[Management View]
Total Revenue: $98 million for Q1 FY2026, in line with company guidance.
Non-GAAP Gross Margin: 31%, a non-GAAP improvement of one percentage point sequentially and seven percentage points year over year.
SaaS Subscription Gross Margin: Achieved a record 60% on a GAAP basis.
Adjusted EBITDA Loss: $23 million non-GAAP adjusted EBITDA loss, compared with a $17 million loss in the prior quarter and a $36 million loss in the first quarter of last year.
Network Charging Systems Revenue: $52 million, representing 53% of total revenue, almost flat sequentially despite Q1 typically experiencing a seasonal dip and down 20% year on year.
Subscription Revenue: $38 million in subscription revenue, or 39% of total revenue, essentially flat sequentially and up 14% year on year.
Other Revenue: $8 million, or 8% of total revenue, down 31% sequentially and down 8% year on year, mainly due to lower one-time project revenue.
Geographic Mix: North America represented 85% of revenue, and Europe was 15%, with European revenue down mainly due to weakness in Germany.
Billings Mix by Vertical: Commercial 71%, fleet 13%, residential 12%, and other 3%.
Inventory: Inventory balance increased by $3 million due to FX impacts, but inventory units decreased across most products as sell-through continued.
Ending Cash Balance: $196 million in cash on hand, with access to a $150 million undrawn revolving credit facility.
Charging Ports Under Management: Over 352,000 total under management, including more than 35,000 DC fast chargers and over 122,000 ports in Europe.
Roaming Partnerships: Enabled access to more than 1.25 million charging ports globally.
New Product Announcements: Introduction of a theft-resistant charging cable and a new AC hardware architecture, with the latter targeting lower cost and improved margins.
Eaton Partnership: Announced collaboration with Eaton to deliver integrated EV charging and power management solutions, with initial co-developed products set for announcement in September.

[Outlook]
Q2 Revenue Guidance: Expected revenue in the range of $90 million to $100 million.
Operational Focus: Continued emphasis on gross margin expansion, cost management, and achieving adjusted EBITDA positivity in a quarter during FY2026.

[Financial Performance]
Revenue: $98 million, within guidance range.
Non-GAAP Gross Margin: 31%, up one percentage point sequentially and seven percentage points year over year.
Adjusted EBITDA Loss: $23 million, compared to $17 million loss in prior quarter and $36 million loss in Q1 FY2025.
Network Charging Systems Revenue: $52 million, flat sequentially, down 20% year over year.
Subscription Revenue: $38 million, flat sequentially, up 14% year over year.
Other Revenue: $8 million, down 31% sequentially, down 8% year over year.

[Q&A Highlights]
Question 1: With this Eaton partnership and the new AC product, can you talk about the pipeline of activity and how we should think about a return to growth on the top line for the new systems?
Answer: There are a variety of forces at play, some positive, some causing caution. Macroeconomic conditions, tariffs, and conservative customer spending are headwinds. However, the Eaton partnership is expected to drive incremental growth, with full operationalization anticipated by fiscal Q3.

Question 2: Is Eaton able to help you get into incremental geographies where you have not been operating to date? How should we think about the potential for opportunities in Central South America, other parts of North America, and places like Australia?
Answer: Eaton has the capabilities to help with geographic expansion. Currently, the focus is on North America and Europe, where there is plenty of TAM to address. The possibility exists to penetrate new markets through the partnership.

Question 3: On the cadence of inventory reduction, should we think about low single-digit millions, mid-single-digit millions of inventory consumption on a quarterly basis? What is the right target for inventory on an ongoing basis?
Answer: Inventory balance depends on factors like sell-through and production mix. A gradual reduction is expected, with a more meaningful reduction in the second half as revenue grows.

[Sentiment Analysis]
Analysts: Cautiously optimistic, focusing on the potential of the Eaton partnership and new product launches to drive growth.
Management: Confident in strategic initiatives, emphasizing innovation, partnerships, and operational efficiency.

[Quarterly Comparison]
| Metric | Q1 FY2026 | Q4 FY2025 | Q1 FY2025 |
|-------------------------------|-----------|-----------|-----------|
| Total Revenue | $98M | $95M | $85M |
| Non-GAAP Gross Margin | 31% | 30% | 24% |
| Adjusted EBITDA Loss | $23M | $17M | $36M |
| Network Charging Systems Rev. | $52M | $52M | $65M |
| Subscription Revenue | $38M | $38M | $33M |
| Other Revenue | $8M | $11M | $9M |

[Risks and Concerns]
- Macroeconomic conditions and tariffs impacting customer spending.
- Uncertainty around policies supporting electrification, particularly in the US.
- Potential headwinds from deterioration in macro conditions.

[Final Takeaway]
ChargePoint Holdings, Inc. reported stable Q1 FY2026 financial performance, with revenue and margins in line with guidance. The company is focused on strategic partnerships, particularly with Eaton, and new product innovations to drive future growth. Despite macroeconomic headwinds, management remains confident in achieving adjusted EBITDA positivity within the fiscal year. The Eaton partnership and new AC hardware architecture are expected to provide significant growth opportunities, positioning ChargePoint to capitalize on the expanding EV market.