↗
  5. ReportedProduct revenue was $157.2 million in 2017 and $557.3 million in 2019 , fell to $518.6 million in 2020, and was $880.7 million in 2022 .
    Bloom Energy Form 10-K FY2019 - revenue and cost by category for 2019, 2018 and 2017 — FY2017-FY2019 · publ. 31 March 2020 · source ↗
  6. ReportedProduct revenue was $157.2 million in 2017 and $557.3 million in 2019 , fell to $518.6 million in 2020, and was $880.7 million in 2022 .
    Bloom Energy Form 10-K FY2022 - revenue and cost by category for 2022, 2021 and 2020 — FY2020-FY2022 · publ. 21 February 2023 · source ↗
  7. Moat Explorer calcFrom 2018 it compounded at about 21% a year to 2025 .
    Moat Explorer calculation from Bloom Energy's Forms 10-K FY2019-FY2025 and Q2 2026 10-Q: shares of revenue, gross margins and gross profit by category, compound growth rates — FY2017 to H1 2026 · publ. 2026-09-23 · source ↗
  8. Moat Explorer calcProduct gross margin was 29.8% in 2018 and 21.9% in 2019 , and has stayed between about 29% and 37% since 2020; it was 36.5% in the June 2026 quarter .
    Moat Explorer calculation from Bloom Energy's Forms 10-K FY2019-FY2025 and Q2 2026 10-Q: shares of revenue, gross margins and gross profit by category, compound growth rates — FY2017 to H1 2026 · publ. 2026-09-23 · source ↗
  9. Moat Explorer calcProduct gross margin was 29.8% in 2018 and 21.9% in 2019 , and has stayed between about 29% and 37% since 2020; it was 36.5% in the June 2026 quarter .
    Moat Explorer calculation from Bloom Energy's Forms 10-K FY2019-FY2025 and Q2 2026 10-Q: shares of revenue, gross margins and gross profit by category, compound growth rates — FY2017 to H1 2026 · publ. 2026-09-23 · source ↗
  10. ReportedProduct revenue was $1,588.8 million in the first six months of 2026 against $508.5 million, up 212%, and $935.4 million in the June quarter .
    Bloom Energy Form 10-Q for the quarter ended 30 June 2026 - revenue and cost by category for the quarter and half, purchase options, customer concentration, installation revenue drivers, lease electricity revenue — Q2 2026 · publ. 28 July 2026 · source ↗
  11. ReportedIt was also the most concentrated in Bloom's history: one customer, not a related party, accounted for about 73% of total revenue in the half .
    Bloom Energy Form 10-Q for the quarter ended 30 June 2026 - revenue and cost by category for the quarter and half, purchase options, customer concentration, installation revenue drivers, lease electricity revenue — Q2 2026 · publ. 28 July 2026 · source ↗
Sources
Generated September 23, 2026