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ChargePoint Holdings, Inc. (CHPT)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY2025 revenue was $99.6M, above Q2 guidance ($85–$95M), with GAAP gross margin at 23% and non-GAAP gross margin at 26%; non-GAAP adjusted EBITDA loss improved to $28.6M from $34.1M in Q2 and $97.4M in Q3 last year .
  • Subscriptions grew 19% YoY to $36.4M, while networked charging systems declined 29% YoY to $52.7M; mix supported margin stabilization despite hardware pressure .
  • Management guided Q4 FY2025 revenue to $95–$105M and reiterated the target to reach positive non-GAAP adjusted EBITDA in a quarter during FY2026, reflecting cautious near-term outlook but continued operational progress .
  • Strategic catalysts include mid-2025 margin uplift from Asia manufacturing, inventory drawdown aiding working capital, and product innovations (Omni Port, CPF50, Essential cloud plan) that could drive hardware/software adoption into FY2026 .

What Went Well and What Went Wrong

  • What Went Well

    • Margin stabilization and cost discipline: non-GAAP gross margin held at 26% and non-GAAP OpEx fell to ~$59M; CFO: “Q4 will see the full benefits of the September restructuring,” enabling continued EBITDA progress .
    • Subscription growth and higher-margin mix: subscriptions rose 19% YoY to $36.4M; management highlighted >50% non-GAAP subscription margin earlier in the year as support costs optimized .
    • Strategic execution: CEO emphasized achieving year-one goals of the 3-year plan ahead of schedule and improved sales/marketing efficiency under new CRO, citing record EV sales and rising utilization as demand green shoots .

  • What Went Wrong

    • Hardware weakness and fleet pushouts: networked charging systems revenue fell 29% YoY and 18% sequentially; fleet deals continued to push due to permitting and construction delays, impacting the top line .
    • Europe softness: Europe represented 17% of revenue vs 83% North America, with policy and incentive uncertainty weighing on sector demand .
    • EBITDA positive timing deferred: prior Q4 FY2025 target was reset; company now targets a quarter in FY2026 for adjusted EBITDA breakeven, reflecting industry headwinds .

Financial Results

MetricQ1 FY2025Q2 FY2025Q3 FY2025
Revenue ($USD Millions)$107.0 $108.5 $99.6
GAAP Gross Margin (%)22% 24% 23%
Non-GAAP Gross Margin (%)24% 26% 26%
GAAP Operating Expenses ($M)$90.7 $88.3 $91.0
Non-GAAP Operating Expenses ($M)$66.4 $66.4 $58.6
GAAP Net Loss ($M)$(71.8) $(68.9) $(77.6)
Non-GAAP Adjusted EBITDA Loss ($M)$(36.5) $(34.1) $(28.6)
Net Loss per Share (Diluted EPS) ($)$(0.17) $(0.16) $(0.18)
MetricQ3 FY2024Q3 FY2025
Revenue ($USD Millions)$110.3 $99.6
GAAP Gross Margin (%)(22%) 23%
Non-GAAP Gross Margin (%)(18%) 26%
GAAP Operating Expenses ($M)$129.8 $91.0
Non-GAAP Operating Expenses ($M)$81.1 $58.6
GAAP Net Loss ($M)$(158.2) $(77.6)
Non-GAAP Adjusted EBITDA Loss ($M)$(97.4) $(28.6)
Diluted EPS ($)$(0.43) $(0.18)

Segment Breakdown (Revenue):

SegmentQ1 FY2025Q2 FY2025Q3 FY2025
Networked Charging Systems ($M)$65.4 $64.1 $52.7
Subscriptions ($M)$33.4 $36.2 $36.4
Other ($M)$8.2 $8.2 $10.5
Total Revenue ($M)$107.0 $108.5 $99.6

KPIs and Mix:

KPI/MixQ2 FY2025Q3 FY2025
Managed Port Count (units)~315,000 >329,000
Geography: North America (%)80% 83%
Geography: Europe (%)20% 17%
Billings Mix: Commercial (%)72% 61%
Billings Mix: Fleet (%)14% 15%
Billings Mix: Residential (%)10% 18%
Billings Mix: Other (%)4% 6%
Cash & Cash Equivalents ($M)$243.3 $219.4

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q3 FY2025$85–$95 Reported $99.6 Beat vs guidance
Revenue ($M)Q4 FY2025N/A$95–$105 New guidance
Adjusted EBITDA (non-GAAP)Q4 FY2025Positive in Q4 FY2025 Target positive in a quarter during FY2026 Lowered/timed out
Non-GAAP OpEx Run-RateQ3 FY2025N/A“Low $60M” in Q3; lower in Q4 as restructuring fully flows through Added run-rate detail
Gross Margin (%)Q4 FY2025N/A“Flattish to maybe improve slightly,” more meaningful improvement next year Directional margin outlook

