ChargePoint Q2 FY2027 Earnings: Revenue Rises as Losses Narrow

ChargePoint (NYSE: CHPT) reported fiscal Q2 2027 revenue of $116.1 million, up 18% from $98.6 million a year earlier, while GAAP diluted loss per share improved to $1.35 from $2.85. Higher networked charging systems revenue, lower operating expenses, and a tariff-refund benefit helped narrow the GAAP net loss to $35.6 million and the adjusted EBITDA loss to $4.8 million.

Core Earnings Results

Revenue growth combined with a 15% reduction in GAAP operating expenses to produce a substantially smaller operating loss. General and administrative expenses recorded the largest dollar reduction among the operating expense categories, falling to $20.5 million from $28.2 million.

Gross margin also increased by five percentage points on both a GAAP and non-GAAP basis. However, tariff refunds contributed four percentage points to the current quarter’s margins, so the reported expansion was not solely the result of underlying operating improvements.

Non-GAAP operating expenses declined 11% to $52.3 million. The difference between GAAP and non-GAAP results primarily reflects exclusions including stock-based compensation, amortization, restructuring costs, and other adjustments.

Business and Segment Performance

Networked charging systems generated most of the quarter’s revenue growth. Revenue in this category rose 25% to $62.9 million from $50.4 million, accounting for approximately 71% of the company’s total year-over-year revenue increase.

Based on the reported category revenue and cost of revenue, networked charging systems gross profit increased to approximately $13.4 million from $3.9 million. The corresponding category gross margin was approximately 21%, compared with 8% a year earlier. ChargePoint did not disclose how the tariff refunds were allocated among revenue categories, so the underlying improvement cannot be isolated from the provided data.

Subscription revenue increased 10% to $43.7 million. Subscription gross profit was approximately $25.6 million, compared with $24.4 million, while the calculated category gross margin declined to approximately 59% from 61%. Other revenue rose approximately 14% to $9.5 million.

Operational developments included early-access shipments of the Express Solo charger, continued expansion of the Eaton partnership, and new charging agreements involving Mercedes-Benz business customers, Optimus Energy Solutions, and Onvo.

Tariff Refunds Accounted for Most of the Margin Expansion

ChargePoint’s GAAP gross margin increased to 36% from 31%, but tariff refunds provided four percentage points of benefit. On $116.1 million of revenue, that benefit equates to approximately $4.6 million of gross profit—nearly equal to the quarter’s $4.8 million adjusted EBITDA loss.

Excluding the disclosed benefit through simple subtraction, GAAP gross margin would have been roughly 32%, while non-GAAP gross margin would have been roughly 34%. Those figures compare with 31% and 33%, respectively, in the prior-year quarter. This indicates that expense reductions and revenue growth improved the loss profile, but the tariff refunds generated most of the reported year-over-year margin expansion.

Profitability, Cash Flow, and the Balance Sheet

ChargePoint’s earnings losses narrowed considerably, but that improvement had not yet translated into lower operating cash use on a year-to-date basis. For the six months ended July 31, 2026, net cash used in operating activities was $40.8 million, slightly above $39.1 million in the prior-year period, even as the six-month net loss narrowed to $78.8 million from $123.3 million.

Inventory changes supplied $40.7 million of operating cash during the first half, compared with $3.3 million a year earlier. That benefit was partly offset by a $22.3 million use of cash from changes in accounts payable, lease liabilities, and accrued liabilities. Deferred revenue also used $1.0 million of cash, compared with an $8.4 million contribution in the prior-year period.

Cash, cash equivalents, and restricted cash totaled $95.7 million at July 31, down $46.2 million from the beginning of the fiscal year. Inventory declined to $179.5 million from $214.9 million, while current and noncurrent debt totaled approximately $236.9 million, down from $260.9 million. ChargePoint also reported a stockholders’ deficit of $36.1 million, compared with positive equity of $21.3 million at January 31, 2026.

The cash flow figures cover the first six months of fiscal 2027 rather than the second quarter alone.

Fiscal Q3 2027 Guidance

ChargePoint issued a fiscal third-quarter revenue range of $105 million to $115 million. The midpoint of $110 million is approximately 5% below fiscal Q2 revenue, indicating that management is not extrapolating the second quarter’s revenue level into the next quarter.

No additional quantitative profitability or cash flow guidance was included in the release.

Management’s View

CEO Rick Wilmer emphasized revenue above the company’s prior guidance range, record non-GAAP gross margin, and disciplined cash management. Management’s stated priorities for the second half include profitable growth, operational execution, product innovation, and continued development of partnerships such as Eaton.

ChargePoint also appointed John Saffrett to lead its European operations, including sales, customer relationships, partnerships, and market expansion. The financial contribution expected from that initiative was not quantified.

Recent Insider Transactions

The provided insider data identified an April 13, 2026 purchase by CEO Richard Wilmer at $5.34 per share, with a reported value of approximately $250,000. The transaction is reported objectively and does not by itself establish management’s view of the company’s valuation or prospects.

The ten most recent individual records dated July 21, 2026 were director stock awards rather than open-market purchases. Share quantities for those awards were not included in the provided data.

Risks Investors Need to Watch

• Margin normalization: Tariff refunds added four percentage points to both GAAP and non-GAAP gross margin. If that benefit does not repeat, reported margins could decline unless operating improvements offset it.
• Continued cash use: First-half operating cash use edged higher despite a substantially smaller net loss. ChargePoint ended the quarter with $95.7 million of cash, cash equivalents, and restricted cash against approximately $236.9 million of debt.
• Profitability remains unachieved: The adjusted EBITDA loss narrowed to $4.8 million, but ChargePoint still recorded a $35.6 million GAAP net loss and a $34.1 million operating loss.
• Potential sequential revenue moderation: The $110 million midpoint of fiscal Q3 guidance is below the $116.1 million reported in fiscal Q2.
• Reliance on charging-system demand: Networked charging systems remained the largest revenue category and drove most of the quarter’s growth, leaving overall performance sensitive to charging infrastructure purchases and deployment timing.

Summary

ChargePoint’s fiscal Q2 2027 results showed faster revenue growth, lower operating expenses, and sharply narrower GAAP and adjusted losses, led by networked charging systems. However, tariff refunds generated most of the gross-margin expansion, while first-half operating cash use remained elevated. The next points to monitor are whether margins hold without the same refund benefit, whether cash conversion begins to follow the earnings improvement, and how revenue develops within the $105 million to $115 million fiscal Q3 guidance range.