Sep 2, 2026 earnings call — Express Solo launch and record margins
ChargePoint reported revenue of $116 million, set record gross margins and began shipping Express Solo early access units.
Revenue $0.1B (est $0.1B) · EPS $-1.35 (est $-1.57) · Next-quarter revenue outlook $0.1B
Key quotes
"We also began shipping early access units of Express Solo, which is the first product based on what we consider to be the fastest, most advanced DC charging architecture ever developed."
"Non-GAAP gross margin was 38%, up 7 percentage points sequentially and up 5 percentage points year-over-year. Results included approximately $4 million of tariff refunds recognized as a one-time reduction to cost of goods sold."
"A critical recent addition to our team is John Saffrett, who has joined ChargePoint as Executive Vice President and Managing Director of Europe."
Analyst Q&A 6
Margins and product development timing
Q (Colin Rusch · Oppenheimer): Analyst asked how sustainable recent margin gains are and what drives them. He also asked about the cadence and timing of future product launches.
A: Management said normalized margins are about 35%, driven mostly by better hardware margins and some subscription economies of scale. They said improvements came from scale, lower warranty and freight costs, and selling more higher-margin AC products; margins should stay around this normalized level but could move a point if mix shifts. They also said product innovation will continue, with Express Solo variants going into production over the coming 1.5 years and more product updates across the portfolio.
"So overall, on a normalized basis, margins improved to 35%, and this is mostly due to the improvement in hardware margins." — Mansi Khetani (CFO)
Customer refresh cycles and cash flow
Q (Christopher Dendrinos · RBC): Analyst asked how much sales are refreshes versus expansions and when refresh activity may start. He also asked whether cash flow should improve for the rest of the year as inventory declines.
A: They said the model is largely land-and-expand, so most billings are from existing customers expanding, with some refresh but the installed base is not very old; they are also adding new fleet and commercial customers in Europe. On cash flow, they said inventory is expected to keep coming down and will release cash; inventory declines funded the quarter's EBITDA loss and capex, helped produce essentially 0 cash usage, and this trend supports progress toward cash-flow breakeven and possible positive cash flow later in the year, though many variables remain.
"So it's difficult to say with certainty, but we're confident overall that inventory is going to continue to come down and that is going to continue to release cash." — Mansi Khetani (CFO)
Asian manufacturing and home charging sales
Q (Christopher Pierce · Needham): Analyst asked if the shift to Asian manufacturing is still expected to drive higher-margin equipment sales. He also asked whether higher home charging sales were in Europe and if that could be upside.
A: They said the transition to Asian manufacturing is fully executed and those lower-cost manufacturing benefits are now moving through the P&L, contributing to better margins; future product designs are very cost focused and should add margin benefit. They said the higher home charging sales in Q2 were all in North America, are lumpy around big sale days (Prime Day, Black Friday), and are not expected to repeat in Q3; other Q2 revenue drivers included professional services and regulated credits. On adjacent markets for Express Solo, management did not give details and asked investors to "stay tuned."
"Yes. I think we've largely executed our transition to Asian, it's fully executed, in fact, Chris." — Richard Wilmer (CEO)
AI impact on costs and margin path to 40%
Q (Itay Michaeli · TD Cowen): Analyst asked how AI initiatives reduced OpEx now and going forward. He also asked what needs to happen to move gross margins from about 35% toward 40%.
A: They said AI-driven business process automation has reduced OpEx by letting them do more with fewer people and repurpose staff into higher-value roles, and they have doubled software engineering productivity. AI is also reducing live support needs and enabling a flatter organization and faster decision-making. For gross margin expansion, drivers include services, software pricing changes this year, and most importantly the fundamentally lower cost structure of new hardware platforms like Express Solo.
"We've also now doubled our productivity on the software engineering side." — Richard Wilmer (CEO)
Tariff refund impact and guidance
Q (Craig Irwin · ROTH Capital Partners): Analyst asked how much tariffs and refunds helped gross margin in the quarter and whether similar refunds are assumed in current guidance.
A: They said they received tariff refunds this quarter and the majority, about $4.2 million, was recorded in Q2 as a one-time reduction to cost of goods sold. Non-GAAP margins were 38% in Q2, but removing the $4.2 million refund gives a normalized 35% margin; they said there is little refund remaining and the guidance does not assume further tariff refunds. When asked to confirm, management agreed that tariff benefit should reduce going forward while fundamental product and margin improvements continue.
"We saw -- we got a refund this quarter and majority of that which is about $4.2 million was reflected in Q2's numbers as a onetime reduction to cost of goods sold." — Mansi Khetani (CFO)
Express Solo ramp and supply chain risks
Q (Ryan Pfingst · B. Riley): Analyst asked how Express Solo early access shipments will ramp in coming quarters. He also asked about any supply-chain risks as they scale.
A: They said production is starting now and they are fulfilling backlog with early access units; units are installed locally and at an Eaton innovation center, and additional early access shipments are going out almost every week or every other week, with production inventory available in fiscal Q4. On supply chain, they said they have it under control despite AI-driven memory price increases and silicon carbide demand; they have strong partnerships and supply commitments and feel confident they can cover current demand.
"And additional shipments are going out now almost every week or every other week of these early access units and then we ramp into production starting now with production inventory available in our fiscal Q4." — Richard Wilmer (CEO)