Blink Charging (BLNK) 2026年第三季法說會：調整後EBITDA首度轉正

Blink Charging Co. (NASDAQ: BLNK) 於 2026 會計年度第三季法說會上公布，公司創下歷來首度單季調整後 EBITDA 轉正的里程碑。儘管營收下滑，該公司仍達成此目標，主要反映出成本縮減、營收結構改善，以及退出獲利較低合約的成效。

重點摘要

• 2026 年第三季營收為 1,840 萬美元，低於去年同期的 2,710 萬美元，主因是專案時程延宕、剝離 Envoy Technologies，以及不再續約不具經濟效益的歐洲合約拖累了銷售表現。
• 調整後 EBITDA 達到約 20 萬美元，相較於 2025 年第三季虧損 730 萬美元改善了 750 萬美元，比管理階層原定目標提前一季轉正。
• 非 GAAP 毛利率從 40.9% 提升至 55%，非 GAAP 營業費用則年減 46% 至 1,000 萬美元。
• 截至本季末，Blink 擁有約 3,050 萬美元現金且無負債。應收帳款與存貨水準亦較去年底下降。
• 2026 全年營收財測由原先的 8,300 萬至 9,000 萬美元下修至 7,800 萬至 8,100 萬美元，主要是受到客戶專案時程調整，以及公司持續注重營收品質的影響。
• Blink 正從 Blink Charging 轉型為 Blink Energy，將電動車充電、EnergyConnect 軟體與電池儲能整合為一體化解決方案。

核心財務數據

2026 年前九個月，Blink 淨虧損為 2,430 萬美元，去年同期為虧損 5,070 萬美元。前九個月調整後 EBITDA 虧損從 2,940 萬美元縮減 76% 至 700 萬美元。

業務與營運表現

可重複性與經常性營收約占季度營收的 55%。Blink 的長期目標仍維持在約 80%。其中經常性網路費用部分成長 6.3%，而充電服務營收則因策略性退出獲利較低的合約而下滑 11.5%。

Blink 將毛利率改善歸功於產品組合最佳化、委託代工製造效率提升、降低低利潤合約曝險，以及經常性與高利潤營收占比提高。該公司已於 2026 年 1 月完成全面轉向委託代工模式。

Blink 旗下由 AI 驅動的能源管理平台 EnergyConnect，已部署於美國 52 處 Blink 自有直流快充站點，以及歐洲 30 多處站點。在美國站點中，有 47 處正積極導入負載管理。在數據充足的 9 個站點中，電力需量費用平均下降 21%，其中一個高容量站點的費用更大幅減少 38%。

該公司在全球營運、擁有或供應超過 48,000 個連網充電樁。此外，Blink 還利用 12 月籌集的資金興建 33 處充電站點。管理階層表示，大部分站點預計將於 2026 年第三季至 2027 會計年度第一季末之間投入營運。

Blink 計劃在需量電費與站點經濟效益可帶來理想報酬的地點增設電池儲能設施。管理階層打算為電池專案進行融資，而非直接動用股權資本大規模採購電池。

管理階層財測

Blink 將 2026 全年營收展望從 8,300 萬至 9,000 萬美元下修至 7,800 萬至 8,100 萬美元。管理階層將調整歸因於部分客戶專案完工時程延後，以及持續對合約獲利能力進行嚴格篩選。延宕的專案預計將於第四季交付，但具體進度仍取決於客戶時程與專案執行狀況。

若不計非現金存貨費用，該公司仍預期 2026 全年毛利率約為 38%。

管理階層的目標是在 2026 年第四季維持調整後 EBITDA 轉正。公司預期目前的成本基礎足以支撐規模明顯擴大的營運，儘管其計劃增加對銷售團隊的投資。

Blink 預期 EnergyConnect 和電池儲能在 2027 年的貢獻仍相對有限，預計下半年將見到成長。更詳細的 2027 年財測預計將在公司發布下一季與年度財報時公布。

風險與關注重點

• 由於部分客戶專案未能在本季內完工，第三季營收低於 Blink 內部預期。專案交付仍取決於客戶時程與執行狀況。
• 約 300 萬美元的非現金存貨費用拉低了財報中的 GAAP 毛利率，反映出無法以具經濟效益方式利用或收回的舊有存貨。
• 維持調整後 EBITDA 轉正的態勢，將取決於持續的成本紀律、營收品質，以及延宕專案的執行狀況。
• 隨著 Blink 擴大直流快充網路並開始部署電池儲能解決方案，公司預期將持續投入現金資本。
• EnergyConnect 與電池儲能仍處於初期階段，其部署將取決於站點使用率、電力公司的需量電費以及個別專案層級的經濟效益。

