ChargePoint Earnings Beat, Profitability Questions Remain

ChargePoint Holdings reported second-quarter fiscal 2027 results on Sept. 2, 2026, that exceeded its guidance and Wall Street estimates, with revenue of $116.1 million, up 18% year over year. Management highlighted expanded margins and a smaller loss but emphasized the need to convert these gains into sustained profitability and stable cash flow.

Quarterly Results and Revenue

ChargePoint said its second quarter, ending July 31, 2026, marked the fourth consecutive quarter of year-over-year revenue growth. Total revenue rose about 14% sequentially and beat the company’s guidance range of $100 million to $110 million, as well as consensus estimates near $105 million.

The revenue mix was driven by hardware, with networked charging systems generating roughly $63 million, about 54% of total revenue and up 25% from the prior year. Subscription revenue, including software and services, accounted for about 38% of sales at approximately $44 million, up 10%. Management attributed growth to stronger North American hardware shipments and increased home-charging sales.

Margins, Profitability, and Liquidity

GAAP gross margin rose to 36% from 31% a year earlier, while non-GAAP gross margin reached 38%. Management noted that about four percentage points of the non-GAAP margin improvement came from one-time tariff refunds, implying a normalized margin near 35%. Hardware gross margin was around 21%.

Operating expenses declined, with GAAP costs falling to $76.4 million from $89.7 million and non-GAAP expenses dropping to $52.3 million from $58.6 million. Management credited rigorous cost controls and operational discipline for the improvements.

The GAAP net loss narrowed to roughly $36 million from $66.2 million a year earlier, with diluted loss per share at about $1.35, beating some analyst expectations by approximately 20 cents. Non-GAAP net loss was about $9.2 million, and adjusted EBITDA loss ranged between $4.8 million and $5 million, both significantly improved from the prior year. Despite these gains, the company remains deeply unprofitable.

At quarter-end, cash, cash equivalents, and restricted cash totaled about $96 million, essentially unchanged from the previous quarter, reflecting near-zero cash burn. Inventory declined to roughly $179 million from $204 million. Shares outstanding were about 27 million. Some analyses noted operating cash outflows of approximately $40.8 million for the first half of fiscal 2027, slightly above the prior year’s $39.1 million, and flagged negative shareholder equity and limited working capital as ongoing balance-sheet concerns.

Looking ahead, management guided third-quarter revenue to a range of $105 million to $115 million, with the midpoint below the second quarter’s actual figure. The company expects continued margin progress supported by cost discipline, the ramp-up of its Express Solo DC fast-charging product, subscription scale benefits, and growth in Europe.