10-Q · June 8, 2026
ChargePoint Holdings, Inc. reported Q1 FY2027 with revenue at $101.8 million, exceeding expectations by 6.5%, and a net loss of $43.2 million, or -$1.75 EPS, better than the projected -$1.18. Significant improvements…
Earnings analysis · 10-Q
CHPT earnings analysis
Filed September 4, 2026 · Our reading of the company's report
The latest report
ChargePoint delivered strong year-over-year revenue growth and meaningful gross-margin expansion in the quarter, with revenue of $116.075M, gross margin of 36.4%, and diluted loss per share improving to $(1.35).…
Read full summary
ChargePoint delivered strong year-over-year revenue growth and meaningful gross-margin expansion in the quarter, with revenue of $116.075M, gross margin of 36.4%, and diluted loss per share improving to $(1.35). Operating expenses and interest expense declined, but the Company remains deeply loss-making and generated $40.791M of operating cash outflow in the first six months. Cash fell to $95.730M, while repeated restructurings, secured high-cost debt, EV incentive reductions, and unresolved litigation remain material risks.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $-1.35
What stood out
-
Revenue and core systems sales grew
Revenue increased to $116.075M from $98.590M in the prior-year quarter, a 17.7% increase. Networked Charging Systems revenue rose 24.8% to $62.917M, while Subscriptions increased 9.5% to $43.698M.
-
Gross margin expanded materially
Gross profit increased 37.7% to $42.302M and gross margin expanded to 36.4% from 31.2% year over year, aided by Networked Charging Systems cost efficiencies and a $6.1M tariff refund received during the six-month period.
-
Operating loss narrowed
Operating loss improved to $34.059M from $58.977M year over year, as operating expenses declined to $76.361M from $89.705M. Research and development, sales and marketing, and general and administrative expenses fell 11.2%, 6.3%, and 27.3%, respectively.
-
Loss per share improved
Net loss improved to $35.624M, or $(1.35) per diluted share, from $66.179M, or $(2.85) per share, in the prior-year quarter. Interest expense declined 95.9% to $0.279M following the debt exchange transaction.
-
Working capital actions reduced inventory
Inventory declined to $179.468M from $214.903M at January 31, 2026, a $35.435M reduction. Management stated it is focusing on inventory optimization, receivables collection, supplier management, and expense controls.
-
Contracted revenue provides visibility
Remaining performance obligations were $255.6M as of July 31, 2026, with 50% expected to be recognized over the next twelve months, providing contracted revenue visibility.
What to watch
-
Liquidity remains under pressure
Cash, cash equivalents, and restricted cash declined to $95.730M from $141.964M at January 31, 2026. Six-month operating cash flow was negative $40.791M, and management states the Company has generated negative operating cash flow in every year since inception.
-
Repeated restructurings may disrupt execution
The Company recorded $13.8M of restructuring charges during the six months ended July 31, 2026, including $8.359M from the March reorganization and $6.399M from the July reorganization. The actions reduced the workforce by approximately 146 employees and 127 employees, respectively, each representing 10% of the workforce at the time.
-
Secured debt limits financial flexibility
The 2025 Senior Loan carries a fixed 12.00% interest rate, has $208.145M of noncurrent principal-related debt outstanding, and is secured by substantially all current and after-acquired tangible and intangible personal property, including intellectual property. The loan also requires minimum liquidity of $25.0M and restricts additional indebtedness and other corporate actions.
-
AI implementation and cybersecurity risk increased
The filing adds expanded risks associated with artificial intelligence and automation, including implementation and governance challenges. The Company states that AI initiatives may require substantial costs and management attention and could increase cybersecurity, data privacy, regulatory, and operational risks.
-
EV incentive termination pressures demand
The North American EV market has experienced quarterly declines in new EV sales following termination of the $7,500 U.S. federal clean vehicle tax credit after September 30, 2025. Lower EV adoption or infrastructure spending could reduce demand for ChargePoint products and services.
-
Litigation remains unresolved
A securities class action and multiple derivative actions remain pending; fact discovery in the class action closes December 11, 2026, mediation must be completed by December 30, 2026, and trial is scheduled for July 26, 2027. The Company states it cannot estimate the potential loss range.
Management's outlook
The 10-Q does not provide new quantitative revenue or EPS guidance; prior outlook was provided in the September 2, 2026 earnings release.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.