ChargePoint (NYSE:CHPT) Releases Earnings Results, Beats Estimates By $0.08 EPS

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

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 Stock Performance

Shares of ChargePoint stock opened at $9.13 on Friday. The stock’s fifty day simple moving average is $5.87 and its 200 day simple moving average is $6.14. 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 company has a market capitalization of $222.95 million, a PE ratio of -1.27 and a beta of 1.77. ChargePoint has a 12 month low of $4.44 and a 12 month high of $12.61.

Insiders Place Their Bets

In other news, General Counsel Eric Batill sold 4,979 shares of the firm’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $7.13, for a total transaction of $35,500.27. Following the sale, the general counsel owned 143,631 shares of the company’s stock, valued at $1,024,089.03. This trade represents a 3.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Jagdeep Singh sold 9,719 shares of the firm’s stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $7.14, for a total transaction of $69,393.66. Following the sale, the insider owned 187,846 shares in the company, valued at approximately $1,341,220.44. The trade was a 4.92% 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. Insiders have sold 29,164 shares of company stock valued at $208,037 over the last ninety days. 4.20% of the stock is owned by insiders.

Institutional Investors Weigh In On ChargePoint

Hedge funds and other institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC grew its stake 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 worth $1,553,000 after acquiring an additional 2,638,182 shares in the last quarter. Integrated Wealth Concepts LLC increased its stake in ChargePoint by 2,885.1% in the 1st quarter. Integrated Wealth Concepts LLC now owns 461,771 shares of the company’s stock valued at $279,000 after buying an additional 446,302 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in ChargePoint by 14.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 283,924 shares of the company’s stock worth $172,000 after acquiring an additional 36,097 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of ChargePoint by 61.8% in the first quarter. Goldman Sachs Group Inc. now owns 3,790,823 shares of the company’s stock valued at $2,293,000 after buying an additional 1,448,114 shares in the last quarter. Finally, Focus Partners Wealth bought a new position in shares of ChargePoint in the first quarter valued at $27,000. Institutional investors and hedge funds own 37.77% of the company’s stock.

Key Stories Impacting ChargePoint

Here are the key news stories impacting ChargePoint this week:

• Positive Sentiment: Revenue and earnings beat estimates: ChargePoint reported quarterly revenue of approximately $116.1 million, up 17.7% year over year and ahead of consensus near $105 million. Its adjusted loss of $0.35 per share was substantially narrower than the expected $0.80 loss and improved from $1.42 a year earlier. ChargePoint Q2 earnings report
• Positive Sentiment: Profitability trends improved: Gross margin reached about 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. Management highlighted new products, European momentum and a path toward positive EBITDA. ChargePoint margin improvement and short covering
• Positive Sentiment: Forward outlook exceeded expectations: ChargePoint guided fiscal third-quarter revenue to $105 million-$115 million, around $110 million at the midpoint, slightly above analyst expectations. Heavy call-option activity and elevated short interest may have amplified the upward move through short covering. ChargePoint Q2 outlook
• Neutral Sentiment: CEO Rick Wilmer said the recent market reaction could mark the beginning of sustained momentum, but the turnaround still depends on continued charging-demand growth and further loss reduction. ChargePoint CEO comments
• Negative Sentiment: Analyst caution could limit further gains: RBC Capital Markets said slowing charging demand weighs on ChargePoint’s outlook. The analyst consensus is reported as “Reduce,” while Needham reaffirmed a “Hold” rating; a reported median price target of $7 is below the recently quoted share price. ChargePoint analyst recommendation

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Weiss Ratings reissued a “sell (e+)” rating on shares of ChargePoint in a research note on Friday, July 17th. Needham & Company LLC reaffirmed a “hold” rating on shares of ChargePoint in a research report on Thursday. UBS Group restated a “neutral” rating and set a $8.00 price target (up from $7.00) on shares of ChargePoint in a research note on Tuesday, June 23rd. TD Cowen reiterated a “hold” rating on shares of ChargePoint in a research report on Thursday. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $6.50 price objective on shares of ChargePoint in a report on Thursday, June 4th. One equities 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 company. According to MarketBeat.com, the stock has an average rating of “Reduce” and a consensus price target of $8.31.

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.