Wallbox (WBX) Q3 2025: DC Sales Surge 40% as Margin Levers Offset AC Weakness
Wallbox’s Q3 revealed a business in transition, as strong DC charger growth and gross margin gains offset lingering AC sales headwinds and operational complexity. The company’s pivot toward commercial and DC fast charging is gathering momentum, but soft AC demand and regional challenges continue to weigh on revenue. Investors should watch for updates on debt restructuring and the pace of sales force reinvestment as key catalysts heading into year-end.
Summary
- DC Fast Charging Momentum: Commercial DC sales growth is outpacing legacy AC, driving margin mix shift.
- Margin Expansion Focus: Gross margin improvement reflects disciplined cost controls and product mix optimization.
- Debt Overhang Remains: Balance sheet resolution and sales force execution are critical for future profitability.
Performance Analysis
Wallbox’s Q3 results were characterized by a significant divergence between product segments and regions. Total revenue landed slightly above the prior year, but fell short of internal expectations due to persistent softness in AC charger sales across all geographies. AC, or alternating current, chargers are Wallbox’s legacy residential and light commercial charging units, and they remain the largest revenue contributor at 63% of consolidated sales. However, AC sales declined both sequentially and year over year, with operational headwinds in Europe and a sharp downturn in Canadian EV adoption cited as primary drivers.
In contrast, DC fast charging solutions delivered a standout quarter, with revenue up 40% sequentially and 34% year over year, now representing 16% of total sales. This growth was attributed to robust demand for the Supernova product line—Wallbox’s flagship DC platform—particularly in North America and select European markets. The company also reported solid progress in software and services, with Electromaps, its EV charging app, more than doubling revenue year over year. Gross margin reached 39.8%, exceeding the guided range, as improved bill of materials, higher pricing, and carbon credit proceeds offset the impact of lower volume. Operating expenses and cash costs were tightly managed, with cash costs down 34% year over year, supporting incremental progress toward profitability despite a still negative adjusted EBITDA.
- Revenue Mix Shift: DC charging’s rising share is improving blended margins but cannot yet counterbalance AC volume declines.
- Cost Discipline: Cash costs and opex reductions are sustaining margin progress amid revenue stagnation.
- Regional Divergence: North America outperformed, while Europe and Canada lagged due to regulatory and market factors.
Inventory reduction and limited CapEx spending further bolstered cash flow, but the company’s €179 million debt load remains an unresolved overhang.
Executive Commentary
"The main area of focus to accelerate our path to profitability is restoring revenue growth. For this reason, we are reinforcing our sales function and leveraging our existing market positioning to elevate our performance across geographies and segments."
Enrique Asuncion, Chief Executive Officer
"To reach positive adjusted EBITDA, the reacceleration of revenue growth remains critical, a goal we are pursuing by reinforcing our sales organization and strengthening commercial execution."
Luis Boada, Chief Financial Officer
Strategic Positioning
1. Acceleration of DC Fast Charging
Wallbox is actively shifting resources and commercial focus toward DC fast charging, which offers higher revenue per unit and better gross margins than legacy AC products. The Supernova platform’s adoption in North America and Europe, supported by new partnerships with Hera Group and Surcharge Corp, underscores the strategic pivot to fleet and public charging infrastructure. A new high-power DC product, leveraging the Supernova platform, is slated for imminent launch and is expected to further differentiate Wallbox in the commercial segment.
2. Sales Organization Reinvention
Leadership is prioritizing sales force expansion and integration, with a new Chief Business Officer tasked to unify product segment teams and drive commercial execution. This move aims to address underperformance in core regions and capitalize on the recovering European EV market, where regulatory changes and product transitions have temporarily disrupted order flow.
3. Product and Software Ecosystem Expansion
Wallbox is layering value-added software and energy management features onto its hardware portfolio. Recent launches like Time of Use Tariff and State of Charge are designed to deepen customer engagement and support premium pricing. The company is also investing in bi-directional charging (Quasar 2) and AI-driven energy management, positioning Wallbox as an energy solutions provider, not just a hardware vendor.
4. Margin and Cost Structure Optimization
Efficiency gains remain core to Wallbox’s path forward. The company is executing on bill of materials reductions, warranty cost improvements, and inventory drawdown, all while maintaining tight CapEx discipline. Carbon credit monetization in Canada and premium pricing on new DC products are further supporting margin expansion.
5. Balance Sheet Stabilization
Debt restructuring is underway, with a standstill agreement in place through December 9th and ongoing negotiations with lenders. The outcome of these talks will be pivotal for Wallbox’s ability to reinvest in growth and maintain operational flexibility in 2026 and beyond.
Key Considerations
Q3’s results frame Wallbox as a company managing through transition, balancing aggressive cost action with targeted investments in high-growth segments and commercial capability.
Key Considerations:
- Commercial DC Outperformance: Sustained DC sales growth is vital to offsetting continued AC weakness and supporting margin accretion.
- Sales Force Execution: The speed and effectiveness of sales organization reinvestment will determine whether Wallbox can capture emerging demand in Europe and North America.
- Product Transition Risks: Regulatory-driven product changes and platform upgrades have introduced short-term delivery and education hurdles that could persist into 2026.
- Balance Sheet Resolution: Debt restructuring progress is essential to removing financial constraints and restoring investor confidence.
Risks
Short-term risks center on AC segment softness, regulatory uncertainty, and the potential for further EV market volatility, especially in Canada and select European markets. The unresolved debt load and reliance on successful sales force scaling introduce additional execution risk. Failure to accelerate revenue or secure a favorable debt outcome could constrain growth investments and delay profitability.
Forward Outlook
For Q4 2025, Wallbox guided to:
- Revenue in the €36 million to €39 million range
- Gross margin between 38% and 40%
- Negative adjusted EBITDA between €6 million and €4 million
For full-year 2025, management did not provide explicit guidance, but emphasized:
- Continued prioritization of sales expansion and margin improvement
- Constructive negotiations with lenders, with an update expected by December 9th
Management highlighted the need to restore revenue growth via sales force investment and commercial execution, while maintaining operational efficiency and cost discipline.
Takeaways
Wallbox’s Q3 performance underscores the company’s pivot toward higher-margin DC fast charging and commercial solutions, but also highlights the ongoing challenge of reviving AC sales and navigating operational headwinds.
- DC Acceleration: Fast charging and commercial partnerships are now the main growth engines, supporting improved gross margin but not yet fully offsetting legacy product softness.
- Execution Watchpoint: The effectiveness of the new sales leadership and integration strategy will be critical in converting EV market growth into Wallbox-specific gains.
- Debt Resolution Catalyst: Investors should closely monitor the December timeline for debt negotiations, as the outcome will shape Wallbox’s capital allocation and growth trajectory in 2026.
Conclusion
Wallbox is making visible progress in margin expansion and commercial DC growth, but remains in a delicate phase where sales execution and balance sheet repair are paramount. The company’s ability to capitalize on EV infrastructure tailwinds will hinge on resolving debt constraints and reigniting top-line momentum.
Industry Read-Through
Wallbox’s results highlight a broader industry trend: as residential EV charger demand softens and regulatory complexity rises, the growth opportunity is increasingly shifting to commercial and DC fast charging infrastructure. Competitors with deep software integration, energy management capabilities, and strong commercial sales organizations are best positioned to benefit. The sector’s reliance on government incentives and evolving standards remains a key risk, with regional divergence likely to persist. Balance sheet strength and operational agility will differentiate winners as the EV charging market matures.