ChargePoint outlines delayed EBITDA breakeven and highlights new DC fast charging innovations amid North American market headwinds

Earnings Call Insights: ChargePoint Holdings, Inc. (CHPT) Q2 2026

MANAGEMENT VIEW

* Richard Wilmer, President, CEO & Director, opened by stating, "Second quarter revenue was $99 million, landing at the top of our guidance range. Non-GAAP gross margin improved sequentially with Q2 results coming in at 33%. This figure is notable as the highest gross margin we've reported since becoming a public company, and we successfully mitigated tariffs to achieve it." He highlighted a cash balance of $195 million and emphasized the company's progress with GM and the Eaton partnership, noting "nearly a dozen sites and more than 50 new fast charging ports and many more scheduled to launch this year."
* Wilmer addressed market uncertainties, particularly in North America, as U.S. passenger EV sales growth slowed to a 3% year-over-year increase. He identified the "forthcoming expiration of the consumer 30D EV tax and 30C alternative fuel vehicle refueling credit" as risks for EV adoption, which has led to project delays but "no project cancellations."
* Wilmer announced, "we've determined we will be best positioned if we push out our EBITDA breakeven beyond this year. This is to ensure we can fund product innovation and commercialization efforts, which we expect to drive durable revenue growth."
* He emphasized ChargePoint’s go-to-market strategy, stating, "we are rapidly operationalizing our partnership with Eaton, and that work will be largely completed this quarter." He described the launch of the Express line of DC charging solutions powered by Eaton, featuring "Eaton hardware for grid connectivity plus V2G capabilities."
* Wilmer discussed the codevelopment of a bidirectional home charging solution and the integration of Flex Plus chargers with Eaton's AbleEdge panels, aiming to deliver "real value to homeowners, utilities and auto OEMs, while at the same time driving market share gains."
* CFO Mansi Khetani stated, "Revenue for the second quarter was $99 million, at the high end of our guidance range, sequentially higher than the prior quarter and down 9% year-on-year." She noted, "Subscription revenue at $40 million was 40% of total revenue, 5% higher sequentially and up 10% year-on-year."
* Khetani added, "Non-GAAP gross margin was 33%, growing by 3 percentage points sequentially and 8 percentage points year-on-year." She described "seventh straight quarter of sequential non-GAAP gross margin improvement."

OUTLOOK

* For the third quarter of fiscal 2026, Khetani provided guidance: "we expect revenue to be between $90 million to $100 million. While we continue to guide cautiously given the challenging and constantly changing macro backdrop, delivering revenue growth and ultimately reaching non-GAAP adjusted EBITDA breakeven and generating positive cash flow remain our primary focus areas."
* Wilmer explained that "the trajectory of revenue growth required to get to non-GAAP adjusted EBITDA breakeven in a quarter will take longer to materialize than this year, but we expect to continue to make progress towards profitability and reducing cash burn, which we have managed to do well over the past year."

FINANCIAL RESULTS

* Networked charging systems accounted for $50 million, representing 51% of second quarter revenue.
* Subscription revenue was $40 million, or 40% of total revenue.
* Other revenue contributed $8 million, making up 8% of total revenue.
* North America comprised 84% of revenue, Europe 16%—consistent with the previous quarter.
* Non-GAAP operating expenses were $59 million, up 3% sequentially and down 12% year-on-year, attributed to a temporary R&D increase.
* Non-GAAP adjusted EBITDA loss was $22 million, compared to a loss of $23 million in the prior quarter.
* Inventory balance was $212 million, virtually flat to the prior quarter.
* Cash on hand ended at $195 million, with cash usage of less than $2 million versus $49 million in Q2 last year.

Q&A

* Colin Rusch, Oppenheimer: Asked about OpEx trajectory and R&D levels. Khetani responded that elevated R&D and contractor expenses, driven by new product releases, will persist in Q3 but should decline in Q4 and next year.
* Rusch: Questioned European growth opportunities, especially with Eaton. Wilmer replied, "the overall macro conditions in Europe are looking better right now than they are in North America... the Flex product line... will launch in Europe here soon."
* Christopher Dendrinos, RBC: Asked about AC launch in Europe and initial dealer channel response. Wilmer said, "early indications have been positive," with inventory and approvals in place for major markets.
* Dendrinos: Probed on U.S. demand and strategy. Wilmer indicated continued innovation is critical, citing ongoing industry consolidation and ChargePoint’s advantage as "the biggest company with the biggest balance sheet."
* Mark Delaney, Goldman Sachs: Inquired about delayed North American projects. Wilmer noted, "We've literally not heard of one project cancellation," but market decisiveness is pending post-tax credit expiration.
* Delaney: Asked about hardware margin improvements. Khetani said improvement this quarter came from "products coming from Asia at lower cost" and reduced warranty costs.
* Other analysts focused on competitive software advantages, Level 2 vs. DC charging demand, inventory management, cash usage, and margin outlook. Wilmer and Khetani addressed each, emphasizing operational discipline, product innovation, and expectations for improved margins from new products.

