ChargePoint Surpasses Revenue Guidance and Cuts Debt by Over 50%—Gross Margins Reach Record Highs in Q3 FY2026
Strong Revenue Growth and Record Gross Margins Signal Operational Momentum
ChargePoint Holdings, Inc. (NYSE: CHPT) delivered a notably resilient third-quarter for fiscal 2026, as revenue climbed 6% year-over-year to $105.7 million, landing above the upper end of its own guidance. The company also notched its highest-ever non-GAAP gross margin of 33%, driven by healthy growth in subscription revenues and a meaningful shift in its revenue mix.
The company’s GAAP gross margin rose to 31% from 23% a year ago, reinforcing efforts to drive greater profitability even as the EV charging sector remains highly competitive. CEO Rick Wilmer pointed to these numbers as a “return to growth,” highlighting ongoing innovation and strengthened strategic partnerships as core catalysts for continued acceleration.
Subscription Revenue Accelerates, Operating Losses Narrow Significantly
One of the standout metrics this quarter: subscription revenue soared 15% year-over-year, hitting $42 million and signaling the strength of recurring revenue streams in the ChargePoint model. The growing importance of software and service revenues also helped push non-GAAP operating expenses down 2% from a year earlier, reflecting successful cost discipline and operational efficiencies.
The company’s net loss shrank substantially as well. GAAP net loss fell 32% year-over-year to $52.48 million, while non-GAAP pre-tax net loss narrowed by 26% to $30.20 million. ChargePoint’s adjusted EBITDA loss improved even more, down 32% from the same period last year, reaching $19.45 million.
| Q3 FY2026 | Q3 FY2025 | % Change |
|---|---|---|
| Total Revenue: $105.67M | $99.61M | +6% |
| Subscription Revenue: $42.00M | $36.42M | +15% |
| Non-GAAP Gross Margin: 33% | 26% | +7 pts |
| GAAP Net Loss: $(52.48)M | $(77.59)M | -32% |
| Non-GAAP Operating Expenses: $57.46M | $58.60M | -2% |
| Debt Reduction (Post Q3): $172M | - | -52% vs prior debt |
Debt Reduction Enhances Financial Stability
After the quarter closed, ChargePoint executed a transformative debt reduction—cutting $172 million, more than 50% of its outstanding debt, off the balance sheet. This move provides increased flexibility for growth investments and fortifies the company’s ability to weather any potential volatility in the capital markets.
As of October 31, 2025, the company reported cash and cash equivalents of $180.91 million, further reinforcing its liquidity position heading into 2026.
Innovation and Strategic Partnerships Bolster Competitive Edge
ChargePoint launched the new ChargePoint Platform in Q3, its next-gen flexible software for real-time monitoring, performance insights, and dynamic pricing adjustments—aimed at unlocking greater value for both charging station operators and drivers. Meanwhile, another win came via ChargePoint’s latest contract with Sourcewell, expanding public sector reach in both the U.S. and Canada.
CEO Rick Wilmer credited strategic partnerships, especially with Eaton, as critical levers for ChargePoint’s future growth, helping the company position itself at the forefront of the evolving e-mobility ecosystem.
Fourth-Quarter Outlook Remains Robust
Looking forward, ChargePoint guided Q4 fiscal 2026 revenue between $100 million and $110 million—an outlook that underscores confidence in ongoing demand, despite persistent industry and macroeconomic challenges.
Key Takeaway: Strengthened Foundation for Sustainable Growth
With revenue exceeding guidance, record margins, and a sharp reduction in debt, ChargePoint appears well-positioned for continued progress in the competitive EV charging market. As the company continues to scale its subscription model, focus on operating efficiencies, and deepen key partnerships, investors may want to watch whether these improvements translate to sustainable long-term profitability as the EV transition accelerates.
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