Blink (BLNK) Q1 2026 Earnings Call Transcript

Image source: The Motley Fool.

Date

Monday, May 11, 2026 at 4:30 p.m. ET

Call participants

• Chief Executive Officer — Michael C. Battaglia
• Chief Financial Officer — Michael Bercovich

Need a quote from a Motley Fool analyst? Email pr@fool.com

Takeaways

• Total Revenue -- $20.8 million, flat year over year, reflecting typical first-quarter seasonality.
• Service Revenue -- $13.3 million, up 25% year over year, with every meaningful component growing double digits.
• Product Revenue -- $6.2 million, with strategy focused on higher-margin opportunities rather than volume.
• Recurring and Repeatable Revenue -- Comprised 45% of revenue in 2025, targeting 80% by 2028 through deliberate business transformation.
• GAAP Gross Profit -- $6.6 million, a gross margin of 32%, down from 34.1% in the prior-year quarter due to higher operating costs on owned fast charging assets.
• Non-GAAP Gross Margin -- 42.4%, more than 200 basis points higher than the prior-year quarter on a comparable basis.
• Operating Expenses -- $18.4 million, representing a 35% reduction year over year, described as a "structural cost reset."
• Non-GAAP Operating Expenses -- $13.9 million, a decrease of over 38% year over year.
• GAAP Net Loss -- $11.6 million, or $0.08 per diluted share, improving from $21 million, or $0.21 per share, in the prior-year quarter.
• Non-GAAP Net Loss -- $7.8 million, or $0.06 per share, versus $17.4 million, or $0.17 per share, in the prior-year quarter—a 55% improvement.
• Adjusted EBITDA -- Loss of $5.1 million, improving 64% year over year from a loss of $14.3 million.
• Cash and Equivalents -- $38 million at quarter end, with no debt on the balance sheet.
• Quarterly Cash Burn -- Approximately $1.7 million, inclusive of DC fast charging network capital investment.
• Net Cash from Operating Activities -- Positive $700 thousand versus a negative $13 million in the prior-year quarter, an improvement of $13.7 million.
• DC Fast Charging Buildout -- 27 sites encompassing 136 stalls in the near-term buildout plan; 3 sites with 11 stalls under construction, 125 additional stalls in deployment stages.
• Capital Raised -- December equity raise yielded $18.5 million net, with a majority allocated to DC fast charging infrastructure rollout.
• 2026 Revenue Guidance -- Full-year 2026 outlook reaffirmed at $105 million to $115 million.
• 2026 GAAP Gross Margin Guidance -- Expected to hold at approximately 35% for the full year.
• Operating Model -- Organization right-sized for revenue scalability without significant increases in operating expenses.
• Receivables Management -- Aged receivables significantly reduced through process changes, resulting in AR improvement.
• OEM Integration Strategy -- Ongoing integrations with automotive OEMs, including via Amobee, to expand charger visibility and utilization.
• Optimization Initiatives -- Margin levers cited include contract manufacturing, network fee pricing, data-driven utilization, and targeted expense reductions.
• Site Selection Rationale -- Focus on metro areas and destination locations to maximize economic utilization and align with common EV use cases.

Summary

Blink Charging (NASDAQ:BLNK) reported stable year-over-year revenue, with disciplined cost controls driving a material reduction in net loss and operating expense. Recurring and repeatable revenue rose to $13.3 million, underlining management’s emphasized transition to higher-margin, predictable streams. Net cash from operating activities turned positive, reflecting improved working capital management and reduced accounts receivable aging. The company reaffirmed its full-year revenue and gross margin guidance as its DC fast charging buildout progresses, largely funded by the December equity raise.

