Loading...
01/11 04:43
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A indicate positive developments: a new partnership with Eaton, a competitive AC hardware launch, and an accelerated DC Fast Charging program with GM. Revenue guidance is optimistic, and there are plans for margin improvement and inventory management. The Q&A highlights strong positioning in Europe and North America, improved hardware margins, and software platform value. Although management was vague on some details, the overall sentiment is positive, suggesting a potential stock price increase of 2% to 8% over the next two weeks.
Revenue Second quarter revenue was $99 million, at the high end of our guidance range, sequentially higher than the prior quarter and down 9% year-on-year. Networked charging systems at $50 million accounted for 51% of second quarter revenue. Subscription revenue at $40 million was 40% of total revenue, 5% higher sequentially and up 10% year-on-year as our total installed base continued to increase. Other revenue at $8 million was 8% of total revenue.
Non-GAAP Gross Margin Non-GAAP gross margin was 33%, growing by 3 percentage points sequentially and 8 percentage points year-on-year. This is attributable to higher hardware margins, higher subscription margins as well as subscription revenue growing as a percentage of total revenue.
Non-GAAP Operating Expenses Non-GAAP operating expenses were $59 million, up 3% sequentially and down 12% year-on-year. The small sequential increase this quarter was mainly due to a temporary increase in R&D spend as a result of higher NRE and contractor spend related to the development of our recently announced new AC and DC charging product architecture.
Non-GAAP Adjusted EBITDA Loss Non-GAAP adjusted EBITDA loss was $22 million. This compares with a loss of $23 million in the prior quarter and a loss of $34 million in the second quarter of last year.
Cash on Hand We ended the quarter with $195 million of cash on hand versus $196 million in the prior quarter, resulting in cash usage of less than $2 million. This compares with $49 million of cash usage in Q2 of last year and $29 million in Q1 this year.
Express line of DC charging solutions: Combines strengths of ChargePoint and Eaton to deliver more power in less space with scalability, faster installation, and lower costs. Features Eaton hardware for grid connectivity and V2G capabilities.
Bidirectional home charging solution: Codeveloped with Eaton, integrates ChargePoint's Flex Plus chargers with Eaton's AbleEdge smart panels and breakers. Allows vehicles to supply backup power to homes and manage grid stress.
European EV market: 26% year-over-year increase in EV sales during the first half of the year, indicating strong future charging demand. ChargePoint aims to capture this demand with new products.
Gross margin improvement: Non-GAAP gross margin reached 33%, the highest since becoming a public company, driven by higher hardware and subscription margins.
Cash management: Ended the quarter with $195 million in cash, reducing cash burn significantly compared to previous quarters.
Inventory management: Inventory balance remained flat at $212 million, with plans for gradual reduction to free up cash.
Partnership with Eaton: Operationalized partnership to accelerate EV infrastructure deployment in North America and Europe. Introduced co-branded products and expanded channel reach.
Focus on innovation: Investing in product innovation and commercialization to drive durable revenue growth and market share gains.
Uncertainty in North American EV Market: Passenger EV sales growth in the U.S. slowed to a 3% year-over-year increase. The expiration of the consumer 30D EV tax and 30C alternative fuel vehicle refueling credit are concerns for future EV adoption. This has led to delays in major projects and extended expansion build-outs, though no cancellations have occurred.
Tariff and Regulatory Challenges: Higher tariffs have impacted hardware gross margins, despite sequential improvements. The evolving tariff landscape adds uncertainty to cost structures and pricing strategies.
Delayed Revenue Growth and EBITDA Breakeven: Due to project delays and macroeconomic headwinds, the company has pushed out its target for non-GAAP adjusted EBITDA breakeven beyond this year to ensure funding for product innovation and commercialization.
Inventory Management and Cash Flow Constraints: Inventory levels remain high at $212 million, with commitments to contract manufacturers limiting reductions. While cash burn has been reduced, the company still faces constraints in freeing up cash.
Macroeconomic Headwinds: The challenging and constantly changing macroeconomic environment is affecting revenue growth trajectories and operational planning.
Revenue Guidance for Q3 FY 2026: ChargePoint expects revenue to be between $90 million to $100 million for the third quarter of fiscal 2026.
Non-GAAP Adjusted EBITDA Breakeven Timeline: The company has decided to push out its EBITDA breakeven timeline beyond this year due to macroeconomic headwinds and delays in major projects. This is to ensure funding for product innovation and commercialization efforts.
Market Trends and Growth Expectations: European EV sales increased by 26% year-over-year in the first half of the year, indicating strong future charging demand in Europe. However, in North America, passenger EV sales growth slowed to 3% year-over-year, and the expiration of certain tax credits poses challenges for future EV adoption.
Product Innovation and Strategic Partnerships: ChargePoint is operationalizing its partnership with Eaton, which is expected to accelerate the deployment of EV charging infrastructure in North America and Europe. New products, such as the Express line of DC charging solutions and bidirectional home charging solutions, are expected to drive market share gains and improve hardware gross margins.
Cost Management and Cash Flow: The company plans to continue reducing cash burn and managing operating expenses while balancing investments in growth and margin expansion. Inventory reduction is expected over the next few quarters, which will free up cash.
The selected topic was not discussed during the call.
The earnings call revealed strong financial metrics, such as a 6% revenue increase, improved gross margins, and significant debt reduction. The partnership with Eaton and product innovations are expected to drive growth, especially in Europe. Although there are macroeconomic challenges and delayed EBITDA breakeven, the guidance for future growth is optimistic. The Q&A session reinforced confidence in product demand and strategic partnerships. Overall, the positive financial performance and growth prospects outweigh the concerns, suggesting a positive stock price movement.
The earnings call summary and Q&A indicate positive developments: a new partnership with Eaton, a competitive AC hardware launch, and an accelerated DC Fast Charging program with GM. Revenue guidance is optimistic, and there are plans for margin improvement and inventory management. The Q&A highlights strong positioning in Europe and North America, improved hardware margins, and software platform value. Although management was vague on some details, the overall sentiment is positive, suggesting a potential stock price increase of 2% to 8% over the next two weeks.
The earnings call presents a mixed outlook. Financial performance shows some positives, like revenue growth and margin improvement, but guidance remains flat. The partnership with Eaton and new product initiatives are promising, yet economic uncertainties and competitive pressures pose risks. Q&A responses reveal management's optimism but also highlight lack of clarity on inventory reduction. Overall, the mixed signals suggest a neutral sentiment, with no significant catalysts for a strong positive or negative stock price movement.
ChargePoint's earnings call reveals positive financial performance with revenue exceeding guidance, improved gross margins, and reduced operating expenses. The Q&A section highlights strategic growth opportunities and effective cash management. Despite regulatory uncertainties and a negative EPS, the overall sentiment remains positive due to strong revenue growth, operational improvements, and strategic initiatives. The absence of market cap data limits precise prediction, but given the positive indicators, a stock price increase of 2% to 8% is anticipated over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
