Group 1 - EVgo's largest investor, EVgo Holdings, plans to sell 23 million shares of Class A common stock and offers underwriters a 30-day option to buy an additional 3.45 million shares [1] - EVgo will not receive any proceeds from the sale, which will entirely benefit LS Power, the majority owner of EVgo's voting stock [1] - LS Power's significant holdings allow it to influence key corporate decisions, including director elections and major transactions [1] Group 2 - EVgo recently closed on a $1.25 billion loan guarantee from the Department of Energy to install 7,000 EV chargers over the next five years [2] - The company warned that failing to meet loan conditions could materially and adversely affect its business, leading to a drop in share prices [2] - Despite a 25% loss shortly after the announcement, EVgo's shares have increased by approximately 30% in 2024 [2]

Core Viewpoint - U.S. stock futures are lower, with notable declines in pre-market trading for several companies, particularly Mama's Creations Inc, which reported disappointing earnings despite beating sales expectations [1]. Company Performance - Mama's Creations Inc reported quarterly earnings of $0.01 per share, missing the analyst consensus estimate of $0.04 per share. However, the company achieved quarterly sales of $31.52 million, surpassing the analyst consensus estimate of $30.05 million [1]. - Mama's Creations shares fell 17.9% to $7.96 in pre-market trading following the earnings report [2]. Other Stocks in Pre-Market Trading - EVgo, Inc. shares decreased by 16.1% to $5.30 after announcing a secondary offering of 23 million shares [4]. - Celcuity Inc. shares fell 12.3% to $11.01 [4]. - Red Cat Holdings, Inc. shares dropped 11.7% to $9.23 due to worse-than-expected second-quarter financial results [4]. - Innovex International, Inc. shares declined by 11% to $11.52 [4]. - EverCommerce Inc. shares decreased by 6.7% to $11.21 [4]. - Kingsoft Cloud Holdings Limited shares fell 6.4% to $8.37 [4]. - Palmer Square Capital BDC Inc. shares dipped 6% to $15.04 [4]. - MINISO Group Holding Limited shares decreased by 3.8% to $23.87 [4]. - Apellis Pharmaceuticals, Inc. shares fell 3.2% to $32.57 [4].

Core Insights - EVgo operates a network of DC fast charging infrastructure for electric vehicles across the United States, with over 3,680 operational stalls in 40 states [1] Group 1: Company Overview - EVgo has invested hundreds of millions in capital expenditures to expand its charging network [1] Group 2: Market Position - The company is positioned as a key player in the electric vehicle charging infrastructure market, supporting the growing demand for electric vehicles [1]

Core Insights - EVgo Inc has secured a $1.25 billion Department of Energy loan guarantee, enabling the deployment of over 7,500 fast-charging stalls in five years and avoiding equity dilution, marking a significant growth milestone for the company [1][2] Financial Outlook - The DOE loan is expected to enhance EVgo's financial outlook, with revised guidance projecting up to $1.1 billion in revenue and EBITDA as high as $425 million, alongside a network utilization increase to 26% [3] - The guidance does not account for potential stall capex reductions of up to 30% by 2026, which could allow for an additional 1,600 stalls under the same loan [3] Competitive Advantage - EVgo's owner-operator model is seen as a key advantage, providing operating leverage and enabling the company to capture market share in the public fast-charging market, unlike competitors who are delaying profitability [4] Market Sentiment - The execution of operational milestones and a faster pace of stall deployment are anticipated to trigger positive market reactions, with short covering potentially amplifying stock performance as EVgo overcomes sector challenges [5] Growth Potential - The revised build schedule and improving unit economics could lead to a 10-20% upside in EBITDA estimates for the 2026-2028 period, with the DOE loan accelerating growth and profitability timelines [6]

