Is ChargePoint worth buying while it costs less than $2?

Charging point (CHPT -4.20%) started off with a slew of positives when it reported its fiscal second-quarter 2025 financial results in September. The problem is, when you dig into the details, you find some troubling negatives. And those negatives aren’t likely to go away anytime soon.

If you buy ChargePoint at less than $2 per share, you are betting on an aggressive strategy and believe that this emerging company will overcome significant headwinds.

What does ChargePoint do?

The name ChargePoint is actually pretty descriptive. It’s helping to build the charging infrastructure needed to support the broad adoption of electric vehicles (EVs). It’s addressing a number of different pieces of the puzzle, including industrial charging equipment, charging subscriptions, and the charging technologies people use at home. The company is essentially trying to cover the entire spectrum of EV charging needs.

The company also has a very large presence. Its reach extends not only to North America but also to Europe, where it operates in an additional 16 markets. If you are looking for a way to invest in EV infrastructure, ChargePoint is a pretty interesting way to do so.

And if you were to just look at the bullet points from the company’s fiscal second quarter 2025 earnings report, you’d think things were going pretty well. Some of the highlights include a revenue update, a gross margin update, a commentary on growth (21% year over year!) in subscription revenue, a note on falling costs (down 29%!) and a third-quarter revenue outlook.

However, if you put it in context, there are a lot of negative aspects to it.

ChargePoint’s results weren’t that great

For example, the company highlighted that revenue totaled $109 million, but omitted to mention that that was down from $150 million a year ago. It’s clear that business isn’t booming. And while subscription revenue was up, which is good, a drop in revenue from network charging systems more than offset that positive performance in the quarter. Hence the big overall revenue drop.

To be fair, the gross margin of 24% was actually positive. Interestingly, it continues to trend upwards in this key profitability metric. However, there are a few other factors to consider here too.

For example, cutting costs has been a key goal for the company, she also emphasized. Running a lean and efficient business isn’t bad, but ChargePoint is still in the early stages of growth. Focusing on cutting costs now could ultimately hurt growth prospects.

Then we have the fiscal third quarter 2025 revenue guidance of $85 million to $95 million. This essentially means management is telling investors to expect the top line to weaken even more compared to the second quarter results. It’s no wonder management announced another round of cost cuts when it announced earnings.

That’s a net loss of $68.8 million. That was better than a year earlier, when the company lost $125 million. But it’s hard to get excited about another loss, even if this one represents an improvement. ChargePoint isn’t profitable, and it looks like there’s more red ink ahead, even as management works to cut costs.

Interestingly, R&D alone was greater than gross profit in the second quarter. That’s an expense you really can’t skimp on if you want to keep up with the ever-expanding electric vehicle industry.

Is ChargePoint worth buying at under $2 per share?

For most investors, ChargePoint is a gamble that probably isn’t worth taking. Yes, the company has accomplished a lot. But it has done it in a way that has failed to benefit investors or create credible profits.

The goal seems to be to build scale, but at some point ChargePoint has to make money. Only the most aggressive investors should consider buying this stock below $2. That assessment could change if ChargePoint starts turning a profit, but until then, this stock looks more like a risky gamble than an investment.