BLNK Q3 Deep Dive: Service Revenue Focus and Manufacturing Shift Mark Transformation

EV charging infrastructure provider Blink Charging (NASDAQ:BLNK) missed Wall Street’s revenue expectations in Q3 CY2025, but sales rose 7.3% year on year to $27.03 million. Its non-GAAP loss of $0.10 per share was in line with analysts’ consensus estimates.

Is now the time to buy BLNK? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Blink Charging’s third quarter was marked by a negative market reaction, as revenue fell short of Wall Street’s expectations despite year-over-year growth. Management attributed the results to a strategic shift in prioritizing higher-quality, margin-enhancing service revenue over pure top-line expansion. CEO Michael Battaglia described the quarter as a period of “profound transformation,” highlighting both the exit from in-house manufacturing and substantial operating cost reductions. Management also noted that some project delays in Europe contributed to the revenue miss this quarter.

Looking ahead, Blink Charging’s guidance is shaped by the company’s ongoing transformation toward a leaner, service-driven business model and its efforts to stabilize cash flow. Management believes that outsourcing manufacturing will enhance efficiency and margin consistency, while continued expansion of the DC fast charging footprint should drive recurring service revenues. CEO Michael Battaglia stated that the company expects "the same positive trends we saw in Q3 to continue into Q4" as Blink launches new products like the Shasta charger aimed at fleet and multifamily segments.

Key Insights from Management’s Remarks

Management attributed Q3 results to disciplined cost control, the transition to contract manufacturing, and a focus on expanding recurring service revenue through the owned DC fast charging network.

• Manufacturing exit underway: Blink announced a transition away from in-house hardware manufacturing, opting to partner with third-party manufacturers in the U.S. and India. This move is expected to reduce costs, improve supply chain flexibility, and allow the company to focus on proprietary product design and service delivery.
• Service revenue prioritization: The company emphasized growing recurring network fees and charging revenue, particularly from Blink-owned DC fast charging sites. This shift aims to drive more predictable, higher-margin streams versus hardware sales.
• Cost structure transformation: Under the “Blink Forward” initiative, Blink eliminated $13 million in annualized operating expenses year-to-date, including significant reductions in compensation and general and administrative costs. Management expects further cost discipline efforts ahead.
• Margin stabilization focus: Product gross margins improved to nearly 39% this quarter, reflecting a focus on more profitable opportunities and redesigned hardware to lower production costs. Management said this margin improvement is sustainable with the new manufacturing model.
• Working capital and cash discipline: The company achieved an 87% sequential reduction in cash burn, down to $2.2 million, driven by tighter working capital management, particularly in receivables and inventory, as well as improvements in expense control.

Drivers of Future Performance

Management expects continued margin improvement and sequential revenue growth, with the transition to contract manufacturing and service revenue expansion as central themes for the upcoming quarters.

• Service revenue expansion: Blink is focused on growing its owned and operated DC fast charging network, targeting high-utilization sites and recurring revenue streams from network fees and charging services. Management expects this to remain the main driver of future top-line and margin improvement.
• Contract manufacturing benefits: Outsourcing hardware production is expected to lower operating expenses and stabilize margins. Management anticipates that this will allow the company to redeploy resources toward R&D and sales without sacrificing product quality or intellectual property control.
• Cost discipline and cash flow: The company plans to continue driving down operating expenses and optimizing working capital. Management highlighted ongoing efforts to manage inventory tightly and accelerate receivables collection as key to sustaining reduced cash burn and moving toward profitability.

Catalysts in Upcoming Quarters

In the coming quarters, StockStory analysts will be watching (1) execution on the contract manufacturing transition and its effects on gross margins and cost control, (2) growth in recurring service revenue as the DC fast charging network expands, and (3) continued reductions in cash burn and progress toward profitability. The timing of new product launches like the Shasta charger and stabilization in EV demand following incentive expirations will also be important indicators.

Blink Charging currently trades at $1.43, down from $1.51 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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