BLNK

Good day, everyone. Welcome to the Blink Charging First Quarter 2026 Earnings Call. It is now my pleasure to hand the floor over to your host, Vitalie Stelea, vice president of treasury and finances. Sir, the floor is yours.

Thank you, operator, and welcome to Blink's First Quarter 2026 earnings call. With us today, we have Mike Battaglia, our president and CEO, and Michael Bercovich, chief financial officer. Today's discussions will include non-GAAP references, and these are reconciled to the most comparable US GAAP measures in the appendix of our earnings deck. You may find the deck along with the rest of our earnings materials. 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 be different are included on page two of the First Quarter 2026 earnings deck. Unless otherwise noted, all comparisons are year-over-year. For additional events and news, please follow our media releases in the events section of Blink's Investor Relations website. I will now turn the call over to Mike Battaglia. Mike.

All right. Great. Thanks very much, Vitalie. Good afternoon, everyone. Thanks so much for being with us here today. The first quarter of 2026 reflects our continued track record of execution. The restructuring work of 2025 is behind us. Capital was raised at the end of last year, and that capital is now being deployed. What you're seeing in Q1 is Blink's new culture, disciplined, focused, and billing toward profitability consistently, and I would even say relentlessly. I want to be direct about what Q1 represents. It came in largely as expected. Revenue was approximately flat year-over-year, consistent with typical seasonality we see in the first quarter. What matters more than the top-line numbers are the fundamentals behind them. Let's unpack that together. Our recurring and repeatable service revenues grew 25% year-over-year to $13.3 million.

This is the engine of our business, and it is running stronger every quarter. Our cost structure is significantly right-sized. Our cash burn remained controlled for the third quarter in a row. Our DC fast charging build-out, which is the central investment story for Blink, is moving forward with real momentum. Moving to slide four, you'll see how we're characterizing the business today. The cost reset is complete. Repeatable and recurring revenue is scaling. DC fast charger investment is accelerating. We are positioned in a large and growing market at what we believe is a highly attractive entry point. These are not talking points. They're the results of decisions and actions we have been executing against for more than a year, and they are durable. On slide five, you can see the business model transformation that is driving margin expansion.

In 2025, approximately 45% of our revenue was repeatable and recurring. Our target for 2028 is 80%. We get there with a deliberate and simple plan that moves from fundraising to DC fast charger site selection to construction of high-performing DC fast-charging sites and, finally, scaling utilization of those charging assets. Every quarter that passes, the mix of repeatable and recurring revenue moves in the right direction. Higher service revenues as a percentage of total means higher margins, more predictability, and less dependence on transactional product sales. Once again, that transition is structural, and this quarter continues to validate the framework. As you can see on slide six, we have 27 sites encompassing 136 stalls in our near-term build-out plan. Of those, three sites with 11 stalls are already under construction.

The additional 125 stalls are approved and in various stages of deployment. We look forward to moving them into the construction stage and then ultimately into the go-live stage. On slide seven, we're showing the future of Blink. These exemplify the type of site layouts that are guiding us into the future. They are fast, they're modern, and most importantly, they represent technologies that we intend to deploy. Next, our unique go-to-market strategy operates along two complementary tracks, as shown on slide eight. We engage in multi-vertical channel sales encompassing hardware and software that generates recurring network fees and carries healthy margins. Our owned and operated infrastructure generates repeatable energy revenue with stability and predictability.

Addressing both of these allows us to participate in two very large addressable markets. In particular, as we scale the owned network, specifically DC fast charging, those repeatable energy revenues grow, the margins improve, and the business becomes increasingly self-sustaining. On slide nine, you will see how we're targeting several emerging opportunities to effectively leverage our size and scale. Electrified autonomous vehicle deployments are accelerating, and mobility providers need partners like Blink for charging infrastructure. Secondly, we continue to pursue Blink Network integrations with automotive OEMs. This immediately expands visibility of our public infrastructure and drives utilization. Once integrated with automakers, we become sticky as drivers rely on our chargers. This leads to Blink's philosophy of integrating our network via APIs into other charging ecosystems like fleet platform providers, charging app integrators, and others. In short, we want Blink everywhere companies and EV drivers are accessing charging.

Finally, energy management services represent a real opportunity for us as we leverage our charging datasets, which are extensive, and AI tools to optimize pricing at point of sale, total cost of ownership for fleets, and deploy vehicle-to-grid and vehicle-to-building capabilities. Let's turn to first quarter highlights on slide 11. Total revenue in Q1 was $20.8 million compared to $20.7 million in Q1 of 2025. Gross profit was $6.6 million, representing a GAAP gross margin of 32%. We will walk through the adjusted numbers in a moment, and those tell a cleaner and encouraging story. Slide 12 shows our revenue for the last five quarters. The growth was modest, so I don't want to overstate, but it is an encouraging sign of stabilization since the first quarter of last year.

At the same time, our non-GAAP gross margin of 42.4% was in line with our expectations and over 200 basis points higher than Q1 of last year. Margin expansion remains our top priority, supported by pricing optimization, cost reduction, and more efficient execution impacting cost of goods. The opportunity from here is operational leverage. The business has previously supported quarterly revenue in the high $20 million range and even more than that. As volume improves, we believe there is an opportunity to capitalize on our refined organizational cost structure. The goal is not just revenue growth but higher-quality revenue growth that translates into profitability over time. With that, I'll turn it over to Michael Bercovich, our chief financial officer, to review the financials in more detail and then also go back at the end of the call with concluding remarks. Michael.

Thank you, Mike, and good afternoon, everyone. Q1 2026 is a quarter where the numbers validate exactly what we've been saying. Costs are reset and well controlled, service revenue is scaling, and the balance sheet gives us the flexibility to invest in DC fast charging from a position of strength, not necessity. Let me walk through the details and turn to slide 14 for our selected financials. Q1 2026 total revenues were $20.8 million, essentially flat year-over-year. The first quarter has historically been our lightest quarter, and this year there's no exception. We expect revenue growth as we move through the year, driven by DC fast charging site activations and continued service revenue growth. Product revenues were $6.2 million. This continues to reflect our deliberate strategic decision to prioritize quality of revenue over quantity.

We are focused on higher-margin product opportunities and are being disciplined in the deals we pursue. Service revenue, which includes repeatable charging revenues, recurring network fees, and car-sharing revenues, grew 25% year-over-year to $13.3 million compared to $10.7 million in Q1 of 2025. Every meaningful component of service revenue grew double digits year-over-year. This is the growth engine of Blink, and it's performing. Network fees grew 21% year-over-year. Charging revenue grew 23% year-over-year. The compounding effect of a growing owned network is beginning to show up clearly in our numbers. Other revenues, which consist of warranty fees, grants and rebates, and other revenue items, were $1.2 million in the first quarter of 2025.