分析師問答焦點

管理階層表示，目前每季約 1,000 萬美元的非 GAAP 營業費用基礎有能力支撐成長。新增支出將主要集中於銷售端，而非廣泛擴大整體成本結構。

管理階層指出，整個網路的充電使用率正持續改善，其中表現較佳的站點成長更為強勁。充電服務預計將同時受惠於新站點部署與使用率提升，不過公司並未提供 2027 年個別業務部門的預測數據。

針對 EnergyConnect，Blink 初期鎖定使用率高且電力公司需量費用偏高的地區站點。這些條件使負載管理與電池儲能的組合在經濟效益上更具吸引力。管理階層也看好長期潛力，有望將該平台從充電樁延伸至建築物與園區更廣泛的能源需求。

在資本配置方面，Blink 表示調整後 EBITDA 轉正的里程碑可能帶來更多融資選項。公司計劃將電池儲能專案作為較大規模資產擔保交易的一部分進行融資，而非直接動用現有現金大舉採購並安裝電池。

完整法說會逐字稿

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完整財報電話會議逐字稿

管理層陳述

Operator

Good afternoon, and welcome to the Blink Charging Co. Third Quarter 2026 Earnings Call. [Operator Instructions]

It is now my pleasure to turn the floor over to your host, Vitalie Stelea. The floor is yours.

Vitalie Stelea

Thank you, John, and welcome, everyone, to Blink's Third Quarter 2026 Earnings Call.

With us today, we have Mike Battaglia, CEO; Ritsaart van Montfrans, member of the Board of Directors; and Michael Bercovich, Chief Financial Officer.

Today's discussions will include references to non-GAAP measures. These are reconciled to the most comparable U.S. GAAP numbers in the appendix of our earnings deck. You may find the deck along with the rest of our earnings materials and other important content on Blink's Investor Relations website.

Today's discussions may also include forward-looking statements about Blink's expectations. Actual results may differ from those stated, and the most significant factors that could cause results to be different are included on Page 2 of the third quarter 2026 earnings deck. Unless otherwise noted, all comparisons are year-over-year.

Now regarding our calendar. We will be participating in the 29th Annual Needham Growth Conference in New York City on January 14 and 15. For additional company events, please follow our announcements as well as the Investor Relations website.

And right now, I will turn the call over to Mike Battaglia, the CEO of Blink Charging. Mike, please go ahead.

Michael Battaglia

Great. Thanks, Vitalie. Good afternoon, everyone, and thanks for joining us today. Michael Bercovich will take you through the financials in detail in a few minutes. But before he does, there is one thing I would like to highlight because it marks a monumental moment for Blink.

For the first time in the company's history, we delivered positive adjusted EBITDA, one quarter ahead of the target we established at the beginning of the year. Just one year ago, in the third quarter of 2025, adjusted EBITDA was a loss of more than $7 million. The move from a greater than $7 million loss to positive adjusted EBITDA demonstrates the magnitude of the transformation we have executed.

From the day I became CEO, achieving profitability has been our #1 priority. We said what we intended to do it, established a clear timetable and delivered ahead of that timetable. Blink is now one of the very few publicly traded EV charging companies to reach positive adjusted EBITDA and the entire team is proud of it.

It is the result of hard work over the last 18 months and a lot of tough decisions. None of them were easy, all of them were deliberate. And together, they are why the company you are looking at today is lean, focused and profitable on an adjusted EBITDA basis and on track towards sustainable profitability.

Before I talk about where Blink is headed and our evolution to Blink Energy, I want to share some news about our Board of Directors. Effective immediately, the Board has elected me Chairman of the Board in addition to my role as CEO. I am honored to take on this additional responsibility, and I want to thank my fellow directors for their vote of confidence.

I also want to thank Ritsaart van Montfrans, who has served on our Board since 2019 and as our Chairman since 2023. Ritsaart guided the Board through one of the most challenging and transformative periods in Blink's history and his counsel, his support and his deep experience in EV charging have been invaluable to me and to the entire leadership team.

