Executive Summary
ChargePoint reported Q2 2025 revenue of $108.54 million, showing a 27.9% year-over-year decline but a modest 1.4% sequential increase. Non-GAAP gross margins rose to 26% for the quarter—the third consecutive quarter of margin improvement—driven by lower replacement-part costs, tighter warranty spending, and a higher-margin mix of subscription revenue. Non-GAAP operating expenses declined 25% year over year to $66.0 million and were flat quarter over quarter, resulting in an adjusted EBITDA loss of $34.0 million, an improvement from prior periods yet still adverse.
Management signaled a prudent path to profitability anchored by substantial cost reductions (approximately $38 million annualized), accelerated shift to Asia-based manufacturing to lift hardware margins, and a stronger software subscription trajectory. The quarter featured strong strategic momentum: Porsche and Genesis/OEM partnerships, expansion in municipal transit with Daimler Bus, and the rollout of Omniport hardware to simplify connector choices. The company ended the period with about $244 million in cash, undrawn $150 million revolver, and no debt maturities until 2028, providing a liquidity runway to fund the 3-year plan. Looking ahead, ChargePoint guided for Q3 2025 revenue of $85–$95 million (down about 18% at the midpoint versus Q3 last year) and reiterated a commitment to achieving adjusted EBITDA positive status in fiscal 2026, with inventory levels expected to normalize in mid-2025 as finished goods are worked through. Key growth levers include a doubling of fleet opportunities this year, a rising installed-base-driven subscription tail, and ongoing software/hardware product innovations.
Key Performance Indicators
QoQ: 8.37% | YoY:2 174.22%
Key Insights
Revenue: $108.539 million, down 27.9% YoY, up 1.4% QoQ.
Non-GAAP gross margin: 26% (Q2 2025, third straight quarter of improvement), vs. GAAP gross margin of ~23.6% (as reported).
Gross Profit: $25.586 million (GAAP), gross margin 23.6% (GAAP); non-GAAP margin 26% as noted in earnings call remarks.
Non-GAAP operating expenses: $66.0 million, down 25% YoY, flat sequentially.
Adjusted EBITDA: Loss of $(34.0) million (improved from $(81.0) million in Q2 2024; $(36.0) million in Q1 2025).
Net income...
Financial Highlights
Revenue: $108.539 million, down 27.9% YoY, up 1.4% QoQ.
Non-GAAP gross margin: 26% (Q2 2025, third straight quarter of improvement), vs. GAAP gross margin of ~23.6% (as reported).
Gross Profit: $25.586 million (GAAP), gross margin 23.6% (GAAP); non-GAAP margin 26% as noted in earnings call remarks.
Non-GAAP operating expenses: $66.0 million, down 25% YoY, flat sequentially.
Adjusted EBITDA: Loss of $(34.0) million (improved from $(81.0) million in Q2 2024; $(36.0) million in Q1 2025).
Net income: $(68.874) million; diluted EPS $(0.16).
Cash flow: Operating cash flow $(51.164) million; free cash flow $(54.997) million; cash balance $243.663 million; revolver $150 million undrawn; no debt maturities until 2028.
Balance sheet: Total assets $1.0038 billion; total liabilities $772.887 million; cash and equivalents $243.263 million; inventory $228.519 million; property, plant, and equipment net $54.91 million; long-term debt $302.777 million; net debt $59.514 million.
Liquidity and leverage: $150 million revolver undrawn; no near-term debt maturities; negative working-capital-style dynamics mitigated by cash position and cost controls.
Operational metrics: managed port count ~315,000; DC ports ~30,000; roaming >1.1 million charging locations; 1.2 million quarterly active users; 76% of Fortune 50 as customers; North America accounted for ~80% of revenue.
Vertical mix (billings): Commercial 72%, Fleet 14%, Residential 10%, Other 4%.
