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]

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 Viewpoint - ChargePoint, a leading electric vehicle (EV) charging station builder, is currently undervalued and may present a contrarian investment opportunity despite its recent struggles and stock price decline [1][4]. Company Overview - ChargePoint operates in the EV charging sector, providing charging stations for residential and commercial customers, managing 342,000 charging ports by the end of fiscal 2025, including over 33,000 DC fast chargers [5][6]. - The company’s business model differs from Tesla's, focusing on selling connected charging stations and providing network access, billing, and customer support, rather than standalone charging stalls [6][7]. Financial Performance - ChargePoint experienced significant revenue growth in fiscal years 2022 and 2023, but revenue declined in fiscal 2025, with a total revenue of $417 million, down 18% year-over-year [9]. - Adjusted gross margins improved to 26% in fiscal 2025, despite the overall revenue decline, while operating and net losses narrowed compared to previous years [10]. - The company reported a net loss of $283 million in fiscal 2025, with adjusted EBITDA improving to a loss of $117 million [9][10]. Market Conditions - The EV market faced challenges in fiscal 2024 due to high interest rates, leading to decreased demand for new charging stations and negatively impacting ChargePoint's financial metrics [8][11]. - Analysts expect ChargePoint's revenue to rise by 11% in fiscal 2026, although this outlook may be influenced by external factors such as tariffs and trade tensions [11]. Future Outlook - ChargePoint anticipates achieving positive adjusted EBITDA in fiscal 2026, with analysts projecting a return to positive adjusted EBITDA in fiscal 2027, which could stabilize the company and enhance its stock value [12]. - The company’s enterprise value stands at $434 million, trading at less than 1 times its estimated sales for fiscal 2026, indicating potential for stock appreciation with positive news [13]. Investment Considerations - ChargePoint's stock is considered a risky investment, but potential positive developments, such as better-than-expected quarterly results and a clearer outlook, could attract deep-value investors and trigger a short squeeze due to high short interest [14].

Industry Overview - The electric vehicle (EV) charging infrastructure market is rapidly expanding globally, with China leading at over 3.2 million public charge points, followed by Europe with over 900,000, and the United States with approximately 206,000 public charging ports [1][2][3] - The U.S. is set to add more than 11,500 EV charging ports through the Bipartisan Infrastructure Law, aiming for a total of 500,000 publicly available EV chargers by 2030 [2] Company Analysis: EVgo - EVgo has seen a 35% year-over-year revenue growth in Q4 2024, driven by increased charging sessions, with a network throughput of 84 gigawatt-hours compared to 50 gigawatt-hours in the previous year [5] - The company has expanded its operational stalls from 2,980 to 4,080 and added over 133,000 accounts in the quarter [5] - A joint development agreement with Delta Electronics aims to enhance charger reliability and cost efficiency, potentially boosting EVgo's prospects [6] - Despite growth, EVgo remains unprofitable with a negative adjusted EBITDA and is vulnerable to shifts in federal policy due to its reliance on NEVI funding [8] Company Analysis: ChargePoint - ChargePoint has reduced its non-GAAP operating expenses by 42% and reported a 14% year-over-year growth in subscription revenues, reaching $38 million in Q4 [10] - The company operates 342,000 managed charging ports, benefiting from increasing EV adoption, and is not reliant on NEVI funding, providing insulation from federal policy changes [10] - ChargePoint's collaboration with General Motors aims to install hundreds of ultra-fast charging ports across the U.S. by 2025, enhancing its growth prospects [11] - The company has introduced innovative solutions to combat EV charger vandalism, which are expected to strengthen its market position [12] Financial Performance - In the trailing 12 months, EVgo shares have decreased by 9.8%, while ChargePoint shares have dropped by 64.2%, compared to a 6.1% decline in the Zacks Auto, Tires and Trucks sector [14] - EVgo's forward price/sales ratio is 1.94x, while ChargePoint's is 0.64x, indicating that both stocks are not considered cheap [16] - The Zacks Consensus Estimate for EVgo's 2025 loss is 55 cents per share, while ChargePoint's fiscal 2026 loss estimate is 19 cents per share [20][21] Investment Outlook - EVgo's high valuation is not justified given its risky growth prospects and dependence on federal policies, leading to a Zacks Rank 3 (Hold) [22] - ChargePoint, with its cost-cutting measures, growing revenues, and strong partnerships, presents a more stable investment opportunity, carrying a Zacks Rank 2 (Buy) [23]

Core Insights - The electric vehicle (EV) sector is rapidly evolving, with artificial intelligence (AI) and emerging technologies playing a significant role in transforming autonomous driving and energy efficiency, making it a promising investment opportunity [1] NVIDIA - NVIDIA is leading the autonomous driving market with its DRIVE Hyperion platform, providing essential AI compute power for self-driving technologies in collaboration with major automakers like Tesla, Mercedes-Benz, and Volvo [2] - The company's AI solutions enhance EV battery optimization through real-time energy management, improving battery longevity and vehicle efficiency [3] - NVIDIA's comprehensive AI computing strategy positions it for long-term growth in the automotive AI market, which is experiencing exponential growth due to increasing reliance on AI technologies [3][4] ChargePoint - ChargePoint operates one of the largest EV charging networks in North America and Europe, reporting over 329,000 managed charging ports, a 20% year-over-year increase in Q3 fiscal 2025 [5] - The company utilizes AI to improve charging station reliability and efficiency, with recent solutions resolving nearly 50% of reported station issues [6] - ChargePoint benefits from supportive government policies and partnerships, positioning it for sustained revenue growth despite short-term macroeconomic challenges [7][8] Investment Opportunities - Both NVIDIA and ChargePoint are well-positioned to capitalize on the AI-EV megatrend, with NVIDIA focusing on AI-driven vehicle intelligence and ChargePoint enhancing EV adoption through its expanding charging network [9][10]