Executive Summary
ChargePoint reported QQ2 2026 revenue of $99.0 million, at the high end of guidance, with non-GAAP gross margin of 33%—the highest since going public and up 3 percentage points sequentially. The quarter featured a continued reduction in cash burn and a stable cash balance of approximately $195 million, alongside a sizable hardware and software revenue mix (hardware 51%, subscription 40%, other 8%). Revenue declined 9% year-over-year but advanced sequentially, reflecting a softer macro backdrop (notably in North America) and tariff/Policy uncertainty affecting project timing. Management signaled a deliberate shift to extend EBITDA breakeven beyond the current year to fund product innovation and commercialization, underpinned by Eaton partnership-driven product cycles and Europe-focused initiatives. The guidance for 2026 was narrowed to $90–$100 million in revenue, underscoring a cautious stance while maintaining an emphasis on long-term profitability, margin expansion, and cash-burn reduction. The earnings call emphasized strategic investments in new product architectures (AC/DC charging), cost discipline, and a multi-year path to profitability, supported by a growing European footprint and a ramp in DC fast charging through partnerships. Overall, CHPT exhibits a differentiating software/hardware moat, an improving gross margin trajectory, and a near-term strategy focused on innovation-led growth, albeit with elevated OpEx and modest near-term profitability.
Key Performance Indicators
QoQ: -14.46% | YoY:-1 681.25%
Key Insights
Revenue: $99.0 million in Q2 2026, up sequentially from the prior quarter and down 9% year-over-year. Gross margin (non-GAAP): 33.0%, up 3pp sequentially and 8pp year-over-year; hardware gross margin +1pp sequentially amid favorable mix and tariff mitigation. Subscription margin reached a record high (GAAP 61%; non-GAAP higher) due to scale and ongoing cost optimization. Non-GAAP operating expenses: $59.0 million, up 3% sequentially, down 12% year-over-year (temporary R&D/NRE and contractor ...
Financial Highlights
Revenue: $99.0 million in Q2 2026, up sequentially from the prior quarter and down 9% year-over-year. Gross margin (non-GAAP): 33.0%, up 3pp sequentially and 8pp year-over-year; hardware gross margin +1pp sequentially amid favorable mix and tariff mitigation. Subscription margin reached a record high (GAAP 61%; non-GAAP higher) due to scale and ongoing cost optimization. Non-GAAP operating expenses: $59.0 million, up 3% sequentially, down 12% year-over-year (temporary R&D/NRE and contractor spend related to new AC/DC product architecture). Net income: -$66.179 million; EPS (diluted): -$2.85; Net income margin: -67.1%. EBITDA (non-GAAP): -$22.0 million, improving from -$23.0 million in the prior quarter and -$34.0 million year-ago. Cash and liquidity: cash balance end of period approximately $195.0 million; net cash used by operating activities: -$6.15 million; free cash flow: -$7.45 million. Balance sheet: total assets $870.254 million; total debt $322.59 million; cash and cash equivalents $194.123 million; inventory $212.407 million; long-term liabilities skewed toward deferred revenue and debt. Geographic mix: North America 84% of revenue; Europe 16%; vertical mix: Commercial 75%, Fleet 11%, Residential 10%, Other 4%. Four-quarter trailing data indicate revenue declines YoY but with improvements in gross margin and cash burn reduction.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
98.59M |
-9.17% |
0.97% |
| Gross Profit |
30.73M |
20.10% |
9.80% |
| Operating Income |
-58.98M |
6.01% |
-9.54% |
| Net Income |
-66.18M |
3.91% |
-15.86% |
| EPS |
-2.85 |
-1 681.25% |
-14.46% |
Management Commentary
Key themes from management discussion: (1) Strategy and partnerships: Execution on the Eaton partnership with a focus on cost efficiency and accelerated deployment of DC fast charging; co-branded products and expanded channel reach are driving revenue diversification. (2) Product and technology: Ongoing investments in AC/DC charging architecture; new express DC line, and bidirectional home charging with advanced energy management highlight CHPT’s moat of hardware-software integration and grid/usage optimization. (3) Market dynamics: Europe shows resilience and growth potential; North America remains challenged by policy uncertainty (30D/30C credits) and tariff landscape, contributing to project delays rather than cancellations. (4) Financial discipline: OpEx remains elevated in the near term due to R&D/NRE and contractor spend tied to product architecture releases; management expects OpEx to ease in Q4 and continue to trend down into 2025/2026. (5) Outlook: Management indicated a longer path to EBITDA breakeven, with a shift to preserve liquidity while funding innovation; focus remains on profitability, cash burn reduction, and market share gains through differentiated products and strategic partnerships.
We are the biggest company with the biggest balance sheet. We serve both North America and Europe. We have got a strong product portfolio spanning from home all the way up to DC fast charge, along with all the software to manage it for every use case.
— Rick Wilmer
We are rapidly operationalizing our partnership with Eaton, and that work will be largely completed this quarter. The express line of DC charging solutions powered by Eaton combines the strength of both companies to deliver more power in less space with massive scalability, and the net result will be substantially lower CapEx and operating costs and faster deployment timelines.
— Rick Wilmer
Forward Guidance
Guidance for 2026: Revenue expected to be between $90 million and $100 million. Management reiterated a cautious stance given macro headwinds but emphasized continued progress toward profitability, with non-GAAP EBITDA breakeven and positive cash flow as primary objectives over time. The company is pushing EBITDA breakeven out beyond the current year to fund ongoing product innovation and commercialization efforts, including Eaton collaboration and Europe-centric product launches. Key drivers to monitor include: (a) the cadence of European product introductions (AC/DC architecture, DC Express), (b) the integration and scale-up of the Eaton partnership, (c) evolving tariff impacts and potential relief, (d) policy developments around EV incentives in the US, and (e) inventory normalization and working capital optimization that could generate quarterly cash flow improvements. The trajectory to profitability hinges on accelerating hardware margins through favorable product mix, increasing subscription mix, and ongoing cost discipline as R&D/NRE investments transition from temporary spikes to normalized levels.