EVgo, Inc. Q2 FY2025 earnings call

• EVgo had strong revenue growth of 47% y-o-y and adjusted EBITDA improved by over $6 million. - Closed a $225 million commercial bank facility with a $48 million first drawdown, a major strategic milestone. - Expect to increase ending 2029 public stall guidance by ~3,500 to ~14,000 stalls. - Forecast a 28% reduction in 2025 vintage net CapEx per stall. - Focus on improving customer experience, with efforts to rectify equipment issues and increase throughput. - Deploying larger public sites with 6-8 stalls, high-power chargers, and Autocharge+ technology. - Progress on next-generation charging architecture with Delta Electronics, on track for prototype and initial deployment in back half of 2026. - Added to dynamic pricing, digital marketing, and customer acquisition capabilities using AI agents. - Second pilot site with native NACS cables went live, encouraging early signs of increased Tesla driver usage.

In Q2 2025, EVgo had strong revenue growth. Total revenue was $98 million, up 47% year-over-year. Charging network revenues were $51.8 million, exhibiting a 46% year-over-year increase. eXtend revenues were $37.4 million, delivering a 35% growth. Ancillary revenues of $8.8 million were up 157% versus the prior year, driven primarily by growth of the hubs business for autonomous vehicle companies. Charging network gross margin in the second quarter was 37.2%, up 210 basis points from the prior year. Adjusted gross profit in Q2 2025 was $28.4 million, up from $17.7 million in Q2 2024. Adjusted gross margin was 28.9% in Q2, an increase of 240 basis points compared to the prior year.

• EVgo anticipates adding 800 to 850 new public and dedicated stalls in 2025, with over half operational in Q4. - Total fiscal net CapEx reduced to $140 million to $160 million. - Forecast revenue for full year 2025 is $350 million to $380 million, an increase at the midpoint from prior guidance. - Charging network revenue estimated to be ~60% of total revenues in 2025. - Adjusted EBITDA for 2025 expected in the range of negative $5 million to positive $10 million, with Q3 expected to be negative and Q4 positive. - Full year eXtend revenues anticipated to increase ~25% vs last year, ancillary revenues more than double, with Xtend revenues relatively evenly distributed and ancillary revenues higher in Q4.

• Competition from smaller charging companies that may struggle to attract capital. - Seasonality in utilization and charge rates, with lower charge rates in winter months. - Potential impact of political or market dynamics on adoption of electric vehicles and charging infrastructure.

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

A: Offsets are coming from all over the US, including California, Florida, Ohio, Pennsylvania, Washington. State grants and utility incentives remain active regardless of federal incentives.

Q: Any updates on the DOE loan?

A: The project is performing strongly, no time limit on DOE loan advances within 5-year availability period, and the commercial bank facility allows funding of stalls not eligible for DOE loan.

Q: Details on utilization rate improvement after firmware update?

A: Faulty firmware update in Q2 was addressed, and July average daily throughput approached 300 kilowatt hours per stall per day, with average throughput on unaffected chargers higher.

Q: NACS cable deployment plans and catalysts?

A: Deploying 30 NACS cables in August and ~100 for the year. Early results show increased Tesla driver usage, and continued deployment will depend on continued positive results.

Q: Key catalysts for Q3 and Q4?

A: Focus on executing the business, with charger issues largely behind us by early Q3, and continuing to execute on deployment and operations.