EV charging solutions provider ChargePoint Holdings (NYSE:CHPT) reported Q3 CY2025 results beating Wall Street’s revenue expectations , with sales up 6.1% year on year to $105.7 million. Guidance for next quarter’s revenue was optimistic at $105 million at the midpoint, 2.5% above analysts’ estimates. Its GAAP loss of $2.23 per share was 3% below analysts’ consensus estimates.
ChargePoint (CHPT) Q3 CY2025 Highlights:
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Revenue: $105.7 million vs analyst estimates of $95.89 million (6.1% year-on-year growth, 10.2% beat)
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EPS (GAAP): -$2.23 vs analyst expectations of -$2.16 (3% miss)
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Adjusted EBITDA: -$19.45 million (-18.4% margin, 32% year-on-year growth)
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Revenue Guidance for Q4 CY2025 is $105 million at the midpoint, above analyst estimates of $102.4 million
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Adjusted EBITDA Margin: -18.4%, up from -28.7% in the same quarter last year
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Free Cash Flow was -$23.55 million compared to -$33.39 million in the same quarter last year
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Market Capitalization: $195 million
“ChargePoint’s third quarter results mark a return to growth, with revenue exceeding expectations,” said Rick Wilmer, CEO at ChargePoint.
Company Overview
The most prominent EV charging company during the COVID bull market, ChargePoint (NYSE:CHPT) is a provider of electric vehicle charging technology solutions in North America and Europe.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, ChargePoint’s 22.3% annualized revenue growth over the last five years was incredible. Its growth beat the average industrials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. ChargePoint’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 13.8% over the last two years.
We can better understand the company’s revenue dynamics by analyzing its most important segments, Networked Charging Systems and Subscriptions, which are 53.4% and 39.7% of revenue. Over the last two years, ChargePoint’s Networked Charging Systems revenue (hardware) averaged 26.2% year-on-year declines. On the other hand, its Subscriptions revenue (software) averaged 18.8% growth.
This quarter, ChargePoint reported year-on-year revenue growth of 6.1%, and its $105.7 million of revenue exceeded Wall Street’s estimates by 10.2%. Company management is currently guiding for a 3.1% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 6.2% over the next 12 months. While this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average.
Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming.
Operating Margin
ChargePoint’s high expenses have contributed to an average operating margin of negative 76% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.
On the plus side, ChargePoint’s operating margin rose by 56 percentage points over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to reach long-term profitability.
ChargePoint’s operating margin was negative 42% this quarter.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Although ChargePoint’s full-year earnings are still negative, it reduced its losses and improved its EPS by 49.4% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. We hope to see an inflection point soon.
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For ChargePoint, its two-year annual EPS growth of 35.1% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.
In Q3, ChargePoint reported EPS of negative $2.23, up from negative $3.56 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates. Over the next 12 months, Wall Street expects ChargePoint to improve its earnings losses. Analysts forecast its full-year EPS of negative $10.33 will advance to negative $7.93.