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]