ITM Power's Revenue Surge Meets Wall Street Skepticism — Can Green Hydrogen's Poster Child Outrun Its Cash Burn?

Shares of ITM Power plunged 6.8% to £104.80 on Thursday, extending a week-long slide from £117.10, as early enthusiasm over record first-half results collided with persistent doubts about when — or whether — the electrolyser maker can turn revenue growth into actual profits. ITM Power's Revenue Surge Meets Wall Street Skepticism — Can Green Hydrogen's Poster Child Outrun Its Cash Burn?

Shares of ITM Power slumped 6.8% to £104.80 on Thursday, extending a punishing slide from a 52-week high near £258 in late May. The sell-off arrived without fresh company news, underscoring how fast sentiment can reverse for a loss-making firm caught between genuine revenue momentum and deep-pocketed short sellers betting the turnaround story is overblown.

Record Sales That Still Lose Money on Every Unit

ITM posted record half-year revenue of £18 million in H1 2026.

Equipment sales drove £15.5 million of that total. But revenue records mean little when the company is still selling at a loss: gross losses narrowed to £6.5 million, improved from £10.2 million the prior year , yet the bottom line remains firmly red. Full-year guidance calls for £35–40 million in revenue against an adjusted EBITDA loss of £27–29 million — meaning ITM expects to lose roughly 75p for every pound it earns. Until margins flip positive, each new contract dilutes cash reserves rather than builds them.

A £152 Million Backlog With a Legacy Problem

The order backlog swelled to £152 million, with 71% of contracts now profitable. That sounds encouraging, but it means the remaining 29% relates to legacy projects that are fully provided for but contribute nothing to margins, and will flow through revenue over the next 18 months. Shareholders won't see the backlog's true earning power until those money-losing deals are flushed out.

Short Sellers Are Doubling Down

Short interest surged 290% in June to 35,500 shares on the U.S.-listed equivalent , while a net short position of 1.60% of outstanding shares persists in London. Bearish bets like these — wagers that the stock will keep falling — can amplify downward moves on weak trading days. The disclosed position captures only stakes above the UK's 0.5% reporting threshold; the actual short interest is almost certainly higher.

Government Cash Provides a Lifeline — With Strings

The UK government placed a £40 million equity stake via Great British Energy and pledged a further £46.5 million in grant funding for a new Sheffield gigafactory. That backstop matters: ITM's cash position stood at £197.8 million , but with guidance pointing to £170–175 million by year-end, the runway is finite. Converting political backing into profitable orders before the cash runs out is now the defining test for management — and the bet short sellers are wagering ITM will fail.