Executive Summary / Key Takeaways

• EVgo is demonstrating strong operational momentum in the DC fast charging market, with Q1 2025 marking its 13th consecutive quarter of double-digit year-over-year charging revenue growth and significant increases in network throughput and utilization, driven by growing EV adoption and strategic network planning.
• The company's focus on technological differentiation, including high-power chargers, Autocharge+, dynamic pricing, and the joint development of next-generation architecture targeting a 30% CapEx reduction, is enhancing customer experience, improving operational efficiency, and building a competitive moat.
• Securing the $1.25 billion DoE loan guarantee provides substantial, non-dilutive funding certainty to more than triple the installed base over the next five years, significantly de-risking the growth trajectory and accelerating the path to scale.
• EVgo is making tangible progress towards its financial targets, reiterating guidance for full-year 2025 Adjusted EBITDA breakeven (range of -$5M to +$10M) and projecting free cash flow breakeven in 2026, underpinned by improving unit economics and operating leverage.
• While operating in a competitive landscape with larger players like Tesla and Electrify America, EVgo's strategic focus on owned-and-operated sites, high-value customer segments (rideshare, OEM), data-driven site selection, and technological innovation positions it to capture a growing share of the expanding EV charging market.

Setting the Scene: EVgo's Foundation and Market Position

EVgo Inc. stands as a prominent player in the burgeoning U.S. electric vehicle charging landscape, primarily focused on building, owning, and operating a public direct current (DC) fast charging network. Its business model is centered on providing reliable, accessible charging infrastructure to a diverse base of customers, including individual EV drivers, commercial fleets, and automotive original equipment manufacturers (OEMs). The company's journey began with the formation of EVgo Services in 2010, evolving through strategic acquisitions and culminating in its public listing in 2021 via a SPAC transaction, establishing an Up-C structure that continues to influence its financial reporting.

Operating in a dynamic and increasingly competitive environment, EVgo's strategy is predicated on capturing demand driven by the accelerating adoption of EVs. The market is characterized by several key players, including larger entities like Tesla (TSLA)'s Supercharger network (though historically proprietary), Electrify America (backed by Volkswagen (VWAGY)), and publicly traded rivals like ChargePoint (CHPT) and Blink Charging (BLNK). While these competitors offer varying mixes of hardware sales, software services, and charging network operations, EVgo distinguishes itself with a primary focus on the owned-and-operated DC fast charging model, emphasizing network reliability, strategic site selection, and a technology-forward approach to enhance the driver experience.

EVgo's competitive positioning is shaped by its ability to secure prime locations through partnerships with site hosts (retailers, grocery stores, etc.), its relationships with OEMs that drive customer acquisition and network utilization, and its ongoing efforts to improve operational efficiency and technological capabilities. The company's market share, estimated in the 10-15% range for U.S. fast charging, positions it as a significant participant, albeit smaller than Tesla and Electrify America in terms of sheer footprint. However, management highlights that EVgo's sites are often strategically located in urban and suburban areas, closer to where drivers live and run errands, potentially offering a convenience advantage over highway-focused networks. The "so what" for investors is that EVgo is not just building infrastructure; it's strategically placing assets and developing capabilities designed to maximize utilization and capture value in a rapidly growing market, aiming to differentiate itself through performance and customer experience rather than solely competing on price or scale initially.

Operational Momentum and Financial Performance

EVgo has consistently demonstrated robust operational growth, translating into strong top-line performance. The first quarter of 2025 marked the 13th consecutive quarter of double-digit year-over-year growth in charging revenues, underscoring the sustained demand for its services. Total revenue for Q1 2025 reached $75.3 million, a significant 36% increase compared to $55.2 million in Q1 2024. This growth was primarily fueled by the Charging Network segment, which saw revenues climb 49% year-over-year to $47.1 million. Within this segment, Retail Charging revenue surged 64% to $30.0 million, Commercial Charging revenue grew 52% to $7.8 million, and OEM Charging revenue increased 92% to $5.3 million. Regulatory Credit Sales also contributed positively, rising 37% to $2.8 million. The eXtend segment, which provides services for customer-owned assets, also saw healthy growth, increasing 23% to $23.5 million. Ancillary revenue, including dedicated fleet charging, grew 7% to $4.7 million.

This revenue expansion is a direct result of increasing activity on the network. Network throughput on the EVgo Public Network grew 60% year-over-year in Q1 2025 to 83 GWh. This growth outpaced the increase in public DC stalls, which rose from 3.0 thousand in Q1 2024 to 3.5 thousand in Q1 2025. The resulting improvement in efficiency is reflected in the average daily throughput per public stall, which increased 36% year-over-year to 266 kWh/day in Q1 2025. Network utilization also improved, reaching 24% in Q1 2025, up from 19% a year prior. Management highlights that this increasing utilization, coupled with rising vehicle charge rates, is driving significant improvements in unit economics and operating leverage.

