Blink Charging targets continued sequential revenue growth with $8M annual cost reduction and new product expansion

Earnings Call Insights: Blink Charging Co. (BLNK) Q2 2025

MANAGEMENT VIEW

* President and CEO Michael C. Battaglia highlighted several leadership changes, noting, "we have several developments to discuss... I want to take a moment to welcome several new members to the Blink leadership team, each of whom brings critical experience and capabilities that align with our strategy to establish Blink as a profitable technology-driven leader in EV charging." These appointments include Chris Carr as Senior Vice President of Sales and Business Development, Michael Bercovich as CFO, Harmeet Singh as CTO via the Zemetric acquisition, and Alex Calnan leading European operations.
* Battaglia stated, "With that return to product momentum, combined with the continued strength of service revenue, our second quarter results showed strong sequential growth." He reported sequential revenue growth of 38%, product revenue growth of 73% over Q1, and services revenue up 46% year-over-year.
* The CEO emphasized strategic actions: "We did incur largely onetime noncash charges of $16.5 million during the second quarter," but noted, "we achieved a 22% reduction in compensation expense during the second quarter," and operating expenses include "approximately $8 million in nonrecurring expenses."
* Battaglia introduced the acquisition of Zemetric, stating it "brings an intelligent and interoperable AC Level 2 product, which immediately fills that gap" in Blink's portfolio for price-sensitive segments. The Zemetric platform offers AI-driven fleet-focused software and advanced load management capabilities.
* The company formed a nonbinding term sheet with Axxeltrova to create an SPV for up to GBP 100 million to accelerate EV infrastructure deployment in the U.K. under the LEVI program.
* Battaglia announced a resolution with Envoy's former shareholders: "Blink will be released from all claims and liabilities following the issuance of $10 million in shares... and warrants exercisable for shares... with an aggregate notional value of $11 million..."
* CFO Michael Bercovich stated, "Our Q2 2025 revenues were $28.7 million compared to $33.3 million in the second quarter of prior year... Product revenues for the second quarter of 2025 were $14.5 million." He emphasized, "Second quarter service revenues... increased 46% to $11.8 million compared to $8 million in the second quarter of 2024."
* Bercovich explained, "Gross profit was $2.1 million or 7.3% of revenues compared to gross profit of $10.7 million or 32% of revenues in the second quarter of 2024," attributing the decline to "several noncash nonrecurring items."

OUTLOOK

* Management expects "revenue to show continued sequential growth in the second half of 2025."
* Bercovich stated, "Looking ahead, we expect that this burn rate to decrease in the second half of the year, driven by 3 key factors: revenue growth... lower operating expenses... and improved working capital practices."
* Battaglia stated, "We are energized by the momentum we see in the business, and we expect revenue to show continued sequential growth in the second half of 2025."

FINANCIAL RESULTS

* Q2 2025 revenues were $28.7 million. Product revenues totaled $14.5 million. Service revenues reached $11.8 million, a 46% increase year-over-year. Other revenues were $2.4 million.
* Gross profit was $2.1 million, or 7.3% of revenues. Adjusted gross profit, excluding noncash adjustments, would have been $8.5 million, or 29.7% gross margin.
* Operating expenses were $34.3 million, including $10.1 million in noncash charges. Excluding these, operating expenses would have been $24.2 million.
* Loss per share for the quarter was ($0.31). Adjusted loss per share was ($0.26). Adjusted EBITDA was a loss of $24.4 million.
* Cash and cash equivalents were $25.3 million as of June 30, 2025. There was no cash debt.

Q&A

* Craig Irwin, ROTH Capital Partners: Asked about gross margins given the strength in DC fast charging. Battaglia explained, "on an adjusted basis, about a 30% gross margin. Yes, that was driven by a higher mix of DC fast chargers... Series product line obviously carries higher margins... Zemetric product will also help with a higher-margin product profile."
* Irwin asked about drivers for sequential growth. Battaglia responded, "we do expect product sales to continue to be a significant part of the mix going forward... improvement will be broad-based, and it won't be in just one particular area."
* On cash flows, Bercovich stated, "we ended up the quarter with $25.3 million, burning $16.7 million in the quarter. This is not a normal run rate... Q2 burn also included $5 million in compensation and professional services costs that are not expected to reoccur in Q3 and Q4."
* Sameer Joshi, H.C. Wainwright: Asked about the Envoy restructuring's impact on contingent consideration. Battaglia confirmed, "it gets rid of it."
* Joshi inquired about Zemetric acquisition terms. Battaglia responded, "we're not going to disclose the specifics, but... very little cash, mostly structured with stock."
* On European gross margins, Battaglia stated, "overall, the European margins have remained pretty stable."
* Chris Pierce, Needham: Sought clarity on Zemetric's product and revenue impact. Battaglia explained Zemetric fills the gap in the lower end for fleet and multifamily, offers both product and CPO business revenue, and brings "exceptional talent."
* Michael Legg, Benchmark Company: Asked about Zemetric production ramp. Battaglia clarified, "dual-port Level 2 charging station... currently being sold... single plug chargers in development... move the chargers into volume production... in October."
* On cost savings, Bercovich broke down the $8 million annualized reduction as workforce-related and professional services expense cuts.

SENTIMENT ANALYSIS

* Analysts expressed generally positive and constructive sentiment, focusing on growth, margin trends, and clarity around acquisitions and restructuring, with Irwin congratulating on "solid revenue results" and Legg and Joshi welcoming new team members and pressing for detail on margin and cost structure.
* Management maintained an optimistic and confident tone during prepared remarks and Q&A, using phrases such as "we are energized by the momentum," and "we expect revenue to show continued sequential growth." Defensive language was minimal, with direct responses to restructuring and acquisition queries.
* Compared to the previous quarter, both analyst and management sentiment improved; the prior quarter featured more concern about product sales declines and macroeconomic headwinds, while the current call focused on sequential growth and execution of strategic initiatives.

QUARTER-OVER-QUARTER COMPARISON

* Guidance shifted from caution and focus on new product development in Q1 to a more confident outlook on sequential revenue growth in the second half of 2025.
* Strategic focus evolved from addressing a gap in the value-oriented product segment to filling it through the Zemetric acquisition and leveraging new leadership.
* Analysts in Q1 focused on margin stability and expense management; in Q2, their questions broadened to include integration, cash flow, and international operations.
* Key metrics improved sequentially, especially product revenues (up 73%) and service revenues (up 11%) compared to Q1.
* Management's tone shifted from defensive and cautious in Q1 to confident and forward-looking in Q2, reflecting improved business momentum and cost control.

RISKS AND CONCERNS

* Management referenced onetime noncash charges totaling $16.5 million, including inventory write-offs and asset impairment.
* Battaglia highlighted a "prolific amount of public information detailing EV sales, OEM investments in EV technology and the performance of other EV charging companies," signaling a volatile and consolidating industry landscape.
* Bercovich addressed cash burn, noting it was elevated in Q2 due to nonrecurring expenses but expects improvement in the second half.
* Analyst concerns centered on gross margin sustainability, integration of acquisitions, and cash flow trajectory.

FINAL TAKEAWAY

Management underscored progress on sequential revenue growth, operational discipline, and product portfolio expansion through the Zemetric acquisition. Cost reductions of $8 million annually, a strengthened leadership team, and resolution of legacy liabilities position the company to focus on continued growth and profitability in the evolving EV charging market. The leadership expects further improvements in both revenue and operating efficiency in the coming quarters, aligning with Blink's long-term strategic objectives.

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

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