EVgo Inc. Class A Common Stock 2026 Q2 Earnings Call

Please go ahead. Good morning, and welcome to EVgo's second quarter 2026 earnings call.

My name is Heather Davis, and I am the Vice President of Investor Relations at EVgo. Joining me on today's call are Badar Khan, EVgo's Chief Executive Officer, and Keefer Lehner, EVgo's Chief Financial Officer. Today, we will be discussing EVgo's second quarter 2026 financial results and our outlook for the year, followed by a Q&A session. Today's call is being webcast and can be accessed on the investor section of our website at investors.evgo.com. The call will be archived and available there, along with the company's earnings release and investor presentation after the conclusion of this call. During the call, management will be making forward-looking statements that are subject to risks and uncertainties, including expectations about future performance.

Factors that could cause actual results to differ materially from our expectations are detailed in our SEC filings, including in the Risk Factors section of our most recent annual report on Form 10-K and quarterly report on Form 10-Q. The company's SEC filings are available on the investor section of our website. These forward-looking statements apply as of today, and we undertake no obligation to update these statements after the call. Also, please note that we will be referring to certain non-GAAP financial measures on this call. Information about these non-GAAP measures, including definitions and applicable reconciliations to the corresponding GAAP measures, can be found in the earnings materials available on the investor section of our website. With that, I will turn the call over to Badar Khan, EVgo's CEO.

Thank you, Heather. EVgo delivered solid results for the second quarter, in line with our expectations, while continuing to build a durable nationwide infrastructure network. We have a proven track record of growth in both operational stalls and revenue. Since 2021, the year we went public, our operational stalls are expected to increase nearly fourfold by the end of 2026. We have delivered consistent growth year in and year out. Total revenue is expected to increase even faster, at 19 times by the end of 2026. Revenue growth is driven by a combination of stall additions, increasing daily throughput per stall, and our non-charging revenue tied to eXtend and autonomous vehicles lines of business.

What's really impressive is through 2025, our revenue compound annual growth rate has exceeded 100%, putting us in the top 1% of U.S. public company revenue growth rates and around three times higher than our public charging peers. We are thrilled to announce that EVgo and Tesla have entered into an agreement to deploy EVgo-branded Superchargers. Through this agreement, EVgo will own these EVgo-branded Superchargers, select their location, and set pricing while Tesla builds and operates the chargers under a long-term arrangement. We expect to deploy EVgo Superchargers in dozens of cities across the U.S. starting this year. Together with the NACS connectors we're rolling out across our existing network, this more than doubles our addressable market by reaching both Tesla and non-Tesla NACS drivers.

This enables EVgo to accelerate our deployment of NACS connectors with a goal of all 2023 vintage and newer sites having a NACS connector within the next two years. These V4 Superchargers are 500 kilowatts and equipped with Tesla's Magic Dock technology, enabling effortless charging for all EV drivers, serving both NACS and CCS vehicles with no adapter needed. Consistent with our existing strategy, these sites on the EVgo network will be located near the retail shops, restaurants, and everyday destinations where drivers already spend time, with up to 20 stalls per site and longer cables so every driver can easily plug in, regardless of inlet location on the vehicle. EVgo Supercharger locations will be available in Tesla's nav and trip planner, and all EVgo stations with NACS connectors will also be available in the Tesla nav once a driver enables third-party stations.

Importantly, we expect to deploy these assets with little to no incremental growth G&A at a gross capital cost per stall broadly equivalent to our current builds, and we expect to finance these stalls through existing EVgo financing sources. Buying these V4 Superchargers from Tesla also diversifies our supply chain toward more U.S.-made chargers. In addition to EVgo Superchargers, we continue to make progress on our next-generation charging architecture being developed at EVgo's innovation lab, with the first units expected to be installed by the end of the year. EVgo is among the top three largest fast charging operators in the country, along with Tesla and Electrify America, and is around 14 times larger than the average of the rest of the industry. We built our network at great sites near amenities that EV drivers are looking for.

