ChargePoint Holdings, Inc. Q3 FY2026 earnings call

Financial Performance

• Revenue for the quarter exceeded expectations, reaching $106 million, returning to growth. Non-GAAP gross margin was a record high of 33%. Cash utilization was $14 million, better than planned.

Strategic Progress

• Progress on four pillars of the three-year strategic plan: efficient hardware innovation, software innovation, world-class driver experiences, and operational excellence. Utilizing AI for internal processes to drive improvements.

Customer and Infrastructure Highlights

• Strengthened partnership with NYC, launched program with BMW North America, and saw NEVI momentum with projects like the installation in Land Hope, PA. ChargePoint manages approximately 375,000 ports globally, including over 39,000 DC fast chargers and ~127,000 in Europe.

Debt Exchange

• Completed a debt exchange reducing total debt by $172 million, extending maturity to 2030, saving ~$10 million in annual interest expense.

Revenue for the third quarter of Fiscal Year 2026 was $106 million, exceeding the guidance range. Network charging systems contributed $56 million, which is 53% of the total revenue, up 12% sequentially and 7% year-on-year. Subscription revenue was $42 million, accounting for 40% of total revenue, up 5% sequentially and 15% year-on-year. Other revenue was $7 million, making up 7% of total revenue. Geographically, North America contributed 85% of revenue and Europe 15%. The non-GAAP gross margin remained at a record high of 33%, flat sequentially and up seven percentage points year-on-year. Subscription margin reached a new high of 63% on a GAAP basis.

For 2026, ChargePoint expects revenue to be between $100 million and $110 million, representing a 3% year-on-year growth at the midpoint. The company is confident revenue growth will continue as it executes on strategic priorities.

Forward-looking statements involve risks and uncertainties beyond control that could cause actual results to differ materially from expectations. Detailed factors are described in the company's Form 10-Q filed with the SEC and earnings release.

Q: About product evolution, demand for virtual power plants, geographies, and products outside NEVI A: Rick Wilmer discussed the V2G/V2H enabled flex product line and the DC fast charging product integrated with Eaton, both set to roll out in 2026 Q: About inventory and inventory impact on margins A: Mansi Katani said inventory balance is expected to decline in Q4, with a more material decrease next year as existing inventory is sold through Q: About gross margin and new products driving margins A: Mansi Katani stated hardware margin improvement will come via product mix, with larger improvements expected as existing inventory is sold and new products are released in the latter half of next year Q: About Europe projects, lead times, and momentum A: Rick Wilmer mentioned positive response to the new DC architecture in Europe, confident in winning significant deals in the second half of 2026, applicable to passenger cars and large trucks Q: About what came in better than expected and profitability A: Mansi Katani said the significant beat was due to a boost in residential billings from expiring federal EV credits; EBITDA profitability is tied to revenue growth with new products and the Eaton partnership Q: About Eaton partnership A: Rick Wilmer said the partnership is exceeding expectations, with cobranded products shipped and expected to grow Q: About NEVI funding and installations A: Rick Wilmer said NEVI projects are moving forward, with 40 states active in awarding contracts, and support levels are similar to before the pause