Blink Charging Co.

Good afternoon, ladies and gentlemen, and welcome to the Blink Charging Co., Second Quarter 2026 Earnings Call.

All lines have been placed on a listen-only mode, and the call will be open for questions and comments following the management presentation. At this time, it is my pleasure to turn the call over to Vitaly Stolyan.

Thank you, Operator, and welcome to Blink's Second Quarter 2026 Earnings Call. With us today, we have Mike Battaglia, President and CEO, and 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 and 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, Blaine 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, Vitaly. Good afternoon, everyone, and thank you very much for joining us. So 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. And second, our GAAP gross margin was a strong 38.9%. That is a 2200 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 blank decisively toward our goal of exiting 2026 at approximately break even. We'll come back to both of these data points in more detail in a few minutes. but I wanted to begin here as the rest of the call will reinforce these key points. The restructuring work is behind us and 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 and we were encouraged to see product sales grow 20% from the first quarter. We also completed the divestiture of Envoy Technologies on June 5th. And while it impacted the top line in the second quarter, it reinforces our commitment to focusing resources and capital on optimizing the core business. And with every customer contract renewal, we evaluate the economics and execute only when the terms work for blank, 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. Now 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. And 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. And 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 UK 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 blank. We own and operate infrastructure, and 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 and 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, and 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, this month, our new energy management platform. This marks an important evolution for Blink. Energy Connect 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. And 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. And this is a platform, not a feature. and it's live today. In the first half of 2027, we will bring battery storage under Energy Connect control, unlocking peak shaving and electricity arbitrage. And 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 Energy Connect serving as the operating system that powers it. So 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 resettling control, operating leverage is expanding, and adjusted EBITDA loss has reached a multi-year low as we drive the business towards sustained profitability. And the balance sheet gives us the flexibility to invest in DC fast charging networks 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, and with every renewal, we're 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 the strategy positions blink for stronger long-term shareholder value creation. Service revenue, which includes repeatable charging revenues and recurring network fees, grows 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're 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 second quarter compared to $2.3 million in 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. You can see the definitions of these metrics in our earnings press release as well as in the appendix section of this presentation. The main difference is that we exclude non-cash share based compensation, other non-recurring items, as well as depreciation and amortization to better present the fundamental direction of our business. So let's get to it. GAAP gross profit in Q2 was $8.4 million or 38.9% of revenues compared to gross profit of $4.8 million or 16.8% of revenues in Q2 of 2025. That is 75% improvement in gross profit dollars on lower revenue and more than 2200 basis points of margin expansion. The gross margin percentage exceeded our expectations. Driven by disciplined portfolio optimization, the shift to contract manufacturing and improved revenue mix. On a non-GAAP basis, adjusted gross margin was a robust 47.9%. The fundamentals of our business are stronger than ever. Our focus on higher quality revenue, disciplined portfolio management, contract manufacturing optimization, and a richer mix of repeat, recurring, and higher margin revenue streams continues to enhance our margin profile. These are sustainable improvements that we expect to support further profitability as the business grows. Turning to operating expenses, total operating expenses in Q2 were $14.7 million compared to $34.4 million in Q2 of last year, a 57% reduction year-over-year. This reflects the successful execution of our Blink Forward transformation initiative and the completion of the restructuring actions over the past year. Importantly, those are structural, not temporary improvements. We have right-sized organization, streamlined our cost structure and instilled greater discipline across G&A and compensation spending and we continue targeting more. As a result, Blink is operating as a leaner, more focused and more efficient organization that is well-positioned to drive profitable and predictable growth. Compensation expenses were $8.4 million, down 39% from $13.8 million in Q2 2025, reflecting the benefit of our headcount reductions. G&A expenses were $1.8 million, down from $7 million in prior year quarter, and other operating expenses declined to $4.1 million from $6.7 million as our cost optimization efforts continue to compound across the organization. Gap net loss for Q2 was $6 million or $0.04 loss per diluted share compared to a net loss of $29.3 million or $0.28 loss per diluted share in Q2 of last year. That's an improvement of over $23 million in reduced net loss. Adjusted EBITDA for the second quarter of 2026 was a loss of $2.2 million compared to an adjusted EBITDA loss of $7.9 million in Q2 of last year. That is a 72% improvement, and it gets us closer to achieving profitability. Turning to our balance sheet and cash position, we ended Q2 with cash and cash equivalents of approximately $34 million. They sell outstanding is now below 80 days, demonstrating the continued impact of enhanced working capital practices and refined liquidity management. For the first six months of 2026, net cash burn was approximately $5.6 million compared to $30.1 million in the same period last year, an improvement of approximately $24.5 million. Tighter financial management across the business gives us the flexibility to invest in our future DC fast charging network. As we scale this infrastructure, we expect our cash burn to increase to support future repeatable cash flows from charging assets. Regarding the business outlook, I'd like to provide an update across three key areas.