It is worth mentioning that starting the fiscal year 2026, we have redefined our non-GAAP metrics to align them with peers and industry practices. You can see the exact 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 are now excluding non-cash share-based compensation, other non-recurring items, as well as depreciation and amortization, to better present the fundamental potential of our business. Let's get to it. GAAP gross profit of Q1 was $6.6 million, or 32% of revenues, compared to gross profit of $7.1 million, or 34.1% of revenues in Q1 of 2025.

The year-over-year delta is largely driven by the composition of revenue, specifically higher cost of car-sharing service revenue and energy costs. As we deploy and operate more on DC fast charging assets, this is an expected and acceptable short-term trade-off as we scale their own infrastructure that drives our high-quality, repeatable revenues. On a non-GAAP basis, excluding depreciation of fixed assets and a small car-sharing segment adjustment, adjusted gross margin was 42.4% in Q1 2026. That is ahead of the prior year quarter of 40% on the same basis and is consistent with what we were expecting. Margin levers remain fully in place. Contract manufacturing optimization, network fee pricing, and improved utilization on owned assets will continue to drive improvements over time. We remain on track for our full-year gross margin guidance of approximately 35% on a GAAP reported basis. Turning to operating expenses.

Total operating expenses in Q1 were $18.4 million compared to $28.5 million in Q1 of last year, a 35% reduction year-over-year. This is a structural cost reset in action resulting from our BlinkForward initiative. These are not temporary savings. Headcount has been right-sized, G&A is disciplined, and compensation expense reflects the leaner, more focused organization we have built. Non-GAAP operating expenses, excluding share-based compensation, depreciation and amortization, and non-recurring items, were approximately $13.9 million in Q1 2026 compared to $22.6 million in Q1 of last year. That is a reduction of over 38% on an adjusted basis year-over-year. Compensation expenses were $10.2 million, down 25% from $13.6 million in Q1 2025, reflecting the full run rate benefit of our headcount reductions.

Excluding the impact of one-time non-recurring and non-cash items, the non-GAAP compensation expense was $6.9 million during the quarter. G&A and other operating expenses also declined meaningfully as our cost optimization efforts continue to compound across the organization. GAAP net loss for Q1 was $11.6 million, or $0.08 loss per diluted share, compared to a net loss of $21 million, or $0.21 loss per diluted share, in Q1 of last year. That's an improvement of nearly $10 million in reduced net loss year-over-year.

Non-GAAP net loss for the first quarter of 2026 was $7.8 million or $0.06 loss per share in the first quarter, compared to a non-GAAP net loss of $17.4 million or $0.17 loss per share in the first quarter of 2025, an improvement of 55% year-over-year. Adjusted EBITDA for the first quarter of 2026 was a loss of $5.1 million, compared to an adjusted EBITDA loss of $14.3 million in Q1 of last year. That is a 64% improvement year-over-year. I wanna let the number stand on its own for a moment. 64% reduction in adjusted EBITDA loss in 12 months is a meaningful achievement. Turning to our balance sheet and cash position. We ended Q1 with cash and cash equivalents of approximately $38 million.

We have no debt on the balance sheet. The combination, a clean balance sheet, controlled burn over the last three quarters, and growing repeatable and recurring revenue gives us the financial flexibility to invest in DC fast charging from a position of strength. Cash burn for the quarter was approximately $1.7 million, inclusive of capital investment in our DC fast charging network. I want to address this transparently. Q1 cash burn reflects some timing-related working capital movements, in particular, a higher payable runoff in the quarter that are not representative of our steady-state burn rate. This is not a reversal of the trend we established over the past several quarters. As we scale our DC fast charging infrastructure investment, the cash burn will increase. The difference is that it's the money invested in expected return and not temporary working capital adjustments.

What is really significant this quarter is that our net cash provided by operating activities was positive $0.7 million in Q1 2026, representing an improvement of approximately $13.7 million year-over-year, pivoting from negative $13 million in Q1 of last year. On slide 15, you can see the trajectory across four key metrics: non-GAAP operating expenses, non-GAAP compensation, G&A, and cash burn. In every case, the direction is down and the improvement is consistent. Operating expenses of $13.9 million on an adjusted basis in Q1 2026 compared to $22.6 million in Q1 of 2025, an $8.7 million reduction. Looking at our business outlook, I'd like to provide an update across four key areas. Number one, revenue growth.

Our full year 2026 revenue guidance of $105 million-$115 million remains intact. We expect revenue momentum to build through the remainder of the year as DC fast charging sites come online, service revenue continues to compound, and product sales reflect our disciplined margin and creative approach. Number two, gross margins. Full-year gross margin guidance of approximately 35% on a GAAP reported basis is unchanged. The GAAP margin moves towards our target throughout the year, the drivers are well understood. Contract manufacturing efficiency, revenue mix improvement, and utilization growth around DC assets. Number three, cash flow and liquidity. Operational discipline has directly translated to our cash preservation goals. Cash burn in Q1 was slightly better than recent quarters due to working capital timing, remained well controlled, and is not indicative of a new run rate.

With $38 million on the balance sheet and no debt, we have the flexibility to execute our fast-charging investment program as planned. Lastly, number 4, path to profitability. With operating expenses down approximately 35% year-over-year and one site to a break-even position, we are aggressively working toward the goal to anticipate a significantly reduced adjusted EBITDA loss compared to prior years. The levers are known and well controlled. Continued service revenue scaling, disciplined product sales, DC fast-charging utilization ramp, and ongoing cost optimization, payments processing, SIM card fees, and demand charge management. We have concluded internal reviews on each of these items, and progress is being tracked and reported accordingly. I'll now turn back over to Mike to wrap it up. Go ahead, Mike.

All right. Great. Thanks, Michael. I wouldn't mind listening to your section again. That's all good stuff. The first quarter of 2026 was about execution, and the results clearly reflect that. As we move through 2026, our focus is on deploying capital, scaling the DC fast-charging network, and building a business that generates durable recurring revenue and operates near cash breakeven. We have accomplished the hard structural adjustments. Now we are scaling what works. I wanna close by highlighting just a few milestones and notable achievements in Q1. Service revenues grew 25% year-over-year to $13.3 million. Our recurring revenue and profit engine is running. Adjusted EBITDA loss improved 64% year-over-year. The cost structure is right. Our cash burn of approximately $1.7 million, the financial discipline is intact.

38 million dollars in cash with no debt, our balance sheet gives us options. Overall, since I became CEO, I've been clear about what Blink will do. Build a company that can stand on its own financially, operate with discipline, and scale profitably over time. Every quarter, the results move in that direction. That same disciplined approach continues to guide how we operate as we move through 2026 and beyond. I would like to thank the Blink team for their continued focus and execution. I would like to thank our customers and drivers who rely on Blink to provide energy to their vehicles every single day. With that, we can move on to Q&A. Operator?

Certainly. Everyone at this time will be conducting a question-and-answer session. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone. Your first question's coming from Ryan Pfingst from B. Riley Securities. Your line is live.

Hey, guys. Thanks for the details and congrats on all the recent progress. For the 27 sites that you talked about on slide six, how should we think about the cadence of these sites coming online? Is there anything you'd like to highlight in terms of challenges or potential positives, you know, regarding project development more broadly?

