ChargePoint's 2026 Q1 Earnings Call: Key Contradictions on Inventory, Revenue Growth, and Market Strategy

Inventory reduction and revenue growth expectations, competitive landscape and market dynamics, EBITDA breakeven timeline, international expansion and partnership with Eaton are the key contradictions discussed in ChargePoint's latest 2026Q1 earnings call.



Revenue Performance and Margin Improvement:
- ChargePoint reported revenue of $98 million for Q1 FY2026, within its guidance range.
- Non-GAAP gross margin reached a new high of 31%, with gas subscription gross margin at a record 60%.
- The margin improvement was driven by the strength of the SaaS-focused business model and operational efficiencies.

Product Innovation and Partnerships:
- ChargePoint announced a partnership with Eaton, one of the world's largest intelligent power management companies.
- This partnership aims to deliver integrated EV charging, electrical infrastructure, energy management, and engineering services.
- The collaboration is expected to drive incremental revenue growth and expand ChargePoint's reach globally.

EV Market Dynamics and Market Share Opportunities:
- EV adoption continued on a steady upward trajectory in North America and Europe.
- The European Green Deal mandating all new cars to be zero-emission by 2035 supports EV adoption momentum.
- The recent voluntary exit of major players in the market presents opportunities for ChargePoint to gain market share.

Inventory Management and Cash Position:
- ChargePoint ended Q1 with $196 million in cash on hand, with access to a $150 million revolving credit facility.
- Inventory balance increased by $3 million to $212 million, but a decrease in inventory units was noted across most products.
- The company aims to gradually reduce the inventory balance throughout the year as revenue growth increases.