ChargePoint Holdings, Inc. Q1 FY2026 earnings call

• Q1 revenue was $98 million, within guidance range. Non-GAAP gross margin reached 31%, with SaaS subscription gross margin at 60%. • GM DC fast charging program saw accelerated site openings and over 500 additional ports signed off by GM. • Extended agreements with Mercedes-Benz. • Theft-resistant charging cable to go into production summer 2025. • Deenergized software manages over 700 charger models from over 85 vendors. • Over 352,000 ports under management, with over 35,000 DC fast chargers and over 122,000 in Europe. • Partnership with Eaton to deliver end-to-end EV charging and power management solutions, with first innovations set for September. • New AC hardware architecture introduced, first charger in European take-home fleet solution to begin production July 2025.

Revenue for the first quarter was $98 million. Network charging systems contributed $52 million, accounting for 53% of total revenue. Subscription revenue was $38 million, making up 39% of total revenue. Other revenue was $8 million, representing 8% of total revenue. Geographically, North America made up 85% of revenue, and Europe was 15%. Non-GAAP gross margin was 31%, with SaaS subscription gross margin reaching a record 60%.

• For the second quarter of fiscal 2026, expected revenue to be $90 million to $100 million, guided with caution due to macro environment changes and tariff uncertainty. • Anticipates revenue upside later in the year from new AC hardware, better performance in Europe, and growth from partnership with Eaton. • Focus on revenue growth, gross margin expansion, and cost management to achieve adjusted EBITDA positive in a quarter during fiscal 2026.

• Macroeconomic conditions and market uncertainty. • US tariffs on products, though impact expected to be minimal. • Political turbulence dampening consumer and capital spending. • Market attrition and voluntary exit of major players, including Chinese competitors under federal scrutiny.

Q: With this Eaton partnership and the new AC product, can you talk about the pipeline of activity and return to growth on the top line for the new systems?

A: There are various forces at play including macroeconomic conditions, tariffs, and customer conservatism with spending. Excited about Eaton partnership driving incremental growth, with work to operationalize the relationship this quarter and expect to be fully operationalized by fiscal Q3.

Q: In terms of international expansion, can Eaton help get into incremental geographies and potential in Central South America, other parts of North America?

A: Eaton has capabilities to expand into new geographies, but currently focused on North America and Europe with plenty of TAM in those regions, though new partnerships could be possible.

Q: Should we be thinking about the cadence of inventory reduction, like low single-digit or mid-single-digit millions quarterly?

A: Inventory reduction will be gradual, with more meaningful reduction in the second half as revenue grows, depending on sell-through and production mix factors