ServiceNarrow moat

Bloom Energy (BE) — moat facet

Eight years of servicing the fleet at a loss, then two good ones: the annuity exists, but only just.

Service is the maintenance of the installed fleet, and until 2025 Bloom lost money doing it. The line had revenue of $228.3 million in 2025, from $213.5 million in 2024 and $183.1 million in 2023 1, 11.3% of revenue 2. Its gross margin was 10.0% in 2025, after losses of 0.7% in 2024 and 20.7% in 2023 3.

Service revenue ($M)74.9201795.82019144.22021183.12023228.32025130.9H1 2026Bloom Energy 10-Ks FY2019-FY2025 and 10-Q Q2 2026
Service tripled in eight years, almost all of it at a loss until 2025.

It is paid per system per year under operation and maintenance agreements. The 10-K gives their terms: 5 to 20 years, subject to termination for convenience on an annual basis 4. Bloom also guarantees the output and efficiency of the fleet, and pays when it falls short: $18.0 million in 2025 and $21.2 million in 2024 5.

The history is one of growth at a loss. Service revenue was $74.9 million in 2017 and $95.8 million in 2019 6, and $151.0 million in 2022 7; it grew about 15% a year from 2018 to 2025 8. The gross margin was negative in every year from 2017 to 2024 9, and the cumulative service gross loss over those eight years was about $116 million 10.

The turn came from replacing fewer stacks. In 2025 fewer field replacement units saved $29.4 million and maintenance-contract revenue added $18.6 million, against $11.1 million more of repair and overhaul on an ageing fleet 11.

The latest half continued it. Service revenue was $130.9 million in the first half of 2026, up 21%, at a gross margin of about 16% 12, and 18.7% in the June quarter 13. But as product exploded, service fell to 7.2% of revenue 14.

The figure to watch is service gross margin through the next stack-replacement cycle of the machines sold in 2025 and 2026. Holding above 15% would make the annuity real; a return to losses would mean the 2025 turn was a lull in replacements rather than a change in the economics.

Moat trajectory: Widening

Service gross margin turned positive in 2025 and reached 18.7% in the June 2026 quarter as stack replacements fell.

The number that tests this moat
Moat Explorer calc
Service gross margin, first half
16.1% in H1 2026, from 5.3%

Above 15% through the next replacement cycle would make the annuity real; a return to losses would mean 2025 was a lull.

How it's calculated: (Service revenue - cost of service) / service revenue: ($130.9M - $109.8M) / $130.9M and ($108.0M - $102.3M) / $108.0M
Source: Bloom Energy 10-Q Q2 2026 ↗
References
  1. ReportedThe line had revenue of $228.3 million in 2025, from $213.5 million in 2024 and $183.1 million in 2023 , 11.3% 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 $228.3 million in 2025, from $213.5 million in 2024 and $183.1 million in 2023 , 11.3% 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 gross margin was 10.0% in 2025, after losses of 0.7% in 2024 and 20.7% in 2023 .
    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. ReportedThe 10-K gives their terms: 5 to 20 years, subject to termination for convenience on an annual basis .
    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 ↗
  5. ReportedBloom also guarantees the output and efficiency of the fleet, and pays when it falls short: $18.0 million in 2025 and $21.2 million in 2024 .
    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 ↗
  6. ReportedService revenue was $74.9 million in 2017 and $95.8 million in 2019 , and $151.0 million in 2022 ; it grew about 15% a year from 2018 to 2025 .
    Bloom Energy Form 10-K FY2019 - revenue and cost by category for 2019, 2018 and 2017 — FY2017-FY2019 · publ. 31 March 2020 · source ↗
  7. ReportedService revenue was $74.9 million in 2017 and $95.8 million in 2019 , and $151.0 million in 2022 ; it grew about 15% a year from 2018 to 2025 .
    Bloom Energy Form 10-K FY2022 - revenue and cost by category for 2022, 2021 and 2020 — FY2020-FY2022 · publ. 21 February 2023 · source ↗
  8. Moat Explorer calcService revenue was $74.9 million in 2017 and $95.8 million in 2019 , and $151.0 million in 2022 ; it grew about 15% a year from 2018 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 ↗
  9. Moat Explorer calcThe gross margin was negative in every year from 2017 to 2024 , and the cumulative service gross loss over those eight years was about $116 million .
    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. Moat Explorer calcThe gross margin was negative in every year from 2017 to 2024 , and the cumulative service gross loss over those eight years was about $116 million .
    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 ↗
  11. ReportedIn 2025 fewer field replacement units saved $29.4 million and maintenance-contract revenue added $18.6 million, against $11.1 million more of repair and overhaul on an ageing fleet .
    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 ↗
  12. Moat Explorer calcService revenue was $130.9 million in the first half of 2026, up 21%, at a gross margin of about 16% , and 18.7% in the June 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 ↗
  13. Moat Explorer calcService revenue was $130.9 million in the first half of 2026, up 21%, at a gross margin of about 16% , and 18.7% in the June 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 ↗
  14. Moat Explorer calcBut as product exploded, service fell to 7.2% 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 ↗
Sources
Generated September 23, 2026