Financial Data and Key Metrics Changes - Revenue for Q1 fiscal 2026 was $98 million, within guidance range [6][22] - Non-GAAP gross margin increased to 31%, up 1 percentage point sequentially and 7 percentage points year on year [7][24] - Non-GAAP adjusted EBITDA loss was $23 million, compared to a loss of $17 million in the prior quarter and a loss of $36 million in the same quarter last year [26] Business Line Data and Key Metrics Changes - Network charging systems revenue was $52 million, accounting for 53% of total revenue, nearly flat sequentially but down 20% year on year [22][24] - Subscription revenue was $38 million, representing 39% of total revenue, flat sequentially and up 14% year on year [22][24] - Other revenue was $8 million, down 31% sequentially and down 8% year on year [22][24] Market Data and Key Metrics Changes - North America accounted for 85% of revenue, while Europe made up 15%, with European revenue impacted by weakness in Germany [24] - EV sales in North America were up 16% year on year for Q1, while Europe saw a 22% increase in EV sales year on year [12][13] Company Strategy and Development Direction - The company is focused on delivering innovation and driving growth, with a new partnership with Eaton aimed at providing integrated EV charging and power management solutions [16][18] - The new AC hardware architecture is expected to enhance market share and improve margins, with production starting in July [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions and tariff uncertainties are causing some customers to be conservative with spending [31][32] - The company expects revenue growth from the new AC hardware and the partnership with Eaton, with a cautious guidance for Q2 revenue between $90 million and $100 million [29] Other Important Information - The company ended the quarter with $196 million in cash and has access to a $150 million revolving credit facility [27][28] - Inventory balance increased to $212 million, but a gradual reduction is anticipated throughout the year [26][27] Q&A Session Summary Question: Can you discuss the pipeline of activity regarding the Eaton partnership and return to growth? - Management acknowledged various factors affecting growth, including macroeconomic conditions and tariffs, but expressed optimism about the Eaton partnership driving incremental growth [31][32] Question: Can Eaton assist in international expansion beyond Europe? - Management confirmed that while the focus is currently on North America and Europe, there is potential for expansion into new geographies with Eaton's capabilities [33][35] Question: What is the expected cadence for inventory reduction? - Management indicated a gradual reduction in inventory is expected, with more significant reductions anticipated in the second half of the year as revenue grows [36][38]

Financial Data and Key Metrics Changes - Revenue for Q1 fiscal 2026 was $98 million, within guidance range [6][21] - Non-GAAP gross margin increased to 31%, up 1 percentage point sequentially and 7 percentage points year-over-year [7][23] - Non-GAAP adjusted EBITDA loss was $23 million, compared to a loss of $17 million in the prior quarter and a loss of $36 million in the same quarter last year [25] Business Line Data and Key Metrics Changes - Network charging systems revenue was $52 million, accounting for 53% of total revenue, nearly flat sequentially but down 20% year-over-year [21] - Subscription revenue was $38 million, representing 39% of total revenue, flat sequentially and up 14% year-over-year [21] - Other revenue was $8 million, down 31% sequentially and down 8% year-over-year [22] Market Data and Key Metrics Changes - North America accounted for 85% of revenue, while Europe made up 15%, with European revenue impacted by weakness in Germany [23] - EV sales in North America increased by 16% year-over-year for Q1, while Europe saw a 22% increase [11][12] Company Strategy and Development Direction - The company is focused on delivering innovation and driving growth, with a goal of achieving positive non-GAAP adjusted EBITDA in a quarter during fiscal 2026 [6][19] - A new partnership with Eaton aims to provide integrated EV charging and power management solutions, enhancing market presence and driving incremental revenue growth [15][17] - The introduction of a new AC hardware architecture is expected to expand market share and improve margins [18][20] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions and tariff uncertainties are causing some customers to be conservative with spending [30] - Despite challenges, the company expects revenue upside later in the year from new product introductions and improved performance in Europe [28] - The company anticipates gradual inventory reduction throughout the year, helping to free up cash [26] Other Important Information - The company ended the quarter with $196 million in cash and has access to a $150 million revolving credit facility [26] - The partnership with Eaton is expected to enhance the company's capabilities in new geographies and markets [34] Q&A Session Summary Question: Can you discuss the pipeline of activity and return to growth with the Eaton partnership? - Management acknowledged various factors affecting growth, including macroeconomic conditions and customer spending conservatism, but expressed optimism about the Eaton partnership driving incremental growth [30][31] Question: Can Eaton help with international expansion beyond Europe? - Management confirmed that while the focus is currently on North America and Europe, there is potential for future expansion into new geographies with Eaton's capabilities [34] Question: What is the expected cadence of inventory reduction? - Management indicated a gradual reduction in inventory is expected, with more significant reductions anticipated in the second half of the year as revenue grows [36]