• CEO Battaglia said, "Our recurring and repeatable service revenues grew 25% year over year to $13.3 million. This is the engine of our business, and it is running stronger every quarter."
• CFO Bercovich stated, "past several quarters, but as we scale our DC fast charging infrastructure investment, the cash burn will increase. The difference is that the money is invested for expected return and not temporary working capital adjustments."
• The company’s approach to gross margin improvement includes optimizing contract manufacturing, enhancing revenue mix, and leveraging owned asset utilization.
• No specific numeric target for automotive OEM integrations was set, but management emphasized the efficiency gains from partnerships like Amobee.
• The majority of DC fast charging sites are anticipated to be operational or near-operational by year end, with only a few potentially extending into 2027.

Industry glossary

• DC Fast Charging: Direct current (DC) charging technology that enables rapid charging of electric vehicles, reducing station dwell times versus conventional AC chargers.
• OEM: Original Equipment Manufacturer; in this context, refers to automotive manufacturers partnering for EV charger integration.
• Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, further adjusted here for nonrecurring and noncash items, used as a measure of ongoing operating performance.
• Recurring and Repeatable Revenue: Contracted or highly predictable revenue streams generated from ongoing service usage, network fees, and owned infrastructure, as distinguished from one-time product sales.

Full Conference Call Transcript

Michael C. Battaglia: Great, thanks very much, Vitalie, and good afternoon, everyone. The restructuring work of 2025 is behind us. Capital was raised at the end of last year, and that capital is now being deployed. What you are seeing in Q1 is Blink Charging Co.’s new culture: disciplined, focused, and building toward profitability consistently, and I would even say relentlessly. I want to be direct about what Q1 represents. It came in largely as expected. Revenue was approximately flat year-over-year, consistent with typical seasonality we see in the first quarter. What matters more than the top-line numbers are the fundamentals behind them, so let us unpack that together. Our recurring and repeatable service revenues grew 25% year-over-year to $13.3 million.

This is the engine of our business, and it is running stronger every quarter. Our cost structure is significantly rightsized. Our cash burn remained controlled for the third quarter in a row. Our DC fast charging buildout, which is the central investment story for Blink Charging Co., is moving forward with real momentum. Moving to slide four, you will see how we are characterizing the business today. The cost reset is complete. Repeatable and recurring revenue is scaling. DC fast charger investment is accelerated. We are positioned in a large and growing market at what we believe is a highly attractive entry point. These are not talking points.

They are the results of decisions and actions we have been executing against for more than a year, and they are durable. On slide five, you can see the business model transformation that is driving margin expansion. In 2025, approximately 45% of our revenue was repeatable and recurring. Our target for 2028 is 80%. We get there with a deliberate and simple plan that moves from fundraising to DC fast charger site selection, to construction of high-performing DC fast charging sites, and finally, scaling utilization of those charging assets. Every quarter that passes, the mix of repeatable and recurring revenue moves in the right direction.

Higher service revenues as a percentage of total means higher margins, more predictability, and less dependence on transactional product sales. Once again, that transition is structural, and this quarter continues to validate the framework. As you can see on slide six, we have 27 sites encompassing 136 stalls in our near-term buildout plan. Of those, three sites with 11 stalls are already under construction. The additional 125 stalls are approved and in various stages of deployment. We look forward to moving them into the construction stage and then ultimately into the go-live stage. On slide seven, we are showing the future of Blink Charging Co. These exemplify the type of site layouts that are guiding us into the future.

They are fast, modern, and most importantly, they represent technologies that we intend to deploy. Next, our unique go-to-market strategy operates along two complementary tracks, as shown on slide eight. We engage in multi-vertical channel sales encompassing hardware and software that generate recurring network fees and carry healthy margins, and our owned-and-operated infrastructure generates repeatable energy revenue with stability and predictability. Addressing both of these allows us to participate in two very large addressable markets. In particular, as we scale the owned network—specifically DC fast charging—those repeatable energy revenues grow, the margins improve, and the business becomes increasingly self-sustaining. On slide nine, you will see how we are targeting several emerging opportunities to effectively leverage our size and scale.

