ChargePoint's Q4 2025: Contradictions in Inventory, Competition, and Demand Trends Uncovered

These are the key contradictions discussed in ChargePoint's latest 2025 Q4 earnings call, specifically including: Inventory Strategy, Competitive Landscape, and Permitting Challenges:



Improved Financial Performance:
- ChargePoint reported revenue of $102 million for Q4, above the midpoint of their guidance range, with subscription revenue increasing 14% year-on-year to $38 million.
- The improvement was driven by operational excellence, rationalization of cost structure, and a focus on operational efficiency.

Gross Margin and Operating Expense Improvement:
- ChargePoint's non-GAAP gross margin increased to 30% in Q4, up 8 percentage points year-on-year.
- Non-GAAP operating expenses were reduced to $52 million, down 42% from the high point of $89 million in Q2 of fiscal year 2025.
- These improvements were due to better hardware margins, higher subscription revenue, and reduced inventory levels.

Cash Management and Balance Sheet Strengthening:
- ChargePoint's ending cash balance was up by $5 million from the end of Q3, with cash consumption significantly reduced compared to last quarter.
- Cash used for operating activities declined to $3 million in Q4, down from $31 million in Q3.
- This was attributed to improved working capital management, lower operating expenses, and better inventory control.

EV Adoption and Charging Demand:
- Global EV sales volume set a record in 2024, with North America up 9%, and Europe, including the UK, up 21% in January 2025.
- ChargePoint delivered approximately 27 million charging sessions in the fourth quarter.
- The growth in EV sales and charging sessions is driven by improved vehicle selection and price points, as well as the superior performance of EVs compared to internal combustion vehicles.