Number one, revenue.

We are revising our full year 2026 revenue guidance to between $83 million to $90 million from $105 to $115 million previously. Here is why. With the focus on revenue quality, the envoy divestiture, and other commercially disciplined decisions, we are consciously choosing to run a leaner and more focused company. The emphasis is on the durable profitability and not just the top line for the sake of the top line. Our updated guidance reflects thoughtful strategic choices, not the change in our confidence or long-term opportunities. While these actions reduce revenue in the short term, they improve overall business performance and financial health. Number two, gross margins. We are raising our full-year gross margin outlook to approximately 38% on a GAAP-reported basis from approximately 35% previously. The drivers are well-understood, disciplined portfolio optimization, selective renewal of contracts, contract manufacturing efficiencies, an improved revenue mix, and increased utilization of our own charging assets. Lastly, number three, path to profitability. We anticipate a further reduced adjusted EBITDA loss in the second half of the year as we continue business optimization efforts. We recognized early that long-term success in this industry requires more than revenue growth. It requires a sustainable business model. Over the past year, we have focused on making the right decisions, not always the easiest ones, in order to build a stronger company. We believe that progress we have made reflects this discipline and we committed to continue to execute with the same focus going forward. And we choose to confront market challenges head on rather than wait for the markets to solve them for us. I will now turn back to Mike to wrap it up. Go ahead, Mike.

All right. Thanks, Michael. So the second quarter of 2026 was about broad execution and the results reflect that. At Blink, we are believers in intense focus and management accountability. We want to concentrate on the core, build the core, and do what we do best. As we move through the remainder of 2026, our focus is on deploying capital, scaling the DC fast charging network, deploying energy management capabilities through Energy Connect, and building a business that generates durable, repeatable revenue and reaches adjusted EBITDA breakeven in the fourth quarter. We have accomplished the hard structural adjustments. Now we are scaling what works. I want to close by highlighting a few milestones and notable achievements in Q2. Number one, GAAP gross margin of 38.9% up from 16.8% a year ago. Quality of revenue is performing. Secondly, revenue up 4.3% sequentially. The business is stabilized. Third, Adjusted EBITDA loss improved 72% year-over-year. The cost structure is right. And fourth, $34 million in cash and day sales outstanding at about 80 days for the second straight quarter. Our balance sheet gives us options. As a result of these achievements, we are targeting to exit 2026 at approximately break-even profitability. In 2027, we expect to return to revenue growth with a positive full-year adjusted EBITDA driven primarily by charging and energy services and increasing the repeatable and predictable revenue mix. We expect to provide formal 2027 guidance alongside our 2026 year-end results. And overall, since I became CEO, I've been clear about what Blink will do. Build a company with fundamentally sound financials, operate with discipline, and scale profitably over time. Every quarter, the results move in that direction. So I would like to extend a thank you to the Blink team for their continued focus and execution. And I would like to thank our customers and drivers who rely on Blink to provide energy to their vehicles every day. With that, we can move on to Q&A. Operator?

The floor is now open for questions. If you wish to ask a question at this time, please press star 1 on your keypad to join the queue. We do ask if listening on speakerphone that you pick up your headset while asking your question for optimal sound quality. Once again, please press star 1 on your keypad now to join the queue and ask a question. Please hold a moment while we poll for questions. Our first question comes from Chris Pierce with Meehan.

Hey, guys. Congrats on the progress. Just one financials question and one kind of bigger picture question. Sorry if I missed it, but did you guys give – I know you gave the gigawatt hours and you guys have been giving that the past four quarters. Did you give – like how should we think about utilization on the network? I'm just trying to think about – where service revenue could go with your installed base and as you grow the installed base. So that's kind of top line. And then within OpEx, should we sort of think of this? I kind of just want to go a little deeper on your comments, Michael, about, you know, further room from here, if this is sort of the steady state of the business going forward, which is, I mean, versus last year, I sort of get where we are. I just want to understand how to think about modeling OpEx going forward.

Yeah, I'll take the first part, Chris, and then Michael can take the second. So obviously, good question. I'll answer it this way. We are seeing increasing utilization among the core group of assets where we have executed with the tools and analytics available to us. So call it the assets that have been installed in the last 18 months. and the new sites that we're putting in. So again, we raised about $20 million in equity in December. We committed to the majority of that being put in the ground in order to build out DC fast charging assets. And as I pointed out in the deck, we're going to have a lot of those built by the end of the year. And we're very confident in utilization that those sites are going to deliver. So to answer the question, overall, we see the overall network utilization increasing, but especially among the assets that we've installed, call it in the last 18 months.

Okay, perfect.

