Blink outlines manufacturing exit and targets recurring revenue growth through DC fast charging focus

Earnings Call Insights: Blink Charging Co. (BLNK) Q3 2025

MANAGEMENT VIEW

* President and CEO Michael Battaglia highlighted the "meaningful progress we've made under our Blink Forward initiative," describing it as a comprehensive transformation plan aimed at accelerating profitability and sustainable growth. Battaglia announced, "we have identified and eliminated approximately $13 million of annualized operating expenses" year-to-date and detailed the shift to a global functional model, away from regionally organized operations.
* Battaglia revealed a "strategic shift to acutely focus Blink on growth in service revenues," stating, "we are stopping in-house manufacturing and instead will leverage our intellectual property and engineering expertise through partnerships with third-party manufacturers who operate at greater scale and efficiency." He asserted, "Blink will retain full ownership of all hardware, firmware and software design and development," while outsourcing production to partners in the U.S. and India.
* The CEO underlined the company's focus on recurring service revenues and emphasized, "our DC fast charging portfolio remains the central pillar of Blink Forward as we expand our owned and operated footprint in high utilization locations that deliver predictable reoccurring cash flow."
* Battaglia noted, "Q3 gross margin also bounced back from Q2 to nearly 36%." He further stated, "we reduced cash burn in Q3 by 87% to $2.2 million sequentially, the lowest level in more than 3 years, even with a significantly higher revenue base."
* CFO Michael Bercovich stated, "our Q3 2025 revenues were $27 million compared to $25.2 million in the third quarter of prior year," representing a 7% increase. Bercovich added, "our priority is quality of revenue, not just quantity," and described product gross margin at 39% for Q3 2025, about 700 basis points higher than Q3 of last year.

OUTLOOK

* Management expects "revenue to show continued sequential growth in the second half of 2025." The focus will remain on "lower operating expenses" and "improved working capital practices, particularly around receivables management."
* Battaglia stated, "we expect revenue in the second half of 2025 to exceed the first half, and we expect the same positive trends we saw in Q3 to continue into Q4."

FINANCIAL RESULTS

* Total revenue for Q3 2025 was reported at $27 million, up 7.3% year-over-year. Service revenue hit a record $11.9 million, up 36% year-over-year. Gross margin for the quarter was 35.8%.
* The company achieved a reduction in operating expenses, with adjusted operating expenses at $23.6 million in Q3 2025 compared to $27.9 million in Q3 2024. Excluding $3 million of one-time expenses, operating expenses would have been $20.6 million.
* Loss per share for the quarter was nearly $0, with adjusted loss per share at ($0.10), improved from ($0.16) the previous year. Adjusted EBITDA for Q3 2025 was a loss of $8.9 million, compared to a loss of $14 million in the prior year.
* Cash and cash equivalents totaled $23.1 million as of September 30, 2025. Cash burn for Q3 was $2.2 million.

Q&A

* Craig Irwin, ROTH Capital Partners: Asked about the impact of the manufacturing strategy shift and associated costs. Battaglia replied, "it enables us to simplify our product procurement strategy...it streamlines operations and allows us to focus on fewer things. And we think and expect that it derisks the supply chain for us." Bercovich added, "we intend to sublease the premises. We exited it with minimal cost. That is not going to take an impact on us, on our ongoing operation."
* Irwin: Inquired about network throughput and growth drivers. Battaglia explained, "in the last 12 to 18 months, our footprint of DC fast chargers has increased pretty dramatically...the footprint of DC fast chargers certainly contributes to that volume and those increases."
* Irwin: Questioned DC fast charger profitability and margin impact. Battaglia responded, "we've also done a better job...we're procuring DC fast chargers at a more favorable cost. Our margins are improving in that space."
* Sameer Joshi, H.C. Wainwright: Asked about working capital improvements, specifically inventory. Bercovich detailed, "we're also managing the inventory more carefully. We deploy based on the needs on both short term and long term."
* Joshi followed up on inventory trends during manufacturing transition. Battaglia stated, "we expect our inventories to come down...as we move to contract manufacturing, our overall inventory costs will go down."
* Joshi asked about utilization increases per unit or installed base. Battaglia clarified, "it's both...we're seeing more volume go through because of additional chargers in the ground, and then we're also seeing better utilization of the chargers that are installed."

SENTIMENT ANALYSIS

* Analysts maintained a positive and congratulatory tone, highlighting execution, cash management, and network growth. Questions focused on strategic changes, margin sustainability, and operational improvements.
* Management consistently voiced confidence and clarity, using phrases such as "we feel confident that and expect that our margins on products will be consistent with what we experience today" and "we think and expect that it derisks the supply chain for us."
* Compared to the previous quarter, both analysts and management appeared more assured, with less focus on restructuring risks and more on execution and future growth.

QUARTER-OVER-QUARTER COMPARISON

* The current quarter featured a major strategic pivot with the announced exit from in-house manufacturing, compared to the previous quarter's focus on new leadership and the Zemetric acquisition.
* Management demonstrated increased confidence in expense management, with $13 million annualized expense reductions in Q3 versus $8 million highlighted in Q2.
* The focus shifted from filling gaps in the product portfolio (Zemetric) in Q2 to scaling service revenue and recurring cash flow through DC fast chargers in Q3.
* Gross margin recovery and sharply reduced cash burn in Q3 contrasted with nonrecurring charges and higher burn rates in Q2.
* Analyst questions in Q3 were more forward-looking, reflecting confidence in the company's execution and outlook.

RISKS AND CONCERNS

* Management acknowledged "near-term variability in EV sales, which we anticipate following the expiration of certain government incentive programs."
* There is an explicit focus on supply chain resilience and cost optimization as the company transitions to contract manufacturing.
* Analysts probed the sustainability of improved margins, potential costs associated with manufacturing exit, and inventory management during the transition.

FINAL TAKEAWAY

In Q3 2025, Blink Charging undertook a significant strategic transformation by exiting in-house manufacturing to focus on recurring service revenues and expanding the DC fast charging footprint. The company emphasized quality revenue, robust margin recovery, and a dramatic reduction in cash burn and operating expenses. Management expects sequential revenue growth to continue into Q4 and the second half of 2025, backed by disciplined cost management and a sharpened focus on high-margin, recurring revenue streams.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/blnk/earnings/transcripts]

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