EVGO Q1 Earnings Call: Utilization, Efficiency, and Strategic Expansion Drive Results

Electric vehicle charging company EVgo (NASDAQ: EVGO) announced better-than-expected revenue in Q1 CY2025, with sales up 36.5% year on year to $75.29 million. The company’s full-year revenue guidance of $360 million at the midpoint came in 2.3% above analysts’ estimates. Its non-GAAP loss of $0.08 per share was 30.8% above analysts’ consensus estimates.

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StockStory’s Take

EVgo’s first quarter results reflected ongoing growth in customer usage and operational scale, with management attributing revenue gains to higher throughput per charging stall and continued expansion of its network. CEO Badar Khan emphasized that the company’s performance benefited from a growing electric vehicle (EV) fleet, increased utilization across key geographies, and advances in dynamic pricing that optimized charging behavior. Khan also highlighted the limited direct impact of tariffs, noting that most capital expenditures are domestically sourced and that efficiency initiatives offset potential cost pressures.

Looking ahead, management reaffirmed confidence in achieving adjusted EBITDA breakeven this year, supported by its Department of Energy (DoE) loan guarantee and strong cash position. Khan stated, “We are fully funded to add at least 7,500 stalls, more than tripling our installed base over the next five years.” The company’s guidance reflects expectations for sequential quarterly growth in charging network revenues, ongoing cost management, and the ramp-up of flagship projects and next-generation architecture. Management acknowledged some uncertainty stemming from potential changes in federal EV policies but pointed to geographic flexibility and diversified funding as key mitigants.

Key Insights from Management’s Remarks

EVgo’s Q1 performance was shaped by a mix of operational improvements, strategic partnerships, and industry dynamics. Management identified several core areas influencing the quarter’s results and the company’s market position.

• Network Utilization Gains: Throughput per public charging stall grew significantly year-over-year, driven by both increased EV adoption and targeted investments in higher-capacity, multi-stall sites. Management cited double-digit utilization rates during overnight hours, opening up capacity for daytime demand.
• Customer Experience Initiatives: The company prioritized reliability, rolling out more ultra-fast 350 kilowatt chargers and expanding its seamless plug-and-charge feature, Autocharge+, which reached 27% of sessions. These efforts contributed to a 95% first-attempt charging success rate.
• Dynamic Pricing and Demand Management: EVgo’s use of dynamic pricing algorithms allowed the company to balance utilization and profitability by adjusting prices based on demand patterns. The next major update to these algorithms is set for the fourth quarter.
• Capex Efficiencies and Technology Partnerships: A key milestone was the joint development agreement with Delta Electronics to co-develop the next-generation charging architecture, expected to lower gross capital expenditure per stall by 30%. Management reported that cost reductions from construction, material sourcing, and pre-fabricated components enabled continued margin improvement despite tariff headwinds.
• Expansion into New Segments: EVgo continued to expand its presence in autonomous vehicle (AV) charging, estimating a 20% market share in dedicated AV charging stalls. Management views this contracted revenue as a potential growth driver distinct from traditional public charging.

Drivers of Future Performance

Management projects continued growth based on network expansion, rising EV adoption, and operational leverage. The outlook is shaped by the ramp-up of new stalls, technology upgrades, and evolving industry policy.

• Stall Growth and Network Expansion: The company plans to operationalize the majority of new stalls in the second half of the year, with flagship sites and new connector types supporting higher throughput and utilization rates.
• Cost Discipline and Capex Reduction: Efficiency measures, including the Delta Electronics partnership and increased use of pre-fabricated components, are expected to keep capital spending in check and support margin improvement, even amid higher input costs or tariffs.
• Policy and Incentive Uncertainty: Management acknowledged that changes in federal EV incentives or mandates could shift demand geographically, but emphasized flexibility in network planning and a diversified pipeline of sites across the U.S. as risk mitigants.

Top Analyst Questions

• Andres Sheppard (Cantor Fitzgerald): Asked about the cadence of cost of energy, pricing, and gross margin throughout the year; management reiterated guidance and noted that most new stalls will come online in the second half, with Q3 typically seeing higher energy costs.
• Chris Dendrinos (RBC Capital Markets): Inquired about timing and criteria for potential private financing options; CEO Badar Khan explained ongoing discussions and indicated that attractive terms could accelerate expansion beyond the DoE-funded schedule.
• Chris McNally (Evercore ISI): Questioned the impact of potential revocation of federal EV incentives on rollout strategy; management emphasized flexibility in network planning and noted higher utilization growth outside California, citing states like Texas and Florida as high-performing markets.
• Bill Peterson (JP Morgan): Sought clarity on tariff assumptions and capex efficiencies; management detailed the proportion of imported equipment subject to tariffs, the expected dollar impact, and ongoing cost reductions independent of tariff changes.
• Craig Irwin (Roth Capital Partners): Asked about the rollout of Tesla’s NACS connectors and impact on customer growth; management confirmed ongoing pilot deployments, targeting 100–150 retrofits this year, with a focus on data-driven site selection and ensuring minimal disruption to existing demand.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will be monitoring (1) the pace and geographic distribution of new stall deployments, especially the rollout of flagship sites and NACS connectors; (2) evidence of sustained throughput and utilization gains as more EVs enter the market; and (3) the effectiveness of updated dynamic pricing algorithms in supporting both customer experience and profitability. Developments in federal and state EV policy, as well as additional private financing initiatives, will also be important signposts for tracking execution and growth potential.

EVgo currently trades at a forward EV-to-EBITDA ratio of 32.7×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report.

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