Financially, while still operating at a loss, EVgo is showing progress towards profitability. Gross profit in Q1 2025 was $9.3 million, up from $6.8 million in Q1 2024, maintaining a gross margin of 12.4%. The Charging Network segment's gross margin was 37.1% in Q1 2025. Operating expenses totaled $42.7 million in Q1 2025, resulting in an operating loss of $33.4 million, a slight increase from the $32.4 million operating loss in Q1 2024. The net loss attributable to Class A common stockholders was $11.4 million in Q1 2025, compared to $9.8 million in Q1 2024. Adjusted EBITDA (a non-GAAP measure) showed improvement, reaching negative $5.9 million in Q1 2025 compared to negative $7.2 million in Q1 2024. Management attributes this bottom-line improvement to increased revenue and improved leveraging of operating expenses.

Liquidity remains a critical focus for a growth-stage company like EVgo. As of March 31, 2025, the company held $170.6 million in cash, cash equivalents, and restricted cash, up from $120.5 million at December 31, 2024. This increase was significantly bolstered by proceeds from long-term debt, primarily draws from the DoE loan. Cash used in operating activities was $10.2 million in Q1 2025, an improvement from $14.1 million used in Q1 2024. Cash used in investing activities was $15.0 million, primarily for capital expenditures, down from $21.0 million in the prior year period. Cash provided by financing activities was $75.3 million, driven by the DoE loan proceeds. The company's working capital stood at $140.4 million as of March 31, 2025. The "so what" for investors is that EVgo is successfully growing its core business and improving operational efficiency, which is starting to translate into better financial performance metrics like Adjusted EBITDA, while maintaining a healthy cash balance to fund ongoing investments, particularly with the support of the recently secured DoE financing.

Technological Edge and Future Architecture

Technology is a cornerstone of EVgo's strategy, serving as a key differentiator in a competitive market. The company focuses on deploying high-power DC fast chargers, with 52% of its public stalls served by 350kW chargers as of Q1 2025, up from 38% a year prior. This focus on speed directly addresses a primary customer pain point: the time required to charge. Faster charging enables quicker turnaround at stations, potentially increasing throughput per stall and improving the overall customer experience.

Beyond hardware, EVgo is investing in software and operational technologies. Autocharge+, their seamless plug-and-charge capability, allows drivers to initiate sessions simply by plugging in, bypassing app or card interactions. This feature accounted for 27% of sessions initiated in Q1 2025 and is gaining traction through auto-enrollment partnerships with OEMs. This enhances convenience and reduces friction, contributing to a smoother charging experience. The company also employs dynamic pricing algorithms across its network, aiming to maximize margin capture by influencing charging behavior and optimizing utilization across different times of the day. Management expects the next major update to these algorithms in Q4 2025, signaling ongoing refinement of this capability.

A significant technological initiative is the joint development agreement with Delta Electronics for a next-generation charging architecture. This collaboration leverages EVgo's extensive understanding of customer needs and operational data with Delta's power electronics expertise. The stated goal is ambitious: to lower gross CapEx per stall by 30%. This reduction is expected to stem from a new site layout, distributed bus architecture, and improved dispenser design, potentially incorporating prefabricated skids (expected to be used in 40% of 2025 deployments) which also yield savings in build costs and construction timelines. The company anticipates a prototype by Q2 2025 and production beginning in the second half of 2026.

Furthermore, EVgo is actively integrating the North American Charging Standard (NACS) connector. A pilot rollout of native NACS connectors began in Q1 2025, with plans to add more to sites throughout the year. This is a strategic move to attract Tesla drivers, who represent a significant portion of the EV market, to the EVgo network without the need for adapters, potentially unlocking a large new customer base and increasing network utilization.

The "so what" of these technological efforts for investors is multifaceted. The focus on high-power charging and seamless payment (Autocharge+) directly improves the customer experience, which is crucial for driving repeat business and utilization in a competitive market. The development of next-generation architecture targeting a 30% CapEx reduction is a significant lever for improving project economics and accelerating the path to profitability and positive free cash flow. These technological advancements, coupled with data-driven site selection (which management states is leading to newer vintage stalls performing better than older ones), are intended to create a sustainable competitive advantage by enhancing network performance, efficiency, and attractiveness to a wider range of EV drivers.

Strategic Growth Pillars and Outlook

EVgo's strategic framework is built upon several key pillars designed to drive growth and achieve profitability. These include expanding the network footprint, enhancing the customer experience through technological and operational improvements, capturing high-value customer segments, driving operational and capital efficiencies, and securing financing to support accelerated deployment.