Electrified autonomous vehicle deployments are accelerating, and mobility providers need partners like Blink Charging Co. for charging infrastructure. Secondly, we continue to pursue Blink Charging Co. network integrations with automotive OEMs. This immediately expands visibility of our public infrastructure and drives utilization. Once integrated with automakers, we become sticky as drivers rely on our chargers. This leads to Blink Charging Co.’s philosophy of integrating via APIs into other charging ecosystems like fleet platform providers, charging app integrators, and others. In short, we want Blink Charging Co. everywhere companies and EV drivers are accessing charging.

Finally, energy management services represent a real opportunity for us as we leverage our extensive charging data sets and AI tools to optimize pricing at point of sale, total cost of ownership for fleets, and deploy vehicle-to-grid and vehicle-to-building capabilities. Now let us turn to first quarter highlights on slide 11. Total revenue in Q1 was $20.8 million compared to $20.7 million in 2025. Gross profit was $6.6 million, representing a GAAP gross margin of 32%. We will walk through the adjusted numbers in a moment, and those tell a cleaner and encouraging story. Slide 12 shows our revenue for the last five quarters.

The growth was modest, so I do not want to overstate it, but it is an encouraging sign of stabilization since the first quarter of last year. At the same time, our non-GAAP gross margin of 42.4% was in line with our expectations and over 200 basis points higher than Q1 of last year. Margin expansion remains our top priority, supported by pricing optimization, cost reduction, and more efficient execution impacting cost of goods. The opportunity from here is operational leverage. The business has previously supported quarterly revenue in the high $20 million range and even more than that, and as volume improves, we believe there is an opportunity to capitalize on our refined organizational cost structure.

The goal is not just revenue growth, but higher-quality revenue growth that translates into profitability over time. I will now turn the call over to Michael Bercovich, our Chief Financial Officer, to review the financials in more detail, and then I will circle back at the end of the call with concluding remarks. Michael?

Michael Bercovich: Thank you, Mike, and good afternoon, everyone. Q1 2026 is a quarter with the numbers validating exactly what we have been saying: costs are reset and well controlled, service revenue is scaling, and the balance sheet gives us the flexibility to invest in DC fast charging from a position of strength, not necessity. Let me walk through the details and turn to slide 14 for our financials. Q1 2026 total revenues were $20.8 million, essentially flat year-over-year. The first quarter has historically been our lightest quarter, and this year is no exception. We expect revenue growth as we move through the year driven by DC fast charging site activations and continued service revenue growth. Product revenues were $6.2 million.

This continues to reflect our deliberate strategic decision to prioritize quality of revenue over quantity. We are focused on higher-margin product opportunities and are being disciplined in the deals we pursue. Service revenue, which includes repeatable charging revenues, recurring network fees, and car sharing revenues, grew 25% year-over-year to $13.3 million compared to $10.7 million in 2025. Every meaningful component of service revenue grew double digits year-over-year. This is the growth engine of Blink Charging Co., and it is performing. Network fees grew 21% year-over-year. Charging revenue grew 23% year-over-year. The compounding effect of a growing owned network is beginning to show up clearly in our numbers.

Other revenues, which consist of warranty fees, grants, rebates, and other revenue items, were $1.2 million in 2025. It is worth mentioning that starting fiscal year 2026, we have redefined our non-GAAP metrics to align them with peers and industry practices. You can see the exact definitions of these metrics in our earnings press release as well as in the appendix section of this presentation. The main difference is that we are now excluding noncash share-based compensation, other nonrecurring items, as well as depreciation and amortization, to better present the fundamental potential of our business. GAAP gross profit in Q1 was $6.6 million, or 32% of revenues, compared to gross profit of $7.1 million, or 34.1% of revenues, in 2025.

The year-over-year delta is largely driven by the composition of revenue, specifically higher cost of car sharing service revenue and energy cost as we deploy and operate more owned DC fast charging assets. This is an expected and acceptable short-term trade-off as we scale our owned infrastructure that drives our high-quality repeatable revenues. On a non-GAAP basis, excluding depreciation of fixed assets and a small car sharing segment adjustment, adjusted gross margin was 42.4% in Q1 2026. That is ahead of the prior-year quarter of 40% on the same basis and is consistent with what we were expecting.