I am pleased that Ritsaart will continue to serve on our Board, as Lead Independent Director. And Ritsaart, congratulations on your new role. Ritsaart is joining us on the call today, and I'd like to turn it over to him for a few words. Ritsaart?

Ritsaart van Montfrans

Yes. Thanks, Mike, and good afternoon, everyone. So on behalf of the entire Board, congratulations, Mike. Since becoming CEO, Mike has led Blink through a difficult but necessary transformation. And this quarter's results show what that work has delivered.

So the Board's decision is a vote of confidence in Mike's leadership and how he has guided the company through this period and in his vision for Blink's future as Blink Energy. It's been a privilege to serve as Chairman, and I'll continue to serve on the Board as Lead Independent Director, and I look forward to working closely with Mike, continuing to work closely with Mike. The leadership team and my fellow directors, as Blink enters into its next chapter. With that, back to you, Mike.

Michael Battaglia

All right. Thanks, Ritsaart. So that brings me to another big change at Blink, Energy. Last week, we announced that Blink Charging is becoming Blink Energy. The transition to Blink Energy is the continuation of the work that got us to this point, and it is the next step in returning to top line growth. We will spend a good portion of today's call on exactly what that means.

So turning to Slide 6. Blink Energy is about 3 things: electric vehicle charging, energy management and battery energy storage. EnergyConnect, our recently released AI-driven energy management platform is what ties them together. We are not leaving charging behind. Charging is the foundation and our beachhead into these expanded markets. We are building on top of it.

Why now? Well, Slide 7 answers that question with the demand side of the equation. U.S. electricity use is forecast to grow 29% between 2025 and 2030 from roughly 4,300 terawatt hours to nearly 5,600. Summer peak demand is forecast to grow by 166 gigawatts over that period, which is about 15x New York City's peak load.

Data centers account for roughly 55% of forecast load growth in all large U.S. grids, such as ERCOT, PJM and MISO and about 70% of the increase in electricity use. And utility growth forecast for this period are now about 8x what they were anticipating in 2022. In simple terms, we're going to need a lot more electricity, and we're going to need it quickly.

So on Slide 8 is the supply side, and it's under stress. You'll remember Winter Storm Uri in Texas in February of 2021 with rolling blackouts and more than 4.5 million customers who lost power, and that was not a onetime event. NERC's 2026 long-term assessment rates 13 of 23 North American regions at elevated or high risk with multiple regions in the high-risk category. And in PJM, the most recent capacity auction cleared at the price cap for a third straight year and still came up 6.8 gigawatts short of the reliability requirement.

So what does this mean for charging sites? Really 2 things. Utility demand charges and capacity limits raise operating costs and complicate expansion, particularly at DC fast charging locations. And customers want to add charging capacity while keeping their electricity costs under control. Blink Energy brings charging, energy management and battery storage together to meet that need.

On Slide 9, we've laid out the 3 pillars of Blink Energy. The first is EV charging. This has been, is and will be the core of our business. It is the catalyst for bringing energy management and battery storage to our customers. The second pillar is energy management. EnergyConnect balances charging loads in real time, manages peak demand and helps sites add chargers within their existing electrical capacity. It is live today at 52 Blink-owned DC fast charging sites. And in fact, our CTO, Harmeet Singh, informed me late yesterday that more than 30 of our Blink-owned sites in Europe are also now onboarded to EnergyConnect. So we're now 80-plus and approaching 100 sites.

The third pillar is battery storage. Batteries store energy for release during periods of higher demand, reducing peak electricity drawn from the grid and complement charging load management. Blink is planning storage at sites with high utility demand charges and where the unit economics are healthy.

So moving to Slide 10. Again, with more than 48,000 network chargers worldwide, EV charging remains at the core of our business. These chargers are owned, operated or supplied by Blink. That is an established global charging business, and it is the foundation for energy services. It is also opening up new customer opportunities and acts as a potential competitive differentiator. Customers no longer need to procure charging equipment, batteries and energy management software separately. Blink Energy now offers a single integrated solution.

Slide 11 shows an example of why site owners need the other 2 pillars outside of EV charging. Grid challenges ultimately show up at a site in 2 ways: cost and capacity. More chargers can mean higher peak electricity loads and correspondingly higher utility demand charges, while limited grid capacity can prevent a site from powering the chargers it actually wants to deploy. So that is where our 3 offerings work together. Software and battery storage reduce reliance on the grid during peak periods, helping lower operating costs while unlocking the capacity needed to deploy more charging infrastructure.