Yeah, hi, Chris. Since it's a very good question, let me answer that. I think the key takeaway is that the vast majority of the structural closed factions are now behind us. Over the past 15 months, we fundamentally reset our operating expense base and we believe that the current run rate is a good rep for the business going forward. You should expect operating expenses to remain relatively stable with some improvements as we move on because we're just not going to give up and we'll continue looking. And then you'll see some normal quarter over quarter fluctuations driven by timing and some investments and growth initiatives. As the revenue grows, our objective is essentially to leverage this existing cost structure rather than just grow operating expenses. So part of what we did is really reset the operating structure to help us to grow in the future with some additional changes that we plan to do in the next few quarters.

Okay, perfect. Can you just remind us what equipment you're putting in the ground? I know you had a factory outside of D.C., and then I think you were using some third-party contracting on D.C. What is happening with your prior production capabilities, and what equipment are you putting in the ground? Where are you sourcing it from?

Yeah, sure. I'll take that. So it's different as we talk about Level 2 versus D.C. So let's start with Level 2, because that's what we were assembling in Maryland. So we took that production and we shifted it to third-party contract manufacturers both here in the United States as well as overseas in India. That is blank product. So that's our IP, that's our software development, firmware development. It's just sitting in the hands of a third-party contract manufacturer to manage the supply chain, to snap them together and deliver it to our warehouses here in the U.S. So that's L2 or AC. Secondly, on DC, our strategy has not changed. We are using third-party hardware to support our DC build-out as well as product sales, and that typically sits with three companies, Telus Power, ChemPower, and Cinexel.

Okay, perfect. And then just one last one for me. I guess... You know, it'd be hard not to mention that, you know, we've seen companies in this space, across the space, really talk about getting adjusted to positive in 23, 24. And that's sort of a reset, I guess. What's different or what are you seeing now that kind of gives you the confidence that you can sort of kind of talk about exiting this year, flattish and positive adjusted to the next year, given sort of how volatile the end environment has been. It's sort of made it hard for people to sort of stick to their predictions.

Yeah, I'll start with that. So I'm sure Michael will have some comments on this. So number one, just look at the progress we've made. I mean, this isn't theoretical. We're not talking about this as conceptual, as a conceptual thing. We are demonstrating our progress to it. Adjusted capital loss in Q2 of $2.2 million. We're not that far off. So right there, I think, is evidence, tangible evidence that we mean what we say and I think we have a pretty good track record over the last 18 months or so of delivering what we said we were going to deliver. The other thing is too, as we continue to build our repeat and recurring revenue mix, we can see what type of revenue we need to generate in order to get the profitability. So as we look out and we have, I would say, relatively conservative assumptions on product sales. That's how we're modeling this. We're not modeling this, as Michael said in his comments, based on the market recovering us. We are adjusting our business based on where the market is. So when you combine all of those things, again, continuing to press down on the operating expenses, the increased mix of repeat and recurring revenue, and being conservative in the outlook for product sales, You know, we're not saying this flippantly. We're demonstrating that we're getting it. So, Michael, anything to add?

Yeah, maybe just a couple of points, Chris. Let me say this. Profitability is the priority. And the revenue reset you see was intentional. It's not a demand driven. And cost structure has fundamentally changed. It's a completely, completely new company. And Blink is positioned to return to growth from a much healthier base. And that's what we can Tell you today, and that's where we're driving.

Okay. Well, yeah. Thank you, and good luck to the team. Talk soon.

Thank you.

We now hear from Ryan Sinkst with B. Reilly. Hey, guys.

Thanks for taking my questions. First, could you give some more specifics? around the decisions that you made that ultimately led to the revenue guidance reduction and the expected enhancement of gross margin? Yeah, so you're talking about like when we talk about quality of revenue, just to be clear? Yes, exactly. Yeah, sure, sure. So first of all, and it really probably encompasses three things. So first of all, we're ensuring that our owned and operated charges are optimized. And that means validating driver pricing, so what drivers pay for the electricity at our Blink-Owned sites. And just as importantly, ensuring that we're procuring energy at the cheapest rate possible. So that's number one. Secondly, when customer contracts come up for renewal, we're evaluating the true cost to the business, not just the gross margin, but think about contribution margin impact. So if it makes sense, we continue. If not, we walk away. And there are a couple areas that were meaningful from a revenue standpoint that we recently walked away from because the profitability was nonexistent. And we don't feel like that's an efficient use of capital or resources at Blink. And then finally, when we're evaluating hardware sales, we're considering the add-on opportunities that can create longer-term value. So things like whether or not there's a network subscription attached to it, an extended warranty purchase, a revenue share model, perhaps. And these considerations help us understand the true margin contribution beyond just the hardware margin itself. So, you know, that's how we're thinking about the business now, you know, kind of every day we wake up. Makes sense. I appreciate that. And then just to clarify on EBITDA guidance, Should we think about the target being exiting the year at a break-even run rate or break-even for the fourth quarter? Michael, you want to start?

