EPS of $-0.13 increased by 43.5% from previous year
Gross margin of 28.2%
Net income of -58.80M
"This improvements demonstrate significant progress toward our goal of achieving positive non-GAAP adjusted EBITDA for a quarter in fiscal 2026." - Rick Wilmer
ChargePoint Holdings Inc (CHPT) QQ4 2025 Earnings Review: Margin Stabilization, Strategic Partnerships, and Path to Positive Adjusted EBITDA in FY2026
Executive Summary
ChargePoint reported a Q4 FY2025 revenue of $101.9 million, delivering a modest sequential top-line outturn and a meaningful improvement in profitability metrics on a non-GAAP basis. The company posted a non-GAAP gross margin of 30% and narrowed non-GAAP operating expenses to $52 million, driving the adjusted EBITDA loss down to $17 millionāthe fifth consecutive quarter of improvement. Management underscored ongoing cost rationalization, balance-sheet discipline, and a cash-burn trajectory that has materially improved versus prior quarters, supporting a runway toward positive adjusted EBITDA in a fiscal quarter of FY2026.
Operational highlights include a growing subscription base (up 14% YoY to $38 million in Q4), a large installed base of charging ports (342,000 ports managed by software, with 120,000 in Europe and 33,000 DC fast chargers), and the expansion of the GM Energy collaboration to accelerate GM-branded DC fast charging locations. The company reiterated that NEVI-related deals were insignificant to 2024 revenue and that policy shifts will not materially derail its growth plan. The balance sheet remains sturdy with cash of ~$225 million and an undrawn $150 million revolving credit facility, although CHPT remains in a cash-burn phase as it funds growth investments and pipeline development. Management guided Q1 FY2026 revenue of $95ā$105 million, signaling a near-term stabilization around mid- to high-single-digit growth potential, with gross margins expected to stay around the 30% level.
Key takeaways for investors: (1) the trajectory toward positive adjusted EBITDA in FY2026 remains intact, supported by efficiency gains, automation, and scale benefits in subscription revenue; (2) portfolio diversification across North America and Europe, plus next-gen software/hardware initiatives, positions ChargePoint to capitalize on accelerating EV adoption; (3) macro policy and subsidy dynamicsāwhile meaningfulāare unlikely to derail the core secular shift to e-mobility given CHPTās diversified manufacturing base and non-reliance on NEVI subsidies alone. However, risks around policy changes, channel inventory dynamics, permitting delays, and competitive intensity warrant ongoing monitoring.
Key Performance Indicators
Revenue
101.89M
QoQ: 2.29% | YoY:-12.04%
Gross Profit
28.70M
28.17% margin
QoQ: 25.95% | YoY:24.58%
Operating Income
-54.95M
QoQ: 19.39% | YoY:31.55%
Net Income
-58.80M
QoQ: 24.21% | YoY:37.94%
EPS
-0.13
QoQ: -140.63% | YoY:43.48%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $101.889 million for Q4 FY2025, vs. prior guidance midpoint of $100.0 million; YoY change: -12.0%, QoQ change: +2.3%
Subscription revenue: $38.0 million, up 14% YoY, up 5% QoQ; 38% of total revenue
Network charging systems: $53.0 million, 52% of revenue; flat QoQ, down 29% YoY
Other revenue: $11.0 million, 11% of revenue, up 4% QoQ and 33% YoY
Financial Highlights
Revenue and profitability
- Revenue: $101.889 million for Q4 FY2025, vs. prior guidance midpoint of $100.0 million; YoY change: -12.0%, QoQ change: +2.3%
- Gross Profit: $28.7 million; gross margin 28.17% (GAAP); non-GAAP gross margin: 30%
- Subscription revenue: $38.0 million, up 14% YoY, up 5% QoQ; 38% of total revenue
- Network charging systems: $53.0 million, 52% of revenue; flat QoQ, down 29% YoY
- Other revenue: $11.0 million, 11% of revenue, up 4% QoQ and 33% YoY
Operating and cash flow
- Non-GAAP operating expenses: $52.0 million, down 11% QoQ and down 30% YoY; GAAP operating expenses: $83.65 million
- Non-GAAP EBITDA: loss of $17.0 million, improvement from $29.0 million (Q3) and $45.0 million (Q4ā24); EBITDA margin: -4.7%
- Net income: -$58.8 million; EPS: -$0.13 (diluted); weighted average shares outstanding: 447.6 million
- Operating cash flow: -$2.68 million; free cash flow: -$4.62 million
Liquidity and balance sheet
- Cash and cash equivalents: $224.6 million; total cash at end of period: $225.0 million (up $5.0 million QoQ)
- Debt: Total debt $312.4 million; long-term debt $312.4 million; net debt closest to -$87.8 million (per reported figures)
- Cash flow from financing activities: +$12.15 million; capex: -$1.94 million; inventory decreased by $13.0 million to $209.3 million
- Total assets: $898.2 million; total liabilities: $760.7 million; total stockholdersā equity: $137.5 million
- Working capital and liquidity metrics: current ratio 1.93; deferred revenue: $105.0 million (current); geographic mix: North America 81% of Q4 revenue, Europe 19%
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
101.89M
-12.04%
2.29%
Gross Profit
28.70M
24.58%
25.95%
Operating Income
-54.95M
31.55%
19.39%
Net Income
-58.80M
37.94%
24.21%
EPS
-0.13
43.48%
-140.63%
Key Financial Ratios
currentRatio
1.93
grossProfitMargin
28.2%
operatingProfitMargin
-53.9%
netProfitMargin
-57.7%
returnOnAssets
-6.55%
returnOnEquity
-42.8%
debtEquityRatio
2.27
operatingCashFlowPerShare
$-0.01
freeCashFlowPerShare
$-0.01
priceToBookRatio
3.13
priceEarningsRatio
-1.83
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Key management insights and quotes from the Q4 FY2025 earnings call:
- Strategy and outlook
- Rick Wilmer: We are focused on operational excellence and have rationalized our cost structure; goal of achieving positive non-GAAP adjusted EBITDA for a quarter in fiscal 2026.