Q1 Fiscal 2026 Financial Results June 4, 2025 You can find information regarding our use of non-GAAP financial measures in our earnings release dated June 4, 2025, found on the Investor Relations section of our website at https://www.chargepoint.com/ © 2025 ChargePoint Holdings, Inc. • ChargePoint has provided financial information in this presentation that has not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). ChargePoint uses these non-GAAP financi ...

Financial Performance - First quarter fiscal 2026 revenue was $98 million, a decrease of 9% from $107 million in the same quarter last year[5] - Subscription revenue for the first quarter was $38 million, representing a 14% year-over-year growth[5] - GAAP gross margin for the first quarter was 29%, up from 22% in the prior year's same quarter, while non-GAAP gross margin was 31%, up from 24%[6] - GAAP operating expenses for the first quarter were $82 million, down 10% from $90.7 million in the prior year[6] - The net loss for the first quarter was $57.1 million, a 20% improvement from a net loss of $71.8 million in the same quarter last year[6] - Non-GAAP net loss improved to $29,958 thousand, representing 31% of revenue, compared to $45,567 thousand or 43% of revenue in the same quarter last year[28] - Cash flows from operating activities showed a net cash used of $32,968 thousand, an improvement from $62,542 thousand in the previous year[25] Future Outlook - ChargePoint expects second quarter fiscal 2026 revenue to be between $90 million and $100 million[8] - The company aims to achieve positive non-GAAP adjusted EBITDA during a quarter in fiscal year 2026[8] Partnerships and Innovations - The company announced a new AC charging architecture featuring bidirectional charging for future models across North America and Europe[12] - ChargePoint formed a partnership with Eaton Corporation to integrate EV charging and infrastructure solutions, co-developing new technologies[12] Cash and Assets - As of April 30, 2025, ChargePoint had cash and cash equivalents of $196.3 million and no debt maturities until 2028[6] - Cash, cash equivalents, and restricted cash at the end of the period totaled $196,349 thousand, down from $292,259 thousand, reflecting a decrease of 32.8%[25] - Total current assets decreased to $554,317 thousand from $566,574 thousand, a decline of 2.3%[24] Liabilities and Equity - Total liabilities increased to $779,020 thousand from $760,704 thousand, marking a rise of 2.4%[24] - The company reported a total stockholders' equity of $118,588 thousand, down from $137,471 thousand, a decrease of 13.7%[24] Cost Structure - GAAP cost of revenue was $69,654 thousand, representing 71% of revenue, compared to $83,432 thousand or 78% in the prior year[27] - Non-GAAP operating expenses as a percentage of revenue decreased to 58% from 62% year-over-year[27]

Core Insights - ChargePoint Holdings, Inc. (CHPT) is expected to report a first-quarter fiscal 2026 loss of 5 cents per share and revenues of $100.52 million, reflecting a year-over-year revenue decline of 6.09% [1][2][8] - The earnings per share estimate has improved by 2 cents over the past 90 days, indicating a potential growth of 54.55% compared to the previous year [1][2] Financial Performance - In the fourth quarter of fiscal 2025, ChargePoint reported a loss of 6 cents per share, which was better than the expected loss of 8 cents, and an improvement from a loss of 13 cents in the same quarter last year [2] - The company generated revenues of $102 million in Q4 fiscal 2025, missing the consensus estimate of $104 million and down from $116 million in the prior year [2] Margin Analysis - ChargePoint's non-GAAP gross margin for Q4 fiscal 2025 was 30%, up 4 percentage points from Q3 and 8 percentage points from the same quarter last year, driven by improved hardware margins and increased subscription revenues [3] - The company anticipates maintaining similar gross margins in the upcoming quarter, supported by cost reduction efforts [3] Future Outlook - For the fiscal first quarter, ChargePoint expects revenues between $95 million and $105 million, a decrease from $107 million reported in the same quarter of fiscal 2025 [4] - The company projects a slight increase in operating expenses due to annual salary adjustments and strategic investments, which may negatively impact the top line and operating margin [4] Earnings Prediction - ChargePoint has an Earnings ESP of 0.00%, indicating that the most accurate estimate aligns with the consensus estimate, which does not suggest a strong likelihood of an earnings beat [5][6]

