EnergyConnect: The Future of Electricity Management. That is a little bit of a preview of where we are headed and what we are going to talk about today. Safe harbor statement, obviously, we are a publicly traded company, and we are going to be talking about some things that are forward-looking. What I want to start is talking about where Blink is today, most recently with our second quarter. We have talked about this really pretty consistently for the last 18 months or so, but this is a company that has encountered a pretty significant transformation. 18 months ago, this was a company whose cost structure was far too high. Cash burn was incredibly significant. The market was changing pretty dramatically at that time, not necessarily for the better 18 months ago.
What we did as a management team was make a concerted effort that come hell or high water, this company was going to get to profitability. When we think about the strategy for what we were going to do, the first leg of that stool was right-sizing the company, and it was cutting expenses, it was arresting the cash burn. It was really getting the company on solid financial footing so that we could thrive into the future. We have made significant progress. We have talked about this. I am not going to spend a lot of time talking about what we have done in the past. I will touch on our second quarter here because I think it is emblematic of the work we have done and where we have come to this point. Our second quarter revenue was just under $22 million.
Gross profit of $8.4 million, but really what I want to get to are the gross margins. Again, we have made very concerted efforts to ensure that the quality of the revenue that we are generating is healthy. Our GAAP gross margins in the second quarter were just about 39%. Our adjusted gross margins, non-GAAP, were nearly 48%, and that is significantly up from where we have been in the past. We have guided to 35% for the year, which we currently feel quite good about. Part of the reason that we feel good about it is the number that is on the left side of this slide, the $11.5 million in service revenues. We have also talked in the past about, and I will get to this in a moment, about revenue mix. Blink has two pieces to our business.
We go to market through selling EV charging hardware and software subscription fees for Blink Network, and then we also own and operate EV charging infrastructure. We generate transaction fees and, more importantly, electricity sales based on owning and operating that infrastructure. That is what is in that $11.5 million of service revenues. That is repeat and recurring in nature. On average, we are at about 50%, depending on the quarter, 50%-60% service revenue mix on a repeat recurring basis, and we are looking to get that to 80% by 2028, so in the not-too-distant future. I also want to point your attention to the bottom of the slide. This is a company that, for quite a long time, was generating significant losses.
If you look at our year-over-year performance, we shrunk our EBITDA loss from nearly $8 million in Q2 of 2025 to $2.2 million in 2026. In fact, when we talk about the focus of the company, and this is a company that's become highly focused. One of the things we did in the second quarter was sell our EV car-sharing business. That was non-core to the business. It was a drag on expenses and cash. We exited that business. We sold it to a third party, and that was in June. If you were to actually remove the sale of Envoy, we actually shrink that $2.2 million loss to somewhere in the $1.4 million range. The reason why I talk about that is there's no EV charging infrastructure company in the market today that is profitable outside of Tesla.
We are the closest company to hitting breakeven and becoming profitable. We're proud of the work we've done. We still have some work to do. Like we talked about in the second quarter earnings announcement, we expect to exit 2026 at approximately EBITDA breakeven. That's what this slide talks about. Again, reiterating, we feel good about the 35% GAAP gross margin for full year 2026. We feel good about exiting 2026 at about EBITDA breakeven, and we think that sets us up well for going into 2027. When we talk about the legs of the stool and the strategy of the company, again, first being restructuring the company, getting expenses right, arresting cash burn, really injecting a strong sense of financial discipline to the company. The second leg of the stool was or is us owning, operating, installing DC fast charging infrastructure.
We've been very public about that. Blink is a company that historically has owned and operated Level 2 AC infrastructure, and we made a conscious decision to pivot that strategy to investing CapEx dollars into DC fast charging. That's well underway. I'll touch on that in a minute. The third leg of this stool, which we'll get to, is energy management services. Think of EV charging infrastructure as a razor-razor blade scenario. The charging station becomes the razor, and the energy management services becomes the razor blade. That's kind of our beachhead, are the owned and operated charging stations that are in the market. One of the things we see is that, as of this morning, oil is at $103 a bbl. It's obviously not a good thing, but from a positive tailwind for the EV market, it's certainly good.
