Blink Charging (NASDAQ:BLNK) used its fourth-quarter and full-year 2025 earnings call to outline progress under its “Blink Forward” restructuring initiative, highlighting a leaner operating model, a growing mix of recurring service revenue, and a shift to contract manufacturing. Management said the fourth quarter marked a transition from rebuilding the company’s foundation to preparing for its next phase of growth.
Blink Forward restructuring: leaner headcount and contract manufacturing
President and CEO Mike Battaglia said Blink began 2025 with nearly 600 employees globally and ended the year with fewer than 300. He framed the restructuring as a cultural and operational reset aimed at building a “financially focused business” that can scale profitably over time.
As part of this transition, the company reassessed inventory and wrote off roughly $6 million of legacy inventory at year-end. Management said it is targeting “right-sized” inventory of around $15 million on the balance sheet going forward.
Revenue mix shifts toward services as total revenue stabilizes
Battaglia said quarterly revenue stabilized around $27 million in the second half of 2025, while the company became more selective about product sales and prioritized higher-margin opportunities. Fourth-quarter 2025 revenue was $27 million, compared with $28 million in the prior-year quarter.
Chief Financial Officer Michael Bercovich said full-year 2025 revenue was $103.5 million, down from $124 million in 2024. Product revenue in the fourth quarter declined to $11 million from $17.2 million a year earlier, which management attributed to a deliberate decision to prioritize “quality of revenue over quantity.”
At the same time, service revenue grew sharply. Bercovich reported service revenue of $14.7 million in the fourth quarter, up 62% from $9 million in the year-ago quarter. For the full year, service revenue increased 45% to $49.3 million. Battaglia said service revenue represented 54% of total revenue in Q4, up from 32% in the fourth quarter of 2024, and called recurring services “the future of Blink.”
Battaglia added that charging service revenue increased 49% year-over-year to $9.3 million in Q4, driven by the expanding Blink-owned charging network and strong European performance. He also noted that full-year 2025 network fees rose 53% to $12.2 million, which he said was aided by growth in the number of chargers added to the network, particularly DC chargers that carry higher network fees.
Margins affected by inventory charges; company targets mid-30% range
Gross margin was a focal point of the call. Bercovich reported fourth-quarter GAAP gross profit of $4.3 million, or 15.8% of revenue, similar to the prior-year quarter’s 15.7%. However, both Battaglia and Bercovich emphasized that results were impacted by roughly $5.9 million of non-cash inventory adjustments tied to the manufacturing transition and inventory rationalization.
Excluding those items, management said adjusted gross margin was approximately 37.8% in Q4, up from 34.5% in the third quarter. Bercovich said the adjusted figure represented an 1,100-basis-point year-over-year improvement. For the full year, he said reported gross margin was 24.6% due to inventory charges, while gross margin excluding those charges was about 36%.
Looking ahead, Bercovich guided to 2026 gross margins of approximately 34% to 35%, with the outcome dependent on product mix (Level 2 versus DC chargers), market conditions, and the impact of tariffs on Blink’s supply chain. He said the company saw an opportunity for 100 to 300 basis points of improvement as it realizes benefits from contract manufacturing and revenue mix changes.
Operating expense reductions and cash burn improvement
Management pointed to cost reductions as a central outcome of the restructuring. Battaglia said adjusted operating expenses were about $17.1 million in the fourth quarter, down from $25.2 million in the first quarter of 2025. He also said that annualizing fourth-quarter adjusted operating expenses and comparing them with full-year 2024 adjusted operating expenses implies a $39 million reduction, or 36% year-over-year.
Bercovich said total reported operating expenses in Q4 were $37 million, including $17.9 million in goodwill impairment and $0.8 million in intangible asset impairment for the Mobility segment. Excluding these non-cash items, he said operating expenses were $18.4 million, and after excluding about $1.2 million of costs eliminated on a go-forward basis, adjusted operating expenses were approximately $17.1 million.
The CFO also highlighted sequential improvements, including compensation expense of $10.5 million versus $11.7 million in Q3, and a reduction in G&A expense to $3.4 million from $5.3 million. He noted that the quarter’s G&A included a $1.3 million reversal of bad debt provisions following recoveries; without that reversal, G&A would have been $4.7 million.
On cash flow, management said quarterly cash burn was approximately $2 million, comparable to $2.2 million in the third quarter and “a fraction” of levels in the first half of 2025. Both Battaglia and Bercovich emphasized that Blink has no debt on its balance sheet.
DC fast charging buildout, capital raise, and 2026 guidance
Blink reiterated its focus on expanding DC fast charging as a driver of future recurring revenue. Battaglia said the company completed a follow-on equity raise in December, hitting its $20 million target with “no warrant” terms, and directed most proceeds toward expanding its DC fast charging network.
He said Blink had about 30 DC fast charging sites—roughly 150 ports—in various stages of review and construction. He highlighted several operational updates:
- Battaglia said DC fast charging revenue from Blink-owned U.S. locations grew more than 200% in 2025.
- He cited the company’s DC charger portfolio with Royal Farms, where 2025 revenue rose over 300% to nearly $950,000 versus $225,000 in 2024 on nearly the same number of chargers, attributing the increase primarily to higher utilization.
- He said Blink activated a new Denver-area site featuring up to 600 kW chargers, with early utilization trending upward.
For fiscal 2026, Bercovich guided to total revenue of $105 million to $150 million, which he described as 1% to 11% growth over 2025. He said the range assumes continued service revenue expansion, selective margin-accretive product sales, and contributions from the growing DC footprint. He added that Blink expects initial revenue contributions from the DC network investment in late 2026, with 2027 as the first full year of “scale revenue” from the expansion.
Management also discussed efforts aimed at profitability and margin improvement. In the Q&A, Battaglia and Bercovich pointed to “below-the-surface” operational levers such as warranty costs, shipping, SIM card and payment processing fees, and managing energy demand fees for DC sites. They said the company is focused on “smart sales” and further shifting to repeatable, recurring revenue.
In discussing future network growth, Battaglia said Blink is emphasizing unit economics and “rationalization” of its network, including reviewing unproductive assets and using analytics to site DC fast charging in dense metro areas with high EV penetration and geographic gaps. He also said the company has a project backlog “in the neighborhood” of $100 million that it could install with additional capital, but emphasized that any debt financing should be supported by project cash flows.
On M&A, management acknowledged seeing frequent opportunities but said it is not pursuing deals that could jeopardize the operational leverage created through the restructuring, and would only consider transactions that are highly accretive.
About Blink Charging (NASDAQ:BLNK)
Blink Charging Co is a provider of electric vehicle (EV) charging solutions, offering a nationwide network of charging stations and related software services. The company designs, develops and markets Level 2 AC and DC fast charging equipment, as well as a cloud-based management platform that enables real-time monitoring, analytics and payment processing. Its integrated approach addresses the needs of commercial, residential and fleet customers looking to deploy EV infrastructure.
Blink’s product portfolio includes a suite of charging stations suitable for parking garages, retail locations, hospitality venues and multiunit dwellings.
