ChargePoint Holdings, Inc. Q2 FY2026 earnings call

Key Points

• Rick Wilmer noted solid Q2 results with revenue at the top of guidance, non-GAAP gross margin at 33% (highest since public), and cash balance at $195 million. Collaboration with GM is progressing, and the company manages over 363,000 ports globally.
• Concerns about US EV sales slowdown, expiring EV tax credits, and evolving tariffs causing project delays but no cancellations. Operationalizing partnership with Eaton, with new DC charging solutions and co-branded products driving innovation.
• Manzi Katani discussed revenue breakdown by segment, billings by vertical and geography, and non-GAAP gross margin details, highlighting subscription revenue growth and sequential improvement in gross margin.

Second quarter revenue was $99 million, landing at the top of the guidance range. Network charging systems at $50 million accounted for 51% of second quarter revenue. Subscription revenue at $40 million was 40% of total revenue, 5% higher sequentially and up 10% year-on-year. Other revenue at $8 million was 8% of total revenue. Billings by vertical were commercial 75%, fleet 11%, residential 10%, and other 4%. Geographically, North America made up 84% of revenue, and Europe was 16%. Non-GAAP gross margin was 33%, growing by three percentage points sequentially and eight percentage points year-on-year, marking the seventh straight quarter of sequential non-GAAP gross margin improvement.

Forward-Looking Statements

• 2026 revenue expected to be between $90 million to $100 million. Due to macroeconomic headwinds, EBITDA breakeven pushed out beyond 2026. Focus on driving growth, innovation, and reducing cash burn while continuing progress towards profitability.

Risks Identified

• Uncertainty in North America due to slow EV sales growth, expiring Consumer 30D EV tax and 30C alternative fuel vehicle refueling credit, and evolving tariff landscape leading to project delays.

Q: Can you talk a little bit about what the trajectory is on OpEx?

A: OpEx is slightly higher than Q1 due to R&D investments in new products, with elevated R&D spend persisting in Q3 but expected to gradually come down in Q4 and next year.

Q: Any potential higher growth opportunities in Europe with the Eaton relationship?

A: Europe has a better macro environment, new products like the flex product line and DC Express architecture are targeted at Europe, with early positive indications.

Q: Thoughts on the competitive landscape and software moat?

A: ChargePoint has a state-of-the-art software platform with hybrid cloud and AI integration, and remains committed to hardware + software for more value than stand-alone software.