Margin levers remain fully in place: contract manufacturing optimization, network fee pricing, and improved utilization on owned assets will continue to drive improvement over time. We remain on track for our full-year gross margin guidance of approximately 35% on a GAAP-reported basis. Turning to operating expenses, total operating expenses in Q1 were $18.4 million compared to $28.5 million in Q1 of last year, a 35% reduction year-over-year. This is a structural cost reset in action resulting from our Blink Forward initiative. These are not temporary savings. Headcounts are right-sized. G&A is disciplined. Compensation expense reflects the leaner, more focused organization we have built.

Non-GAAP operating expenses, excluding share-based compensation, depreciation and amortization, and nonrecurring items, were approximately $13.9 million in Q1 2026 compared to $22.6 million in Q1 of last year. That is a reduction of over 38% on an adjusted basis year-over-year. Compensation expenses were $10.2 million, down 25% from $13.6 million in Q1 2025, reflecting the full run-rate benefit of our headcount reductions. Excluding the impact of nonrecurring and noncash items, the non-GAAP compensation expense was $6.9 million during the quarter. G&A and other operating expenses also declined meaningfully as our cost optimization efforts continue to compound across the organization.

GAAP net loss for Q1 was $11.6 million, or $0.08 loss per diluted share, compared to a net loss of $21 million, or $0.21 loss per diluted share, in Q1 of last year. That is an improvement of nearly $10 million in reduced net loss year-over-year. Non-GAAP net loss for 2026 was $7.8 million, or $0.06 loss per share, in the first quarter compared to non-GAAP net loss of $17.4 million, or $0.17 loss per share, in 2025, an improvement of 55% year-over-year. Adjusted EBITDA for 2026 was a loss of $5.1 million compared to an adjusted EBITDA loss of $14.3 million in Q1 of last year. That is a 64% improvement year-over-year.

I want to let the numbers stand on their own for a moment. A 64% reduction in adjusted EBITDA loss in twelve months is a meaningful achievement. Turning to our balance sheet and cash position, we ended Q1 with cash and cash equivalents of approximately $38 million. We have no debt on the balance sheet. A combination of a clean balance sheet, controlled burn over the last three quarters, and growing repeatable and recurring revenue gives us the financial flexibility to invest in DC fast charging from a position of strength. Cash burn for the quarter was approximately $1.7 million inclusive of capital investment in our DC fast charging network. I want to address this transparently.

Q1 cash burn reflects some timing-related working capital movement, in particular a higher payable runoff in the quarter, that is not representative of our steady-state burn rate. This is not a reversal of the trend we established over the past several quarters, but as we scale our DC fast charging infrastructure investment, the cash burn will increase. The difference is that the money is invested for expected return and not temporary working capital adjustments. However, what is really significant this quarter is that our net cash provided by operating activities was positive $700 thousand in Q1 2026, representing an improvement of approximately $13.7 million year-over-year, pivoting from negative $13 million in Q1 of last year.

On slide 15, you can see the trajectory across four key metrics: non-GAAP operating expenses, non-GAAP compensation, G&A, and cash burn. In every case, the direction is down and the improvement is consistent. Operating expenses of $13.9 million on an adjusted basis in Q1 2026 compared to $22.6 million in 2025, and a $700 thousand reduction. Looking at our business outlook, I would like to provide an update across four key areas. Number one, revenue growth. Our full-year 2026 revenue guidance of $105 million to $115 million remains intact. There was seasonality in Q1.

We expect revenue momentum to build through the remainder of the year as DC fast charging sites come online, service revenue continues to compound, and product sales reflect our disciplined, margin-accretive approach. Number two, gross margins. Full-year gross margin guidance of approximately 35% on a GAAP-reported basis is unchanged. As the GAAP margin moves towards our target throughout the year, the drivers are well understood: contract manufacturing efficiency, revenue mix improvement, and utilization growth around DC assets. Number three, cash flow and liquidity. Operational discipline has directly translated to our cash preservation goals. Cash burn in Q1 was slightly better than recent quarters due to working capital timing, remained well controlled, and is not indicative of a new run rate.

