ChargePoint (CHPT) spent most of the past two years as a stock few investors wanted.

Then it reported earnings, and sentiment changed quickly.

The electric vehicle charging company beat expectations on both revenue and profit for its second quarter, and traders pushed the shares sharply higher.

ChargePoint sells commercial-grade Level 2 and DC Fast charging stations, and cloud software that allows property owners to manage prices, usage, and energy demand. There are 44,800 physical station locations in the U.S., making its installed base the largest Level 2 commercial footprint in America.

The company’s financial performance is particularly impressive given the broader decline in electric vehicle sales since tax credits disappeared, with U.S. EV sales down 27% from a year earlier in the first quarter of 2026, according to Cox Automotive.

Here is what changed, and what it means if you are weighing the stock today.

Why ChargePoint stock jumped after its second-quarter beat

ChargePoint closed at $5.19 before the September 2 report, then rose for two sessions straight.

Most of the move came on Thursday, September 3, when the shares climbed more than 50%, Proactive reported.

By Friday, they traded near $9.82, up about 74% over five days.

The rally followed second-quarter fiscal 2027 revenue of $116.1 million, up 18% from a year earlier, which topped company guidance and analyst estimates of about $105 million, CNBC reported.

Chief Executive Rick Wilmer told CNBC the jump marks the start of the company’s momentum.

ChargePoint shares surged after the company reported record margins and near-zero cash burn for its second quarter of fiscal 2027.

Cheng Xin / Getty Images

How ChargePoint cut its cash burn to near zero

The bigger surprise was profitability.

ChargePoint reported “essentially zero cash burn” for the quarter and kept about $96 million in cash, according to its SEC release.

Non-GAAP gross margin reached a record 38%, or about 35% without a one-time tariff refund, Investing.com reported.

Its GAAP net loss shrank 46% to $35.6 million, down from $66.2 million a year earlier, and its adjusted net loss fell 72% to $9.2 million.

Higher-margin subscription software revenue rose 10% to $43.7 million, enabling the company to earn more from customers it already serves.

What the bull case for ChargePoint now depends on

Supporters see a genuine turnaround forming.

Reaching near-zero cash burn suggests ChargePoint can fund itself without selling new stock or taking on heavy debt.

On an adjusted basis, its quarterly EBITDA loss reduced to $4.8 million from $22.1 million a year earlier, which management called progress toward breakeven.

Related: EV maker’s biggest ever recall hits 27,000-plus sedans

ChargePoint also highlighted its Express Solo fast charger and expanded corporate partnerships with Mercedes-Benz and Eaton as key drivers of future growth. 

These partnerships directly link ChargePoint’s success to the industry-wide shift toward electric vehicle fleets. 

What still needs to go right

  • Turn one strong quarter into steady positive cash flow.
  • Grow Express Solo into real revenue, not just announcements.
  • Hold record margins once the one-time tariff refund is gone.

Why Wall Street still rates ChargePoint a hold

The firms that follow the company are not convinced.

The six analysts covering ChargePoint rate it a Hold, with an average price target of $7.5, which is below the current price.

ChargePoint’s management also said a temporary rise in home-charging equipment sales drove part of the beat and is unlikely to repeat, Yahoo Finance reported.

How ChargePoint’s rally compares with the wider EV market

The move is even more striking against a weak backdrop.

Cox Automotive reports U.S. EV sales fell 27% from last year during the first quarter of 2026 after the federal tax credit was terminated by the One Big Beautiful Bill Act. Before they were discontinued, those credits gave buyers a $7,500 credit for buying a new EV or a $4,500 credit for buying a used EV.

More EV stocks:

  • Tesla stock investors stand to gain from U.S. power grid
  • Tesla just set a date for its riskiest launch yet
  • Morgan Stanley sends a blunt Tesla message to investors

ChargePoint is up about 40% in 2026, while rivals Rivian and Lucid have struggled this year.

What ChargePoint investors should watch next

ChargePoint remains a high-risk, small-cap stock that can move either way sharply.

For the third quarter, the company guided revenue to $105 million to $115 million, so watch whether it clears the $110 million midpoint.

Steps to consider

  • Size any position for volatility and use money you can afford to lose.
  • Track the Q3 revenue result and any update on positive cash flow.
  • Spread risk across other charging or clean-energy names instead of betting on a single stock

Practical markers like these will tell you more than the next daily price swing.

Related: Top EV executive joins the AI boom. Now what?