Blink Charging Co. Q3 FY2025 earnings call

• Launched Blink Forward initiative in May 2025, a transformation plan to accelerate profitability and growth.
• Year-to-date, eliminated approximately $13 million of annualized operating expenses, transitioning to a global functional model.
• Stopped in-house manufacturing, outsourcing to third-party manufacturers and exiting by early 2026 while retaining ownership of hardware, firmware, and software design.
• Q3 2025 total revenue $27M, up 7.3% YOY; service revenue up 36% YOY; gross margin 35.8%.
• Reduced operating expenses from ~$28M in Q1 to $20.6M in Q3, with 87% reduction in cash burn to $2.2M.

In Q3 2025, total revenue was $27 million, a 7.3% increase year-over-year. Product revenue was $13 million, relatively flat year-over-year. Service revenue reached a record $11.9 million, up 36% year-over-year. Blink-owned portfolio of chargers drove 48% growth in charging revenue and more than 300% year-over-year growth in DC fast charger revenue from Blink-owned sites. Product gross margin was 39% in Q3 2025, about 700 basis points higher than Q3 2024. Gross profit in Q3 was $9.7 million or 35.8% of revenues.

• Expect revenue to show continued sequential growth in the second half of 2025.
• Continue to lower operating expenses through disciplined cost management.
• Improve working capital practices, particularly around receivables management.
• On track to start shipping Shasta chargers in Q4 2025.

• Market adjustments due to expiration of government incentive programs could temporarily impact EV sales demand.
• Risks associated with outsourcing manufacturing, such as potential cost or quality issues.

Q: Congratulations on another really strong execution quarter. And it's hard to know really where to start. But I guess if we kind of step back and -- the forward look, right, the biggest change looking forward from everything that you've implemented is probably the change in manufacturing. And I suspect there's more to unpack there around what this means for margins and resources, frictional costs necessary to support the business. Can you maybe talk us through how this change in manufacturing is likely to cut over for Blink? I know that you have had relationships with contract manufacturers, particularly in India for several years, and experience -- substantial experience working with CMs globally. What sort of cash costs are there associated with maybe the exit of different manufacturing facilities? Any other color that you could give us to understand how this helps you towards a bigger mission of profitability, which is what I know you're really working for?

A: Yes. Great. Great. So I'll start, and I'm sure Michael Bercovich will have a couple of comments as well. So first of all, this was not something that we just decided to do yesterday. So it's something that we've been planning for quite some time. In fact, we have been moving this direction all year. And just to slightly amend what you said, Blink has owned its manufacturing and production in India. We haven't historically had contract manufacturers in India. We've assembled products in the United States and then we've sourced some third-party chargers externally, which we continue to do. So specifically, what this enables us to do really is a number of things. Number one, it enables us to simplify our product procurement strategy. So think of this, instead of having to manage a manufacturing supply chain and individual components that go into a number of different SKUs within our charging lineup, we now can simply manage finished goods inventory. So number one, it simplifies the company, it streamlines operations and allows us to focus on fewer things. And we think and expect that it derisks the supply chain for us. Secondly, it enables us to reduce costs. It enables us to reduce compensation expense. It enables us to reduce facility expenses. And those are meaningful as we move toward profitability. So at the same time, what we've done in parallel with this, because -- you're right in the sense that there's always risk that when you outsource manufacturing, in theory, your component or your finished good cost could go up. But what we've decided to do in parallel with this is to redesign some of our chargers that we currently sell in order to reduce cost. So we are -- we feel confident that and expect that our margins on products will be consistent with what we experience today. So Michael, anything to add?

Q: Understood. And just an adjacent question, especially in relation to the new contract manufacturing model. How should we see this inventory sort of deplete over the next few quarters as you transition to contract manufacture? Or should we -- like what kind of dynamics are in play here?

A: So we expect our inventories to come down. Now that said, it's really -- there is -- it's also driven by mix. So as you do more DC fast charging business, the inventory costs are higher. But those we typically manage very leanly. So it's typically a build-to-order model, so they don't sit in inventory too terribly long. But we expect that as we move to contract manufacturing, our overall inventory costs will go down.

Q: It was a very good presentation. A lot of things were highlighted during the call. I would like to just dig a little bit deeper into working capital improvements that you have already made and are making on the AR front. We can see that. Is there any concerted effort towards improving the inventory situation here?

A: Yes. Michael, do you want to take that?

A: Yes, absolutely, You're absolutely right, we have improved the working capital through several measures. One of them was the way that we approach our receivables, the way we manage, the way we collect, the way we even contract. The other piece, if you see on our balance sheet, we're also managing the inventory more carefully. We deploy based on the needs on both short term and long term. We're managing this way more tightly because the cost of capital is top of our mind. And we will continue doing so. As you see, we will be moving to the cost of manufacturing, and this will help us even further to realign between the needs of the business at every single stage and also the cost of that revenue. We are focusing now on a more disciplined, more focused approach of quality of revenue, as I mentioned before in my readout of the results. And this is where you see through all facets of working capital deployment, inventory and the receivables.