ChargePoint Q2 FY26 slides: Margin improvements continue despite flat revenue

ChargePoint Holdings Inc. (NYSE:CHPT) released its Q2 Fiscal 2026 financial results on September 3, 2025, revealing steady progress on gross margin improvement despite relatively flat revenue growth. The EV charging infrastructure company continues to make incremental steps toward profitability while maintaining its market leadership position.

Quarterly Performance Highlights

ChargePoint reported total revenue of $99 million for Q2 FY26, representing a marginal increase from the $98 million reported in the previous quarter. The revenue composition shows a balanced mix of hardware and recurring revenue streams, with Networked Charging Systems contributing $50 million, Subscription services generating $40 million, and Other revenue sources adding $9 million.

As shown in the following revenue diversity chart, the company maintains a strong presence in North America, which accounted for approximately $75 million (76%) of total revenue, while European operations contributed $24 million (24%):

The most notable improvement came in gross margin performance, where ChargePoint achieved a GAAP gross margin of 31% in Q2 FY26, up significantly from 26% in the same quarter last year. On a non-GAAP basis, gross margin reached 33%, showing consistent quarter-over-quarter improvement throughout fiscal 2025 and into 2026.

The following chart illustrates this positive trend in gross margin performance:

Detailed Financial Analysis

Operating expenses remain a key focus area for ChargePoint as it works toward profitability. The company reported GAAP operating expenses of $90 million in Q2 FY26, representing 91% of revenue. However, on a non-GAAP basis, operating expenses were $59 million or 59% of revenue, indicating the company’s ongoing cost management efforts.

The operating expense trend can be seen in this chart:

ChargePoint’s adjusted EBITDA loss continued to improve, reaching $(22) million or 22% of revenue in Q2 FY26, compared to $(34) million or 31% of revenue in Q2 FY25. This represents a significant year-over-year improvement in the company’s path toward profitability.

The following chart shows the steady improvement in adjusted EBITDA loss:

According to the detailed income statement, ChargePoint reported a net loss of $(66.179) million for Q2 FY26. While still substantial, this represents part of the company’s ongoing investment in growth and infrastructure expansion.

The company maintained a solid cash position with $194.523 million in cash, cash equivalents, and restricted cash as of July 31, 2025. This provides ChargePoint with sufficient runway to continue executing its strategic initiatives while working toward positive cash flow.

Forward-Looking Statements

ChargePoint’s presentation suggests the company is making steady progress toward its goal of achieving adjusted EBITDA profitability. The improving gross margins and relatively stable operating expenses as a percentage of revenue indicate disciplined execution of the company’s financial strategy.

Based on the previous quarter’s earnings call, ChargePoint had projected Q2 FY26 revenue between $90 million and $100 million, which they have achieved with the reported $99 million. The company had also stated its aim to achieve adjusted EBITDA profitability in one quarter of fiscal 2026, a goal that appears increasingly attainable given the current trajectory of margin improvement and expense management.

The growing subscription component of ChargePoint’s revenue (now at $40 million or approximately 40% of total revenue) suggests an evolving business model that may provide more predictable, recurring revenue streams going forward. This shift could potentially improve investor confidence in the company’s long-term financial stability.

Following the previous quarter’s results announcement, ChargePoint’s stock had surged over 13% in after-hours trading. Investors will be watching closely to see if the continued margin improvements and steady progress toward profitability in Q2 FY26 will trigger a similar positive market reaction.

As the EV charging infrastructure market continues to mature, ChargePoint’s established market position and improving financial metrics position it to potentially capitalize on the broader electric vehicle adoption trend, though challenges remain in achieving consistent profitability and positive cash flow.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.