Industry Overview - The electric vehicle (EV) industry is currently facing significant challenges, including tariffs, rising EV prices, and a negative political environment, which are impacting automakers and the broader EV ecosystem [1] - EV sales in the U.S. accounted for 8.1% of total vehicle sales last year, a slight increase from 7.8% in 2023, indicating slow adoption rates due to high prices [4] ChargePoint Company Analysis - ChargePoint's share price has decreased by 60% over the past year, now trading below $1, raising concerns among investors about the stock's potential [2] - The average transaction cost for a new electric vehicle was $59,200 in April, a nearly 4% increase from the previous year, making EVs less accessible to many buyers [4] - ChargePoint's sales fell by 18% in fiscal 2025 to $417 million, with projections for first-quarter 2026 sales at $100 million, reflecting a nearly 7% decline from the same quarter last year [9] - The company reported a non-GAAP net loss of approximately $159 million last year, although this was an improvement from a loss of about $297 million in 2024 [10] - ChargePoint's largest revenue segment, networked charging system sales, decreased by 35%, while subscription sales increased by 20% [10] External Challenges - Tariffs on automotive imports are negatively affecting U.S.-based EV manufacturers, leading to increased production costs [6] - Political uncertainty surrounding tariffs has caused major automakers like Ford, Stellantis, and General Motors to withdraw their 2025 guidance [7] - A recent bill passed by Republicans in the House aims to roll back tax credit incentives for EV purchases, which could further hinder EV adoption [8] Investment Outlook - Despite ChargePoint's low price-to-sales multiple of 0.75, the current market conditions and company-specific challenges suggest that it may not be a good investment opportunity [11] - The company and the broader EV industry are expected to continue facing serious headwinds that could further slow growth, making it difficult for ChargePoint to achieve market-beating returns in the near future [12]

Core Viewpoint - QuantumScape and ChargePoint are two distinct investment opportunities in the electric vehicle (EV) market, with QuantumScape focusing on solid-state batteries and ChargePoint on EV charging infrastructure [1][2]. QuantumScape - QuantumScape has been developing solid-state lithium metal batteries for 15 years but has yet to commercialize any products, with mass production expected to start in 2026 [4][5]. - The QSE-5 battery is projected to have an energy density exceeding 800 Wh/L and can charge from 10% to 80% in under 15 minutes, outperforming traditional lithium-ion batteries [4]. - Analysts predict QuantumScape's revenue will reach $4 million in 2026 and $93 million in 2027, with an enterprise value of $1.63 billion, leading to a valuation of 18 times its 2027 sales [8]. - Competition from major automakers and startups in the solid-state battery space poses a significant challenge for QuantumScape [7]. ChargePoint - ChargePoint managed 342,000 charging ports across North America and Europe by the end of fiscal 2025, with over 33,000 being Level 3 fast chargers [9]. - ChargePoint's revenue grew by 65% in fiscal 2022 and 93% in fiscal 2023, but it faced an 18% decline in fiscal 2025 due to rising interest rates affecting the EV market [11][12]. - Analysts forecast ChargePoint's revenue to grow at a compound annual growth rate of 21% from fiscal 2025 to fiscal 2028, reaching $738 million, with adjusted EBITDA expected to turn positive in fiscal 2027 [13]. - ChargePoint's enterprise value is $495 million, trading at just 1.1 times this year's sales, indicating potential for a higher valuation as the EV market recovers [14]. Investment Recommendation - ChargePoint is viewed as a more attractive investment compared to QuantumScape, given its current undervaluation and established market presence in EV charging infrastructure [15].

