Global EV Adoption Will Expand Fast Charging Networks

Key Takeaways

• Expanded product offerings, recurring service revenues, and international partnerships support revenue growth, margin expansion, and greater earnings stability.
  
• Strategic cost reductions and proprietary technology enhancements position the company for lower cash burn, improved operating leverage, and premium market segment capture.
  
• Ongoing losses, declining revenues, and heavy reliance on cost-cutting and acquisitions highlight significant risks to profitability, earnings stability, and long-term growth sustainability.

Catalysts

Through its subsidiaries, owns, operates, manufactures, and provides electric vehicle (EV) charging equipment and networked EV charging services in the United States and internationally.

• Rising demand for DC fast chargers and Blink's expanded portfolio (including new low-cost, high-volume chargers via the Zemetric acquisition) positions the company to benefit from global EV adoption, fleet electrification, and government green initiatives, which are expected to drive meaningful revenue growth and higher charger utilization rates.
  
• Strong momentum in recurring service revenues-such as charging service fees and network fees-reflects greater network effects and improving utilization, supporting long-term gross margin expansion and more stable earnings as the installed base grows.
  
• Strategic international expansion and partnerships-like the GBP 100 million SPV targeting the UK's government-backed LEVI program-create access to non-dilutive capital for rapid network buildout and revenue diversification, ultimately mitigating geographic risk and improving revenue stability.
  
• Cost reduction efforts under the BlinkForward initiative, including $8 million in annual operating expense reduction and further optimization opportunities, are expected to significantly lower cash burn and improve operating leverage, supporting the path to eventual profitability.
  
• Launch of enhanced proprietary hardware and AI-driven software solutions through Zemetric, plus integration of industry talent, increases Blink's ability to capture premium market segments and deliver differentiated products/services that can command higher average revenue per user (ARPU) and improve long-term margins.

Blink Charging Future Earnings and Revenue Growth

Assumptions

• Analysts are assuming Blink Charging's revenue will grow by 27.5% annually over the next 3 years.
• Analysts are not forecasting that Blink Charging will become profitable in next 3 years. To represent the Analyst Price Target as a Future PE Valuation we will estimate Blink Charging's profit margin will increase from -203.8% to the average US Electrical industry of 10.3% in 3 years.
• If Blink Charging's profit margin were to converge on the industry average, you could expect earnings to reach $22.3 million (and earnings per share of $0.19) by about August 2028, up from $-213.6 million today.
• In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 16.1x on those 2028 earnings, up from -0.5x today. This future PE is lower than the current PE for the US Electrical industry at 30.8x.
• Analysts expect the number of shares outstanding to grow by 3.5% per year for the next 3 years.
• To value all of this in today's terms, we will use a discount rate of 8.86%, as per the Simply Wall St company report.

Blink Charging Future Earnings Per Share Growth

Risks

• Gross profit declined sharply year-over-year from 32% to 7.3% (or 29.7% after adjusting for noncash charges), with continued exposure to low or negative margin sales from DC fast chargers and one-off inventory and asset impairments, suggesting ongoing vulnerability in cost structure and risks to future gross margins and earnings stability.
  
• Product revenues for Q2 2025 were significantly below the prior year ($14.5M vs. $23.6M), indicating a declining trend that raises questions about Blink's ability to sustain product revenue growth in the face of increased competition, potentially impacting total revenues and long-term earnings power.
  
• Persistent negative adjusted EBITDA and increasing net losses ($24.4M adjusted EBITDA loss in Q2 2025, up from $14.7M in Q2 2024, and loss per share rising from $0.20 to $0.31), together with substantial cash burn ($30M in H1 2025, cash balance of $25.3M), highlight ongoing challenges in achieving operational profitability and risks of future capital constraints, which may limit investment in growth and R&D.
  
• The company's strategy relies heavily on acquisitions (e.g., Zemetric) to fill product gaps, driving integration risk, potential for under-realization of anticipated synergies, and possible distraction from core execution-these could impact future revenue synergies, cost savings, and ultimately, net margins if not well executed.
  
• Although Blink has announced cost-cutting initiatives ($8M in annual expense reduction), the recurring need for restructuring, workforce reductions, and nonrecurring charges suggests a continued struggle to align expenses with revenue growth, which could undermine investor confidence and delay the path to consistent profitability.

Valuation

• The analysts have a consensus price target of $2.4 for Blink Charging based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $5.0, and the most bearish reporting a price target of just $1.0.
  
• In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $217.2 million, earnings will come to $22.3 million, and it would be trading on a PE ratio of 16.1x, assuming you use a discount rate of 8.9%.
  
• Given the current share price of $1.01, the analyst price target of $2.4 is 57.9% higher.
  
• We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.