Shares of ChargePoint Holdings (CHPT) are down 5% after the electric vehicle charging solutions provider reported mixed financial results and issued weak forward guidance.
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The company announced an earnings per share (EPS) loss of -$2.85, which was worse than a loss of -$2.24 expected on Wall Street. However, revenue of $98.59 million beat the consensus analyst estimate of $95.44 million. That said, the company’s sales in the year’s second quarter fell by 9.2% from the same period in 2024.
Additionally, management at ChargePoint guided for revenue of $95 million in the current quarter, which was 11.5% below analysts’ estimates. Management also said that ChargePoint’s operating margin in Q2 of this year was -59.8%, down from -57.8% in the same quarter last year. Free cash flow amounted to -$7.45 million compared to -$55 million in the same period of 2024.
ChargePoint’s earnings per share. Source: Main Street Data
Revenue Breakdown
Breaking down ChargePoint’s revenue, it was a mix of hardware and recurring revenue streams, with Networked Charging Systems contributing $50 million and subscription services generating $40 million. Other revenue sources added $9 million to the top line.
ChargePoint has struggled with the ebbs and flows of the electric vehicle market. The company is trying to build out networks of public charging stations for electric vehicles, but has encountered difficulties amid shifting political and consumer winds.
Is CHPT Stock a Buy?
The stock of ChargePoint has a consensus Hold rating among nine Wall Street analysts. That rating is based on one Buy, six Hold, and two Sell recommendations issued in the last three months. The average CHPT price target of $16.50 implies 51.79% upside from current levels. These ratings are likely to change after the company’s financial results.
