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ChargePoint Holdings, Inc. (CHPT)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY2026 revenue was $97.6M, down 9% YoY, with GAAP gross margin at 29% and non-GAAP gross margin at 31%; subscription revenue grew 14% YoY to $38.0M while networked charging systems declined 20% YoY to $52.1M .
  • Against S&P Global consensus, Q1 missed on revenue ($97.6M vs $100.6M*) and EPS (-$1.306 vs -$1.143*), and materially missed on EBITDA (-$46.9M vs -$19.1M*); Q2 ultimately beat on revenue ($98.6M actual vs $95.4M*) but missed EPS and EBITDA again . Values retrieved from S&P Global.*
  • Management guided Q2 FY2026 revenue to $90–$100M and reiterated the goal to achieve positive non-GAAP adjusted EBITDA in a quarter during FY2026, citing Eaton partnership and new AC architecture as growth drivers and margin tailwinds later in the year .
  • Strategic catalysts: industry-first partnership with Eaton to deliver integrated EV charging/power management solutions and co-develop V2X technologies, and a new AC hardware architecture expected to drive volume and improve hardware margins .

What Went Well and What Went Wrong

What Went Well

  • Non-GAAP gross margin reached 31%, up 7ppt YoY; GAAP gross margin improved to 29% on subscription mix and margin improvements .
  • Subscription revenue grew 14% YoY to $38.0M, with GAAP subscription margins reaching a record ~60% per management remarks .
  • Strategic progress: Eaton partnership operationalized; new AC architecture announced to broaden market coverage and lower costs, positioning for revenue and margin uplift later in the year .

Quotes:

  • “Non-GAAP gross margin continues to increase quarter over quarter, reaching a new high of 31%. Notably, our GAAP subscription gross margin climbed to a record 60%” — CEO Rick Wilmer .
  • “We anticipate that the [Eaton] relationship will drive incremental revenue growth for ChargePoint” — CEO Rick Wilmer .

What Went Wrong

  • Top line contraction: total revenue down 9% YoY; networked charging systems revenue down 20% YoY, reflecting hardware demand headwinds .
  • EBITDA and EPS misses vs consensus; Q1 non-GAAP adjusted EBITDA loss of $22.8M and GAAP net loss of $57.1M highlight profitability challenges despite margin gains . Values retrieved from S&P Global.*
  • Europe weaker-than-normal due largely to Germany; tariff uncertainty persisted (though management expects minimal COGS impact), and “Other” revenue was lumpy and significantly lower due to fewer one-time projects .

Financial Results

Quarterly Trend vs Prior Periods and Estimates

MetricQ4 FY2025Q1 FY2026Q2 FY2026
Revenue ($USD Millions)$101.9 $97.6 $98.6
GAAP Gross Margin %28% 29% 31%
Non-GAAP Gross Margin %30% 31% 33%
GAAP Net Loss ($USD Millions)$64.6 $57.1 $66.2
GAAP Diluted EPS ($USD)$(0.14) $(0.12) $(2.85)
Non-GAAP Adjusted EBITDA ($USD Millions)$(17.3) $(22.8) $(22.1)

Notes:

  • Reverse stock split (1-for-20) implemented on July 28, 2025 impacts share count and EPS comparability in Q2 FY2026 and beyond .

Actual vs S&P Global Consensus (Quarterly)

MetricQ1 FY2026 ActualQ1 FY2026 ConsensusSurpriseQ2 FY2026 ActualQ2 FY2026 ConsensusSurprise
Revenue ($USD)$97.64M $100.58M*Miss$98.59M $95.38M*Beat
EPS ($USD)-$1.306*-$1.143*Miss-$1.424*-$1.184*Miss
EBITDA ($USD)-$46.91M*-$19.14M*Miss-$52.05M*-$17.84M*Miss

Values retrieved from S&P Global.*

Segment and Mix

MetricQ4 FY2025Q1 FY2026Q2 FY2026
Networked Charging Systems Revenue ($USD Millions)$52.62 $52.06 $50.42
Subscription Revenue ($USD Millions)$38.27 $38.02 $39.90
Other Revenue ($USD Millions)$10.99 $7.56 $8.27
Share of Revenue: Hardware (%)52% 53% —
Share of Revenue: Subscription (%)38% 39% —
Share of Revenue: Other (%)11% 8% —
YoY: Hardware Revenue Change—-20% -21%
YoY: Subscription Revenue Change—+14% +10%

KPIs

KPIQ4 FY2025Q1 FY2026
Ports under management342,000 352,000
DC fast chargers (ports)>33,000 >35,000
Europe ports under management120,000 >122,000
Global roaming-accessible ports>1.2M >1.25M
Geography (% revenue): North America81% 85%
Geography (% revenue): Europe19% 15%
Billings mix: Commercial68% 71%
Billings mix: Fleet16% 13%
Billings mix: Residential12% 12%
Billings mix: Other4% 3%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ1 FY2026$95M–$105M Actual delivered: $97.6M N/A (realized)
RevenueQ2 FY2026—$90M–$100M New
RevenueQ3 FY2026—$90M–$100M New
Adjusted EBITDA (non-GAAP)FY2026 (a quarter)Positive in a quarter (target) Reaffirmed: positive in a quarter (target) Maintained