And Slide 12 details the current status of EnergyConnect. As I mentioned, EnergyConnect is deployed at 52 Blink-owned DC fast charging sites. 47 of those sites are actively using load management to control charging demand, and we have initial measurable results across 9 sites where electricity demand fees have been reduced by 21%. In fact, one high-capacity site has experienced a 38% reduction in demand fees. These are direct cost reductions that positively impact Blink margins and point to this technology's potential. What comes next is the expansion across our customer base. We're making EnergyConnect available to customers in the United States and Europe, acquiring software subscription revenue while helping to optimize their charging footprint and their available electrical capacity.

And Slide 13 covers battery storage, which is the next step for us. We've identified several locations, including DC fast charging sites with high utility demand charges where we plan to deploy battery storage integrated with charging through EnergyConnect. From there, energy management and storage will extend to additional sites where local conditions and electricity rates support a strong business case, again, in the form of unit economics.

And Slide 14 is why all of this matters financially. Blink Energy expands our recurring revenue model beyond just charging. It allows us to deepen relationships with existing charging customers while serving new customers seeking greater control over electricity demand capacity and cost. At the same time, we create long-term recurring revenue through software subscriptions and related energy services in a large and expanding market. All of these are accretive to our profitability.

So with that, I'll turn it over to Michael Bercovich, our Chief Financial Officer, to review the financials in more detail, and then I'll circle back at the end of the call with some concluding remarks. So Michael?

Michael Bercovich

Thank you, Mike, and good afternoon, everyone. I'm incredibly proud to be here today as we announce our first ever positive adjusted EBITDA results. It's been a long but also a very focused journey, and this Q3 is the quarter that plan has delivered. Adjusted EBITDA was positive of approximately $200,000, the first positive quarter in Blink's history, one quarter ahead of target and $7.5 million improvement year-over-year. Non-GAAP operating expenses were down 46% year-over-year and non-GAAP gross margin expanded to 55%. And we ended the quarter with approximately $30.5 million in cash and no debt.

Let me walk you through the details, beginning with the highlights on Slide 16 and Slide 18. Q3 2026 total revenue were $18.4 million compared to $27.1 million in Q3 of 2025. Let me provide some context. This is the first full quarter without car sharing revenue following the ongoing divestiture on June 5th, as the prior year quarter included $1.2 million of car sharing revenues. It was also the first quarter without several European contracts that we decided not to renew due to unfavorable economics. With every renewal, we evaluate the profitability expectations. And if it doesn't fit, we walk away.

Beyond that, revenue in Q3 came in below our internal projections, primarily reflecting the timing of certain customer projects that were not completed during the quarter. Those projects are not lost, and we expect them to be delivered in the fourth quarter and subject to customer schedules and project execution. Product revenues were $6.4 million compared to $13 million in the third quarter of last year and represent approximately 35% of total revenue. This reflects deliberate deal selection and the project timing I just described.

Service revenue, which includes repeatable charging revenues and recurring network fees were $10 million compared to $10.8 million in Q3 of 2025. Within that, network fee revenue, the recurring component grew 6.3% year-over-year to approximately $2.9 million, while charging service revenue decreased 11.5%. The decrease was entirely due to our deliberate exit of less profitable contracts. Repeat and recurring revenue represented approximately 55% of total revenue in the quarter, and we continue toward our long-term objective of approximately 80%.

Other revenues, which consist of warranty fees, grants and rebates and other revenue items were $1.9 million, essentially flat with $2 million in the prior year period. Car sharing revenues were 0 in the third quarter following the divestiture of Envoy Technologies compared to $1.2 million in the prior year period. As a reminder, starting with fiscal year 2026, we have redefined our non-GAAP metrics to align with peers and industry practices.

You can see the definitions of these metrics in our earnings press release as well as in the appendix section of this presentation. The main difference is that we exclude noncash share-based compensation, other nonrecurring items as well as depreciation and amortization to better present the fundamental direction of our business. So let's get to it.

GAAP gross profit in Q3 was $4.8 million or 26.3% of revenues compared to gross profit of $9.3 million or 34.5% of revenues in Q3 of 2025. I want to be direct about the GAAP margin because there is a onetime item in it. As you know, we completed the transition to contract manufacturing in January 2026. Throughout the year, we have been working through the remaining legacy manufacturing inventory, repurposing components through our contract manufacturing partners and monetizing inventory through third-party sales with meaningful success in both.