- Rick Wilmer: The collaboration with GM Energy is a major growth vector; we expect to open a significant number of GM Energy branded DC fast charging locations this year, with first locations opening within four weeks of program finalization.
- Operational execution and product/innovation
- Rick Wilmer: Six fast charging corridors across Colorado were completed, doubling charger coverage; near completion of DC fast charging locations in New York City; expansion aligns with a broader hardware/software portfolio and product roadmap.
- Mansi Khetani: Non-GAAP gross margin of 30% in Q4, up 4 percentage points sequentially and 8 percentage points YoY; margin leverage supported by improved hardware margins and higher subscription mix; OpEx appropriately scaled, with a modest increase anticipated due to salary adjustments and targeted investments.
- Policy and market conditions
- Rick Wilmer: NEVI-related deals represented an insignificant portion of 2024 revenue; we do not anticipate federal policy changes to materially affect our business; tariffs are largely inconsequential given our diversified global manufacturing footprint, including U.S. facilities.
- Nandan Amladi and Mansi Khetani: Ongoing diversification of manufacturing footprint and the absence of a need to rely on subsidies; channel programs remain active with normal sell-in/sell-through dynamics.
- Channel and cash flow dynamics
- Mansi Khetani: Inventory down $13 million to $209 million; cash flow from operating activities declined only modestly to $(2.7) million as pricing, margin, and working capital improvements offset ongoing cash burn; cash balance up $5 million QoQ; revolving facility remains undrawn at $150 million.
- Rick Wilmer: We are watching permitting timelines and policy developments but see continued demand in commercial, fleet, and retail channels with normalization of channel inventory.
This improvements demonstrate significant progress toward our goal of achieving positive non-GAAP adjusted EBITDA for a quarter in fiscal 2026.
ā Rick Wilmer
The biggest highlight was a collaboration with General Motors, GM Energy division. Together with ChargePoint customers, we plan to open a significant number of GM Energy branded DC fast charging locations this year. The program is intended to offset upfront investment with an owner-operator subsidy.
ā Rick Wilmer
Forward Guidance
Outlook and assessment for FY2026: ChargePoint guides Q1 FY2026 revenue to be $95ā$105 million (midpoint ~$100 million), implying a modest sequential progression despite typical Q1 seasonality. The company expects non-GAAP gross margins to hold around 30% with continued improvement in the back half of FY2026, supported by hardware cost reductions from Asia manufacturers and ongoing economies of scale in software subscriptions. Non-GAAP OpEx is anticipated to rise modestly as CHPT funds select investments and annual salary increases, but management reiterates a disciplined cost framework and continued inventory reduction to support cash burn minimization. The strategic objective remains to generate positive non-GAAP adjusted EBITDA in a quarter during FY2026, underscored by a lean operating model and greater scale in subscription revenue.
Key factors investors should monitor:
- GM Energy and GM collaboration rollout: execution pace and impact on hardware/software sales; potential to broaden CHPTās DC fast charging footprint and fleet deployments.
- Policy and subsidies environment: NEVI funding trajectory, potential tariffs, and state utility incentives; CHPTās diversified manufacturing footprint reduces exposure, but policy shifts could influence project timing and deployment rates.
- Portfolio mix and margins: ongoing shift toward higher-margin subscription revenue and improvements in hardware margins; potential mix-driven gross margin volatility if hardware programs accelerate or slow.
- Working capital and liquidity: continued inventory normalization and accounts receivable/payable dynamics; ability to sustain a low cash-burn profile while investing in growth opportunities.
- Competitive landscape: intensity of competition in North America and Europe, with an emphasis on affordable charging, adoption rates, and channel dynamics.
