EVgo, Inc. Q2 FY2025 earnings call

• EVgo had strong revenue growth of 47% y/y and adjusted EBITDA improved by over $6 million. - Closed a $225M commercial bank facility with a $48M first drawdown, enabling acceleration of expansion. - Forecasts a 28% reduction in 2025 vintage net CapEx per stall. - Focused on improving customer experience, with higher throughput per stall in July after addressing firmware issues. - Deploying larger public sites with 6-8 stalls, and 57% of stalls served by 350-kW chargers. - Autocharge+ accounted for 28% of sessions, and One & Done metric increased 1 percentage point. - Pilot of NACS cables launched, with potential for growth in Tesla driver usage. - Developing next-generation charging architecture with Delta Electronics, on track for 2026 deployment.

In Q2 2025, EVgo's revenue was $98 million, a 47% year-over-year increase. Charging network revenues were $51.8 million, up 46% y/y. eXtend revenues were $37.4 million, growing 35%. Ancillary revenues were $8.8 million, up 157% y/y. There were 4,350 stalls in operation, and the company ended the quarter with $183 million in cash, cash equivalents, and restricted cash. The company had 47% y/y revenue growth, with charging network revenues at $51.8M (+46%), eXtend at $37.4M (+35%), and ancillary at $8.8M (+157%).

• Expect to have ~14,000 projected public stalls by end of 2029, an increase of ~3,500 from prior estimates. - 2025 CapEx reduced to $140M-$160M. - 2025 revenue expected to be $350M-$380M. - Adjusted EBITDA for 2025 in range of negative $5M to positive $10M, with Q3 expected to be negative and Q4 positive. - Anticipate adjusted G&A to be flat to Q4 2024 run rate plus inflation.

• Potential impact of federal incentive changes on CapEx offsets. - Competition in DCFC stall growth, with some smaller companies struggling to attract capital. - Operational risks related to firmware updates and legacy hardware issues affecting uptime and maintenance costs.

Q: Can you provide geographic trends driving capital offsets to 45%?

A: Offsets are from various states like California, Florida, Ohio, etc., and state grants remain strong regardless of federal incentives.

Q: Any updates on DOE loan drawdowns?

A: Project is performing strongly, no current request for drawdown, but dialogue with DOE remains productive.

Q: Details on firmware update impact on utilization?

A: Faulty firmware in Q2 was addressed, with July throughput approaching 300 kWh per stall per day after maintenance investments.

Q: NACS cable rollout and acceleration?

A: Early results show higher Tesla driver usage, with 30 cables to be added in August and 100 for the year, with analytics driving deployment decisions.

Q: Key catalysts for Q3 and Q4?

A: Focus on executing business, firmware issues largely behind, and continuing to leverage capital efficiencies and growth initiatives.