Yes. Yeah. Absolutely. Thanks, Ryan. There's a couple of interesting aspects to this. Number one is before we conducted the equity raise in December, we had actually green-lighted a few projects even before that, 'cause we were confident that we'd be able to raise and continue with what we set out to do. Some of those projects were already in flight, and they're actually coming online this month and into the coming months. When we look at the equity raise in December, we netted $18.5 million. And as we've said in the past, the vast majority of those funds are going towards CapEx. Two sites have already gone live.

We have a few going live in May. It starts to actually ramp a bit in June, July, et cetera. We anticipate most of the 27 sites to be live by the end of the year or near live. A few may spill into 2027. Most of them should be complete or near completion by the end of the year.

Appreciate that color. Maybe to tie it into capital deployment. Looks like CapEx was about $1.6 million in 1Q. With these sites coming online over the next 6-12 months. How should we think about CapEx progressing through the rest of this year and into 2026?

Yeah, Michael, you wanna jump on that or?

Absolutely. In December, we raised the money that was sized to fund our DC build-up program through this year and the initial deployment phase. Combined with the quarterly burn that we presented the last couple of quarters and, first positive operating cash flow of $700,000 in Q1. We have sufficient runway to fund our plan. When we were raising money, we said that the majority of that $20 million, $18 and a half net that we raised will continue going to the DC fast charging infrastructure build-up. We are now in the beginning or, as Mike said, those coming online and we start spending that money because we truly believe that this is gonna be great investment as we continue to evolve and scale the service revenue.

That money will be spent as we go from quarter to quarter, and we anticipate to finish the build by the end of the year, maybe some will spill into Q1 of 2027.

Got it. Appreciate that. Then maybe one more on OpEx, which is down meaningfully compared to last year, as we've talked about. Can you talk about now the operating leverage that you expect to have on the OpEx side as revenue is expected to scale through this year?

Yeah.

So we have-

Absolutely.

Oh, yeah. Go.

Yeah, please go ahead, Mike.

I'll start and please jump in. Just a general comment. We have built this company in such a way that we can scale our revenue without adding any significant OpEx. You know, it doesn't make sense in our minds to have done all this work over the last 12 months, see revenue start to grow, and then just keep adding OpEx to it just to support that. We believe that we have largely right-sized this company so that it can scale the revenue and get to profitability with similar OpEx. Michael, you have any color on that?

Yeah, Mike, this is a perfect answer. You know, Ryan, this is about capital allocation. As we continue to grow and scale, there is no need in a significant OpEx increase. We right-size the organization in a way that we can also leverage technology and not only people. We changing systems and platform and consolidating, and this starts creating a lot of leverage and a lot of value.

Great. I really appreciate it, guys. I'll turn it back.

Thank you.

Thank you. Your next question's coming from Craig Irwin from Roth Capital. Your line is live.

Hey, guys. It's Andrew on for Craig.

Yeah

taking my questions. The first one kinda in the same vein as the last question. The cost improvements are obvious. And we even saw some improvements in adjusted gross margin. As you guys kinda scale the business and we see a mix shift to kinda more recurring revenues, what can we kinda think of here as, you know, the potential and gross margin accretion moving forward?

Yeah. Again, I'll start. I'm sure Michael will jump in. You know, as we noted in our comments, the really, really tough restructuring work was done over the last, you know, year or so. We've moved from that to something that we call at Blink, it's kind of almost a derivative of BlinkForward, which is radical simplicity. We are trying to structure this company in everything we do through the lens of radical simplicity. The stuff we did last year was the big stuff that's, you know, in many ways obvious. It's the comp expense reductions. It's, you know, software subscriptions. It's everything that you go after in a situation like this. What we're doing is we're targeting what we call expenses that are hidden below the surface.

These are expenses that are not immediately obvious. They take a little bit of work to uncover, but they also are accretive or directly impact margins. We believe that we still have some more room to go in margin expansion through specific actions and programs that we have at the company to specifically address these.

Great. Awesome. really appreciate the color there. The second one from me, kinda as you guys focus on the build-out of owned and operated DCFC stalls, can you guys just kinda remind us your overall philosophy behind, you know, site selection, and then kind of, you know, walk us through the timeline of, you know, site selection to build to deployment? Any color there would be would be great.

Yeah. When we think about site selection, it's actually a reflection of how we think about the EV industry overall. Let me talk about what I mean by that. If you look at where EV and EV sales have been over the last few years, you know, the industry just got ahead of itself in 2020, 2021, 2, et cetera. The industry got ahead of itself. The rhetoric was, you know, EVs are gonna take over the world, everybody's gonna be driving an EV, and we need to build all this infrastructure from, you know, from Buffalo to Albany and everywhere in between so that people can drive really long distances. While that's not.

It's not what we really believe is going to be where EV sales momentum happens in the years ahead, which is there's 127 million households in the United States that have two or more vehicles in the household. One of those vehicles can easily be an EV, and that EV is used for your local commuting to and from work. It's used to go to the mall and back, to the grocery store and back. Everything that is in within your local community. That is the primary use case for electric vehicles right now until range, battery range extends substantially or this infrastructure gets built out, you know, from point to point.

My point is simply, if you believe that, then it guides your site selection towards metro areas, high-density populations, and not necessarily rural, let's say, highway placement. Blink is looking for population, high-density destinations where people wanna go, where they're going in their everyday lives, and where they want to and can spend time.

Awesome. Well, thank you. Appreciate the detail there, and congrats on the continued progress.

Thanks.

Thank you. Once again, everyone, if you have any questions or comments, please press star then one on your phone. Your next question's coming from Sameer Joshi from H.C. Wainwright. Your line is live.

Hey, Michael. Thanks for taking my questions. Congratulations on the progress and on the results. Just a few things, clarifications. It seems that you have had a very good recovery on the accounts receivable front this quarter, related to December quarter. Was there something that allowed this to happen? Like how should we look at it, the accounts receivables recovery?

Yeah, Michael.

Yes, Sameer. Hi.

Go ahead.

Yeah, absolutely. It's a great question. We were talking quarter over quarter on our earnings calls about not only radical simplicity that Mike mentioned but also the changes that we made in our working capital structure, process, and program. Now you actually see how this is all working out. We had some aged receivables, and during this quarter, we were able to recover those. What we also did really well, we also changed the process so we don't get to the same situation we were in the past when the receivables age. We were able to recover a lot of receivables, and our AR, as you can see, have got down tremendously.

Sounds really good. Good effort on that part. Michael may or Mike, you may have mentioned your efforts on integration with automotive OEMs. Can you give us a little bit more insight into how that plan is going, how, what the strategy is? Is there a target number of OEMs by the end of 2026? Any detail would be helpful.

