Leo Sun, The Motley Fool
5 min read
In This Article:
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ChargePoint's revenues are still declining in this challenging market.
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Its margins are improving, and a cyclical turnaround could be around the corner.
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Its stock looks undervalued relative to its growth potential.
ChargePoint (NYSE: CHPT), the leading builder of electric vehicle (EV) charging stations in North America and Europe, posted its latest earnings report on June 4. For the first quarter of fiscal 2026, which ended on April 30, the company's revenue fell 9% year over year to $97.6 million, missing analysts' expectations by $2.9 million. It narrowed its net loss from $71.8 million to $57.1 million, or $0.12 per share, which cleared the consensus forecast by a penny.
ChargePoint's stock rallied after that mixed earnings report, but it's still down about 60% over the past 12 months. Will it stabilize and recover over the following year?
ChargePoint ended its first quarter with more than 352,000 charging ports, including over 35,000 DC fast chargers, under its direct management. Its roaming partnerships also grant its customers access to more than 1.25 million charging ports across the world.
ChargePoint mainly sells connected charging stations to residential and commercial properties that want to host their own chargers and set their own prices. It provides those hosts with network access, billing, and customer support services. That sets it apart from Tesla's Superchargers, which mainly serve as extensions of the automaker and offer fewer connected and customizable features.
ChargePoint grew rapidly in fiscal 2022 and fiscal 2023 (which ended in January 2023), as EV sales surged in the post-pandemic market. But in fiscal 2024 and fiscal 2025, its growth stalled out as rising interest rates chilled the EV market and drove its residential and commercial customers to postpone their installations of new charging stalls.
But in fiscal 2025, its adjusted gross, operating, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins all improved as it narrowed its net loss. Its margins continued to expand in the first quarter of fiscal 2026, even as its revenue declined.
|
Metric |
FY 2022 |
FY 2023 |
FY 2024 |
FY 2025 |
Q1 2026 |
|---|---|---|---|---|---|
|
Revenue |
$242 million |
$468 million |
$507 million |
$417 million |
$98 million |
|
Growth (YOY) |
65% |
93% |
8% |
(18%) |
(9%) |
|
Adjusted gross margin |
24% |
20% |
8% |
26% |
31% |
|
Operating margin |
(110%) |
(73%) |
(89%) |
(61%) |
(55%) |
|
Net income (loss) |
($299 million) |
($345 million) |
($458 million) |
($283 million) |
($57 million) |
|
Adjusted EBITDA |
N/A |
($217 million) |
($273 million) |
($117 million) |
($23 million) |
Data source: ChargePoint. YOY = Year-over-year. FY = fiscal year. EBITDA = earnings before interest, taxes, depreciation, and amortization.