Overall, the FY2026 outlook hinges on converting the installed base into recurring software revenue, executing large-scale DC fast charging deployments (notably GM Energy), and sustaining strict cost discipline to reach an adjusted EBITDA-positive quarterly result.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
CHPT Focus
28.17%
-53.90%
-42.80%
-1.83%
BBY
20.90%
1.56%
4.17%
39.19%
BLNK
24.70%
-2.45%
-61.90%
-47.80%
EVGO
14.50%
-51.90%
15.80%
-2.66%
LCID
-89.00%
-3.13%
-10.30%
-5.40%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
ChargePoint remains in execution mode toward a strategically important objective: achieving positive adjusted EBITDA in a quarter during FY2026. The Q4 FY2025 results show meaningful progress: subscription revenue growing at 14% YoY, non-GAAP gross margin at 30%, and a significantly improved OpEx profile. The GM Energy collaboration with GM and the rapid deployment of DC fast charging corridors (Colorado, NYC) are material catalysts that could translate into higher multi-year recurring revenue and improved unit economics as software helps monetize a growing installed base. The balance sheet remains comfortable with ~USD 225 million of cash and an undrawn $150 million revolver, providing liquidity to fund growth and manage potential volatility in working capital.
However, investors should remain mindful of key risks, including regulatory and subsidy changes (NEVI), tariffs, and permitting delays, as well as competitive dynamics in the EV charging landscape. CHPTās continued emphasis on cost discipline, automation in subscription operations, and a diversified manufacturing footprint mitigates some risk, but a meaningful path to sustained profitability requires continued growth in high-margin software subscriptions, favorable mix shifts, and successful execution of large-scale deployments. On a relative basis, CHPTās improved gross margins and cash burn trajectory position it as a differentiated player among EV charging incumbents, though the stockās valuation would need to reflect the durable margin expansion and revenue growth potential from GM Energy and Europe expansion. Comparative indicators from peers suggest CHPT is navigating toward higher-margin software leverage, but faces structural challenges typical of capital-light growth companies in the sector.
Key Investment Factors
Growth Potential
Significant long-term growth potential from expanding CHPTās global installed base (342k ports under software; 1.2 million charging ports accessible), ongoing GM Energy collaboration to accelerate DC fast charging deployment, and the shift toward higher-margin software subscriptions. The next-generation software platform and revamped hardware portfolio are expected to drive profitable growth in 2026 and beyond. Growth catalysts include: (a) expansion of GM Energy branded DC fast charging locations, (b) Colorado and New York City corridor deployments expanding practical charging coverage, (c) Europe growth with 120k ports currently in Europe, and (d) continued monetization of third-party hardware via CHPT software, leveraging its multi-vendor management capabilities.
Profitability Risk
Key risks include macro policy shifts (NEVI subsidies and federal funding changes), tariffs impact on supply chain (though mitigated by a diversified footprint), permitting delays and grid upgrade timelines, channel inventory dynamics, and competitive intensity. CHPTās net loss and negative EBITDA remain a near-term concern, though management envisions a path to EBITDA-positive quarters in FY2026. Customer concentration in commercial/fleet and long-cycle ROIs for large deployments could amplify volatility in revenue timing.
Financial Position
Solid liquidity with cash end of period ~$225 million and an undrawn $150 million revolving credit facility; moderate leverage (long-term debt of ~$312 million) and a robust current ratio (~1.93) support near-term working-capital needs. The balance sheet shows reduced inventory, continued deferred revenue strength, and a capitalized model with minimal required CapEx, providing flexibility to fund growth initiatives and navigate a cash-burn environment while pursuing profitability via subscription growth and margin optimization.
SWOT Analysis
Strengths
Large, diversified portfolio with 342k ports under software; 120k in Europe; 33k DC fast chargers; access to >1.2 million charging ports via managed/roaming network.
High exposure to recurring subscription revenue (38% of Q4 revenue) with YoY growth of 14% and improving gross margins.
Strong geographic diversification (North America 81% of quarterly revenue; Europe 19%) and a balanced mix across commercial, fleet, and residential segments.
Operational discipline: aggressive inventory de-risking, cost rationalization, and reduction in non-GAAP OpEx; solid liquidity position with undrawn revolver facilities.
Weaknesses
GAAP net loss and negative EBITDA across multiple quarters, with cash burn still occurring though trending down.
Reliance on broader EV adoption and policy support; near-term sensitivity to macro policy changes and project timing.
High debt level and negative retained earnings; long-term profitability depends on scale and mix shifts toward software-driven revenue.
Opportunities
GM Energy collaboration can accelerate DC fast charging deployment and expand CHPTās addressable market across fleet and commercial segments.
European expansion and increased port counts in Europe; further monetization of third-party hardware via software for hardware-agnostic solutions.
Next-generation software platform and hardware roadmap to drive operating leverage and margin improvement; evergreen anti-vandal solution as a differentiator.
Threats
Policy uncertainty around NEVI funding, tariffs, and broader U.S. incentives; potential permitting delays, grid constraints, and timing risk in large deployments.
Intense competition from other charging networks and hardware/software providers; channel inventory dynamics can impact near-term revenue visibility.
Macro headwinds in EV adoption pace and customer capex budgets could delay deployments and affect cash flow.
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