ChargePoint Holdings reported second-quarter results on September 2 that exceeded analyst expectations on both revenue and profitability metrics. The company generated $116.1 million in revenue, surpassing the consensus estimate of $105.2 million and marking an 18% increase from the prior year. The adjusted loss per share came in at 35 cents, significantly better than the anticipated loss of 85 cents per share.
The company’s performance was driven by strength in multiple business segments. Networked charging systems revenue climbed 25% year-over-year to $62.9 million, while subscription revenue increased 10% to $43.7 million. ChargePoint also achieved record non-GAAP gross margin performance and reported a substantial 78% improvement in adjusted EBITDA loss, which narrowed to $4.8 million from $22.1 million in the same quarter the prior year. Growth was bolstered by higher North American home-charging sales during the period.
The company expanded its commercial relationships during the quarter, extending a partnership with Mercedes-Benz to cover charging solutions for fleet operators in the UK and Germany. ChargePoint also announced new agreements with Optimus Energy Solutions and Onvo expected to add hundreds of charging ports across the eastern United States. The company appointed John Saffrett as Executive Vice President and Managing Director for Europe to oversee sales, customer relationships, and market expansion.
However, forward guidance tempered the positive reception. The company projected Q3 revenue between $105 million and $115 million, implying only 4% year-over-year growth—a significant deceleration from the 18% expansion achieved in the second quarter. Management noted that the strong home-charging sales performance in Q2 was a one-time event not expected to repeat. Additionally, while gross margin improved significantly, the company benefited from a 4-percentage-point contribution from tariff refunds, suggesting underlying operational performance may not have fully accounted for the reported gains. ChargePoint remains unprofitable on a non-GAAP adjusted EBITDA basis.
Analyst sentiment remained cautious following the results. TD Cowen maintained a Hold rating with a $7.50 price target, while Oppenheimer reiterated its Perform rating. As of early September, the consensus analyst rating was Hold with a $7.50 price target implying potential downside. Year-to-date, the stock had gained 40.48% but still traded below its 52-week high of $12.61. Short interest remained elevated at 22.59% of the float as of mid-August.
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