ChargePoint (NYSE:CHPT) Issues Quarterly Earnings Results, Beats Expectations By $0.08 EPS

ChargePoint (NYSE:CHPT) posted its quarterly earnings data on Wednesday. The company reported ($1.35) earnings per share for the quarter, beating analysts’ consensus estimates of ($1.43) by $0.08, FiscalAI reports. The company had revenue of $116.08 million during the quarter, compared to analysts’ expectations of $105.43 million. ChargePoint had a negative net margin of 40.59% and a negative return on equity of 723.17%.

Here are the key takeaways from ChargePoint’s conference call:

• Q2 revenue reached $116 million, up 18% year over year and above the company’s $100 million–$110 million guidance range, driven primarily by stronger hardware shipments and higher North American home-charging sales.
• Normalized non-GAAP gross margin rose to approximately 35%, while reported margin was 38% including a roughly $4 million one-time tariff refund. Management expects margins to remain near normalized levels and cites manufacturing efficiencies, product mix, software pricing, and new hardware as potential long-term drivers toward its 40% target.
• ChargePoint reported essentially zero cash usage in the quarter, helped by lower inventory and an adjusted EBITDA loss that narrowed to $5 million from $19 million in Q1. Operating expenses are expected to fall below $50 million per quarter for the rest of the fiscal year, supporting progress toward cash-flow and adjusted EBITDA breakeven.
• Early access shipments of the new Express Solo DC fast-charging platform have begun, with substantial early commitments and a growing backlog; production inventory is expected to be available in fiscal Q4, with management expecting the platform to become a significant revenue driver entering fiscal 2028.
• Third-quarter revenue guidance of $105 million–$115 million implies only 4% year-over-year growth at the midpoint, and management cautioned that the Q2 boost from North American home-charging sales was tied to a lumpy promotional period and is not expected to repeat in Q3. Further tariff refunds are also largely absent from the outlook.

ChargePoint Price Performance

Shares of ChargePoint stock opened at $9.13 on Friday. ChargePoint has a 52 week low of $4.44 and a 52 week high of $12.61. The company has a current ratio of 1.15, a quick ratio of 0.56 and a debt-to-equity ratio of 10.73. The stock has a market cap of $222.95 million, a PE ratio of -1.27 and a beta of 1.77. The company’s 50-day moving average price is $5.87 and its two-hundred day moving average price is $6.14.

Analyst Ratings Changes

A number of equities analysts have commented on CHPT shares. Oppenheimer reaffirmed a “market perform” rating on shares of ChargePoint in a report on Thursday. TD Cowen restated a “hold” rating on shares of ChargePoint in a research note on Thursday. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $6.50 target price on shares of ChargePoint in a report on Thursday, June 4th. Weiss Ratings reiterated a “sell (e+)” rating on shares of ChargePoint in a research report on Friday, July 17th. Finally, Needham & Company LLC reissued a “hold” rating on shares of ChargePoint in a report on Thursday. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $8.31.

ChargePoint News Roundup

Here are the key news stories impacting ChargePoint this week:

• Positive Sentiment: Quarterly results exceeded expectations. ChargePoint reported revenue of approximately $116.1 million, up about 18% year over year and above estimates near $105 million. Its adjusted loss was materially narrower than expected, while the reported GAAP loss was also better than consensus. ChargePoint shares surge after narrower quarterly loss
• Positive Sentiment: Profitability metrics improved. Gross margin reached 36% on a GAAP basis and 38% on a non-GAAP basis, while the adjusted EBITDA loss narrowed to $4.8 million from $22.1 million a year earlier. The improvement supports the investment case that ChargePoint is moving toward better operating leverage. ChargePoint jumps after revenue beat and margin improvement spark likely short-covering
• Positive Sentiment: Near-term guidance was broadly reassuring. Fiscal third-quarter revenue guidance of $105 million to $115 million, with a midpoint around $110 million, was slightly above analyst expectations and suggests management expects demand to hold relatively steady. CEO Rick Wilmer described the rally as the beginning of renewed momentum and expressed optimism about the company’s outlook. ChargePoint CEO says stock surge is the beginning of momentum
• Positive Sentiment: Trading dynamics amplified the move. Elevated short interest may have triggered short-covering after the earnings beat, while call-option activity was roughly 180% above its average daily volume, adding speculative demand.
• Neutral Sentiment: Needham reaffirmed its “hold” rating, and recent analyst price targets have a median of $7, below the current trading level cited in the reports.
• Negative Sentiment: Demand remains the key risk. RBC Capital Markets said ChargePoint needs a recovery in demand for EV charging systems to sustain its outlook. Commentary characterized the rally as potentially worth selling, reflecting concerns over persistent losses, liquidity and intense valuation volatility despite the quarterly beat. ChargePoint outlook weighed down by slowing charging demand

Insider Buying and Selling at ChargePoint

In other news, General Counsel Eric Batill sold 4,979 shares of the stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $7.13, for a total transaction of $35,500.27. Following the completion of the sale, the general counsel owned 143,631 shares in the company, valued at approximately $1,024,089.03. This represents a 3.35% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Mansi Khetani sold 8,152 shares of the company’s stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $7.13, for a total value of $58,123.76. Following the sale, the chief financial officer directly owned 179,348 shares of the company’s stock, valued at approximately $1,278,751.24. This represents a 4.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 29,164 shares of company stock valued at $208,037. 4.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. AQR Capital Management LLC raised its holdings in shares of ChargePoint by 6,429.1% during the 1st quarter. AQR Capital Management LLC now owns 2,679,217 shares of the company’s stock valued at $1,553,000 after purchasing an additional 2,638,182 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of ChargePoint by 61.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,790,823 shares of the company’s stock valued at $2,293,000 after purchasing an additional 1,448,114 shares during the last quarter. Brevan Howard Capital Management LP bought a new stake in ChargePoint in the second quarter worth $517,000. Qube Research & Technologies Ltd acquired a new position in ChargePoint during the second quarter worth $518,000. Finally, Two Sigma Securities LLC increased its position in ChargePoint by 4,060.7% during the second quarter. Two Sigma Securities LLC now owns 679,693 shares of the company’s stock worth $478,000 after buying an additional 663,357 shares during the last quarter. 37.77% of the stock is owned by institutional investors and hedge funds.

ChargePoint Company Profile

ChargePoint (NYSE: CHPT) is a leading provider of electric vehicle (EV) charging solutions that designs, develops and markets charging hardware, software and services. The company’s portfolio includes Level 2 AC charging stations for residential, commercial and fleet applications, as well as DC fast charging systems suited for retail, hospitality and public use. ChargePoint’s integrated platform enables site hosts to manage charging infrastructure through cloud-based monitoring, analytics and billing tools, while EV drivers access and control charging sessions via a mobile app or RFID card.

Since its founding in 2007 and headquarters in Campbell, California, ChargePoint has built one of the largest open EV charging networks in the world.