Evgo Inc. Q3 Earnings Call: Growth Amid Challenges

Evgo Inc. ((EVGO)) has held its Q3 earnings call. Read on for the main highlights of the call.

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Evgo Inc.’s recent earnings call paints a picture of robust growth and strategic advancements, tempered by operational challenges. The company showcased impressive revenue increases and operational improvements, particularly in stall deployment and customer base expansion. However, they also acknowledged challenges such as timing shifts in stall deployment, uncertainties in ancillary revenue, and performance issues with chargers that require enhancements.

Strong Revenue Growth

Evgo Inc. reported total revenue of $92 million for the third quarter of 2025, marking a 37% increase year-over-year. Charging network revenues were particularly strong, reaching $56 million, a 33% rise from the previous year.

Record Stall Deployment

The company ended the quarter with 4,590 stalls in operation, a significant 2.7x increase compared to the end of 2021. Evgo anticipates a substantial fourth quarter for stall deployment, further bolstering its network.

Improvement in Adjusted EBITDA

Evgo’s adjusted EBITDA improved by $4 million compared to the third quarter of 2024, with the company expecting to reach breakeven in Q4 2025, signaling a positive financial trajectory.

Increased Cash Position and Financing

The company enhanced its financial stability by receiving $41 million from the DOE Loan and securing a $225 million commercial financing facility, with potential expansion to $300 million.

Expansion of NACS Pilot

Evgo expanded its pilot for NACS connectors to nearly 100 cables, reflecting increased usage by Tesla drivers and showcasing the company’s commitment to accommodating diverse electric vehicle users.

Strong Customer Growth

The customer base has grown almost fivefold since 2021, contributing to increased network usage and reinforcing Evgo’s market position.

Shift in Stall Deployment Timing

Some stalls initially expected to be operational by December 2025 will now open in January 2026, indicating a shift in deployment timing that may affect short-term operational plans.

Uncertainty in Ancillary Revenue

There is potential for contract closeout payments to impact revenue guidance, with uncertainties surrounding their timing and amount.

Challenges with Charger Performance

The high usage of chargers has placed stress on Signet and Delta models, necessitating technological enhancements to maintain performance standards.

Lowered 2025 Stall Deployment Expectation

Due to strategic shifts, Evgo has lowered its stall deployment expectations for 2025, which may impact their growth trajectory.

Forward-Looking Guidance

Evgo’s forward-looking guidance remains optimistic, with expectations to reach breakeven adjusted EBITDA in Q4 and a projection of $0.5 billion in adjusted EBITDA by 2029. The company plans to expand its stall deployment significantly, aiming for up to 5,000 stores annually by 2029 without requiring additional equity capital.

In conclusion, Evgo Inc.’s earnings call highlights a company on the rise, with strong revenue growth and strategic advancements. While there are challenges to address, particularly in operational timing and charger performance, the company’s forward-looking guidance suggests a promising future. Investors and market watchers will be keen to see how Evgo navigates these challenges and capitalizes on its growth opportunities.