America may run on Dunkin’, but electric vehicles rely on charging stations—and ChargePoint has been one of the leaders in that space. With over 1 million charging ports across North America and Europe, they’ve been serving big-name customers like Best Western and LinkedIn. When they went public in February 2021, there was a lot of excitement, especially with investments from BMW and Vanguard. But since then, things haven’t exactly gone as planned. The company has hit more than a few challenges, and it’s safe to say they’re struggling.

ChargePoint’s stock has taken a big hit, down 38% just this year and an unbelievable 97% since its peak in 2020. Their most recent earnings call for investors was like a zoom meeting where somebody forgot to wear pants and stood up. And to make things even worse, revenue dropped by 28% to $108.5 million, missing analysts' estimates. Even though they managed to narrow their net loss, the stock still tanked to an all-time low. 

It gets worse: ChargePoint has been up against some fierce competition. Think Tesla's Superchargers, which are faster and more widespread, and other contenders like Blink. ChargePoint’s bread-and-butter Level 2 chargers just don’t pack the same punch. While their subscription revenue (32% of total) grew by 24%, their network charging-systems revenue (60% of total) dropped by 39%. The company's growth has basically come to a screeching halt.

ChargePoint’s troubles feel less like a quick fix and more like a company struggling to figure out who it really is. With 15% of its workforce recently shown the door—on top of two previous rounds of layoffs—they’re cutting deep in an effort to stay afloat. The goal? Slashing costs and aiming for positive adjusted EBITDA by fiscal 2026. It’s clear they’re operating in crisis control mode now.

I hate to keep hammering this point, but things don’t look too great for ChargePoint unless they pull off some major turnaround. They’re even bracing for another revenue dip in the third quarter, somewhere between 14% and 23% lower than last year. Sure, Wall Street is still hopeful, throwing out predictions like a 29% revenue boost by fiscal 2026, but let’s be real—they’ve missed these hopeful targets more than once. This is their sixth straight year of losses, and last year? $236 million in the red. That’s rough.

The real concern here is the money drain. ChargePoint’s finances are leaking faster than a busted pipe, and plugging the holes doesn’t seem to be happening anytime soon. With a debt-to-equity ratio of 3.3, they’re carrying some serious baggage. On top of that, insiders have been offloading shares at three times the rate they’ve been buying them over the past year. If the people on the inside aren’t sticking around for the long haul, it doesn’t exactly scream confidence, does it?

ChargePoint is throwing a lot at the wall in hopes something sticks for profitability. Selling hardware alone doesn’t cut it—it’s a one-time hit with no long-term cash flow. So, they’ve turned to another idea: digital ad screens at their charging stations. The goal? Capturing some advertising dollars while drivers are stuck waiting for their cars to charge, offering prime ad space to brands hoping to grab consumers’ attention. But so far, the idea hasn’t paid off as expected.

So, should you jump ship on ChargePoint? It’s a tough call. They’ve got some serious hurdles ahead: declining revenue, stiff competition from Tesla’s growing Supercharger network, and a cash burn rate that’s alarming, to say the least. Their debt-to-equity ratio sits at 3.3, making their financials as wobbly as a house of cards. Inflation isn’t doing them any favors either, driving up costs just as they’re trying to cut back. Still, they’ve got over 240,000 activated charging ports across their network, which gives them scale that smaller competitors can’t touch.

Forget about ChargePoint for a second—there’s an even bigger opportunity brewing right now that could be on the cusp of something massive. 

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Stocks.News holds a position in ChargePoint, Vanguard and Tesla.