Yeah. Thanks, Sameer. It's a good question. We are already integrated directly with a couple of OEMs. I think, though, that the best example of executing against that is subsequent to the end of the quarter. I think it was just in the last few days, we press released our partnership with eMobi. Emobi is a company that effectively aggregates EV charging network providers and integrates them into automaker platforms so that the automakers don't have to go to every single EV charging network and do these integrations individually. What happens is we integrate with eMobi integrates into OEMs. Where that is powerful for us is the fact that they already have those integrations with multiple OEMs.

Instead of from an efficiency standpoint, instead of us having to go directly to each of those OEMs and do separate integrations with each of them, we now go to Emobi and, you know, potentially others in the future that are already there. I've said this, I said it in the comments, I'm just gonna say it again. We don't have a specific target. We wanna be at all of them. We wanna be at every single one of them that'll have us, and we're just gonna keep pressing on that to get it done.

Understood. Actually maybe just one last one. I know both previous callers asked you about gross margins. To get to this 35% full year GAAP gross margin target, would volume play a role, or would these efforts that you talked about, you have some already identified some savings in the gross margin area? What will drive the year-end gross margin of 35%?

Uh, well-

Mike, do you wanna jump or I can Go ahead. Yeah, absolutely. Sameer, what you see from last year, we already were doing 35% and even 36%. It's a combination of, first of all, disciplined product sales, as we already exhibited over the last couple of quarters, and we'll continue doubling down, and we see a lot of opportunity for that in the marketplace. It also continuously growing our repeatable and recurring service revenues. We identified in previous calls several opportunities for optimization and improvements, and those plans in place. We continue working through it. We are expecting the 35% for the year.

Sounds good. Thanks a lot, Mike and Michael. Good luck for the rest of 2026.

Yeah. Thanks.

Thank you so much.

Thank you. That completes our Q&A session. Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

Welcome to the Blink Charging Co. fourth quarter and full-year 2025 earnings conference call. At this time, all participants are on a listen only mode, and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Mr. Vitalie Stelea, VP of Treasury and Finance for Blink Charging. Sir, the floor is yours.

Thank you, Ali, and welcome to Blink's fourth quarter and full-year 2025 earnings call. With us today we have Mike Battaglia, President and Chief Executive Officer, and Michael Bercovich, Chief Financial Officer. Today's discussions will include non-GAAP references. These are reconciled to the most comparable U.S. GAAP measures 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 actual results to be different are included on page two of the fourth quarter 2025 earnings deck. Unless otherwise noted, all comparisons are year-over-year. For additional events, please follow our media releases in the events section of Blink's Investor Relations website.

Now I'll turn the call over to Mike Battaglia, President and CEO of Blink Charging. Mike, please go ahead.

All right, great. Thanks, Vitalie. Good afternoon, everyone, and thanks for joining us today. I'm proud to report that the fourth quarter of 2025 marks a pivotal moment for Blink Charging. The most significant transformation in this company's history, our Blink Forward initiative, substantially met its 2025 objectives. This quarter represents the transition from rebuilding the foundation to preparing the business for its next phase of growth. We started the year with close to six-

Apologies, ladies and gentlemen, we have lost our speaker temporarily. One moment, please, and we shall get him back in the call.

Sorry about that, everyone. I think I'm back. This quarter represents the transition from rebuilding the foundation to preparing the business for its next phase of growth. We started the year with close to 600 people globally, and today we operate with fewer than 300 highly focused and skilled team members. We have fundamentally reshaped how this company operates, became leaner, disciplined, and focused on financial excellence, and the results are showing. Let me walk you through what Blink Forward has accomplished. When I took over the role of President and CEO a year ago, it was apparent to me that Blink should operate as a financially focused business, that we should fundamentally change our culture and advance with a different vision for Blink. That vision was centered on building a company that can stand on its own financially, operate with discipline, and scale profitably over time.

We launched the Blink Forward restructuring plan in May 2025 as we set out to accelerate our path to profitability and focus on what matters, including long-term sustainable growth. I'm pleased to say that we have accomplished nearly all of the objectives that we set out to achieve in several critical ways. Our shift to contract manufacturing is now fully complete and operational. We have exited in-house production and are leveraging third-party manufacturing partners in both the United States and India. This gives us greater flexibility, optimizes working capital, lowers overhead, and improves supply chain resilience, all while retaining full ownership of our proprietary intellectual property with hardware, firmware, and software. Importantly, our inventory position has been dramatically improved, and we maintain a lean balance sheet that allows us to be agile and nimble to evolving market needs.

We reassessed and subsequently wrote off approximately $6 million of legacy inventory at year-end as part of this realignment. Our go-forward inventory levels will reflect right-sized and asset-light positions, targeting around $15 million on the balance sheet. Moving to slide four, we took bold actions throughout 2025. First, our operating expense reductions have been significant. On an adjusted basis, fourth quarter operating expenses were approximately $17.1 million, a decrease of approximately 32% from the beginning of a 2025 adjusted level of $25.2 million. If we annualize our total Q4 adjusted operating expenses and compare against full-year 2024 adjusted operating expenses, you would see a reduction of $39 million year-over-year. That is a 36% reduction. I'll emphasize that again. That's a 36% reduction. Importantly, these reductions were not about shrinking the company.

They were about creating the operating leverage required to support sustainable growth and innovation going forward. Second, while some of our competitors are burdened by capital-intensive, asset-heavy practices, our move to a more agile contract manufacturing model and better working capital discipline will serve as a key pillar in our pursuit of profitability. This is foundational to our ability to deploy EV infrastructure at scale while maintaining financial flexibility and discipline. Third, and perhaps most importantly, we have accelerated the shift in our revenue mix towards higher quality, repeatable, and recurring service revenues. In Q4, our service revenues reached $14.7 million, up 62% year-over-year. Service revenues represented 54% of our total revenue, up from 32% in Q4 of last year. For full-year 2025, service revenues grew 45% year-over-year to $49.3 million.

As we've said before, this is the future of Blink. Our strategy was further validated by our successful follow-on equity raise in December. We achieved our target of $20 million with a clean, no warrant raise, with the majority of proceeds directed toward expanding our DC fast charging network, which we expect will provide repeatable, high quality revenue streams. This is central to our strategy of building a durable, profitable business. Our Blink Forward strategy has been built on six pillars. Customer-driven market leadership, sustainable profitability, expanding charging solutions, capturing market share, developing recurring revenue, and securing cost-efficient capital. Each of these pillars has guided our transformation, and we will continue to execute against them into 2026 as we balance growth, innovation, and profitability in the years ahead. On slide five, you can see the trajectory of our quarterly performance throughout 2025.

Revenue has stabilized in the $27 million range across Q2, Q3, and Q4, while we have fundamentally improved the quality and mix of revenue. The story here is clear. We have right-sized the business, shifted our focus toward repeatable and recurring revenue streams, higher margin product sales, and dramatically reduced our cost structure. With the business now right-sized and stabilized, our focus is shifting from restructuring to scaling what works. Now, let's turn to fourth quarter highlights on slide seven. Total revenue in Q4 was $27 million compared to $28 million in Q4 of 2024. While top line revenue was relatively flat, this was a deliberate outcome of our strategic pivot to a lean asset-light Blink that is more agile and adaptive to changing market realities.

