ChargePoint Holdings, Inc. Q4 FY2026 earnings call

• Fiscal 2026 Q4 revenue at high end of guidance, up 7% year-on-year, non-GAAP gross margin at record high 33%. Maintained strict cash discipline. - Europe had robust double-digit growth driven by regulations and new incentives, expected to continue with new products. - Operational excellence key, station reliability, deployment quality, customer satisfaction improved. Stations down below 1%, first time right deployments above 95%, CSAT 8.5+ on 10 scale. - AI adoption yielding benefits, expected to increase with advancing tools. - Partnerships with Ford Pro, Raw Charging, Georgia Power, etc., notable customer wins. - Introducing new KPIs like software-only managed ports, share of ports >30% utilization, monthly active users.

Fourth quarter revenue was $109 million, coming in at the high end of guidance range. Network charging systems accounted for $58 million (53% of Q4 revenue), up 10% year-on-year. Subscription revenue was $42 million (39% of total revenue), up 11% year-on-year. Other revenue was $9 million (8% of total revenue). For full fiscal year 2026, revenue was $411 million. North America made up 83% of full year revenue, and Europe was 17%. Non-GAAP gross margin was 33% for Q4 and 32% for full year 2026. Subscription margin reached a new GAAP record of 64% on a non-GAAP basis.

• Expect first quarter revenue to be in range of $90 million to $100 million, reflecting typical seasonality. - Committed to disciplined execution and operating expense management, building on progress made.

• Forward-looking statements involve risks and uncertainties beyond control that could cause actual results to differ materially from expectations. - Risks related to market volatility, competition, and execution challenges.

Q: Curious about EV toll opportunity and physical AI's impact on charging.

A: Haven't focused much on EV tolls, but focused on autonomous vehicles and their charging requirements.

Q: On cost perspective and price increase.

A: No price increases anticipated, gross margin improvement hinged on new hardware products ramping.

Q: On inventory reduction.

A: Mix of products sold impacts inventory, gradual reduction expected as getting to tail end of prior commitments to contract manufacturers.

Q: Reconcile user count/utilization growth with Q1 revenue guidance.

A: Utilization growing leads to sales cycle, Q1 guidance reflects typical seasonality with 5%-15% reduction vs Q4.

Q: On NEVI and domestic content changes.

A: Obligated funds not affected by domestic content rule changes, non-obligated funds impact to be assessed after rules finalized.

Q: On OPEX leverage and positive EBITDA.

A: OPEX relatively flat near term, reduction expected as new product engineering efforts and NRE costs come down, AI showing impact on OPEX.

Q: On competitive landscape and M&A.

A: Competitive landscape active with assets available, capitalizing on exits from market.

Q: On pathway to positive EBITDA.

A: Combination of growth, improving gross margins, and controlling OPEX, with acceleration in second half with new products in Europe.