In the third quarter, we substantially completed that assessment and identified remaining inventory that could not be economically utilized or recovered. That resulted in approximately $3 million noncash inventory charge. Excluding that charge, the gross margin would have been approximately 41.7%, ahead of the second quarter of 38.9% and significantly better than 34.5% a year ago in Q3 2025.

Our non-GAAP gross margin was 55% compared to 40.9% in Q3 of last year, an improvement of about 1,400 basis points and up from 47.9% in the second quarter. The drivers are the same ones we've been describing all year, disciplined portfolio optimization, the exit from low-margin contracts, contract manufacturing efficiencies and a richer mix of repeat recurring and higher-margin revenues. These are structural improvements.

Turning to operating expenses. GAAP total operating expenses in Q3 were $11.8 million compared to $9.8 million in Q3 of last year. That comparison needs context. The prior year quarter included an $11.7 million noncash gain from the change in fair value of consideration payable related to Envoy deal. Excluding that item, total operating expenses decreased 45% year-over-year.

On a non-GAAP basis, operating expenses were down 46% year-over-year from $18.4 million to $10 million this quarter. We have rightsized the organization, streamlined our cost structure and instill discipline across G&A and compensation spending, and we continue targeting more as we move forward. We call it right capital allocation.

Compensation expenses were down 42% year-over-year from $11.7 million in Q3 2025 to $6.8 million this quarter. G&A expenses were $1.2 million, down from $3.7 million in the prior year quarter, and other operating expenses declined to $2.8 million from $4.8 million. GAAP net loss for Q3 was $6.7 million or $0.05 loss per diluted share compared to a net loss of $300,000 or flat per diluted share in Q3 of last year, significantly impacted by the noncash gain from Envoy consideration payable adjustment in the amount of $11.7 million, as I described before.

For the 9 months, net loss was $24.3 million compared to $50.7 million in the same period of 2025. Adjusted EBITDA for the third quarter of 2026 was positive of approximately $200,000 compared to an adjusted EBITDA loss of $7.3 million in Q3 of last year, a $7.5 million improvement. For the 9 months, the adjusted EBITDA loss has improved 76% to $7 million loss from $29.4 million loss. You can clearly see the trend on Slide 19. It was a deliberate journey to get to positive EBITDA one quarter at a time.

Turning to our balance sheet and cash position. We ended Q3 with cash and cash equivalents of approximately $30.5 million compared to $34 million at the end of June. The $3.5 million decrease in the quarter includes capital expenditures supporting the expansion of our DC fast charging network. We have no debt.

Accounts receivable has come down to $13.3 million from $19.5 million at the year-end and inventory to $7.1 million from $14.2 million, both reflecting the working capital discipline we have put in place. As we scale our DC fast charging infrastructure and begin deploying battery storage solutions, we expect cash investments to continue in support of future repeatable cash flows from those assets, and we maintain close eyes on cash usage.

Regarding our business outlook, I'd like to provide an update across 3 key areas. Number one, revenue. We are updating our full year 2026 revenue guidance to between $78 million to $81 million from $83 million to $90 million previously. The revision reflects the timing of completion of certain customer projects and our continued focus on revenue quality. This is a timing and disciplined story, not a change in our confidence or in the long-term opportunity.

Number two, gross margins. We continue to expect full year 2026 gross margin of approximately 38%, and that is excluding any noncash inventory charges. Our strong gross margins reflect a structurally improved operating model, driven by a higher quality revenue mix, manufacturing efficiencies, disciplined commercial execution and improving utilization of our own charging assets.

And number three, sustained profitability. We achieved positive adjusted EBITDA one quarter ahead of target, and our goal is to maintain positive adjusted EBITDA through the fourth quarter of 2026. Our focus has shifted from reaching breakeven to sustaining it, supported by our streamlined cost structure and continued operational discipline. But the next step in the evolution to Blink Energy is to return to growth, a disciplined and profitable growth.

Across our industry, revenue growth has too often be prioritized over profitability, sometimes at the expense of sustainable business economics. At Blink, we recognized early that long-term success requires more than simply growing the top line. It requires a disciplined operating model capable of delivering sustainable profitability and creating long-term shareholder value.