We continue to expect quarterly cash burn to increase as we continue investing into DC infrastructure buildout. With $38 million on the balance sheet and no debt, we have the flexibility to execute our fast charging investment program as planned. Lastly, number four, path to profitability. With operating expenses down approximately 35% year-over-year and line of sight to a breakeven position, we are aggressively working toward that goal. Deliverables are known and well controlled: continued service revenue scaling, disciplined product sales, DC fast charging utilization ramp, and ongoing cost optimization in payments processing, SIM card fees, and demand charge management. We have concluded internal reviews on each of these items, and progress is being tracked and reported accordingly.

I will now turn it back over to Mike to wrap it up. Go ahead, Mike.

Michael C. Battaglia: Great, thanks, Michael. I would not mind listening to your section again—that is all good stuff. 2026 is about execution, and the results clearly reflect that. As we move through 2026, our focus is on deploying capital, scaling the DC fast charging network, and building a business that generates durable recurring revenue and operates near cash breakeven. We have accomplished the hard structural adjustments. Now we are scaling what works. I want to close by highlighting a few milestones and notable achievements in Q1. Service revenues grew 25% year-over-year to $13.3 million—our recurring revenue and profit engine is running. Adjusted EBITDA loss improved 64% year-over-year—the cost structure is right. Our cash burn of approximately $1.7 million—the financial discipline is intact.

We have $38 million in cash with no debt—our balance sheet gives us options. Since I became CEO, I have been clear about what Blink Charging Co. will do: build a company that can stand on its own financially, operate with discipline, and scale profitably over time. Every quarter, the results move in that direction. That same disciplined approach continues to guide how we operate as we move through 2026 and beyond. I would like to thank the Blink Charging Co. team for their continued focus and execution, and I would like to thank our customers and drivers who rely on Blink Charging Co. to provide energy to their vehicles every single day.

We will now open the call for questions.

Operator: Certainly. Everyone, at this time we will be conducting a question-and-answer session. If you have any questions or comments, please press star then 1 on your phone at this time. We do ask that while posing your question, please pick up your handset if you are listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star then 1 on your phone. Your first question is coming from B. Riley Securities. Your line is live.

Analyst: Hey, guys. Thanks for the details, and congrats on all the recent progress. For the 27 sites that you talked about on slide six, how should we think about the cadence of these sites coming online? Is there anything you would like to highlight in terms of challenges or potential positives regarding project development more broadly? And to tie it into capital deployment, it looks like CapEx was about $1.6 million in Q1. With these sites coming online over the next six to twelve months, how should we think about CapEx progressing through the rest of this year and into 2026?

Michael C. Battaglia: Thanks for the question. There are a couple of interesting aspects to this. Before we conducted the equity raise in December, we had actually greenlighted a few projects because we were confident that we would be able to raise and continue with what we set out to do. Some of those projects were already in flight and are coming online this month and into the coming months. From the December equity raise, we netted $18.5 million, and as we have said in the past, the vast majority of those funds are going toward CapEx. A couple of sites have already gone live, we have a few going live in May, and then it starts to ramp in June, July, etc.

We anticipate most of the 27 sites to be live or near live by the end of the year. A few may spill into 2027. On operating leverage and OpEx, we have built this company so we can scale revenue without adding significant OpEx. It does not make sense to have done all this work over the last twelve months, see revenue start to grow, and then add OpEx just to support that. We believe we have largely rightsized this company so that it can scale revenue and get to profitability with similar OpEx.

Michael Bercovich: On CapEx and runway, in December we raised capital sized to fund our DC fast charging buildout through this year in the initial deployment phase. Combined with the quarterly burn we presented the last couple of quarters and our first positive operating cash flow of $700 thousand in Q1, we have sufficient runway to fund our plan. As noted, the majority of the approximately $20 million gross ($18.5 million net) we raised will go to DC fast charging infrastructure. We are now in the beginning of sites coming online, and we will be spending that money as we go from quarter to quarter. We anticipate finishing the build by the end of the year, with some potentially spilling into 2027.