We are being selective about product sales, focusing on high margin, accretive opportunities while investing in growing our repeatable and recurring service revenue base. This disciplined approach positions us to pursue growth opportunities that are accretive and aligned with long-term value creation. GAAP gross margin in Q4 was 15.8%. This was primarily impacted by $5.9 million in non-cash inventory adjustments related to our transition to contract manufacturing and our general direction of becoming an asset-light company with a robust and lean balance sheet. Excluding these one-time items, our adjusted gross margin was 37.8%, much improved from our Q3 2025 adjusted gross margin of 34.5%. We are highly competitive within our industry and expect gross margins to improve as we move through 2026, with a target of approximately 35% on a full-year basis.

The quality of our revenue tells the real story. Charging service revenue grew 49% year-over-year to $9.3 million, driven by our expanding Blink-owned charging network and strong performance from our European markets during Q4. For full-year 2025, network fees grew 53% year-over-year to $12.2 million, driven by an increase in chargers added across our network, notably DC chargers, which carry higher network fees. On slide eight, I want to reiterate that our Blink-owned charger portfolio continues to be a powerful growth engine. Charging revenue from Blink-owned sites grew substantially year-over-year, and our DC fast charging revenue from Blink-owned locations in the United States grew over 200% in 2025.

As a result of our successful capital raise in December, we have approximately 30 DC fast charging sites representing about 150 ports in various stages of review and construction. As these come online, they will represent a significant source of future repeatable and recurring revenue. I'd also like to highlight some of our recent DC fast charging installations, including our portfolio of DC chargers with Royal Farms. Revenue in 2025 was up over 300% to nearly $950,000. In 2024, those locations delivered $225,000 in revenue on nearly the same number of chargers. Most of this growth was driven by higher utilization as drivers increasingly recognize Blink as a growing provider of DC fast charging services.

We recently activated a new Denver area site featuring Blink's most powerful DC fast chargers to date, delivering up to 600 kW. Early utilization is trending upward, reflecting strong demand for ultra-fast charging. This deployment demonstrates the type of high-power fast charging sites that support predictable dwell times and represent compelling long-term growth and value creation opportunities. Turning to slide 10, our expense discipline continued to improve in Q4. Excluding non-cash charges for goodwill and intangibles impairment for our Mobility segment and expenses eliminated on a go-forward basis, operating expenses came in at approximately $17.1 million. That is down from $25.2 million in Q1 2025.

We have reduced our adjusted operating expense run rate by over 30% over the course of the year, reducing annualized expenses by over $32 million from the run rate at the beginning of 2025. Cash management also remains strong. Our cash burn for the quarter was approximately $2 million, comparable to Q3's $2.2 million and a fraction of the levels we experienced in the first half of 2025. This continued discipline in working capital and cost management is building a foundation for sustainable operations. Remember, Blink has no debt on the balance sheet. This level of financial discipline gives us flexibility and a strong foundation. With that, I'll turn it over to Michael Bercovich, our Chief Financial Officer, to review the financials in more detail, and I will circle back at the end of the call with our outlook. Michael.

Thank you, Mike, and good afternoon, everyone. 2025 was a monumental year in the history of Blink Charging, and I'm so proud to be a part of it. This was a year defined by building a stronger financial foundation and positioning the business for sustainable operations going forward. Let's turn to slide 12 for our selected financials. Q4 2025 revenues were $27 million compared to $28 million in the fourth quarter of 2024. For the full-year, total revenues were $103.5 million compared to $124 million in 2024. Product revenues for the fourth quarter were $11 million compared to $17.2 million in Q4 last year. As Mike described earlier, this reflects our deliberate strategic decision to prioritize quality of revenue over quantity.

We are focused on higher-margin product opportunities and being disciplined in the deals we pursue. With our focused approach for evaluating sales and our transition to contract manufacturing, we expect product margins to improve as we move through 2026. This reflects a more disciplined, scalable approach to product revenue that supports long-term profitability. Service revenue increased 62% to $14.7 million in Q4 2025, up from $9 million in the fourth quarter of last year. For the full-year, service revenue grew 45% to $49.3 million. This growth validates our strategy of investing in Blink-owned and operated infrastructure and network services. These service revenue are repeatable and recurring in nature, contributing to improved revenue quality and predictability.

Other revenues, which consist of warranty fees, grants and rebates, and other revenue items, were $1.3 million in the first quarter compared to $1.8 million in the Q4 of last year. The decrease was primarily due to the shift of procuring third-party extended warranty contracts, resulting in modifications to the way our warranty revenue was recognized previously from a gross revenue basis to a net revenue basis. GAAP gross profit in Q4 was $4.3 million or 15.8% of revenue. This compares to gross profit of $4.4 million or 15.7% of revenue in Q4 of 2024. I want to call out that Q4 included approximately $5.9 million in non-cash adjustments made in inventory related to our manufacturing transition and a year-end inventory rationalization.

Excluding these items, gross margin was approximately 37.8%, significantly above the 34.5% as we reported in Q3 of this year and year-over-year gross margin improvement of 1,100 basis points. I want to repeat, 1,100 basis points. For the full-year, 2025 gross margin was 24.6% on a reported basis, impacted by various non-cash inventory charges throughout the year. Excluding those charges, full-year gross margin was approximately 36% even. Turning to operating expenses. Total operating expenses reported in Q4 were $37 million, which included $17.9 million related to impairment of goodwill and $800,000 in intangible assets for our Mobility segment.

Excluding these non-cash items, standalone operating expenses were $18.4 million. When we further exclude approximately $1.2 million of expenses that have been eliminated on a go-forward basis and are not expected to recur, adjusted operating expenses were approximately $17.1 million. This compares to adjusted operating expenses of $25.2 million in Q1 of 2025, representing a 32% reduction over the course of the year. These reductions reflect structural changes to our cost base rather than temporary measures. Compensation expenses decreased to $10.5 million from $11.7 million in Q3, sequential improvement of 10% and reflecting the full benefit of our headcount reductions. G&A expenses came down to $3.4 million from $5.3 million in Q3, a 36% sequential reduction driven by continued cost optimization across the organization.

The G&A for fourth quarter was $3.4 million, which includes a $1.3 million reversal of bad debt provisions following successful recovery efforts. Without this reversal, our G&A expenses would have been $4.7 million in Q4. Net loss for Q4 was $32.7 million on a reported basis, primarily driven by the non-cash charges I mentioned. Adjusted net loss was approximately $6.9 million. Full-year net loss was $83.4 million on a reported basis compared to $201.3 million in prior year. Full-year loss per diluted share was $0.76 compared to $2 loss in fiscal year 2024. Total adjusted EPS in 2025 was a loss of $0.63 compared to a total adjusted EPS loss of $0.64 in the same period of 2024.