Over the last 18 months, we have deliberately chosen a different path, making the difficult but necessary decisions to exit economically unattractive revenue streams, fundamentally realign our cost structure and establish a stronger financial and operational foundation. Those decisions were not always the easiest, but they were essential to stabilizing the business and positioning Blink for its next phase of growth.

Our first quarter of positive adjusted EBITDA represents an important validation of that strategy and the discipline behind its execution. As we look forward for the fourth quarter of 2027 a (sic) [ 2026 ] our priority shifts to accelerating revenue growth, applying the same focus and discipline and accountability that brought us to this milestone. Our objective is clear. It is not growth at any cost, but profitable, sustainable growth that delivers lasting value to our shareholders. I will now turn back over to Mike to wrap it up. Go ahead, Mike.

Michael Battaglia

All right. Great. Thanks, Michael. I'll close by putting this quarter into perspective. So the third quarter was not simply the quarter in which Blink reported positive adjusted EBITDA. It was the quarter in which we demonstrated that the transformation of this company is working. We delivered positive adjusted EBITDA of approximately $200,000 compared with a loss of $7.3 million a year ago.

That represents a $7.5 million year-over-year improvement and the first positive adjusted EBITDA quarter in Blink's history. And I don't think I'm going to get tired of saying that. And that was achieved one quarter ahead of the target we established at the beginning of the year. We also expanded our non-GAAP gross margins to 55%, reduced non-GAAP operating expenses by 46% and ended the quarter with approximately $30.5 million in cash and no debt.

So Slide 22 captures our recent journey in 3 stages: transformation, stabilization and growth. In 2025, we transformed the company. We launched Blink Forward. We streamlined the organization, lowered our operating breakeven, strengthened capital allocation practices and began transitioning to contract manufacturing. At that point, Blink was primarily a charging network.

In 2026, we stabilized the company. We completed the transition to contract manufacturing, exited contracts that did not meet our economic standards, divested the Envoy car sharing business, which was noncore, reduced our structural cost base and delivered our first positive adjusted EBITDA quarter on a revenue base, approximately 1/3 smaller than a year ago. That is an important point. Profitability didn't come from chasing volume or accepting unprofitable revenue. It came from improving the quality of our revenue, expanding margins and operating the business responsibly.

Today, Blink is no longer only a charging network. We are becoming a managed energy platform, combining EV charging, energy management software and battery storage into a more integrated customer solution. EnergyConnect is already deployed at 52 Blink-owned DC fast charging sites in the U.S. and 30-plus in Europe and providing a tangible foundation from which to expand our energy management capabilities and recurring software revenue.

So as we enter 2027, our focus moves from stabilization to top line growth. We intend to scale EnergyConnect across our network and customer base, deploy battery storage where the economics support attractive returns and expand from managing chargers to managing the broader energy needs of sites, buildings and campuses. Over time, we see chargers, batteries and buildings operating as one connected system with Blink providing the intelligence that manages demand, capacity and cost.

The market need is also becoming more urgent. Electricity demand is increasing, grid capacity is constrained and commercial customers are confronting higher costs and greater complexity as they add charging infrastructure. Those challenges create a meaningful opportunity for a company that can bring together charging software and storage in one integrated solution, and we believe Blink is increasingly positioned to be that company.

When I became CEO, I said our priorities were clear: establish fundamentally sound financials, operate with discipline and build a company capable of scaling profitably. This quarter, we delivered clear evidence of progress against each of those priorities. We still have significant work ahead of us. One positive quarter is a milestone, it's not the destination. Our immediate focus is to sustain positive adjusted EBITDA, tightly manage capital, execute on our customer commitments and convert the Blink Energy strategy into profitable growth.

Blink entering 2027 is a fundamentally different company from the one that entered 2025. So in closing, I want to thank the entire Blink team for their focus, their resilience and the accountability that made this quarter possible. And I also want to thank our customers, our partners and our shareholders for their continued confidence in Blink.

So with that, let's open the call for questions. So operator, go ahead.

Operator

[Operator Instructions] Our first question comes from the line of Craig Irwin from ROTH Capital Partners.

分析師問答

Andrew Scutt

It's Andrew on for Craig. I want to say congrats for reaching adjusted EBITDA profitability before your target. That's a great achievement. My first question, so like as you guys kind of try and execute on the new Blink Energy strategy and drive growth through the core charging business in 2027, is the current cost base of around $10 million quarterly in noncash OpEx enough to support the growth? Or will there be some incremental investments as we see as you kind of build out the new strategy?

