ChargePoint shares jumped more than 70% on Thursday, giving the electric-vehicle charging company one of its strongest trading days in recent years. CEO Rick Wilmer says the sharp rally could be more than a one-day reaction, describing it as “the beginning of the momentum” as the company moves closer to profitability.
The surge came after ChargePoint reported stronger-than-expected second-quarter results for fiscal 2027, with revenue growth and improving margins giving investors fresh confidence in the company's turnaround strategy.
Strong Results Give Investors a Reason to Buy
ChargePoint reported $116.1 million in revenue for the quarter ended July 31, up 18% from $98.6 million a year earlier. The figure was well above the roughly $105.2 million expected by analysts.
The company's adjusted EBITDA loss also narrowed significantly to $4.8 million, compared with a $22.1 million loss during the same period last year. Gross margin improved to 36%, while subscription revenue increased 10% to $44 million.
The results suggest that ChargePoint's efforts to control costs while investing in new products are beginning to show up in its financial performance.
CEO Sees Growth Accelerating
Wilmer believes the company is entering an important stage of its three-year turnaround plan.
He said ChargePoint has now delivered four consecutive quarters of year-over-year revenue growth, with the latest results showing signs that growth could accelerate further. The CEO pointed to new charging hardware, software and technology as key drivers of the company's next phase.
ChargePoint is also expanding its faster charging products in the U.S. and Europe, while using artificial intelligence to improve charging experiences and increase operational efficiency.
Profitability Is Getting Closer
Despite the strong stock reaction, ChargePoint is not yet profitable. However, the company has made considerable progress in reducing its losses.
Wilmer has said ChargePoint is approaching positive EBITDA, although the company has not provided a specific date for when it expects to reach profitability. The narrowing losses are nevertheless becoming an important part of the investment story.
The company is also nearing the end of its three-year business plan, which has focused on improving efficiency, reducing cash burn and strengthening its product portfolio.
EV Charging Market Faces Its Own Challenges
ChargePoint's recovery comes at a complicated time for the broader EV industry. Demand for electric vehicles has not grown as quickly as some earlier forecasts predicted, while changes to government incentives have created additional uncertainty for automakers and charging companies.
Still, Wilmer argues that demand for charging infrastructure remains strong, particularly as businesses and fleets continue to move toward electrification.
Unlike companies that operate their own charging networks, ChargePoint primarily sells charging hardware, software and services to businesses and other organizations. That model allows the company to benefit from growing charging demand without having to own and operate every charging location itself.
Can the Stock Rally Last?
The biggest question for investors now is whether ChargePoint can turn the latest excitement into sustained growth.
A more than 70% one-day gain dramatically changes market expectations, putting greater pressure on the company to continue delivering stronger revenue, improving margins and reducing losses.
For now, Wilmer believes the rally is only the start. If ChargePoint can maintain its recent operational improvements and move closer to profitability, the company could have an opportunity to rebuild investor confidence after several difficult years.
The next few quarters will show whether Thursday's dramatic stock move was simply a reaction to a strong earnings report, or the beginning of a much bigger turnaround for the EV charging company.
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