ESG Investment Opportunities in 2025 - Sustainable investing faces mixed signals, but select stocks are well-positioned to benefit from ESG catalysts despite broader sustainable funds underperforming in 2024 [1] - JPMorgan analysts highlight macro tailwinds and evolving sustainable investing trends as key drivers for these stocks [1] Electric Vehicles & Charging Networks - EVgo Inc (EVGO) is poised to capitalize on the ongoing EV boom, with its charging network expected to see increased traffic and revenue growth due to rising EV adoption [2] - Supportive government policies and an expanding customer base position EVgo for solid growth in 2025 [2] - JPMorgan analysts are bullish on EVgo, expecting it to be a top ESG pick as the EV sector gains momentum [3] Green Energy & Hydrogen - Plug Power Inc (PLUG) is strategically positioned in the clean energy sector, with a focus on hydrogen fuel cells [4] - The anticipated finalization of the IRA 45V production tax credit guidance in 2025 could unlock stalled projects, particularly electrolyzers, driving higher revenue growth [4] - JPMorgan analysts view Plug Power as an exciting ESG pick due to its green energy solutions and potential tax incentives [5] Building Materials & Green Construction - TopBuild Corp (BLD) is set to benefit from new HUD regulations in 2025 requiring stricter energy efficiency standards for homes [6] - As a distributor and installer of insulation, TopBuild is well-positioned to capitalize on the rising demand for sustainable construction [6] - JPMorgan analysts note TopBuild's exposure to green building trends offers solid long-term growth potential [7] Recycled Materials & Eco-Friendly Products - The AZEK Co Inc (AZEK) is focusing on sustainability by increasing the use of recycled PVC and PE materials in its products [8] - With green building trends on the rise, AZEK's commitment to eco-friendly construction materials positions it to gain market share in 2025 and beyond [8] - JPMorgan highlights AZEK as a solid choice for investors seeking exposure to green building solutions [9] Green Hydrogen Projects - Air Products & Chemicals Inc (APD) is involved in high-profile green hydrogen initiatives, including the NEOM project in Saudi Arabia and a blue hydrogen facility in Louisiana [10] - With demand for clean hydrogen expected to surge, APD's ability to scale projects and secure long-term contracts could drive substantial earnings growth [10] - JPMorgan analysts believe APD is poised for strong long-term performance in the ESG space despite potential short-term volatility [11] ESG Catalysts in 2025 - Several key stocks are primed to benefit from macro trends in 2025, including EV charging networks, green hydrogen, and eco-friendly construction [12] - JPMorgan analysts believe ESG-focused investors have much to look forward to as performance continues to drive these sectors forward [12]

Core Viewpoint - EVgo's stock is poised for significant growth due to a potential $1.05 billion loan guarantee from the U.S. Department of Energy, which could enhance its EV charging network expansion and financial performance [2][3][7] Group 1: Financial Performance and Projections - EVgo reported a 92% year-over-year increase in revenue for the third quarter, raising its full-year revenue guidance to between $250 million and $265 million [6] - The company anticipates adjusted EBITDA to break even by 2025, indicating a positive outlook for profitability [6] - Analyst Jim Peterson expects EVgo to upgrade its EBITDA targets once the DOE loan is secured, placing the stock on "positive catalyst watch" [3] Group 2: Market Position and Growth - EVgo is one of the largest public EV charging networks in the U.S., with over 1,000 fast-charging locations across 40 states [2] - The company added 270 new operational stalls in the third quarter, and its network throughput more than doubled year-over-year during the same period [4] - EVgo has extended its partnership with grocery retailer Meijer to deploy 480 new public fast-charging stalls at Meijer properties in the Midwest, further expanding its network [5] Group 3: Market Sentiment and Risks - Despite concerns regarding the Trump administration potentially eliminating the $7,500 EV tax credit, which could impact EV demand, Peterson believes EVgo's business model is not heavily reliant on federal incentives [4] - The stock has shown volatility, rebounding sharply by 27% at its highest point in trading, reflecting investor interest and market dynamics [1]

