Episode Details

ChargePoint (CHPT) Q2 FY2027 — It is up 74% since the print, on the heaviest volume of the year by a distance. ChargePoint carries $236.9M of debt and booked $279 thousand of interest expense for the quarter. That is not an error: November's exchange of $328.6M of convertible notes was accounted for as a troubled debt restructuring, which capitalised the whole future coupon into the balance sheet and stopped interest expense being recognised at all through January 2030. The senior loan still pays 12% on $156.5M - about $4.7M a quarter - and it is being settled in newly issued stock until the option runs out. THE CALL: HOLD (3/5, MODERATE) — base-case value ~$8.77 vs ~$9.04 today. KEY METRICS: - Revenue $116.1M, +17.7% YoY - $6.1M above the top of a guidance range reaffirmed on 31 July - Adjusted EBITDA loss $4.8M vs $22.1M - but $4.6M of it is a tariff refund, so the underlying loss is $9.4M - Non-GAAP gross margin 38.4%; 34.4% with the four-point refund removed, against 33.2% a year ago - Subscription revenue +9.5% to $43.7M, and its gross margin FELL from 61.1% to 58.7% - Six-month operating cash burn $40.8M vs $39.1M - worse, while the net loss improved by $44.5M; inventory released $40.7M - Debt $236.9M against $95.7M of cash; interest expense booked $279K on a 12% coupon worth $4.7M a quarter - Q3 guide $105M-$115M - the midpoint is 5.2% BELOW the quarter just reported What to watch: the Q3 release in December - non-GAAP gross margin at 34% or better with no tariff refund attached, and nine-month operating cash flow that does not need another inventory release Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.