--- title: "Is ChargePoint Stock Headed to $1 After Revenue Warning Sinks Shares?" description: "ChargePoint has reported disappointing Q2 results with a 28% revenue decline, attributed to delayed fleet deals and a drop in networked charging systems revenue. Although subscription revenue rose by " type: "news" locale: "en" url: "https://longbridge.com/en/news/213882944.md" published_at: "2024-09-10T00:29:58.000Z" --- # Is ChargePoint Stock Headed to $1 After Revenue Warning Sinks Shares? > ChargePoint has reported disappointing Q2 results with a 28% revenue decline, attributed to delayed fleet deals and a drop in networked charging systems revenue. Although subscription revenue rose by 21%, the firm shifted its timeline for achieving positive adjusted EBITDA to fiscal 2026. In response to cash flow issues, ChargePoint plans to cut its workforce by 15%. Given these challenges and the possibility of further significant stock decline, ChargePoint's stock is deemed a risky investment under the current conditions. The past year has not been a good one for **ChargePoint** (CHPT -2.29%) and it only got worse after the electric vehicle (EV) charging solutions company reported weak fiscal second-quarter results and moved back its profitability forecast. With things looking dour for the company, let's take a closer look at its results and see if the stock is heading to $1 or if a rebound is in sight. ## Declining revenue Declining revenue has been a big issue for ChargePoint recently, with the company seeing sizable revenue declines the past four quarters. For its second quarter of fiscal year 2025, ended July 31, its revenue sank 28% to $150.5 million. Networked charging systems revenue was the big negative driver, plunging 44% to $64.1 million. Subscription revenue, on the other hand, rose 21% to $30 million. The former is the charging hardware the company sells, while the latter is a subscription the company sells that lets commercial and fleet customers manage their charging stations, including setting prices and managing energy. The company blamed a number of fleet deals getting delayed due to issues such as delayed permitting as the reason it missed the high end of its revenue guidance. On the positive side, the company's subscription revenue comes at much higher margins, which led to a nice improvement in gross margin. When taking out a $28 million inventory impairment charge last year, gross margin would have risen from 19.3% (1% after the charge) to 23.5%. ChargePoint also nicely reduced its operating expenses, cutting them by 29% to $88.3 million. Together, this helped the company reduce its losses as well. Its adjusted loss was cut in half from $86.1 million to $43 million, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved to a loss of $34.1 million from $81.2 million a year ago. The company ended the quarter with $228.5 million in inventory, which was up from $198.6 million at the start of its fiscal year ended in January. Given its big decline in sales, that's not a great sign and could lead to future write-downs. Through the first six months of its fiscal year, ChargePoint has seen operating cash outflows of $113.7 million, and negative free cash flow of $121 million. It ended the period with $243.7 million in cash and equivalents and $285.7 million in debt. In order to continue to improve its cost structure, the company announced it will reduce its workforce by 15%. The reorganization is expected to result in $10 million in charges, largely from severance pay, but save the company between $38 million and $41 million a year in operating expenses. ChargePoint forecast fiscal Q3 revenue to be between $85 million and $95 million, compared to the $110.3 million in revenue it generated a year ago. That would be about an 18% decline at the midpoint. Meanwhile, it moved back its goal of reaching positive adjusted EBITDA from this fiscal year (2025) to fiscal year 2026. Management said it would need a "moderate" amount of revenue growth next year to achieve this goal. Meanwhile, it said it is looking toward significant cash flow in fiscal 2027. Image source: Getty Images. ## Is the stock headed to $1 or is this a buying opportunity? ChargePoint is only about another 25% decline from hitting $1, so it would certainly not be a huge stretch to see the stock hit that price. However, despite its low stock price, the company still has a market cap of about $600 million. The company has been struggling mightily with continued revenue declines. Consumer interest in EVs has certainly begun to wane. While EV sales are still growing, growth slowed to 11% in Q2. However, that growth was helped by some heavy discounting. If automakers cannot turn a profit on EV sales, eventually they will turn away from EVs and toward vehicles they can make a profit on. Demand for hybrids, including plug-in hybrids, has been growing strongly. However, regular hybrids use regenerative breaking to charge and don't need charging equipment. This is the larger and faster-growing part of the hybrid market. Against this backdrop, it appears companies are reluctant to invest heavily in charging infrastructure. Meanwhile, with sales projected to heavily fall for the fifth straight quarter, it is difficult to trust ChargePoint at this point. While there are some positives, its declining sales along with negative cash flow and net debt on its balance sheet make an investment in the company a risky proposition. At this point, it appears the company is more focused on surviving than thriving. If the company turns in another poor earnings report, ChargePoint's stock is likely headed to $1. ### Related Stocks - [CHPT.US - ChargePoint](https://longbridge.com/en/quote/CHPT.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | i-charging 發佈了輸出功率高達 1.6 兆瓦的充電系統 | i-charging 推出了 MAX 模塊化電源供應單元，能夠提供高達 1.6 MW 的功率，支持同時為八輛電動車充電。該系統具有動態功率分配功能，以 50 kW 的增量分配電力，並支持包括 CCS 和 MCS 在內的多種充電標準。MAX | [Link](https://longbridge.com/en/news/276225798.md) | | 在過去的一年裏，ChargePoint 充電器上已經進行了超過一億次電動汽車充電會話 | ChargePoint 宣佈在過去一年中實現了超過 1 億次電動車充電會話，突顯了電動車（EV）的日益普及。該公司指出，近 60% 的 193 億電動英里是在過去兩年內行駛的，這表明關注點已從新電動車銷售轉向路上電動車的總數。ChargeP | [Link](https://longbridge.com/en/news/276014861.md) | | ChargePoint 報告充電會話增加 34%，但基礎設施未能跟上需求 | ChargePoint Holdings Inc. 報告稱，過去一年充電會話增加了 34%，新充電端口增長了 16%。每月有超過一百萬名電動車駕駛員使用 ChargePoint。插電式混合動力車佔商業交流充電會話的 16%。自 2007 年 | [Link](https://longbridge.com/en/news/275609179.md) | | ChargePoint 將租車場地改造成公共電動車充電站 | ChargePoint 正在通過在威斯康星州的租車地點安裝充電器來擴大公共電動汽車充電的可及性，特別是在阿普爾頓和麥迪遜。此次舉措與 Midwestern Wheels 合作，包括向公眾提供的 2 級和 3 級快充充電器，而不僅限於租車用户 | [Link](https://longbridge.com/en/news/273566283.md) | | ChargePoint 與 Midwestern Wheels 攜手為威斯康星州的社區提供無縫的電動汽車充電服務 | ChargePoint（紐約證券交易所代碼：CHPT）已與 Midwestern Wheels 達成合作，以提升威斯康星州的電動車充電可及性。在 Midwestern Wheels 位於阿普爾頓和麥迪遜的租車分支機構將新設公共充電站，服務於 | [Link](https://longbridge.com/en/news/273301423.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.