ChargePoint (CHPT) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue was $107 million, above guidance midpoint but down 17.7%–18% year-over-year, driven by a 33.5%–34% decline in Networked Charging Systems revenue.

• Subscription revenue grew 26.8%–27% year-over-year to $33.4 million, while net loss improved to $71.8 million from $79.4 million in the prior year.

• Non-GAAP gross margin improved to 24% from 3% in Q1 FY24, and non-GAAP operating expenses fell 22% year-over-year to $66 million.

• Adjusted EBITDA loss improved to $36.5 million, ahead of plan and down 25% year-over-year.

• Enabled access to over one million charging locations globally and shipped first multimillion-dollar FedRAMP-certified order.

Financial highlights

• Networked Charging Systems revenue was $65.4 million, down 33.5%–34% year-over-year; Subscription revenue was $33.4 million, up 26.8%–27%; Other revenue was $8.2 million, up 53.9%.

• Non-GAAP gross margin was 24% (up from 22% in Q4, down from 25% YoY); GAAP gross margin was 22%.

• Non-GAAP operating expenses were $66 million (62% of revenue), down from $85 million YoY and $75 million QoQ.

• Cash, cash equivalents, and restricted cash totaled $292.3 million as of April 30, 2024.

• Net cash used in operating activities was $62.5 million, improved from $104.2 million in Q1 FY24.

Outlook and guidance

• Q2 FY25 revenue guidance is $108–$118 million, with majority of full-year revenue expected in the second half due to seasonality and large orders.

• Gradual gross margin improvement expected through cost reductions and subscription margin gains.

• Non-GAAP OpEx to remain flat in Q2, then decline further in the second half.

• Commitment to achieving positive non-GAAP Adjusted EBITDA in Q4 FY25.

• Management expects continued operating losses and negative cash flows for the near term, with profitability dependent on broader EV adoption.