Yeah, absolutely. So we're driving towards profitability to the end of the year and this drop to this record low of 2.2, just a good example. So we plan, again, as I said, profitability is a top priority. We plan to exit the year. at the breakeven around that. And then we're building a plan now from where we are and those decisions that we're making right now to become profitable in 2027 with a much leaner, much more focused company and then de-risking that as well.

Understood. Appreciate that. And then last one on Energy Connect. Could you just dig into the battery storage strategy a little bit more and maybe some of the new opportunities that this can provide? Sure, sure. So I think it's, you know, it's really interesting, I think, where Blink is and the opportunity that's available to us here. So we've been working on Energy Connect for a while. and we are initially deploying it at our BlinkOwn sites. So we're rolling it out, we're testing it against things like load balancing and some of the things that I mentioned in my comments with the intent of trying to maximize the profitability opportunity at those BlinkOwn sites. And then once we have validated that, we then get to bring it to the market. So there are additional SaaS opportunities above and beyond just network fees that we can bring to customers. That's number one. The second piece of it is then incorporating battery energy storage. And this is what I mentioned in the comments again, is that when we look to early 2027, we should be able to bring battery energy storage capabilities underneath Energy Connect. And that opens up a whole different set of opportunities for us in terms of obviously peak shaving, demand event mitigation, and also providing energy back to the grid, which obviously is something that's top of mind for everyone. And, you know, I kidded around before and I said, you know, that used to be the conversation for EV charging. And now that whole conversation, thankfully, has shifted over to data center. So, you know, we're no longer sort of the the looming evil child out there. It's the data center. So we think that that is a really big opportunity for us to leverage the Energy Connect platform to be at the core of all of those things.

I appreciate all that detail. I'll turn it back.

A reminder that if you would like to ask a question to press star one. Our next questioner is Samir Joshi with HC Wainwright.

Hey Michael, thanks for taking my questions. So I'd like to just dig in a little bit deeper on the Energy Connect strategy. Is there a possibility for you to go back to already installed DC FC locations and upgrade those with batteries or is this only going to be for new installation coming in 2027?

Samir, thanks for the question. It's a great one. There is absolutely a big opportunity to retrofit existing DC fast chargers. And, you know, I think order of magnitude, as an example, we have sold upwards of 1,500 DC fast chargers into automotive dealers across the country. You know, that's a pretty good, you know, and I think probably some of those dealers are struggling with things like Demand Chargers, and that can represent a very interesting opportunity for us. So absolutely.

That sounds wonderful. And then second question is about, I think in concluding your prepared remarks, you mentioned the balance sheet and optionality. I understand to the extent that you would be, you want to deploy as many of your own chargers and then also use some of this for the battery rollout. But what other options are on the table that you may be considering?

Yeah, so let me, I'm sure Michael would like to jump in here too. I'll start. So to me, this is kind of a multifaceted opportunity, I'll say, for capitalizing the company. So number one, We've talked about profitability on this call. And when we achieve profitability, we believe it's going to open up a world of options for us that perhaps aren't available to companies like us in the position we're in right now. So that's number one. The second thing is that we believe that this strategy opens up an investment community to us that, again, hasn't been interested or visible, however you want to word it, and that when we start to show that our DC, owned and operated DC fast charging footprint gives us a beachhead into this market that's real, we believe that the financing opportunities could be, some very interesting ones could be available to us. So, Michael, anything to add?

Yeah, absolutely. Thanks, Mike. and Samir, liquidity remains a key focus for us. We finished the quarter with approximately $34 million in cash, no debt, which we believe differentiates Blink from many of our peers. Our focus continues to be disciplined cash management, improving operating performance and reducing cash burn. Every transformation decision we've made over the last year has been centered around expanding runway while building business capable of generating sustainable profitability. And that's one of the reasons why profitability, as Mike said, is such an important priority. A business that consistently generates stronger operating results, creates more strategic options, whether it's funding growth internally or accessing capital at lower cost when opportunity arises. Our goal is to put Blink in a position where we have choices and where every financing decision is made from a position of strength rather than necessity.

And I should congratulate you on the very successful cost reduction efforts. I mean, it is really impressive what you have achieved over the last few quarters. And good luck with your 4Q, ReQ, and EBITDA.

Thanks for taking my question.

Thank you.

With all questions having been addressed from the Q&A, we turn the floor back over to your management host.

We appreciate all of you who joined Blink today for our second quarter announcements, highlighting significant improvements in our GAAP gross margin and adjusted EBITDA. These are critical KPIs that our management follows in our path to profitability as reflected in our updated guidance today. We look forward to keeping you updated. Reach out to the investor relations team and be well. Thank you.

This does conclude today's conference call. You may disconnect your lines at this time.