EVgo (US:EVGO)2025-11-10 14:02Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $92 million, representing a 37% year-over-year increase [24] - Adjusted EBITDA was negative $5 million, an improvement of $4 million compared to Q3 2024 [24] - Charging network gross margin increased to 35%, up one percentage point from the previous year [24] Business Line Data and Key Metrics Changes - Charging network revenues reached $56 million, a 33% increase year-over-year [24] - eXtend revenues were $32 million, delivering growth of 46% [24] - Insular revenues were approximately $5 million, up 27% [24] Market Data and Key Metrics Changes - Total energy dispensed on EVgo's network grew to 350 gigawatt-hours over the trailing 12 months, a 13-fold increase since 2021 [22] - The number of stalls in operation increased to 4,590, a 2.7 times increase compared to the end of 2021 [22] Company Strategy and Development Direction - EVgo aims to achieve break-even adjusted EBITDA in Q4 2025, with a long-term goal of $500 million in adjusted EBITDA by 2029 [11][30] - The company is focused on expanding its charging network, with plans to deploy up to 5,000 stalls annually by 2029 without needing additional equity capital [20][21] - EVgo is enhancing its next-generation charging architecture to lower gross capex per stall by over 25% by 2029 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of EV sales, citing an increase in the number of battery electric vehicle models available [34] - The company anticipates continued strong demand for its charging services, driven by the increasing number of EVs on the road and the expansion of affordable vehicles [8] - Management noted that the charging network's profitability is expected to improve as throughput per stall increases and fixed costs are leveraged [10][24] Other Important Information - EVgo has received a $41 million advance from the DOE loan to accelerate the build-out of EV charging infrastructure [4] - The company has expanded its pilot for NACS connectors, with approximately 100 cables installed, and is seeing increased Tesla charging on its network [6][20] Q&A Session Summary Question: EV demand outlook and its impact on development - Management noted that the number of EVs on the road has grown significantly, and they expect higher sales than current forecasts suggest due to improved vehicle affordability and performance [34][35] Question: Uptick in Tesla charging on the network - Management indicated that it is too early to quantify the impact but noted higher usage at sites with newly installed NACS cables [36][37] Question: Guidance for stall deployment in 2026 - Management confirmed that the guidance for 2026 remains valid, with expectations of doubling the number of public and dedicated stalls compared to 2025 [44][45] Question: Ancillary revenue impact from contract closeout - Management clarified that the contract closeout would not impact prior stall guidance, and they are still working with other partners in the autonomous vehicle space [82] Question: Charging network gross margin expansion - Management explained that while margins are expanding, seasonality affects Q3 margins, and they expect further improvement in Q4 [84][86]