ChargePoint’s revenues are still declining in this challenging market.
Its margins are improving, and a cyclical turnaround could be around the corner.
Its stock looks undervalued relative to its growth potential.
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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?
Image source: Getty Images.
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.
ChargePoint attributes those margin improvements to the growth of its higher-margin subscription and software services — which offset the lower margins of its chargers — a big reduction in its inventories, and sweeping cost-cutting initiatives.
ChargePoint expects to generate $90 million to $100 million in revenue in the second quarter, which would represent a decline of 8% to 17% from a year ago. During the earnings call, CFO Mansi Khetani said the company was “guiding with caution due to the continued changes in the macro environment, including tariff uncertainty” and its focus on integrating its charging stalls with Eaton‘s electrical grid solutions through a new one-stop shop partnership.
ChargePoint didn’t provide a full-year revenue outlook. However, it reiterated its goal of achieving a positive adjusted EBITDA in a single quarter of fiscal 2026.
Analysts expect its revenue to come in nearly flat for the full year, which implies its revenue growth will improve in the second half of the year as the macroenvironment warms up and the EV market stabilizes. They expect its annual adjusted EBITDA to improve to negative $63 million.
ChargePoint’s growth may seem anemic right now, but it still has enough liquidity to ride out the near-term headwinds. It ended the first quarter with $196 million in cash and cash equivalents, it hasn’t drawn a single dollar from its $150 million revolving credit facility, and it won’t face any debt maturities until 2028.
For fiscal 2027, analysts expect ChargePoint’s revenue to rise 29% to $537 million with a negative adjusted EBITDA of $16 million. For fiscal 2028, they expect its revenue to grow 33% to $713 million with a positive adjusted EBITDA of $67 million.
We should take those optimistic estimates with a grain of salt, but its cyclical downturn could represent a good buying opportunity for investors who can tune out the near-term noise. With an enterprise value of $465 million, it looks extremely undervalued at just over 1 times this year’s sales. If ChargePoint meets analysts’ expectations and trades at just 2 times its forward sales by the beginning of fiscal 2027, its stock price could easily rally more than 130% over the next 12 months.
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
Where Will ChargePoint Stock Be in 1 Year? was originally published by The Motley Fool
