TLDR
- CHPT shares drop 17% to $10.00 after a 1-for-20 reverse split
- Reverse split aims to maintain NYSE listing compliance
- Q1 FY26 revenue declined 9% to $98 million, missing expectations
- UBS, Goldman, and Oppenheimer maintain cautious outlook
- Financial health remains weak with declining year-over-year performance
ChargePoint Holdings Inc. (NYSE:CHPT) saw its stock plunge 17.14% to $10.00 as it implemented a 1-for-20 reverse stock split on Monday.
ChargePoint Holdings, Inc. (CHPT)
The split, effective as of 12:01 a.m. ET, was initiated to raise the stock price and retain compliance with the NYSE’s minimum price requirement. The company’s ticker remains CHPT, though it now carries a new CUSIP number, 15961R 303.
This reverse split was approved by shareholders at the July 8 Annual Meeting, where they authorized a ratio between 1-for-2 and 1-for-30. The final ratio of 1-for-20 was decided by the Nominating and Corporate Governance Committee. ChargePoint emphasized that this change will not alter shareholders’ percentage ownership except in cases involving fractional shares, which will be settled in cash.
ChargePoint Announces
Reverse Stock SplitYikes. pic.twitter.com/Xenb8EvpVW
— Pete Balls to the wall FSD 🤖🚕 (@kylaschwaberow) July 28, 2025
Q1 FY26 Earnings Miss and Financial Strain
ChargePoint reported its fiscal Q1 2026 results, revealing a revenue of $98 million—down 9% from the previous year and below Wall Street’s forecast of $101 million. The company’s non-GAAP EBITDA loss stood at $22.8 million, higher than the anticipated $18.6 million. These results highlight the ongoing financial pressure facing the electric vehicle charging network provider.
The company’s guidance for Q2 revenue ranges between $90 million and $100 million, which falls short of analysts’ expectations of $108 million. With continued cash burn and declining revenues, the firm is under scrutiny from investors and analysts.
Analyst Ratings and Strategic Outlook
UBS maintained a Neutral rating on CHPT with a price target of $0.65, citing broader-than-expected losses and weaker forecasts. Goldman Sachs reaffirmed a Sell rating with a $0.50 target, pointing to the disappointing financials. Oppenheimer kept a Perform rating, recognizing ChargePoint’s strategic partnership with Eaton, which may help generate additional sales growth moving forward.
ChargePoint was founded in 2007 and now offers access to over 1.25 million charging ports across North America and Europe. Despite a current ratio of 1.82, reflecting short-term liquidity, its overall financial health remains poor according to InvestingPro analysis.
Shareholder Adjustments and Communication
For those holding CHPT shares through brokers, the reverse split will be processed automatically in line with broker protocols. Registered shareholders will receive detailed information from Continental Stock Transfer & Trust Company about their adjusted holdings.
The reverse split does not affect the voting or dividend rights of shareholders, though it may limit liquidity and increase volatility. The company’s decision reflects a need to stabilize its trading status while navigating tough financial terrain.
