CHPT
The good news: the cash leak is basically plugged
ChargePoint just turned in a Q2 that looked a lot less chaotic than the EV market backdrop. Needham’s Chris Pierce kept the stock at Hold, but the tone was basically: hey, this isn’t a dumpster fire anymore.
The big headline? The company said it had effectively zero cash burn, while revenue came in above the high end of guidance. That’s the kind of combo investors love because it hints the business is getting a little more grown-up and a little less “please don’t ask about runway.”
Margins are doing the heavy lifting
Pierce pointed to improving gross margins, which hit around 35% on a normalized basis. He also said operating expenses should stay below $50 million for the rest of fiscal 2027, which should keep adjusted EBITDA losses moving in the right direction.
A few details that matter:
- The Asian manufacturing transition is mostly done
- New lower-cost products, including Express, could give margins another shove higher
- The revenue beat was helped by home charging sales in North America, not a giant revival in the commercial business
The problem is bigger than ChargePoint
Here’s the catch: ChargePoint can execute well and still get dragged around by the EV market like a toddler on a leash. The analyst said US EV adoption remains the key macro overhang, and North America makes up about 82% of ChargePoint’s revenue.
So yes, commercial demand looks like it may have stabilized. But for sustained growth, ChargePoint still needs a real pickup in US EV penetration — not just a nice quarter and a round of applause from the market.
Big picture: ChargePoint is looking healthier, leaner, and less cash-hungry. But until the US EV market stops acting like it’s stuck in second gear, the stock may keep getting “promising, but not quite there yet” treatment from Wall Street.