Core Viewpoint - The potential removal of the clean energy tax credit poses a threat, but EVgo Inc. is positioned for success due to improving vehicle affordability and a stable EV fleet [1][3]. Group 1: Market Dynamics - EVgo sees improving affordability of a wider range of vehicles as the main driver for mass EV adoption, with a forecast that a 40% decline in new EV sales is unlikely to impact its growth trajectory [1]. - Even without the tax credit, a 16% penetration of battery electric vehicles in the US by 2030 is still considered achievable [1]. Group 2: Strategic Positioning - EVgo's strategic presence in Republican-led states like Texas, Florida, and Arizona provides a competitive advantage, as these regions have less stringent emissions standards compared to California [3]. - The company is relatively insulated from new EV sales growth due to its ongoing momentum from a stable and growing EV fleet, with additional growth opportunities in autonomous and rideshare markets [3]. Group 3: Financial Outlook - EVgo's confidence in securing a Department of Energy loan is strong, with expectations that it will lead to upward revisions in EBITDA targets and a clear build schedule through 2030 [4]. - Concerns regarding potential clawbacks of funds are deemed exaggerated, as the government is unlikely to renegotiate finalized contracts, especially if infrastructure development boosts EV demand and US competitiveness [4]. Group 4: Growth Potential - With 10,000 viable charging sites and plans for further expansion, EVgo's growth trajectory remains bullish, supported by increasing opportunities as EV adoption rises [5].

