ChargePoint

ChargePoint has survived its near-death experience and is quietly assembling a turnaround with real numbers behind it. Q1 FY2027 (ended April 2026) delivered $101.8M in revenue, up 4% — the third consecutive quarter of year-over-year growth after two years of contraction — beating guidance, with subscription revenue of $40.8M growing 7% on 400,000 managed ports and roaming access to 1.41M. The margin structure has been rebuilt: FY2026 GAAP gross margin hit 31% versus 24% a year earlier, adjusted EBITDA loss narrowed from $116.5M to $82.7M, and GAAP opex fell 6% in Q1. The balance sheet, the existential worry, was defused in November 2025: ChargePoint exchanged $329M of 2028 convertible notes, cutting total debt by $172M — more than half — eliminating an ~$82M change-of-control premium and pushing maturity to January 2030, leaving just $11.8M of the old notes outstanding. Strategically, the Eaton partnership (May 2025) grafts ChargePoint onto a power-management giant's distribution in North America and Europe, and the jointly launched Express Grid architecture — up to 600 kW, megawatt-capable, V2X-ready, first deliveries in H2 2026 — plus the Express AC next-gen Level 2 line give it its freshest product portfolio in years. The asset-light model matters in a NEVI-frozen world: ChargePoint sells hardware and software to site hosts rather than fronting capex for stations, so it monetizes whoever builds. Russell 2000 inclusion in June 2026 restores index ownership. At roughly $5.91 post-split against 31% gross margins and $162M of growing subscription revenue, the market is pricing a melting business, not a stabilizing one.

Strip the turnaround narrative and ChargePoint is still a company that shrank — FY2026 revenue of $411.2M was down 1% on a year that was itself down ~18% — while diluting and reverse-splitting its way to survival. The 1-for-20 reverse split of July 2025 followed an NYSE non-compliance notice in February; at ~$5.91 the stock is worth about $0.30 in pre-split terms, down ~71% from its 52-week high, a decade of SPAC-era shareholder value effectively erased. The liquidity picture remains uncomfortable: $141.6M of cash at fiscal year-end, then $36.6M of operating cash burned in Q1 FY2027 against $96.2M of cash and restricted cash — a runway measured in quarters, not years, unless burn falls fast, and the November refinancing swapped cheap converts for a $157M senior secured loan at 12% interest, a hard-money rate that signals what lenders think. The demand backdrop is actively hostile: the $7,500 EV tax credit died September 30, 2025, the 30C charging-equipment credit expired June 30, 2026, and NEVI spent 2025 frozen in litigation — all of which suppresses exactly the site-host capex ChargePoint's hardware sales depend on. Competitively, Tesla's NACS-opened Supercharger network set the reliability benchmark ChargePoint's franchised-host model structurally struggles to match, while Eaton, ABB, and Siemens can bundle charging into electrical packages ChargePoint must sell standalone. Two layoff rounds in 2024 (12%, then 15%) cut what could be cut. Guidance of $90–100M for the next quarter implies growth near zero; a 12%-coupon balance sheet and single-digit growth is a workout, not a comeback.