On OpEx leverage, this is about capital allocation. As we continue growing and scaling, there is no need for a significant OpEx increase. We right-sized the organization in a way that we can also leverage technology, not only people. We are changing systems and platforms and consolidating, and this creates a lot of leverage and value.

Operator: Thank you. Your next question is coming from ROTH Capital. Your line is live.

Analyst: The cost improvements are obvious, and you even saw some improvements in adjusted gross margin. As you scale the business and we see a mix shift to more recurring revenues, what can we think of as the potential in gross margin accretion moving forward? And as you focus on the buildout of owned-and-operated DCFC stalls, can you remind us of your overall philosophy behind site selection and walk us through the timeline from site selection to build to deployment?

Michael C. Battaglia: As we noted in our comments, the really tough restructuring work was done over the last year. We have moved from that to something we call “Blink Through,” a derivative of Blink Forward, which is radical simplicity. We are structuring this company in everything we do through the lens of radical simplicity. Last year’s work addressed the big items: compensation expense reductions, software subscriptions, and other obvious areas. Now we are targeting expenses that are “hidden below the surface.” These are not obvious, take work to uncover, and are accretive or directly impact margins. We believe we still have room to expand margins through specific actions and programs aimed at these items.

On site selection, we think about the EV industry’s real-world use case. There are roughly 127 million U.S. households with two or more vehicles. One of those vehicles can easily be an EV used for local commuting, trips to the mall, and grocery runs—everyday local driving. Until battery ranges extend substantially or nationwide point-to-point infrastructure is fully built, this primary use case guides our site strategy toward metro areas with high-density populations and destination locations where people already go and can spend time, rather than primarily rural highway placements. That is where we believe utilization and economics will be strongest.

Operator: Thank you. Once again, if you have any questions or comments, please press star then 1 on your phone. Your next question is coming from H.C. Wainwright. Your line is live.

Analyst: Hey, Mike and Michael. Thanks for taking my questions, and congratulations on the progress and the results. It seems that you had a very good recovery on the accounts receivables front this quarter relative to December. Was there something that allowed this to happen? How should we look at accounts receivables—are these recurring improvements? Also, on integrations with automotive OEMs, can you give a bit more insight into how the plan is going and your strategy? Is there a target number of OEMs by 2026? Lastly, to get to the 35% full-year gross margin target, would volume play a role, or would the efforts you talked about be the primary driver?

Michael Bercovich: Great question. We have been talking quarter-over-quarter about not only radical simplicity but also the changes we made in our working capital structure, process, and program. Now you see how this is working. We had some aged receivables, and during this quarter we were able to recover those. We also changed the process so we do not get to the same situation we were in before when receivables aged. We were able to recover a lot of receivables, and our AR has come down tremendously. On gross margin, we did 35% and even 36% last year in certain periods. The drivers are a combination of disciplined product sales—prioritizing margin over volume—and continuously growing our repeatable and recurring service revenues.

We have outlined several opportunities for optimization and improvement; those plans are in place, and we continue working through them. We are expecting approximately 35% for the year on a GAAP-reported basis.

Michael C. Battaglia: On OEM integrations, we are already integrated directly with a couple of OEMs. A strong recent example—subsequent to quarter-end—is our announced partnership with Amobee. Amobee aggregates EV charging network providers and integrates them into automaker platforms, so automakers do not have to integrate one-by-one with each charging network. We integrate with Amobee, and Amobee integrates with OEMs. This is powerful for us because they already have integrations with multiple OEMs, which is far more efficient than doing separate direct integrations with each. We do not have a specific numeric target. We want to be integrated everywhere we can be, and we will keep pressing to get it done.

Operator: Thank you. That completes our Q&A session. Everyone, this concludes today’s event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Parts of this article were created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.