What Happened?
Shares of electric vehicle charging company EVgo (NASDAQ: EVGO) fell 12.1% in the afternoon session after as investors looked past a significant revenue beat to focus on troubling underlying details in the first-quarter earnings report.
While EVgo's first-quarter revenue grew 45.5% year-over-year to $109.5 million, surpassing analyst estimates, the underlying profitability metrics raised alarms. The company's full-year EBITDA guidance of $0 at the midpoint fell short of Wall Street's expectation of $4.64 million.
Furthermore, the company's cash burn intensified, with free cash flow at negative $65.94 million, a steep increase from negative $25.24 million in the same quarter last year. A sharp decline in gross profit margin, which fell 26.9 percentage points year-over-year to 11.8%, added to investor concerns about the company's path to profitability.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy EVgo? Access our full analysis report here, it’s free.
What Is The Market Telling Us
EVgo’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. But moves this big are rare even for EVgo and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 8.1% on the news that the company announced it had surpassed a major milestone in its fast-charging network collaboration with General Motors and Pilot, and separately revealed a significant expansion of its partnership with Brixmor Property Group. The network with GM and Pilot now includes over 1,300 fast-charging stalls at more than 300 locations across 40 states, covering about 75% of the contiguous U.S. and marking a significant step in expanding reliable EV travel. Adding to the positive news, EVgo is also broadening its long-standing partnership with shopping center operator Brixmor Property Group. This expanded agreement will add more than 500 new fast-charging stalls across Brixmor's U.S. locations. Once completed, over 25% of Brixmor's shopping centers will feature EVgo fast chargers, further increasing the network's public accessibility.
EVgo is down 50.8% since the beginning of the year, and at $1.52 per share, it is trading 69.8% below its 52-week high of $5.01 from September 2025. Investors who bought $1,000 worth of EVgo’s shares 5 years ago would now be looking at only $151.35.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
