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ChargePoint (CHPT) Q2 2026 Earnings Transcript
The Motley Foolยท 2025-09-03 23:03
Core Insights - ChargePoint's non-GAAP adjusted EBITDA breakeven timeline has been pushed beyond the current year due to project build-out delays and a changing macroeconomic environment [4][13][25] - The company reported fiscal Q2 2026 revenue of $99 million, which is at the top of guidance but down 9% year-over-year [3][19] - Non-GAAP gross margin improved to 33%, the highest since going public, reflecting effective cost management and tariff mitigation [11][20] - Subscription revenue reached $40 million, accounting for 40% of total revenue, with a 10% year-over-year increase [6][19] - The company has $195 million in cash on hand, indicating strong cash management and minimal cash usage [3][23] Financial Performance - Revenue for fiscal Q2 2026 was $99 million, sequentially higher but down 9% year-over-year [3][19] - Non-GAAP adjusted EBITDA loss was $22 million, an improvement from a $23 million loss in the prior quarter and a $34 million loss in the same quarter last year [6][22] - Non-GAAP operating expenses were $59 million, up 3% sequentially but down 12% year-over-year [6][21] - Subscription gross margin reached a GAAP record high of 61% in fiscal Q2 2026, with expectations for further expansion [4][21] Market and Strategic Developments - The company manages over 363,000 charging ports globally, with a significant presence in Europe [3][12] - The partnership with Eaton is progressing, with new DC charging solutions expected to enhance hardware gross margins and expand market reach [4][14] - North America accounted for 84% of revenue, while Europe contributed 16%, consistent with previous quarters [6][20] - The company is focusing on innovation and product development to capture growing demand, particularly in the European market, which saw a 26% year-over-year increase in EV sales [17][56] Guidance and Outlook - Fiscal 2026 revenue is expected to be between $90 million to $100 million, with a cautious outlook due to macroeconomic challenges [6][25] - The company anticipates generating cash in a quarter before achieving non-GAAP adjusted EBITDA profitability [24][52] - Management remains optimistic about long-term growth, supported by a strong product pipeline and strategic partnerships [18][56]