We believe our real estate relationships and site selection process, together with our rideshare partnerships with leading companies like Uber and Lyft, are key sources of competitive advantage for EVgo. Our focus on customer experience includes faster charging, with over 70% of our stalls being 350 kilowatts, compared to only 23% for the rest of the industry. The combination of industry-leading scale and partnerships and best-in-class customer engagement and experience, supported by our next-generation charging architecture, is what drives fivefold higher utilization at our sites versus the rest of the industry. With almost 5,400 stalls, including 4,000 EVgo owned and operated, EVgo is the third-largest public fast charging network in the U.S. We have over a 15-year track record identifying and deploying over 1,200 utility-connected sites at optimal urban and suburban locations across the U.S.

Our existing sites have approximately 600 MW of connected power capacity, including approximately 45% unutilized capacity at current utilization levels. Over the next five years, our installed base is expected to quadruple to over 2 GW of utility-connected capacity with approximately 1 GW of potential usage expansion. We are beginning to evaluate whether there are complementary revenue streams available to us to monetize this excess capacity. Whether that is utilized as demand response, battery energy storage systems, or capacity for a distributed Edge AI inference network, our network strategy has always been to locate sites in urban and suburban locations close to where drivers go about their lives, and therefore, by definition, in close proximity to energy demand, which is potentially very attractive.

EV vehicles in operation have grown at a 40% CAGR since 2021 and are expected to grow another 17% annually through 2030 to reach nearly 13 million by the end of 2030, according to S&P's latest forecast from June 2026. While total VIO is expected to be lower than previous forecasts, it still represents a car park that is expected to more than double over the next four and a half years, with an underlying growth rate that remains highly supportive of our business model and one that is highly attractive even when compared to other high-growth sectors. The EV market appears to be stabilizing after the loss of federal incentives at the end of Q3 2025. With higher gas prices pinching American wallets, global instability since the start of the Iran war, there is positive momentum in EV sales, with Q2 new sales volumes 247,000, up 15% from Q1.

About a dozen states are offering EV incentives to consumers to spur EV adoption. Most notably, California has recently announced consumer incentives, rideshare incentives, and charging incentives for rideshare drivers. Consumer incentives aim to backfill the expired federal tax credit and will have a total budget of $270 million, including $3,500 for new EVs and $1,750 for used vehicles. For rideshare drivers, the California incentives expected to go live in Q3 are even stronger, with incentives of $20,000 for new EVs and $14,000 for used EVs for income-qualifying drivers. The used market remains a bright spot for EV sales, with both new drivers trying out fully electric cars at cheaper price points, and for EVgo because used vehicle owners are less likely to have charging at home and more reliant on public fast charging.

With over 1.5 million vehicles coming off lease between 2026 to 2028, this used vehicle supply not only helps meet consumer demand but also provides a significant tailwind for EVgo. With our updated view of the underlying market, we're showing what an illustrative owned and operated EVgo network could look like by 2028 and by 2030. Despite near-term market noise, we continue to expect EVgo to be generating recurring adjusted EBITDA of approximately half a billion dollars by 2030. The economics of our business are driven by three things: number of stalls in operation, daily throughput per stall, and operating leverage. These three factors combine to deliver compelling unit economics and returns.

With the financing we have in place, we are increasing stall growth from the net 500-600 average level, that's net of removals, over the past three years to around 700-900 in 2026, to 4,000-5,000 by 2030. This results in a network that is around four times larger than the end of last year by 2030. Daily throughput per stall has already grown nearly fivefold between 2022 and 2025, driven by the growth of electric vehicles on the road, together with EVgo's meaningfully higher utilization than almost all our peers, and with a stall underwriting process that we continually review and update. We are particularly excited about our latest 2026 vintage, and especially 2027 vintage, which we are expecting to be our best ever, focused on key metros with top-tier site locations and site host partnerships.