Michael Battaglia

Yes. So we feel comfortable about our current OpEx run rate, and we think we have capacity to expand from where we are in terms of productivity, in terms of the team being able to take on more and to enter these markets successfully. Part of it is just the productivity of our employee base and the talent level just continues to increase. Where we are investing more is in the sales organization. So we feel like now is the appropriate time where we have reached a couple of key milestones in our business, and we're putting more emphasis on the sales organization.

Andrew Scutt

That's great to hear, and I appreciate the color. And second from me, on the last call, you guys kind of mentioned you were seeing increased utilization on recently installed chargers. So just kind of wondering if that trend has continued and how quickly are these new sites ramping towards your targeted utilization rates?

Michael Battaglia

Yes. So we're seeing encouraging utilization on our -- kind of throughout our network, but certainly on our better-performing sites are growing stronger as time goes on. That's one. Number two is back in December, when we did a follow-on and raised $20 million. We had talked about the fact that the majority of that was going to go towards CapEx for new sites. So this year, we have 33 sites under construction as a result of using that -- those proceeds. We have several sites that have already been delivered, and we have the majority of sites that will go live between now and the end of first quarter 2027. So we're on pace.

Andrew Scutt

Great. Appreciate details and congrats again on the strong quarter.

Michael Battaglia

Thank you.

Operator

Our next question comes from the line of Ryan Pfingst from B. Riley Securities.

Ryan Pfingst

Congrats on the progress here with positive EBITDA. Thinking about 2027, I was curious if you could break down the expected revenue growth that you see between charging services, product sales and EnergyConnect and/or storage.

Michael Battaglia

Yes. So we'll provide more color on 2027 early next year, okay, during the quarterly release and the annual release.

Ryan Pfingst

Understood. I mean, I guess maybe to phrase it another way, and maybe not focusing it directly on '27, but just as you make this kind of transformation into Blink Energy with a 3-pronged approach, how are you thinking about those different segments ultimately comprising the total business going forward?

Michael Battaglia

Yes. I'll answer it this way, and I'm sure Michael can provide some color as well. So there's these kind of 3 core elements of Blink Energy. It's charging, it's EnergyConnect software platform and storage. So we're going to continue doing what we've been doing on the charging side. Number two, when we think about EnergyConnect and battery energy storage, this opens up a meaningful opportunity for us in really 2 ways.

One, it is going to serve us very nicely as we're already seeing on enhancing Blink's margins on the owner-operator side. And then the second opportunity is -- and that's a margin expansion -- that's a cost reduction margin expansion opportunity. And then secondly, there's a market opportunity for our customer base that has purchased chargers from us, and there's tens of thousands of those.

And the opportunity is for us not only to sell software subscriptions to EnergyConnect, but where it makes sense for the customer and where they're being significantly impacted by demand fees is that we can then implement battery energy storage there. Then finally, as time goes on, we'll start looking at things like grid services, electricity offtakes, things like that. So like anything, we're just beginning this phase of our business. So it's going to be relatively small in 2027. Second half of 2027, it will grow, and then it will take off from there. But Michael, do you want to add anything?

Michael Bercovich

Yes, Mike, I think this is perfect. One thing I will add is that the charging services, we expect continue to grow, not only from deployments because obviously, we cover that as we go live with the new sites, but also from utilization. And we start seeing that across the network. And this is where, again, usage of different tools and really changing the way that we operate start bringing a lot of value.

Ryan Pfingst

Great. I appreciate all that detail. And then maybe thinking about the balance sheet and capital allocation. Can you just talk about at a high level, the capital needs that might be required for the battery storage opportunity?

Michael Battaglia

Yes, Michael, do you want to take that?

Michael Bercovich

Yes, absolutely. We feel that we're well capitalized. We finished the quarter with $30.5 million in cash. We have no debt. We always talked about acquiring that being a small debt for assets that will produce significant returns in the future. And we feel now moving to the adjusted EBITDA this quarter, it will help us to open additional doors, and we will continue reevaluating those opportunities as we move forward. We feel positive about the direction and where we're going.