Guidance: Q3 revenue guidance of $85–$95 million; Q3 YoY decline ~18% at midpoint; inventory expected to remain elevated through year-end with balance improving mid-next year; OpEx guided to low $60s million in Q3, with further reductions in Q4.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
108.54M |
-27.88% |
1.40% |
| Gross Profit |
25.59M |
2 174.22% |
8.37% |
| Operating Income |
-62.75M |
49.12% |
6.54% |
| Net Income |
-68.87M |
45.01% |
4.07% |
| EPS |
-0.16 |
54.29% |
5.88% |
Key Financial Ratios
operatingProfitMargin
-57.8%
operatingCashFlowPerShare
$-0.12
freeCashFlowPerShare
$-0.13
Management Commentary
Key themes from the earnings call and management remarks:
- Operational restructuring and cost discipline: Management highlighted a $38 million annualized reduction in non-GAAP OpEx, with headcount down about 15% and a flatter sales/marketing organization to accelerate revenue generation capabilities. This reflected an ongoing effort to rightsize the business for the current market environment. "We have reduced our non-GAAP operating expense by an estimated $38 million on an annualized basis... headcount by approximately 15%" (Richard Wilmer).
- Margin recovery and manufacturing shift: Non-GAAP gross margins improved for the third straight quarter to 26%, driven by lower replacement-part costs and favorable mix, and aided by anticipated benefits from Asia-based manufacturing. AI-enabled service efficiencies and higher-margin subscription revenue contributed to margin dynamics. "Non-GAAP gross margins continued to improve for the third consecutive quarter, coming in at 26% for Q2" (Abby/Patrick intro on remarks; CFO Mansi Khetani subsequently elaborated).
- Fleet growth and green shoots in demand: Management described green shoots in fleet and enterprise deployments, with expectations to double fleet opportunities this year and larger deals pushed into later periods due to external factors like permitting and construction delays. "We are on pace to double our fleet opportunities this year"; "doubling pipeline... very significantly" (Rick Wilmer).
- OEM and partner momentum: The quarter featured notable OEM engagement (Porsche, Genesis) and municipal transit collaboration (Daimler Bus with Mercedes-Benz/Setra integration), underscoring software platform leadership and multi-point ecosystem growth.
- AI and driver experience: Deployment of AI to diagnose and fix station issues aims to reduce downtime and service costs; management framed this as a meaningful cost-reduction capability in operations and a differentiator in service quality.
- Near-term guidance and outlook: The company guided Q3 revenue of $85–$95 million and reiterated a path toward adjusted EBITDA positive in fiscal 2026, while noting inventory levels would remain elevated in the near term. Strategic emphasis remains on Asia manufacturing, subscription margin expansion, and a phased plan toward profitability.
"We have reduced our non-GAAP operating expense by an estimated $38 million on an annualized basis. We are reducing our headcount by approximately 15% and trimming non-personnel expenses in all areas of the company, with the majority of reductions in sales and marketing."
— Richard Wilmer
"We are committed to being adjusted EBITDA positive."
— Mansi Khetani
Forward Guidance
ChargePoint provided conservative Q3 2025 guidance of $85–$95 million in revenue, implying an ~18% year-over-year decline at the midpoint and signaling ongoing macro headwinds. Management reiterated a multi-year plan focused on profitability and cash flow, targeting adjusted EBITDA positive status in fiscal 2026. They expect margin improvements to continue as Asia-based manufacturing comes online, inventory levels normalize in mid-2025, and subscription margins remain robust (non-GAAP subscription margin above 50% in recent quarters). The fleet pipeline is a major variable: management expects large fleet deals to materialize over time, contributing meaningfully to revenue growth in subsequent quarters. Key factors investors should monitor include: (1) the pace of inventory liquidation and working capital reduction, (2) progress on Asia manufacturing ramp and its impact on hardware gross margin, (3) evolution of the fleet opportunity pipeline and conversion rates, (4) progression of software revenue (subscription margins, support-cost optimization), and (5) changes in macro conditions affecting OEM procurement cycles and fleet deployment timelines.