Blink Charging Co. Common Stock 2026 Q2 Earnings Call

Thank you, operator, welcome to Blink's second quarter 2026 earnings call. With us today, we have Mike Battaglia, President and CEO, Michael Bercovich, Chief Financial Officer. Today's discussions will include references to non-GAAP measures. These are reconciled to the most comparable U.S. GAAP numbers in the appendix of our earnings deck. You may find the deck, along with the rest of our earnings materials and other important content on Blink's investor relations website. Today's discussions may also include forward-looking statements about our expectations. Actual results may differ from those stated, the most significant factors that could cause results to differ are included on page two of the second quarter 2026 earnings deck. Unless otherwise noted, all comparisons are year-over-year. Regarding our calendar, Blink will participate in the H.C. Wainwright 28th Annual Global Investment Conference on September 14 and 15 in New York City.

For additional events, please follow our press releases and Blink's investor relations website. I will now turn the call over to Mike Battaglia, President and CEO of Blink Charging. Please go ahead, Mike. All right.

Thanks, Vitalie. Good afternoon, everyone, thank you very much for joining us. I'd like to set the stage for today's call by highlighting two achievements that exemplify the transformation at Blink. First, we narrowed our adjusted EBITDA loss to just $2.2 million this quarter, compared to a loss of $7.9 million in the second quarter of last year, representing a 72% improvement. Second, our GAAP gross margin was a strong 38.9%. That is a 2,200 basis point year-over-year increase or an improvement of $3.6 million on a lower revenue base. Together, these two data points demonstrate that the plan we communicated and put in place at the beginning of this year is working and moving Blink decisively toward our goal of exiting 2026 at approximately breakeven.

We'll come back to both of these data points in more detail in a few minutes, I wanted to begin here as the rest of the call will reinforce these key points. The restructuring work is behind us, you are seeing the company we committed to build. Leaner, more focused, and making deliberate decisions that prioritize quality of revenue, margin expansion, and profitability. Total revenue of $21.7 million was up 4.3% sequentially, we were encouraged to see product sales grow 20% from the first quarter. We also completed the divestiture of Envoy Technologies on June 5th, while it impacted the top line in the second quarter, it reinforces our commitment to focusing resources and capital on optimizing the core business. With every customer contract renewal, we evaluate the economics and execute only when the terms work for Blink. Otherwise, we walk away. The result is a higher quality revenue base as evidenced in margin performance.

Again, GAAP gross margin of 38.9% this quarter compared to 16.8% in Q2 of last year. This sends a clear message. Our plan is working. Turning to slide six. Market conditions within the U.S. electric vehicle market are strengthening, which underpin the fundamentals of our business. Used EV sales are robust as mainstream buyers consider alternatives to gasoline-powered vehicles in an environment of elevated global fuel prices. Similarly, in Q2, new battery electric vehicle sales demonstrated growth over Q1, reflecting steady market recovery since the discontinuation of the EV tax credit, this is exactly what we were expecting. Consumers are choosing the predictability of charging costs associated with electricity over the spikes and fluctuations of geopolitically driven gas prices. Plug-in hybrids serve as the on-ramp, transitioning drivers toward full battery-powered EV ownership.

New sales have also been showing global resiliency with Europe hovering at a 17.5% penetration rate of new vehicles sold, benefiting our businesses in the U.K. and Belgium. Importantly for us, infrastructure perception remains the number one barrier to buying an EV. That gap between the customer's perception today and when they're going to feel comfortable with infrastructure availability is the opportunity for Blink. We own and operate infrastructure, we are building into those perception gaps. On slide seven is the business model transformation that is driving margin expansion. By 2028, we are targeting repeat and recurring revenue streams to account for approximately 80% of total revenue, with hardware sales comprising the balance. We achieve this with a deliberate plan that progresses through various stage gates, from raising capital to site pipeline generation, to construction and deployment, and finally to owned and operated cash-generating DC fast charging assets.

