Shares of ChargePoint (CHPT) are up in after-hours trading after the EV infrastructure company reported earnings for its fourth quarter of Fiscal Year 2025. Earnings per share came in at -$0.14, which missed analysts’ consensus estimate of -$0.13 per share. In addition, sales decreased by 12% year-over-year, with revenue hitting $101.9 million. However, this slightly beat analysts’ expectations of $101.59 million.
This was driven by a decline in Networked charging systems revenue, which fell 29% year-over-year to $52.6 million. Nevertheless, this was partially offset by a 14% increase in subscription revenue to $38 million.
Interestingly, ChargePoint’s cash burn improved significantly, according to CFO Mansi Khetani. Specifically, cash used for operating activities dropped from $31 million in the third quarter to just $3 million in the fourth quarter. This improvement was driven by higher gross profit margins and lower operating costs, as well as reduced inventory levels and better management of working capital.
2025 Outlook
Looking forward, management now expects revenue for Q1 2026 to be between $95 million and $105 million. For reference, the analysts’ consensus was $102.1 million. Furthermore, ChargePoint anticipates becoming adjusted EBITDA positive by Fiscal Year 2026.
Interestingly, shares soared despite the earnings and midpoint guidance miss. It seems like investors are giving more weight to CHPT’s slight revenue beat. It could also be that since shares have been cut in half during the past three months heading into earnings, investors already priced in underwhelming guidance. Therefore, today’s results created a “buy-the-news” event.
Is CHPT Stock a Buy?
Turning to Wall Street, analysts have a Hold consensus rating on CHPT stock based on zero Buys, five Holds, and one Sell assigned in the past three months. After a 67% decline in its share price over the past year, the average CHPT price target of $1.51 per share implies 129% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