Adjusted EBITDA for the fourth quarter of 2025 was a loss of $10.3 million compared to an adjusted EBITDA loss of $14.8 million in the same period of 2024. Normalizing for $6.6 million in recurring headwinds, specifically a $5.9 million in inventory rationalization and $1.4 million in Blink Forward restructuring compensation costs and adjusting for $700,000 G&A benefit, our adjusted EBITDA loss narrowed to only $3.7 million. The result represents a substantial multi-quarter improvement in financial performance. Total adjusted EBITDA for 2025 was a loss of $58.1 million compared to a total adjusted EBITDA loss of $52.7 million in 2024.

Regarding our balance sheet and liquidity, as we previously announced, we successfully raised capital during the fourth quarter, strengthening our financial position to fund our DC fast charging investment program. Cash burn for the quarter was $2 million, comparable to Q3's $2.2 million. This consistency demonstrates that our working capital and cost discipline is durable and not a one-time in nature. Looking at our business outlook, I would like to provide guidance across four key areas. Number one, revenue growth. For fiscal year 2026, we are targeting total revenue in the range of $105 million-$150 million, representing 1%-11% growth over 2025.

This is driven by continued expansion in repeatable and recurring service revenues, selective margin accretive strategic product sales, and the contribution from our growing DC fast charging footprint as Mike covered earlier on this call. This revenue target range is particularly encouraging as it represents the clean growth coming out of our restructuring plan last year. Furthermore, we are continuing to lean into our DC fast charging network strategy. While we are investing heavily in these sites today, we expect to see the initial revenue contribution from this investment in late 2026, with 2027 serving as the first full-year of scale revenue from the DC network expansion and our transition to a more robust recurring and repeating revenue model.

This growth is driven by the core operating framework we have established rather than a balance sheet expansion or elevated cost structures, patterns that we see with some of our competitors. Number two, gross margins. We are targeting gross margins of approximately 34%-35% for fiscal year 2026. The specific level will depend on product revenue mix between L2 and DC chargers, market conditions, and the impact of tariffs on our supply chain. We see an opportunity for 100-300 basis points of gross margin improvement as we realize the full benefits of contract manufacturing and favorable revenue mix shift. Number three, cash flow and liquidity. Operational discipline has directly translated to our bottom line and cash preservation goals.

For the second consecutive quarter, our total cash burn, including essential capital investments, has stabilized at approximately $2 million per quarter, and we can see the same pattern in Q1 of 2026. Through the successful execution of our working capital and liquidity management programs, we have extended our runway, allowing us to fund our DC fast charging growth initiative from a position of strength. Lastly, number four, path to profitability. With operating expenses down approximately 30% year-over-year and significantly leaner operations, we are aggressively working toward operational cash flow breakeven. We anticipate significantly reduced adjusted EBITDA loss compared to prior periods. This improvement is supported by the operating leverage created through our cost reductions and revenue mix shift. We also expect continued operational improvements to position the company for profitability.

This is a target for us, an internal measure and KPI, and we will continue to pull levers across both revenue growth and expense optimization to achieve it. One of the few levers that we are targeting is our revenue growth and product sales that are focused and disciplined in various tactical opportunities to shed significant costs that are not related to headcount but operational excellence. We believe that with successful execution that we have already exhibited during this last year, we will see additional increases in our margins. The themes for improvement include optimizing charging demand fees, simplifying our payment processing and SIM card fee structures, and rationalizing charger assets. We have concluded an internal review and with a unified effort, these items with progress tracked and reported accordingly. Some of our peers continue to struggle with legacy debt and high cash burn.

Our no debt and lean balance sheet position allows us for aggressive, capital-efficient DC fast infrastructure deployment, a significant difference as we move towards profitability while maintaining financial flexibility and discipline. I will now turn back over to Mike to wrap it up. Go ahead, Mike.

All right. Thanks, Michael. The call didn't drop, which is nice. The fourth quarter and full-year 2025 represents a defining chapter for Blink Charging. As we continue Blink Forward into 2026, our focus is on building a business that can stand and grow on its own. We have transformed this company from the ground up and accomplished several notable milestones, including reducing our headcount and operating expenses significantly, transitioning to contract manufacturing and improving working capital, reducing quarterly cash burn from $15 million to $2 million, improving our repeatable and recurring revenue mix, raising $20 million with favorable terms, and beginning deployment of our high-speed DC charging footprint. Since my time as CEO, I've been clear about what we set out to do, and we've executed against it.

We said it, we did it, and the results are visible in the business today. That same disciplined approach continues to guide how we operate as we move into 2026 and beyond. I would like to extend a thank you to the Blink team for its resilience and focus throughout this past year of transformation. I would like to thank our customers and drivers who rely on Blink to provide energy to their vehicles every day. With that, let's move on to Q&A. Operator.

Thank you. Ladies and gentlemen, at this time, we will be conducting our question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue, and you may press star two if you wish to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question is coming from Craig Irwin with Roth Capital Partners. Your line is live.

Hi. Good evening, gentlemen. Congratulations on strong execution in this environment. Michael, I wanted to start by asking about the impact of your restructuring, right? The way you've repositioned the business for better profitability in 2026. The big item, I guess, is the repositioning of your manufacturing and the change in strategy around the way you're managing working capital. That's generated a lot of improvement for you, a very significant reduction in cash needs. But the overall benefit is still kicking in, at least as far as I understand. Can you help us unpack how this continues to benefit you over the course of this year? You got your burn down to, was it $2 million a quarter, which is incredible.

Two.

I mean.

Yeah.

Yeah, better than last quarter. I mean, again, but how does this continue to benefit the organization over the course of this year? You know, does this bring down OpEx further? Does it improve overall cash needs? You know, can you talk about the facility footprint? Are there likely changes now that you've made the key changes at the company?

You know, Craig, let me, I'll start, and then I'm sure Michael's gonna jump in on this. You know, one of the things that we introduced into Blink this year is, and we talk about it all the time, is a notion of radical simplicity. We use that against everything we're doing at the company. How can we reduce complexity throughout every facet of this organization in order to enable focused execution on the core parts of the business? Let me unpack that a little bit. When you look at this major shift that you referenced from in-house production to contract manufacturing, what's the benefit? Well, first of all, and I'm gonna start with the bottom line and then work back. The bottom line, our cost per unit did not change. Think about that.

We were building units ourselves. We outsourced them to contract manufacturers, and the cost per unit stayed the same. What's the implication of that? The implication of that is that we don't have to manage the entire supply chain. We don't have to stock parts. We don't have to forecast individual components. We have significantly reduced inventory risk on our balance sheet. It brings us to a point where we can simply plan for demand. We can forecast out one SKU, two SKUs, five SKUs, rather than 500 SKUs associated with components and manufacturing. It also allows us to carry less inventory, so to be far more efficient from a working capital standpoint and to think of the business more in a just-in-time inventory type environment.

We've never built DC fast chargers, if you think about it. We've always sourced them. Now we're just simply extending that and doing that the same, on the L2 side. Michael, I think you probably have some perspective on this as well.