Company Performance - ChargePoint Holdings, Inc. (CHPT) closed at $0.70, reflecting a +0.66% change from the previous day, outperforming the S&P 500's daily gain of 0.1% [1] - The stock has increased by 16.06% over the past month, which is below the Auto-Tires-Trucks sector's gain of 24% and above the S&P 500's gain of 9.86% [1] Upcoming Earnings - The upcoming earnings release is anticipated, with projected earnings per share (EPS) of -$0.05, representing a 54.55% increase from the same quarter last year [2] - Revenue is estimated at $100.52 million, indicating a 6.09% decrease compared to the same quarter of the previous year [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict an EPS of -$0.16 and revenue of $455.9 million, reflecting changes of +57.89% and +9.31% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates indicate short-term business trends, with positive revisions suggesting analyst optimism regarding the company's business and profitability [4] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 ranked stocks have yielded an average annual return of +25% since 1988 [6] - ChargePoint Holdings, Inc. currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [6] Industry Context - The Automotive - Original Equipment industry, part of the Auto-Tires-Trucks sector, has a Zacks Industry Rank of 144, placing it in the bottom 42% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - ChargePoint Holdings, Inc. (CHPT) closed at $0.63, reflecting a +0.48% change from the previous trading day's closing, which lagged behind the S&P 500's daily gain of 0.63% [1] - Over the past month, shares of ChargePoint have depreciated by 0.14%, underperforming the Auto-Tires-Trucks sector's gain of 5.27% and outperforming the S&P 500's loss of 0.7% [1] Earnings Projections - The upcoming earnings per share (EPS) for ChargePoint is projected to be -$0.05, indicating a 54.55% increase from the same quarter last year [2] - Revenue is expected to be $100.52 million, reflecting a 6.09% drop compared to the year-ago quarter [2] - For the full year, analysts expect earnings of -$0.16 per share and revenue of $455.9 million, marking changes of +57.89% and +9.31% respectively from last year [3] Analyst Forecasts - Recent revisions to analyst forecasts for ChargePoint should be monitored, as positive estimate revisions are interpreted as a good sign for the company's business outlook [4] - Empirical research indicates that revisions in estimates correlate with impending stock price performance [5] Zacks Rank - ChargePoint currently features a Zacks Rank of 2 (Buy), with no change in the Zacks Consensus EPS estimate over the past month [6] - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell) and has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [6] Industry Context - The Automotive - Original Equipment industry, part of the Auto-Tires-Trucks sector, has a Zacks Industry Rank of 173, placing it within the bottom 30% of over 250 industries [7] - Research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - ChargePoint has faced significant challenges since its public debut in 2021, with a decline in stock price due to changing market dynamics and reduced support for electric vehicles (EVs) [2][10] - The company operates one of the largest charging networks globally, with 15,454 locations and 48,946 charging ports, significantly outpacing its main competitor, Tesla [4] - Despite a record 1.3 million EVs sold in the U.S. in the previous year, ChargePoint's revenue declined by 17.5% to $417 million, indicating struggles in the market [5][7] Company Overview - ChargePoint is a major player in the EV charging infrastructure sector, with a vast network that includes 1,675 fast-charging ports across 1,147 locations [4][8] - The company has experienced a decline in revenue growth and faces increasing competition from Tesla, which has a more extensive fast-charging network [8] Market Dynamics - The political environment has shifted, with reduced support for EV initiatives under the current administration, impacting funding for projects like the National Electric Vehicle Infrastructure (NEVI) program [9][10] - Government incentives have historically spurred EV adoption, but recent changes in policy may hinder future growth [6][10] Financial Performance - ChargePoint reported a gross profit of $100.6 million but incurred a $253 million loss from operations, highlighting the need for cost management [11] - The company has approximately $225 million in cash, but its increasing burn rate raises concerns about future funding needs [13] Future Outlook - ChargePoint must focus on cutting expenses and improving its operational efficiency to navigate the challenging market landscape [12][14] - Investors are advised to be cautious and await substantial progress in the company's financial health before considering investment [14]