Plug Power (PLUG  ) shares were slightly higher following the company's Q3 results which showed lower revenue and a bigger loss than expected. The stock initially opened lower but found support on management's positive outlook and a more positive environment for EVs following the passage of the infrastructure act.

Overall, Plug shares remain down by more than 40% from their highs in February. However, shares have nearly doubled since their mid-July lows. And since the March 2020 bottom in stocks, Plug remains one of the best performers with a total gain more than 1,600%.

Inside the Numbers

In Q3, Plug Power reported a loss of $0.19 per share which was slightly more than expectations of a loss of $0.18 per share. It attributed the wider loss to higher fuel, service, and product costs. Revenue came in at $144 million which fell short of expectations of $145 million. This was a 35% increase from last year.

The company also agreed to buy Frames Group, a Netherlands-based maker of energy equipment. The deal is expected to close by the end of the year and is for $100 million in cash and about $25 million in earnouts. In the quarter, the company shipped 4,559 GenDrive fuel-cell units and 16 hydrogen systems vs 3,709 GenDrive units and 13 hydrogen systems in Q3 2020.

While margins were squeezed this quarter, it still sees gross margins over 30% by 2025 due to longer per-unit production costs. With its green hydrogen plant expected to start operating in 2022, fuels' margins should improve as well.

The company also raised revenue guidance for next year to a range of $900 million to $925 million. This is an upgrade from its previous forest. In part, it is due to its acquisition of Frames which has a backlog of roughly $150 million and will help Plug Power reach its goal of 3 gigawatts of electrolyzer capacity by 2025.

In addition to its margin goal, it also believes it's on track to realize its 2025 goal of $3 billion in revenue with revenue growth above 50% expected over the next 3 years.