Michael Battaglia

Yes. And I would add one thing. Ryan, unlike our charging business, where we've invested our own equity into establishing these sites, our plan is not to buy these -- for instance, buy a battery and install it. Our plan is absolutely to finance that transaction and to have those projects wrapped a larger financing opportunity. So we are not planning on going out and buying a bunch of batteries and installing them. So it's a little bit of a shift in how we've been managing capital.

Operator

[Operator Instructions] Our next question comes from the line of Sameer Joshi from H.C. Wainwright.

Sameer Joshi

Michael, congrats on the positive EBITDA. So a couple of questions on the EnergyConnect. Of the 52 sites, is it a full version of the EnergyConnect that is being used there? Or do you expect some additional features to be added to these? And then how many of the sites that you already -- where you already have chargers, DC fast chargers are potentially convertible in the near term, say, 6 to 9 months?

Michael Battaglia

Potentially, did you say Sameer, convertible?

Sameer Joshi

Convertible as in where EnergyConnect can be deployed quickly?

Michael Battaglia

Yes. Okay. Yes, yes. Good question. So first of all, if you guys recall, on the Q2 call, we announced EnergyConnect for the very first time. And on that call, we announced that we had 11 sites that were live. So between the Q2 call and now, we have 52 sites on board, Blink-owned sites in the U.S. and 30 plus in Europe. So the rollout has been very rapid.

With if we take a look at the U.S., again, 52 sites, we have 47 of those sites where we've begun actively load managing. And we've talked about in the comments that we have 9 sites because we now have enough data on 9 sites where we've seen meaningful reductions in demand charges. So 21% overall for those 9 sites. One site was a 38% reduction in demand charges.

And then as we move forward, we're going to see -- we have more data across those 52 sites, the 30-plus sites in Europe and the additional sites that we add to EnergyConnect under Blink-owned and then expanding to -- again, to host-owned sites to customers that fall outside of Blink-owned. So the criteria here is to look for sites that are well utilized and that are in a utility jurisdiction where the demand fees are high.

And when those 2 things come together, it becomes very economically attractive to add battery energy storage even beyond load curtailment of EnergyConnect. And then finally, to answer the second part of your question there, Sameer, yes, this is the very beginning of EnergyConnect. The team is going to continue to add features and functions to the platform, and there will be more to come on that as we grow that part of the business.

Sameer Joshi

Yes. Actually, I think on Slide 22 of your presentation, the bottom right is actually very exciting where you say where we are going and that chargers, batteries and buildings as one system. I think that's the potential of EnergyConnect. And I think it's right for you guys to focus on that. So you're correct on that. Yes. So just a few questions. Yes, go ahead, go ahead.

Michael Battaglia

I was just going to mention, we think that when customers see the power of this type of platform and reducing cost and managing electricity effectively on EV charging, that it's a natural progression into, let's say, the rest of the campus or the building that they're operating the chargers at.

Sameer Joshi

Absolutely. On the cost front, Michael, did I hear -- Bercovich did I hear properly that there is more possible reductions in OpEx going forward?

Michael Bercovich

Sameer, we're always looking to be more efficient. As I said, we call it capital allocation. When we're talking about that, it's not only the employees and compensation. It's really about how we operate, what we pay for and how we do that. And that's how we got here because eventually, we have really great talented team. But what we can do, we can do things better and faster, and that creates a really new base for growing in the future.

Some people asking whether when you start growing again, are you going to increase your cost basis? Our cost basis is rationalized and can support significantly larger operation. Now as Mike said, the next level of investments will be in sales and in sales only, and we continue utilizing the modern tools to help us to be more agile and more lean. So our cost basis is still going through some evaluation, as we said, because this is just the nature of our new culture being just thinking about how to make it better and how can we get more money to invest back in the business and create a stronger company.

Sameer Joshi

Got it. And just to reiterate, on the gross margin front, I think you're guiding for 38%. But in this quarter, excluding onetime charges, it would have been 41.7%. So I can see that there is more scope going forward. Once again, congrats on the positive results.

Michael Bercovich

Yes. Thank you so much. Appreciated.

Operator

There are no further questions at this time. I will turn the call back to Vitalie Stelea for closing remarks.

Vitalie Stelea

We thank our participants and our audience that joined us for the call today as Blink announced its first ever positive adjusted EBITDA quarter and outlined the company and the management's evolution to Blink Energy. This concludes our call. And if there are any further questions, feel free to e-mail us at ir@blinkcharging.com, and be well. Thank you.

Operator

Thank you. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.