Network expansion remains central. The company added over 180 new operational stalls in Q1 2025, contributing to a total of over 4,200 operational stalls. The guidance for full-year 2025 targets the addition of 1,200 to over 1,400 new stalls, comprising 750-815 public network stalls, 50-85 dedicated network stalls, and 450-550 EVgo eXtend stalls. A significant portion of the public network stalls (approximately 75%) are expected to become operational in the second half of 2025, with about 50% in Q4, reflecting a back-half weighted build plan.

A transformative strategic achievement is the $1.25 billion loan guarantee secured from the Department of Energy (DoE) in December 2024. This facility, structured as a senior secured term loan, provides funding for up to 80% of certain costs associated with deploying approximately 7,500 new DC stalls nationwide over the next five years. As of March 31, 2025, $76.3 million had been drawn, with $979.1 million remaining available, subject to customary conditions. Management received the second advance in April 2025 as expected. This non-dilutive financing is crucial for accelerating the pace of deployment and achieving scale, potentially more than tripling the installed base and expediting the journey to self-financing. The company is also evaluating additional complementary non-dilutive financing opportunities to fund growth beyond the DoE loan scope or further accelerate deployment.

Capturing high-value customer segments, such as rideshare drivers, OEM program participants, and subscribers, is a key focus. These segments represented 55% of EVgo's throughput in Q1 2025, providing a relatively predictable base load demand. The company is leveraging its customer marketing platform and dynamic pricing to optimize utilization across all hours and maximize margin capture. The expansion into dedicated charging solutions for autonomous vehicle fleets is also seen as a promising area for growth, offering contracted cash flows.

Financially, EVgo is guiding for full-year 2025 total revenue in the range of $340 million to $380 million. Charging network revenue is expected to comprise approximately two-thirds of this total, with sequential quarterly growth anticipated throughout the year. eXtend revenue is projected to be broadly flat to 2024, and ancillary revenue is expected to grow, particularly in Q4, driven by the dedicated fleet business. The company is targeting Adjusted EBITDA breakeven for the full year 2025, with a range of negative $5 million to positive $10 million. This target is supported by expected improvements in charging network gross margin and Adjusted G&A as a percentage of revenue, reflecting operating leverage and efficiency gains. Fiscal CapEx net of offsets is guided to be in the range of $160 million to $180 million for 2025, with approximately 30% of 2025 vintage CapEx expected to be offset by grants, utility incentives, OEM payments, and 30C tax credits. The company also projects achieving free cash flow breakeven in 2026. The "so what" for investors is that EVgo has a clear, funded plan for significant network expansion and is executing against strategic initiatives aimed at improving operational performance and financial leverage, with specific targets and timelines provided for key milestones like profitability and free cash flow breakeven.

Navigating the Competitive Landscape

EVgo operates within a competitive landscape populated by a mix of players with different business models and scales. Key competitors include Tesla, Electrify America, ChargePoint, and Blink Charging. While precise, directly comparable market share figures for all niche competitors are not publicly detailed, EVgo holds an estimated 10-15% share of the U.S. fast-charging market, positioning it as a significant, though not dominant, player.

Tesla's Supercharger network is the largest and often cited for its reliability and speed, benefiting from deep integration with Tesla vehicles. However, its historical exclusivity (though opening up via NACS) and focus on highway locations differ from EVgo's urban/suburban strategy. Electrify America, backed by Volkswagen, also has a substantial network footprint and high throughput, often outpacing EVgo in station count. ChargePoint and Blink Charging offer broader charging solutions, including Level 2 and hardware/software sales, with ChargePoint emphasizing its networked software platform and Blink often competing on price.

EVgo's competitive strategy leverages its owned-and-operated model, which allows for direct control over the charging experience and revenue capture per kWh dispensed, contrasting with models heavily reliant on hardware sales or software subscriptions. Management emphasizes EVgo's data-driven site selection process, which they claim leads to better-performing sites over time. The company's technological focus on high-power chargers (52% at 350kW in Q1 2025) and features like Autocharge+ and dynamic pricing are intended to enhance the customer experience and optimize network performance relative to competitors. For instance, management highlights a 95% "One & Done" success rate in Q1 2025 as a key reliability metric.

Financially, EVgo's recent revenue growth rates (36% total, 49% charging network YoY in Q1 2025) are strong within the sector. While still operating at a loss, the company's improving Adjusted EBITDA margin (negative 7.9% in Q1 2025 vs negative 13.1% in Q1 2024) and charging network gross margin (37.1% in Q1 2025) demonstrate progress in operational leverage. Comparing TTM ratios, EVgo's Gross Profit Margin (11.50%) trails ChargePoint (24%) and Tesla (18%), but its Operating Profit Margin (-47.88%) and EBITDA Margin (-24.29%) are broadly comparable to or better than ChargePoint's (-61%, -23.1%) and Blink's (-158%, -59%), though significantly behind Tesla's profitable margins (7%, 8%). EVgo's P/S ratio (4.42 TTM) is lower than Tesla's (13.28) and historically lower than ChargePoint and Blink, potentially suggesting a different market valuation perspective.