Core Viewpoint - Electric vehicle (EV) stocks experienced a positive reaction following reports that the Trump administration may reduce regulatory burdens for autonomous driving, although the specifics remain unclear [1][4]. Group 1: Stock Performance - Lucid's stock increased by as much as 9.5%, Rivian's shares rose by 6.6%, and EVgo's stock jumped 15.8% in early trading, with respective gains settling at 5.7%, 0.4%, and 7.5% by 3:30 p.m. ET [2]. Group 2: Market Dynamics - The EV market has seen fluctuating narratives since Trump's election, initially perceived as a potential economic boom for EV sales, later shifting to concerns over cuts to EV subsidies, including the $7,500 tax credit [3][5]. - The current focus is on autonomous driving, with Tesla aiming to advance its Full Self-Driving (FSD) software despite regulatory challenges across states [3][4]. Group 3: Financial Challenges - Lucid reported a net income loss of $2.97 billion, Rivian's loss was $5.524 billion, and EVgo's loss was $44.52 million, highlighting the financial struggles of these companies [6]. - Both Lucid and Rivian have not demonstrated the ability to achieve gross profit on their production, raising concerns about their path to profitability in a competitive EV market [7][9]. Group 4: Speculation vs. Fundamentals - The market is currently driven by speculation, influenced by political comments and potential winners and losers in the EV sector, contrasting with the underlying fundamentals that indicate increasing competition and significant financial losses [8][9]. - The outlook for profitability remains uncertain for companies like Lucid and Rivian, as they continue to incur substantial losses while trying to scale their operations [9][10].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39572 EVgo Inc. (Exact name of registrant as specified in its charter) Delaware 85-2326098 (State or othe ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $67.5 million, a 92% year-over-year increase, driven by growth in charging network and eXtend revenues [27] - Charging network revenue grew 98% year-over-year to $43.1 million, with retail, commercial, and OEM charging revenue each at least doubling [27] - eXtend revenue increased 109% year-over-year to $21.9 million [27] - Adjusted EBITDA loss improved to $8.9 million, a $5.4 million improvement compared to Q3 2023 [32] - Cash, cash equivalents, and restricted cash stood at $153.4 million as of September 30, 2024 [33] - The company generated $12.1 million in cash from operations in Q3 2024, marking the second consecutive quarter of positive cash flow [33] Business Line Data and Key Metrics - Operational stalls grew by 34% year-over-year, with 270 new stalls added in Q3 2024, bringing the total to 3,680 stalls [28] - Customer accounts increased by 57% year-over-year to over 1.2 million [28] - Network throughput more than doubled year-over-year to 78 gigawatt hours, with utilization increasing to 22% from 14% a year ago [29] - 56% of EV gross throughput came from Rideshare, OEM charging credit, and subscription accounts in Q3 [25] - The company added over 147,000 new customer accounts in Q3, a 39% increase compared to the same period last year [25] Market Data and Key Metrics - The company now has operational stalls in 40 states, with strong growth in throughput across all states, indicating widespread EV adoption in the US [6] - Over 40% of new stalls are expected to be in marginalized areas, aligning with the Justice 40 initiative [11] - The EV market in the US is transitioning from early adopters to the mass market, driven by more affordable vehicles [9] - The ratio of EVs to public fast charging stalls is expected to grow to nearly 180 by 2030, up from just under 90 at the end of 2023 [16] Company Strategy and Industry Competition - The company is focused on improving the customer experience, operating efficiencies, capturing high-value customers, and securing financing to achieve free cash flow breakeven [19] - EVgo is co-developing next-generation charging architecture with Delta Electronics, targeting a 30% reduction in gross CAPEX per stall [8][23] - The company is leveraging partnerships with rideshare companies and OEMs to drive predictable demand and growth [15][25] - EVgo is working on securing non-dilutive financing opportunities, including a $1.05 billion DOE loan, to accelerate stall deployment [9][26] Management Commentary on Operating Environment and Future Outlook - Management expects to achieve adjusted EBITDA breakeven in 2025, driven by continued EV adoption and operational efficiencies [36] - The company raised its 2024 revenue guidance midpoint by $2.5 million and adjusted EBITDA guidance midpoint by $4 million, reflecting strong performance and lower energy costs [34] - Management is confident in closing the DOE loan, which would accelerate stall deployment and improve unit economics [12][40] - The company sees significant growth opportunities from rideshare electrification, autonomous vehicles, and cable standardization [18][48] Other Important Information - EVgo completed the sale of 30C income tax credits for 2023 vintage stalls, generating $11 million in gross proceeds [26] - The company is deploying larger sites with 6-8 stalls per site, with 18% of sites having 6 or more stalls at the end of Q3 [19] - Autocharge+ adoption is growing, with 21% of sessions initiated through the seamless plug-and-charge experience [20] - The company is working on flagship sites with GM, featuring up to 20 or more stalls with advanced amenities [21] Q&A Session Summary Question: DOE Loan Closing Conditions and Timeline [39] - Management is confident in closing the DOE loan, with conditions largely within their control and no expectation of a lengthy process [40] Question: Near-Term Growth Drivers and eXtend Revenue [41] - Management expects continued growth in throughput and raised guidance for 2024, with eXtend revenue expected to decrease in Q4 due to project timing [42][43] Question: Utilization Rates Compared to Industry Averages [44] - EVgo's utilization rates are higher than many competitors due to strategic site selection and urban-focused deployments [45][46] Question: Autonomous Vehicle Charging Strategy [47] - The company sees autonomous vehicles as a significant growth opportunity and is building dedicated hubs for AV clients [48] Question: Tesla Charging Opportunity [50] - EVgo expects to attract Tesla drivers once the NACS connector is standardized, leveraging its urban network [51][52] Question: Expense Burden for DOE-Funded Expansion [54] - The company plans to leverage existing infrastructure and talent, with a focus on prudent growth and meeting EBITDA breakeven targets [55] Question: Alternative Funding Options [58] - EVgo is evaluating non-dilutive financing options to complement the DOE loan and expand stall deployment [59][60] Question: Delta Electronics Partnership and CAPEX Savings [61] - The partnership aims to reduce CAPEX per stall by 30% through improved customer experience and cost-efficient designs [62] Question: High Utilization Sites and DOE-Funded Sites [64] - The company expects no material difference in unit economics between current sites and those funded by the DOE loan, with continued improvements in utilization [65][66] Question: 30C Monetization Strategy [70] - EVgo is exploring strategies to maximize 30C monetization, potentially moving to semi-annual sales [70] Question: Rideshare and OEM Subscription Breakdown [71] - 56% of throughput comes from Rideshare and OEM subscriptions, with Rideshare accounting for 24% of commercial revenue [71]