Management explicitly stated inability to reconcile forward-looking adjusted EBITDA targets to GAAP .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY2025)Current Period (Q1 FY2026)Trend
Margins and cost controlNon-GAAP GM 30%; Q4 OpEx reduced; adjusted EBITDA loss improved; cash usage fell materially Non-GAAP GM 31%; subscription GAAP margin ~60%; tariffs minimal impact; OpEx up sequentially due to raises/investments Improving margins; disciplined cost; near-term OpEx uptick
Tariffs and supply chainDiversified manufacturing footprint; limited expected impact on COGS Minimal expected COGS impact; cost reductions to exceed tariff impact Manageable headwind
Demand/utilizationEV adoption resilient; commercial/fleet demand; permitting and grid upgrades cause pushouts NA EV sales +16% YoY; EU +22% YoY; multiple US cities ~40% peak utilization; purchase decisions cautious amid macro Building demand with macro caution
Partnerships and product innovationGM Energy program; anti-vandalism cable; regional corridor projects Eaton partnership (integrated solutions, V2X); new AC architecture targeting NA/EU; first EU fleet charger in July Strategic expansion and product refresh
Geographic trendsNA 81% / EU 19% revenue; stable mix NA 85% / EU 15%; EU weakness concentrated in Germany EU softness; NA resilient
Inventory and cashInventory reduction improving cash; low capex model Inventory units down; FX lifted balance; gradual reduction expected; $196M cash; revolver undrawn Working capital improving

Management Commentary

  • “Our new partnership with Eaton… [is] the market’s only end-to-end EV charging and power management solutions… available for order now… and will drive incremental revenue growth for ChargePoint” — CEO Rick Wilmer .
  • “Non-GAAP gross margin continues to increase… record 60% GAAP subscription gross margin” — CEO Rick Wilmer .
  • “We expect gross margins to continue around the current range and to further improve later in the year” — CFO Monty/Mansi Cattani/Khetani .
  • “We ended the quarter with $196M in cash… $150M revolver remains undrawn… no debt maturities until 2028” — CFO .

Q&A Highlights

  • Pipeline and growth cadence: Eaton partnership expected to be fully operationalized entering fiscal Q3; macro/tariff uncertainty temper near-term tone .
  • Geographic expansion: Focus remains on North America and Europe initially; broader expansion possible over time via Eaton channels .
  • Inventory: Gradual reduction anticipated in Q2 with more meaningful declines in H2 as revenue grows, aiding cash generation .
  • Mix/geography: Europe softness (Germany) offset by slightly higher NA share; Other revenue lumpy due to fewer one-time projects .

Estimates Context

  • Q1 FY2026 results missed S&P Global consensus on revenue, EPS, and EBITDA; subscription strength was insufficient to offset hardware demand and lower “Other” revenue recognition. Values retrieved from S&P Global.*
  • Q2 FY2026 later beat revenue consensus but continued to miss EPS/EBITDA, consistent with management’s cautious near-term guidance and investment to operationalize Eaton .

Where estimates may adjust:

  • Revenue: Near-term consensus likely to tighten around $90–$100M ranges consistent with guidance; medium-term upside tied to AC architecture launches and Eaton GTM traction .
  • Margins: Consensus may reflect incremental GM improvements later in FY2026 as tariff mitigation and product cost reductions land .

Key Takeaways for Investors

  • Mix shift and margin trajectory are positive: Non-GAAP GM at 31% and record subscription margins underpin the path to adjusted EBITDA profitability; monitor subscription share and hardware margin trajectory .
  • Hardware demand remains the bottleneck: Networked charging systems revenue fell 20% YoY; watch macro sensitivity, permitting/grids, and AC architecture commercialization timetable .
  • Strategic partnership execution is the swing factor: Eaton’s integrated solutions and distribution should drive incremental volume; near-term caution as operationalization completes by fiscal Q3 .
  • Geographic mix: NA resilient; Europe softness (Germany) could normalize with product refreshes and Eaton’s footprint; track regional billings and revenue mix .
  • Liquidity runway intact: $196M cash, undrawn $150M revolver, no maturities until 2028; inventory reduction expected to release working capital through FY2026 .
  • EPS comparability note: Reverse split (1-for-20) effective July 28, 2025; EPS and share metrics post-split (Q2 onward) are not directly comparable to pre-split periods .
  • Trading lens: Near-term narrative hinges on delivery of Q2/Q3 revenue within guided range and visible margin improvement; medium-term thesis depends on successful scale-up of AC/V2X products and Eaton GTM to reaccelerate hardware growth .

Values retrieved from S&P Global.*