ChargePoint Holdings Inc CHPT shares tanked in early trading on Thursday, after the company reported downbeat second-quarter sales.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

RBC Capital Markets On ChargePoint Holdings

Analyst Christopher Dendrinos maintained a Sector Perform rating while reducing the price target from $3.00 to $2.50.

ChargePoint delivered a revenue miss, although its gross margins were better than expected, driven by "improved hardware margins, cost optimization, and a larger contribution of subscription revs," Dendrinos said in a note.

The company's adjusted EBITDA was also slightly better than consensus, "as a result of continued cost discipline," he added.

Management announced a headcount reduction of another 15%, which should provide around $38 million per year in cost savings, the analyst stated. "Mgmt no longer anticipates reaching breakeven adj. EBITDA by the end of this fiscal year and now estimates this will be achieved in FY2026 (CY2025)," he further wrote.

Benchmark On ChargePoint Holdings

Analyst Mickey Legg reiterated a Buy rating and price target of $3.

ChargePoint reported fiscal second-quarter revenues of $109 million, missing consensus of $113 million, Legg said.

"We believe demand was pushed out in the short-term with a new goal to reach adj. EBITDA positive in calendar 2025, out from fiscal 4Q25 (CY4Q24)," he added.

With management continuing to streamline operations, the company's gross margins expended to 26% in the second quarter, from 24% in the previous quarter, the analyst stated. "New products are expected to launch next year as the current inventory is sold through with full cost efficiencies of Asia production expected in late fiscal 2026," he further wrote.

Check out other analyst stock ratings.

Stifel On ChargePoint Holdings

Analyst Stephen Gengaro reaffirmed a Hold rating and price target of $3.

ChargePoint's quarterly revenue and gross profits of $108.5 million and $25.6 million missed consensus by 4.4% and 6.9%, respectively, Gengaro said.

Management guided third-quarter revenues between $85 million and $90 million, 34% below the consensus of $136.1 million, he added.

"ChargePoint also announced a reorganization of its operations and reduction of its global workforce by 15%, which is expected to create efficiencies and streamlined functionality across the company," the analyst wrote. The company now expects gross margins to expand gradually as the year progresses, "driven by cost downs for its hardware products, an improvement in subscription margin, and increased automation," he further stated.

JPMorgan On ChargePoint Holdings

Analyst Bill Peterson maintained an Overweight rating on the stock.

ChargePoint's second-quarter results were broadly in-line, but third-quarter revenue guidance came in "well below expectations and pushed out its profitability target by several quarters into FY26," Peterson said. The company is likely to continue facing demand headwinds in the foreseeable future, he added.

"Right-sizing and offshoring functions should help drive opex reductions, while improving product design at a lower cost structure should help drive gross margin expansion," the analyst wrote. He expects the stock to remain under pressure until ChargePoint returns to "revenue growth based on an improved market environment and strong competitive positioning."

CHPT Price Action: Shares of ChargePoint Holdings had declined by 16.27% to $1.42 at the time of publication on Thursday.

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