Recurring revenue drives predictability, this transition drives structural margin expansion. Moving to slide eight, our DC fast charging build-out plan totals 25 sites and 118 stalls, funded by the equity raise we completed in December of last year. We expect to have nearly all of those sites built by the end of 2026. This would bring our total DC charger footprint to about 169 sites, representing 519 stalls by year-end. Slide nine is a visual representation of where we're headed. This is a concept of one of our future DC fast charging sites. They're fast, incorporate energy management technologies, are located in high-density locations where people live, work, and play. Turning to slide 10, we highlight Blink's focus on innovation. This month, we are launching Energy Connect, our new energy management platform. This marks an important evolution for Blink.

EnergyConnect is an AI-driven energy management system that will eventually be live across our DC fast charging and Level 2 networks. In simple terms, it transforms charging sites into a smarter, more valuable energy asset as it addresses four key areas for us and our site hosts. First, real-time load monitoring. We can see actual power draw against configured limits at every site. Second, automated load balancing. The system distributes power intelligently phase by phase. Third, demand charge mitigation. Scheduled load limits reduce or eliminate expensive peak hour utility charges. Fourth, it lets us grow without underlying infrastructure upgrades. We can add more chargers on the electrical service already in place. These capabilities save us future OpEx and CapEx dollars. This is a platform, not a feature, and it's live today.

In the first half of 2027, we will bring battery storage under EnergyConnect control, unlocking peak shaving and electricity arbitrage. Beyond that, it's the foundation for aggregating and monetizing distributed energy through a virtual power plant and participating in grid services. This marks our progression from a pure charging company into a broader energy company, with EnergyConnect serving as the operating system that powers it. With that, I'll turn it over to Michael Bercovich, our Chief Financial Officer, to review the financials in more detail, and then I'll circle back at the end of the call with concluding remarks.

Michael? Thank you, Mike, and good afternoon, everyone.

Q2 2026 is a quarter where the numbers validate our plan. Margins are expanding as revenue quality improves. Our structural cost realignment is delivering tangible results. Costs are recentered and controlled, operating leverage is expanding, and adjusted EBITDA loss has reached a multi-year low as we drive the business towards sustained profitability. The balance sheet gives us the flexibility to invest in DC fast charging network and fund expansion with efficient capital. Let me walk you through the details, beginning with the selected financials on slide 12. Q2 2026 total revenues were $21.7 million, compared to $28.7 million in Q2 of 2025. Let me provide some context for this and also underlying story. As we communicated previously, Blink is prioritizing quality of revenue over quantity.

From time to time, Blink renews contracts and commercial agreements. With every renewal, we are evaluating profitability expectations. If it doesn't fit, we walk away, which explains some of this reduction. We also completed the divestiture of Envoy Technologies, which sharpens our focus on the core EV charging business and supports additional improvements in our EBITDA profile. Product revenues were $7.4 million compared to $14.5 million in the second quarter of last year. This decline reflects deliberate strategic decisions. While some participants in the industry continue to prioritize top-line growth at the expense of margins, we remain focused on profitable growth, higher margin opportunities, and disciplined deal selection. We believe this strategy positions Blink for stronger long-term shareholder value creation. Service revenue, which includes repeatable charging revenues and recurring network fees, grew 6.2% year-over-year to $11.5 million, compared to $10.8 million in Q2 of 2025.

This is the growth engine for Blink, both from a revenue and margin perspective. Further, with our ongoing margin optimization efforts, we are experiencing margin expansion. We will address this in more detail momentarily. Other revenues, which consist of warranty fees, grants and rebates, and other revenue items, were $1.9 million in the second quarter compared to $2.3 million in the prior year period. Car-sharing revenues were $0.8 million, a decrease of 25.9% compared to prior year period, primarily attributable to the Blink strategic divestiture of Envoy Technologies on June 5th, 2026. For modeling purposes, Envoy's last 12 months revenues were $4.7 million, and they will not be recurring. As a reminder, starting the fiscal year 2026, we have redefined our non-GAAP metrics to align with peers and industry practices.