Where this is really translating is not so much in the new car sales side, although we see hybrids and plug-in hybrid vehicles doing very, very well in the market. When we talk about pure battery electric, where the activity is really strong is on the used car side. If you look at used car sales growth, if you look at day supply of EVs on dealers' lots across the country, it's incredibly low. Average transaction prices are rising. What it shows is that consumers on the used car side are deciding to opt for, if faced with two cars that are comparable, they're opting for an EV because of the variability in gas prices at the moment, and conversely, the consistency of owning an EV in terms of the fueling costs of a battery electric vehicle. I talked about revenue mix.
Again, as we've talked about in prior earnings releases, our objective is to get to 80% of the company's revenue for repeat and recurring in nature. Again, we are on track for that. We are consistently increasing that percentage of repeat and recurring revenue, and specifically, it's coming from two different areas. It's coming from software subscription fees associated with when we sell a charging station, and then somebody subscribes to our network, and the Blink Network enables monitoring of the charging stations. It enables transactions, so consumers to actually transact. It also, again, enables us to do things like energy management services. Again, I'll get to that in a moment.
We raised $18.5 million back in December, on a net basis, and we talked about the usage of those funds, and the majority of the usage of those funds was directed towards CapEx investments in DC fast charging. We have a pretty methodical formula here. We raise capital. We have a site pipeline that we are constantly building. We move into construction with partners. We don't do the construction ourselves. That's all through third parties. Then once that charging station is active, we own and operate it through long-term contracts with property owners, which are typically in the 10 year - 13 year range.
Speaking of that DC fast charging build-out, we have 25 sites currently in construction, which will add about 118, what we call electrified stalls to our portfolio by the end of the year, which brings us to 169 sites and upwards of 500, again, what we call electrified charging stalls, by the end of the year. To put this kind of in perspective in terms of mix at Blink Charging, we operate in the United States, the U.K., and Belgium, and we have approximately 7,000 charging stations that we own and operate. Roughly by the end of this year, we're going to be looking at somewhere in the neighborhood of 350 chargers out of that 7,000 that will be DC fast charging. Our CapEx investments are not going into the Level 2 AC charging stations as much anymore. They're going into the DC side, if that makes sense.
We're on the front edge of this, which actually is, in some ways, an advantage because we don't have the legacy footprint that other providers have out there that's old equipment, that's slow equipment, things like that. What we're currently doing is installing kind of the latest and greatest stuff that's available. When we think about what the future of Blink Charging looks like and where we want to go, this is just depicting what that is. If you take a moment to look at this slide, it shows, number one, DC fast chargers, and it shows cars obviously charging their vehicle. Then there is a solar canopy above, and then off to the right side of this slide, it shows battery energy storage.
We think this is a huge opportunity for us, not just in terms of the site-level economics, but what it unlocks for us in terms of things like virtual power plants and related services. Again, we will talk about that. On the second quarter earnings call, we talked about the launch of our EnergyConnect energy management system platform. This is not something that was announced that we plan to develop. This is something that was announced and that we have already launched. The platform itself is roadmapped out, so we have some level of functionality, which I will talk about in a moment, in the market today, and then we are going to be adding functionality in the year ahead. This unlocks for us, Blink becoming not just an EV charging company, but becoming an energy management services company, and we will talk about how that works.
Why Blink? Why does Blink have permission to even do that? It goes back to the fact that we have 50,000 charging stations that are connected to our network in the United States. alone. I should correct that. 50,000 globally, 30,000 in the U.S. The other 20,000 are between the U.K. and Belgium. What this does, again, is that razor blade analogy that I talked about, where the charging station is the razor. It is connected to the Blink Network. Then we can exploit energy management services. What that means is we have EnergyConnect, that is the cloud layer on top of the network. Here is just a scenario. If we have sold a charging station to a customer, a DC fast charging station. As an example, we are pretty strong in the automotive dealer market.
We have sold almost 2,000 DC fast chargers to car dealers around the country, new car dealers. They install a couple of DC fast chargers. They use them occasionally, and when they use them, they are drawing a lot of power at that site, which triggers what are called electricity demand charges. You may wake up one day and you have only charged a few vehicles, but I have a $10,000 electricity bill. That gets people's attention pretty quickly. What EnergyConnect does is it is purely a software layer that has settings that enable us to what is called load limit that site. We can set the charging stations to not exceed a certain draw. Despite the speed of the charging station, we can actually curtail it, and that will help avoid electricity demand charges for that customer.