SENTIMENT ANALYSIS

* Analysts pressed management on margin sustainability, European growth, cash usage, and competitive positioning, with a generally neutral to slightly cautious tone, focusing on risk areas and market uncertainties.
* Management remained confident during prepared remarks, frequently referencing operational progress and innovation; Wilmer stated, "we are delivering innovation, which has been accelerated and expanded because of our partnership with Eaton."
* During Q&A, management maintained composure but acknowledged uncertainties, especially around North American market delays and margin outcomes, often using measured language like "we believe" and "we expect."
* Compared to the previous quarter, management’s tone shifted slightly more cautious regarding EBITDA breakeven timing, though confidence in innovation and partnerships remained strong. Analysts' tone was similarly cautious, reflecting ongoing macroeconomic headwinds.

QUARTER-OVER-QUARTER COMPARISON

* Revenue guidance for the next quarter remained within the $90 million to $100 million range, consistent with the previous quarter’s guidance.
* Management delayed the timeline for achieving non-GAAP adjusted EBITDA breakeven, now projecting it beyond this fiscal year, compared to prior expectations for breakeven within the year.
* Gross margin improved from 31% to 33%, marking the highest level since becoming public.
* Subscription revenue increased both sequentially and year-on-year.
* Both quarters emphasized operationalizing the Eaton partnership, but Q2 highlighted new product launches and initial deployment results.
* Analysts’ focus shifted from pipeline growth and new partnerships in Q1 to margin sustainability, cash usage, and delayed EBITDA breakeven in Q2.
* Management’s confidence in new products and strategic partnerships remained, but with increased caution about market uncertainties and delayed revenue realization.

RISKS AND CONCERNS

* Management cited the "expiration of the consumer 30D EV tax and 30C alternative fuel vehicle refueling credit" as key risks for U.S. EV adoption.
* Ongoing tariff changes and a slower North American EV sales growth rate were highlighted as sources of uncertainty.
* Delays in major projects and extended build-out timelines persist, although management reported no cancellations.
* Inventory levels were steady, but future reductions are planned to free up cash.
* Analysts raised concerns about margin sustainability, inventory risk, and the potential need for further operational adjustments if macro conditions worsen.

FINAL TAKEAWAY

ChargePoint’s management reported strong sequential improvement in gross margin and maintained revenue at the top end of guidance, driven by innovation and execution on strategic partnerships, particularly with Eaton. However, due to project delays and ongoing macroeconomic uncertainty in North America, the company has pushed its non-GAAP adjusted EBITDA breakeven target beyond the current fiscal year, choosing to invest in product innovation and commercialization to drive durable long-term growth. While near-term risks remain, especially around policy changes and market conditions, the company emphasized its leadership position, operational discipline, and the expected positive impact of new product lines on future profitability.

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

MORE ON CHARGEPOINT HOLDINGS

* ChargePoint Holdings, Inc. (CHPT) Q2 2026 Earnings Call Transcript [https://seekingalpha.com/article/4819226-chargepoint-holdings-inc-chpt-q2-2026-earnings-call-transcript]
* ChargePoint Holdings, Inc. 2026 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4819260-chargepoint-holdings-inc-2026-q2-results-earnings-call-presentation]
* ChargePoint: The Selling Can Continue [https://seekingalpha.com/article/4805888-chargepoint-the-selling-can-continue]
* ChargePoint Holdings Q2 2026 Earnings Preview [https://seekingalpha.com/news/4491349-chargepoint-holdings-q2-2026-earnings-preview]
* Earnings week ahead: AVGO, ZS, CRM, HPE, NIO, LULU, DOCU, and more [https://seekingalpha.com/news/4490417-earnings-week-ahead-avgo-zs-crm-hpe-nio-lulu-docu-and-more]