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1–Q2)Current Period (Q3 FY2025)Trend
AI/technology initiativesIntroduced AI “picture-to-resolution” tool; partnership with LG; Omni Port launched AI tool materially improving station uptime; continued deployment success Improving reliability; growing impact
Supply chain/Asia manufacturingAsia manufacturing expected to drive hardware margin uplift starting next year Q4 margins flattish; meaningful improvement mid-2025 as Asia manufacturing benefits kick in Margin uplift mid-2025
Tariffs/macroPrudent guidance due to macro headwinds; fleet delays No dramatic business changes expected; not manufacturing in China; can shift more production to U.S. if needed Prepared for policy shifts
Product performanceOmni Port announced; DC express shipments boosted Q2 commercial mix Hardware margins temporarily impacted by freight; margins should rise; subscription share supportive Hardware margin recovery; subscription strength
Regional trendsEurope regulatory/payment terminal launch; brownfield software opportunity Europe challenging; 17% revenue; commitment to Europe and expected sales/marketing improvements Cautiously constructive
Regulatory/NEVI>120 NEVI proposed site awards; $71M grant opportunities NEVI-related wins booked, expected to ship next year Pipeline converting in FY2026
Sales org/OpEx15% workforce reduction; $38M annualized non-GAAP OpEx savings New CRO aligning team; Q3 non-GAAP OpEx $59M; further Q4 improvement Execution improving
Inventory/working capitalInventory high; drawdown expected next year Inventory down $7M QoQ; working capital release expected next year Cash usage improving

Management Commentary

  • CEO: “We have accomplished the first year goals of our strategic plan and done so ahead of schedule… We are now concentrating on returning to growth and streamlining operations to continue on our path to positive non-GAAP adjusted EBITDA, which is targeted for a quarter in fiscal year 2026.”
  • CFO: “Non-GAAP adjusted EBITDA loss for the third quarter was $29 million, a fourth consecutive quarter of improvement… we reduced net cash consumption to $24 million.”
  • CFO on margins: “Ended the quarter at 26%… flattish to maybe improve slightly in Q4, but the majority of improvement will be realized next year… benefits of our Asia manufacturing.”
  • CEO on demand: “Charging network operators have been reporting an upswing in charger utilization… This pressure has prompted customer inquiries about incremental chargers.”

Q&A Highlights

  • Gross margin trajectory: flattish to slightly up in Q4; more meaningful improvement next year with Asia manufacturing; hardware margin uplift expected mid-2025 .
  • Sales efficiency and wins: new CRO driving process/skills standardization; improved partner/channel execution and win rates despite restructuring disruption .
  • Tariffs/manufacturing: no production in China; ability to shift production to the U.S. if tariffs change economics .
  • Europe strategy: near-term challenges but committed due to multinational customer advantage; expect similar sales/marketing improvements as North America .
  • Inventory/working capital: inventory composed of actively sold products; obsolescence risk limited after prior write-offs; working capital release expected as inventory declines in FY2026 .

Estimates Context

  • Consensus estimates for Q3 FY2025 and Q4 FY2025 from S&P Global were unavailable at the time of analysis due to API limits; therefore, comparison vs Wall Street consensus cannot be provided. Values would normally be retrieved from S&P Global.
  • Company guidance for Q4 FY2025 revenue remains $95–$105M; use this as near-term context in lieu of consensus .
MetricQ3 FY2025 ConsensusQ4 FY2025 Consensus
Revenue ($USD Millions)Unavailable (S&P Global API limit)Unavailable (S&P Global API limit)
EPS ($)Unavailable (S&P Global API limit)Unavailable (S&P Global API limit)

Key Takeaways for Investors

  • Margin stabilization with non-GAAP gross margin at 26% and improving adjusted EBITDA loss trajectory suggests de-risking of near-term profitability path; major margin uplift expected mid-2025 as Asia manufacturing benefits ramp .
  • Subscriptions remain a bright spot (up 19% YoY to $36.4M), supporting mix and recurring economics; management continues to optimize support costs .
  • Hardware demand softness and fleet pushouts likely persist near term, but pipeline indicates conversion in buses, auto dealers, government/NEVI, and residential channels in FY2026 .
  • Working capital inflection: inventory reduction began ($7M QoQ) with broader release expected next year, enabling cash burn to track EBITDA improvement .
  • Europe is a headwind (17% of revenue) amid policy uncertainty, but multinational coverage and targeted sales/marketing improvements should mitigate medium-term risk .
  • Product/catalysts: Omni Port upgrades, CPF50 low-cost fleet charger, and Essential cloud plan can accelerate adoption and subscription attach in FY2026 .
  • Near-term trading lens: Q4 revenue guide ($95–$105M) and margin commentary (flattish) set cautious expectations; watch for execution on inventory drawdown, Asia manufacturing milestones, and fleet deal conversions as potential upside drivers .