Yeah, absolutely. Craig, this is a great question, and really one of the most maybe important shifts in the business over the past few quarters. The improvement is really driven by a combination of factors that Mike was mentioning. First, we've become significantly more disciplined in everything we do. Cash burn on collections, right? We're collecting faster and more consistently than at any point historically, which will have a meaningful impact on our working capital. Two quarters in a row, as we said, and I already provided a hint in the Q1 2026. Second, we structurally reduced operating expenses through the actions we have taken under the Blink Forward initiative. The one-time benefit, this is not a one-time benefit, this is a reset, complete reset of the cost base.

As Mike talked about reducing inventory levels, that this is all part of our transition to contract manufacturing and really becoming more disciplined and focused. It freed up cash and reduced balance sheet intensity, which is again, if you're comparing companies, our balance sheet is very light, and it will allow us to be nimble, allow us to be agile. When we put all this together, you're seeing a much more efficient operating model, and we expect to continue managing cash burn and our business at this reduced level going forward.

Excellent. Well, that's big progress. It actually segues nicely into my next question. You know, the investment community is very realistic about the EV and charging demand environment right now. I don't think anyone's gonna not understand your revenue guidance for this year. The one area, though, that I think is a nice surprise is the gross margin line. This doesn't benefit directly from the working capital and manufacturing strategy changes that you've implemented, you know, if the cost per unit's unchanged. Clearly, mix and the internal initiatives, you know, it's your control, right?

This is your initiative that's driving this gross margin execution better or execution outlook better, than what we've been seeing and what we've been expecting. Can you maybe just, you know, talk a little bit more about, you know, the opportunity on the margin side, you know, how this has come together for you, how long you've been working-

Yep.

On this and, um-

Yep.

You know, your confidence in this trajectory 'cause it clearly is something that's been under your control, you've made changes, and it's delivering.

Yeah. It's actually a great question. Again, I'll start, and I'll let Michael. I think we're excited to answer this question.

Yeah.

First of all, when you look at the progress we made during 2025, we restructured the business with really big levers. You know, we reduced headcount, you know, nearly 50%. We looked at software subscriptions and all of the normal places that you would go in order to try to cut costs. We rationalized facilities. You know, we exited some of our facilities in order to save costs. I mean, we did many things, but they were big and visible. Now what we're doing going into 2026 is exactly the question you asked.

The way we look at the business is we said, "Okay, those things were visible. What are the underlying costs that are below the surface that are not immediately visible that affect our margins?" Michael mentioned them a bit in his comments. They're things like warranty costs, shipping costs, SIM card fees. A SIM card, like a cell phone SIM card that they also go into chargers. How much are we paying for those? Payment service transaction fees that we are incurring on our network. Energy management in terms of things like demand fees and how can we better procure energy so that we don't get hit by demand fees on DC fast chargers. There's multiple things that we're looking at that will directly affect margins.

And, and Mike-

Michael.

That's exactly right.

Yeah, Craig.

Yeah, that's exactly right. You know, the improvements are very different from what we did in 2025. I'm not gonna, again, call out the levers and results that we talked about, but in a nutshell, 2025 we focused on larger structural levers, as you said, reduced exposure to low-margin activities, restructuring of operations. We said the cost base 2026. As you said, below the service improvement, it's all about operational optimization. That's what's exciting about it because we're coming out of the restructuring so strong. Individually, those are smaller levers, but collectively they can drive meaningful margin expansion, and we believe that this will help us as we continue.

Yeah.

Moving forward with our multi-year strategy.

That makes a lot of sense. That makes a whole lot of sense. You know, multi-year strategy, right? Again, dovetails perfectly into my last question, if I may. You know, we all know that you guys have been working so hard this last year to develop a strategy to get to EBITDA positive, right? I know you guys wanna make money, not just grow fast and grow at the best rate you can, given the overall demand environment. I know you wanna do that while making money. You know, are there any major items you can call out for us, you know, as external observers of the company, that might facilitate that?

You know, clearly revenue is one that's environment driven, but are there other things like changes in the portfolio or gaps that you'd like to close that can get you there? You know, is there something we can maybe consider as a timeline or a you know, a loose goal, given that, you know, I guess the board has to approve disclosure of targets, but if we just talk you know, aspirations. That might be a loophole. You know what I'm saying?

Yeah. Hey, Craig, again, I'll start. First of all, we are hell-bent at this company on getting to profitability, and we're not gonna wait for the market to take us there. I wanna say it again. We are not gonna wait for the market to take us there. We want to continue this theme that we set out last year and into right now, which is, look, we're gonna tell you what we feel comfortable telling you in terms of the operating environment of the business, and then we wanna deliver on that, and then hopefully surpass that. We're not giving guidance right now, but we're gonna continue to optimize on the expense side. You know, Craig, it's interesting.

I mean, if you look at, you know, for me personally, as CEO of the company, last year was all inward-focused. It was cutting expenses, it was restructuring, it was making sure that we right-sized the business. This year, I'm gonna leave that to my compatriot, Michael Bercovich, and my whole focus is working with the sales team on growing top-line revenue, because that's what we need to do. Within growing top-line revenue, we need to really understand and really go after and really stay focused on the product sales segments that are moving in the industry, not phantom, segments that people keep hoping for, but where's the actual activity happening and how can Blink maximize its position within those particular verticals. So we're not gonna run after everything. We're gonna run after the stuff that makes sense to run after where we see a market.

Michael, I don't know if you have anything to add to that.

Yeah. Mike, thank you for that. For me, it's all about two things that you mentioned, operational excellence. Last year, we hit a lot of goals and a lot of, you know, things worked out for us. This year is gonna be operational excellence, going and turning every stone that we already turned and turning it again. Sales, smart sales with a higher gross margin and complete the shift of the repeatable and recurring revenue that we already talked about. We have inspiration through our DC fast charging network to produce more higher margin, repeatable sales that will help us to get to profitability.

We do provide guidance that this year we anticipate a significantly lower loss on our adjusted EBITDA, and we're seeing that even from Q4, the number that we got to under $4 million, and we continue driving it down. From here, we need to continue to invest in the business, continue doing what we did, and we'll get there. This is something that I know we all as a team working on, Craig. There's a lot of opportunities, as I said, for 100-300 basis points on the gross margin, and then also on operating expenses, we'll continue doing that. We're very, very focused on what matters, and the business and profitability are incredibly important to us.

Thank you. Our next question is coming from Ryan Pfingst with B. Riley. Your line is live.

Hey, guys. Thanks for taking my questions. I guess just on the first one, the revenue range for 2026, could you talk about the cadence a little bit for the year? Then maybe what are some of the drivers that could get you towards the higher end of the range, you know, versus the lower?

