EVgo Entering Transition Year In 2026 As Profitability Nears: Analyst

Core Viewpoint - EVgo Inc. reported a fiscal third-quarter 2025 loss of 9 cents per share, aligning with analyst expectations, while revenue increased by 37% year-over-year to $92.3 million, surpassing consensus estimates [1] Financial Performance - The company’s quarterly revenue reached $92.3 million, exceeding the consensus estimate of $91.95 million [1] - EVgo raised its fiscal 2025 sales outlook from a range of $350 million to $380 million, now projecting between $350 million and $405 million [3] Analyst Insights - JP Morgan analyst Bill Peterson maintained an Overweight rating on EVgo but reduced the price target from $7 to $6, citing ongoing EV demand headwinds expected to persist through 2026 [2] - Peterson anticipates that 2026 will be a transition year for EVgo, predicting full-year EBITDA positivity and second-half profitability as charging gross profit covers fixed costs [4] Market Dynamics - Despite challenges, Peterson believes EVgo will gain market share as charging rates increase, with potential commercial benefits from dynamic pricing and partnerships with autonomous vehicle companies [3] - The analyst expects growth to reaccelerate after a potential EBITDA loss in the first quarter of 2026 due to seasonal factors, with a significant improvement anticipated in the second half of fiscal 2026 [5] Stock Performance - Following the earnings report, EVgo shares declined by 1.60%, trading at $3.385 [5]