ChargePoint posts Q3 FY2025 revenue of $100m amid shifting market dynamics

ChargePoint Holdings, Inc. (NYSE: CHPT), a prominent player in electric vehicle charging, reported its financial results for the third quarter of fiscal year 2025, showcasing mixed performance with strategic progress. Revenue for the quarter stood at $99.6 million, representing a 10% decline compared to the same period last year.

Subscription growth contrasts with hardware declines

While overall revenue slipped, ChargePoint experienced notable subscription revenue growth, which climbed 19% year-over-year to $36.4 million. This segment now constitutes a substantial portion of the company’s recurring revenue base, reflecting its shift toward software-driven solutions. Conversely, a significant decline in hardware sales drove networked charging systems revenue down by 29% to $52.7 million, highlighting challenges in this segment as ChargePoint continues to adapt to changing market needs.

Gross margin recovery and expense management

ChargePoint made strides in improving profitability metrics, with an improved gross margin recovery following last year’s challenges. GAAP gross margin reached 23%, a significant rebound from the negative 22% reported in the same quarter last year, largely due to the absence of a $42 million inventory impairment charge. Non-GAAP gross margin climbed to 26%, reflecting enhanced efficiency in electric vehicle charging operations.

The company achieved a 30% reduction in operating expenses, bringing GAAP operating costs down to $91 million. Non-GAAP operating expenses fell by 28% to $58.6 million, underscoring ChargePoint’s emphasis on rigorous cost controls and operational excellence.

Reduced losses signal progress

ChargePoint significantly narrowed its GAAP net loss by 51% to $77.6 million, while non-GAAP pre-tax net loss shrank by 62% to $40.7 million. These reductions reflect better management of fleet electrification solutions and operational costs. Additionally, Adjusted EBITDA loss decreased by 71% to $28.6 million, showing further progress toward profitability in the competitive EV charging network industry.

Liquidity and strategic positioning

ChargePoint reported a strengthened liquidity position with $219.8 million in cash and cash equivalents as of October 31, 2024, alongside an undrawn $150 million revolving credit facility. This financial stability supports ChargePoint’s broader mission of advancing electric vehicle charging infrastructure.

Key advancements include the CPF50 charging solution for fleet electrification solutions and new cloud-based subscription plans, which aim to lower barriers for small businesses and multi-family housing customers. These initiatives are designed to bolster adoption of networked charging systems, a critical component of ChargePoint’s strategy.

Fourth quarter outlook

Looking ahead, ChargePoint provided a revenue guidance update for the fourth quarter, forecasting revenue between $95 million and $105 million. The company continues to focus on returning to growth and achieving positive non-GAAP Adjusted EBITDA by fiscal year 2026. CEO Rick Wilmer expressed optimism, citing increased network utilization and rising demand for electric vehicle charging as opportunities to expand the EV charging network and drive future growth.

Industry impact

ChargePoint’s results come amid growing demand for fleet electrification solutions and expanded charging networks as record EV sales drive infrastructure needs. However, the decline in hardware sales indicates potential market challenges as the company works to align its offerings with industry trends.