There is a huge opportunity for us to charge for that service. Whether it is on a success basis or whether it is on a software subscription fee basis, that is something that we are pursuing. What we have done is we have actually tested this at our Blink-owned sites. Again, we have DC fast charging infrastructure that we own and operate. We have deployed EnergyConnect across 11 sites we talked about on our earnings call, and we have since from that time, just in the last several weeks, we have expanded that from 11 sites - 45 sites. The estimated savings at those 45 sites alone is about $360,000 in electricity costs, and that is direct margin to Blink.
When we think about deploying that across our network, and we think about deploying that for customers as a cost-saving measure, that's the first step in Blink, again, moving into energy management services and not just becoming or not just being an infrastructure owner or selling charging stations, but helping customers and ourselves manage that energy. Then eventually, number three down here on the slide is we can participate. Once we have the energy management layer and we have things like battery energy storage that are deployed at these sites, we can then start to participate in grid-connected services where utilities allow it. What grid-connected services means is that if we have excess energy sitting in a battery and a utility has a demand event, and I happen to live in California, and those happen fairly regularly, we can sell.
We have an opportunity to actually sell that energy back to the grid on an opportunistic basis. Then if you have solar at that site, the solar panels can either recharge that battery or the grid recharges that battery in off-peak times, if that makes sense. This becomes, again, what's called. Once you start to aggregate all of this energy at these different sites around the country, you're establishing what's called a VPP or virtual power plant. We think that's pretty exciting because, again, it's a bigger opportunity than even just the EV charging space. I talked a little bit about this, but where the platform is heading is, first of all, in what's called load balancing, which I talked about, which is curtailing the amount of energy that can be pulled from a site in order not to trigger demand charges.
What EnergyConnect though does too, is that when we load balance like that, you can actually start adding charging stations at a site and expanding without actually having to do construction in terms of utility interconnect or upgrading the power at the site, because we can actually share power on a more intelligent basis across more charging stations without asking the utility company to bring in more power. That in and of itself is a powerful feature. I talked a little bit about energy arbitrage, but again, what this does is it allows us to avoid utilizing electricity at peak cost times and deferring that, let's say, from a battery and selling energy, like in California, between 4:00 P.M. and 9:00 P.M. is the most expensive time to utilize electricity. We have a battery on site.
We can pull from that battery between 4:00 P.M. and 9:00 P.M. when we charge that battery at much lower energy costs. Then again, it can be recharged at a different period of time. Then I talked about grid services. I talked about, at the bottom of the slide, about $360,000 that we're estimating in annual savings across 44 Blink-owned sites, and that's just since we released EnergyConnect about six weeks ago. Then when we talk about the market opportunity, it is significant, and it is, again, much broader than just the EV charging space. But if we look at some of these statistics, 18.9 GWh in battery storage power capacity in 2025 in the United States, 7.5 GW in the United Kingdom, again, 36 GW in Europe that are being deployed in battery energy storage.
This is estimated in 2025 to be a $60 billion market opportunity in terms of global energy management systems. This, when you think about just a couple years ago, everybody was saying that EV charging was going to bring down the grid, and that did not happen. Now everybody's saying, what's going to bring down the grid? Data centers, right? The conversation has shifted away from EV charging, and it's moved towards data centers. But when we think about development of data centers, when we think about EV charging, and we think about just organic economic growth associated with electricity demand, this is an enormous market that Blink has permission to play in.
I won't spend a lot of time on this slide, but there are multiple revenue streams that we could exploit coming from EnergyConnect, and it could simply be acting as a hardware provider and a software provider to a site. It can be software subscription to existing infrastructure, whether it be Blink or another EV charging provider, it doesn't matter. EnergyConnect can sit on top of not just a Blink Network, but another network. I talked about energy management services, and then one of them that's very interesting is performance plus shared savings. One of the things we're exploring is, in the analogy that I used earlier, is if I'm able to save someone significant cost on electricity on a monthly basis, can we structure something where we get a percentage of the success of those savings?
Again, it can either be that or it can be things like a SaaS subscription. We believe that in the next five years, we have a roughly $115 million opportunity for EnergyConnect services. Now, that does not mean $115 million in revenue on top of what we're doing today. This is a combination of software subscription fees, so revenue. It is grid services. Again, selling electricity back to the grid. Then thirdly, which is more near term, is helping customers with cost. So whether it's ourselves mitigate electricity costs or the tens of thousands of charging stations and sites that we've already sold into the market over the years, and helping those customers manage that electricity effectively. When you look at those three things, we believe that that's upwards of a $115 million opportunity in the next five years.
I think I'm pretty close to time, so I can take questions.