The joint development agreement with Delta Electronics targeting a 30% CapEx reduction is a strategic move to address cost disadvantages relative to larger players like Tesla, which benefit from scale in manufacturing. The integration of NACS connectors is a direct response to Tesla's market dominance, aiming to capture a share of their large VIO base. While competitors like ChargePoint and Blink also face challenges with profitability and scaling infrastructure, EVgo's specific focus on high-performance DCFC and strategic partnerships positions it to compete effectively for high-utilization segments and B2B opportunities. The "so what" for investors is that EVgo is actively working to carve out and defend its market position through strategic partnerships, technological innovation, and a focused business model, aiming to overcome scale disadvantages and improve financial performance relative to its peers.

Key Risks and Investor Considerations

Investing in EVgo involves several key risks inherent to the growth stage of the company and the evolving nature of the EV charging industry.

• EV Adoption Pace: While EV adoption is growing, the pace could be slower or faster than anticipated due to factors like vehicle cost, charging availability, government incentives, and macroeconomic conditions. A slowdown would directly impact demand for EVgo's services and network utilization.
• Competition: The competitive landscape is intense and includes well-capitalized players like Tesla and Electrify America, as well as other growing networks. Increased competition could lead to pricing pressure, slower market share gains, or challenges in securing prime locations.
• Government Policy and Incentives: EVgo benefits from government programs and incentives (like the DoE loan, 30C tax credits, NEVI). Changes in policy, funding levels, or eligibility criteria could impact deployment plans, project economics, and the availability of capital offsets. While management believes the business is not overly reliant on federal incentives and that certain programs have bipartisan support, policy shifts remain a risk.
• Operational Execution and Efficiency: The ability to successfully deploy new stalls on time and within budget, manage maintenance costs, and maintain high network reliability (like the 95% "One & Done" target) is critical. Delays in permitting, utility interconnection, or supply chain issues can impact the build-out schedule. Failure to achieve targeted operational and CapEx efficiencies could hinder the path to profitability.
• Financing Risk: While the DoE loan provides significant funding, EVgo may require additional financing to fund growth beyond the scope of the loan or to cover operational losses until profitability is achieved. The ability to secure this financing on favorable terms is not guaranteed.
• Technology Risk: The EV charging technology landscape is evolving (e.g., faster charging speeds, new battery technologies, NACS adoption). EVgo must continue to innovate and adapt its infrastructure to remain competitive. The success of initiatives like the Delta JDA is crucial but not guaranteed.
• Energy Costs: Fluctuations in electricity prices, including seasonal variations and demand charges, directly impact the cost of sales and charging network margins. While increasing utilization helps leverage these costs, significant price increases could pressure profitability.

Investors should consider these risks in the context of EVgo's growth potential and strategic initiatives. The company's ability to execute its deployment plan, achieve targeted efficiencies, leverage its technology and partnerships, and navigate competitive pressures will be key determinants of its long-term success and ability to deliver shareholder value.

Conclusion

EVgo is at a pivotal juncture, transitioning from a pure growth phase to a focused drive towards profitability, underpinned by demonstrated operational momentum and strategic execution. The company's core business of owning and operating a DC fast charging network is benefiting from the fundamental supply-demand imbalance in the U.S. EV market, leading to strong growth in throughput and utilization. This operational strength is translating into tangible improvements in financial performance, with expanding margins and a clear trajectory towards Adjusted EBITDA breakeven in 2025 and free cash flow breakeven in 2026.

The recently secured $1.25 billion DoE loan guarantee is a game-changer, providing the necessary capital certainty to significantly accelerate network expansion and achieve critical scale over the next five years without immediate shareholder dilution. Coupled with ongoing efforts to drive capital and operational efficiencies, including the ambitious target of a 30% CapEx reduction through the Delta Electronics partnership, EVgo is strategically positioning itself to improve project economics and enhance its competitive standing. While operating in a competitive market against larger and more established players, EVgo's focus on technological differentiation, high-value customer segments, and data-driven operations provides a foundation for capturing a growing share of the market. The successful integration of NACS connectors and the continued enhancement of the customer experience are key initiatives that could further unlock demand and solidify its position. For investors, the story of EVgo is one of a growth-stage company executing a clear strategy to capitalize on the secular trend of electrification, leveraging significant non-dilutive financing and technological innovation to build a scalable, profitable charging network in a dynamic competitive environment. The focus now shifts to disciplined execution against its deployment and efficiency targets to realize its significant long-term potential.