Cadence-wise, you know, if you look at our business historically, 2024 was, I think, a little bit of an anomaly. If you look back, at least since I joined in 2020, the revenue pattern kinda stays the same, which is the first quarter typically experiences some seasonality, and then it starts to march up from Q4 or from Q1 throughout the year. I think we're gonna see some of the same. If you look at how we get to the higher end of our range, some of it is gonna be market activity in terms of EV sales. If you look at the predictions of EV sales or the forecasts of EV sales, it's following exactly what we expected.

Which is after expiration of the EV tax credit, EV sales fell dramatically. Now they're starting to inch back up again. The question is, you know, what does the second half of the year look like? Ultimately, where is the market share? You know, I think it's gonna be somewhere in the 7%-8% range, and I'm not alone in that. By definition, it means that the second half is gonna be quite a bit stronger than the first half, and you're gonna see automakers releasing new products during that time. That's one. Another one is us successfully installing the 30 DC fast charging projects that we have in the pipeline. We have a nice cadence of new sites coming online.

We highlighted some of that in our comments, and we actually front-loaded a lot of projects even prior to our capital raise. We green lighted several projects such that we have them coming online, in actually a pretty good flow this month, meaning April, and then May into June and throughout the year. That's another one. Then a final one is simply, you know, market consolidation favoring Blink. I've said this before, but right now I see. You know, we have many opportunities that come across our desk, every single week right now for M&A. You know, we're not touching those right now. A lot of those companies are not gonna make it, and we think we're gonna benefit from the consolidation that we've been talking about quarter after quarter, and that no question is happening at the moment.

Appreciate that. You kinda just answered my follow-up here, but the next question was gonna be about the competitive landscape as the EV market evolves here in the U.S. and what kind of opportunities that could present to you know, either in the form of M&A or market share gains.

Yeah. You know, I'll start. Michael may jump in on this too. You know, I've said in the past, I mean, I like M&A, I like it as. It's gotta be. You know, one of the things that we are not gonna do at Blink is after all the work we've done, is take our eye off the ball and do something that will jeopardize the operational leverage we've created. Again, we've seen a lot of stuff come across our respective desks, but most of it is asset sales. When you get into asset sales, the only way you're gonna pick something up is if it's highly accretive to what we're doing. Anything that is not highly accretive, we're dismissing immediately.

Anything that could potentially be accretive, you know, we're looking at here and there, but as of now, you know, we haven't seen anything that's really caught our eye. Michael, I don't know if you have anything to add.

Yeah, Mike. You know, one thing to add to what you said. What we created is an asset-light, less capital-intensive balance sheet that will help us with the execution of our plan. As we see some of the competitors out there, they still live in the past. They still burdened with debt, continue burning an amazing amount of money. In this environment, this is gonna be very detrimental to their survival and detrimental to their business. That's one of the things that we took care of this year by going through the Blink Forward initiative and rolling out a completely different strategy. We're open for small M&A opportunities, but we're also operationally focused on our plan and aim to deliver exactly what we plan.

I appreciate it, guys.

Thank you.

Thank you. As a reminder, ladies and gentlemen, if you have any questions, please press star one on your telephone keypad. Thank you. Our final question today will be coming from Sameer Joshi with H.C. Wainwright. Your line is live.

Hey, good afternoon, Michael. Congrats on the progress. This is good tightening of the belts. I know it could be hard, but congratulations on the execution on that front.

Thank you, Sameer.

You have touched on many of the things that I wanted to talk about, but if you are looking at 2026 and beyond, what are the areas of growth? Is it more of own and operate? Is it increasing the service revenues from installed base? Or, as you just talked about some M&A program that is on the back burner, but could that be coming to play in 2027 and beyond?

Yeah. Yeah. Great question. You know, one of the things we mentioned, and it was subtle in our comments, is rationalization of our network. What does that mean? It means you know, the days of the EV infrastructure business planting flags and, you know, build a charger, and they will come are over. What we are intently focused on is the production of our portfolio, the profitability of our portfolio, the unit economics. We are looking at assets that are unproductive. Quite frankly, at this stage in the game, I don't care about how many chargers necessarily are connected to the network from a Blink-owned standpoint. I wanna know and I wanna retain only the very best ones. It's absolutely gonna come from optimizing the sites that are proving themselves to be productive and profitable.

It is about utilizing deep analytics that we have at our disposal now in order to accurately site DC fast charging sites. It is obviously opportunistically to take advantage of all of the product sales opportunities that present themselves, through our distribution channels.

Understood. Sort of, maybe a follow-up on the previous one. You did speak about the 30 sites with the 150 ports. Michael mentioned heavy investment in the installed base. What could make this 30-site number grow to, say, 40 or 50? Like, what are the sort of scouting activities that you're doing to find such locations that could yield you high service revenues?

Yeah. Michael, you wanna take the first part of that from the financial angle, and then I can answer the second?

Yeah, absolutely. Part of our raise, Sameer, if you remember, we talked about that the majority of the investment, the majority of the cash that we raised was supposed to go to building a very strong, profitable DC fast charging network. We already had the backlog that I know Mike will talk about. From a perspective of execution, we really needed the capital. As Mike already earlier said today, we started, we front loaded that. We already started activities of procuring for constructing, because we were confident in our capital raise efforts. Mike, back to you because I know you wanna talk about the backlog and the delivery.

A couple things. One is, you know, we have somewhere in the neighborhood, Sameer, of a $100 million backlog of projects that we could install if we had the capital.

Mm-hmm.

You know, the next question is, well, what are you gonna do to get the capital? We, as we mentioned time and again, the company has no debt. It gives us flexibility. But what we wanna make sure of is that any debt that we incur is not debt for the sake of, but it can be serviced by the cash flows of the projects that we put in the ground. So that we need to prove that out to financial partners in order to get a quantum that is not just what you mentioned, Sameer. Actually, our ambitions are quite beyond that. so, you know, we have to prove out the unit economics. How do we prove out the unit economics? We put chargers in the right sites. How do we select the right sites?

We look at metro areas, and what we're interested in is density. We wanna participate in dense metro areas, both urban and suburban, that have high EV sales penetration, with existing charger footprints that are in that market are demonstrating high utilization, and that have gaps in the geography. Then we're going after those gaps. I'm not gonna name specific markets because I don't wanna-

Yeah.

Disclose that. We have multiple metros throughout the U.S. that we're targeting, and we're gonna go after putting sites there.

Understood perfectly and good answer. Just one last one, sort of, it is cash flow management or working capital management. The inventory you're targeting at around $15 million. I'm expecting that is for sales, right? That is for product sales.

It's for sales.

Got it. Understood. Thanks. Thanks.

Yeah.

Good luck for 2026.

Thank you so much.

Thank you. Ladies and gentlemen, we have reached the end of our question and answer session. I would like to turn the call back over to Mr. Vitalie Stelea for any closing remarks.

Well, thank you all for joining on the phone or online. If there are any additional questions, feel free to drop us a note at [email protected], and we look forward to interacting with you in the future. This is the end of the call.

Thank you. Ladies and gentlemen, this does conclude today's conference, and you may disconnect your lines at this time. We thank you for your participation.