ChargePoint Posts 9% Revenue Drop in Q2
Key Points
Revenue was $98.6 million, at the top end of Q2 FY2026 guidance. This result was down 9% from the same quarter last year, as hardware sales fell sharply.
Adjusted gross margin rose to 33%, up 7 points from the prior year’s same quarter, driven by subscription revenue mix.
Adjusted EBITDA loss improved by 35%, but the company reported another significant net loss.
- These 10 stocks could mint the next wave of millionaires ›
ChargePoint (NYSE:CHPT), a provider of electric vehicle (EV) charging networks and related software, released earnings for Q2 FY2026 on Sept. 3, 2025. The company reported revenue of $98.6 million, at the top end of its $90 million to $100 million revenue guidance. While this met internal forecasts, it marked a 9% decline from the same quarter last year.
Despite the revenue drop, and showed substantial progress in reducing operating losses (non-GAAP). The performance reflects meaningful internal improvements, but persistent revenue headwinds and continuing net losses temper the quarter's outlook.
| Metric | Q2 fiscal 2026 | Q2 fiscal 2025 | Y/Y Change |
|---|---|---|---|
| EPS (GAAP) | ($2.85) | ($3.22) | 11.5% |
| Revenue | $98.6 million | $108.5 million | (9.1%) |
| Gross margin | 33% | 26% | 7 pp |
| Subscription revenue | $39.9 million | $36.2 million | 10.2% |
| Adjusted EBITDA loss | ($22.1 million) | ($34.1 million) | (35.2%) |
Source: ChargePoint. Note: Fiscal 2026's second quarter ended July 31, 2025. Fiscal 2025's Q2 ended July 31, 2024.
Business Overview and Recent Focus Areas
ChargePoint operates a large network of EV charging ports for public, commercial, and fleet customers in North America and Europe. Its business combines hardware -- like Level 2 AC chargers for slower charging and DC fast chargers for rapid charging -- and software products that help station owners and drivers manage energy use, access, and payments.
Recently, the company has focused on improving scalability and flexibility in how sites deploy charging infrastructure, forging strategic partnerships to expand market presence, and driving adoption of its cloud-based management platform. Key business drivers include rolling out new hardware and service offerings, expanding its subscription revenue base, and maintaining leadership in software-enabled solutions for EV charging. Efficient manufacturing, cost control, and regulatory compliance are also identified as crucial for long-term success.
Quarterly Developments: Financials and Operations
Revenue for the quarter reached $98.6 million, at the highest end of the company's previous range but down from last year's level. Hardware is crucial for scaling the network and typically makes up a significant proportion of total sales. In comparison, subscription revenue grew 10%, reflecting continued uptake of recurring software services linked to the installed hardware base. Other revenue remained essentially flat.
Gross profit margin improved from 26% to 33% on a non-GAAP basis. This gain stems from two main factors: 1) subscription revenue, which carries higher margins than hardware, became a larger part of the overall revenue mix, and 2) improvements in cost management and operational execution. In addition, the margin improvement was in line with management’s stated expectations from earlier in the year.
Operating expenses on a non-GAAP basis dropped 12% compared with the prior year. These actions helped the company narrow its non-GAAP adjusted EBITDA loss by 35%. However, the net loss remained significant, and ChargePoint continues to use cash at a pace requiring future improvements in either revenue growth or cost controls. Net cash used in operations for the six months ended July 31, 2025, was $39.1 million, compared to $113.7 million for the six months ended July 31, 2024, but ongoing losses and high inventory levels present challenges. Cash and equivalents at quarter end stood at $194.1 million, with access to a $150 million undrawn credit facility and no debt due until 2028.
On the product side, the most notable development was the first revenue recognized from the Express DC Fast Charging Modular Architecture, the result of the company's partnership with Eaton. This new system allows for rapid vehicle charging with multi-megawatt capacity, a 30% smaller footprint, and up to 30% lower investment and operating costs than competing solutions, according to company statements. ChargePoint also launched Safeguard Care, a maintenance and inspection service to boost station uptime, and began shipping its Omni Port Convertible Charging Kits, designed to offer cross-compatibility for a variety of electric vehicles.
The company did not announce or change any dividend policy; CHPT does not currently pay a dividend.
Looking Forward: Guidance and Near-Term Priorities
Management provided revenue guidance for Q3 FY2026 in the range of $90 million to $100 million. If achieved, this would mark another flat to slightly down period in both sequential and year-over-year terms. No further numerical outlook was given for adjusted EBITDA or path to overall profitability, and management did not reiterate the timeline for reaching adjusted EBITDA break-even, which had previously been a stated target. The company cited continued uncertainty over macroeconomic conditions, tariffs, and regulatory policy as factors impacting demand for EV infrastructure.
Investors and analysts should watch for updates on the adoption and revenue contribution of new hardware such as the modular DC fast charging systems. The effectiveness of cost controls, cash management, and execution on strategic partnerships -- most notably with Eaton -- will be important features to track through the remainder of fiscal 2026.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,048%* — a market-crushing outperformance compared to 184% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
See the stocks »
*Stock Advisor returns as of August 25, 2025
Motley Fool Markets Team is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. The Motley Fool takes ultimate responsibility for the content of these articles. Motley Fool Markets Team cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
