EVgo Q2 2026 Earnings Call: Complete Transcript

EVgo (NASDAQ: EVGO ) held its second-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. This content is powered APIs. For comprehensive financial data and transcripts, visit The full earnings call is available at Summary EVgo Inc reported a solid second quarter, with expectations for significant growth in operational stalls and revenue by the end of 2026, projecting a nearly fourfold increase in stalls and 19 times revenue growth.

The company announced a strategic agreement with Tesla to deploy EVgo-branded Superchargers, which is expected to double its addressable market by reaching both Tesla and non-Tesla NACS drivers. EVgo plans to add 1,350 to 1,625 new stalls in 2026 and anticipates total revenues for the year in the $400 to $430 million range, reflecting up to 30% year-over-year growth in the charging business. EVgo's network strategy focuses on urban and suburban locations, leveraging real estate relationships and partnerships with rideshare companies like Uber and Lyft to enhance competitive advantage.

, with a focus on high utilization rates and customer engagement driving higher-than-average industry utilization. Management provided a long-term outlook, aiming for recurring adjusted EBITDA of approximately half a billion dollars by 2030, driven by increased stall growth, daily throughput per stall, and operating leverage. EVgo has over $835 million in available liquidity, including cash and credit facilities, to support its infrastructure buildout. Challenges include a slower-than-expected ramp of the 2025 stall cohort and decreased revenue from non-charging businesses, which impacted overall earnings.

The company is exploring additional revenue streams, such as potential monetization of excess capacity and opportunities in the autonomous vehicle market. Full Transcript OPERATOR Good day and thank you for standing by. Welcome to the EVgo second quarter 2026 earnings call. At this time, all participants are in a listen-only mode.

After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again.

Please be advised this conference is being recorded. I would now like to hand the conference over to your speaker today, Heather Davis, Vice President of Investor Relations. Please go ahead. Heather Davis, Vice President of Investor Relations 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 Kiefer 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. 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 reports on Form 10-Q. The company's SEC filings are available on the Investors 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 reconciliation to the corresponding GAAP measures, can be found in the earnings materials available on the Investor section of our website. With that, I'll turn the call over to Badar Khan, EVgo's CEO.

Badar Khan, Chief Executive Officer 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've 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 fleet and autonomous vehicles lines of business. 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. S.

starting this year. Together with the NACS connectors we are 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 the 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 Navigation 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 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. -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 almost 70% of our stalls being 350 kilowatt 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. S. S. Our existing sites have approximately 600 megawatts 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 gigawatts of utility-connected capacity, with approximately 1 gigawatt 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.

EVs 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, 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 ’25.

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. 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 to 600 average level — that's net of removals — over the past three years to around 700 to 900 in 2026, to 4,000 to 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 over the next five years, we're conservatively expecting a smaller increase in daily throughput per stall than we've experienced over the past three years.

Underscoring our confidence in this illustrative forecast is the fact that our mature 350-kilowatt stalls are already delivering daily throughput per stall at the mid-350 level, which is what we assume by 2028. Today, almost 70% of our throughput comes from these stalls and by 2030 it'll be over 95%. Operating leverage exists in two places, and we can see the track record very clearly in our actual results. We have operating leverage in charging gross margin, where 25% to 30% of charging cost of sales is fixed, like site rent, resulting in higher gross margin as throughput rises.

We've seen charging gross margin rise from near 15% to nearly 40% last year and it is projected to be around 50% by 2030 as throughput per stall rises. And we have significant operating leverage in adjusted G&A, where around two-thirds of G&A is largely fixed overhead and the cost of growing the network. As you can see, adjusted G&A has only grown by around $35 million in three years, whereas charging revenue has grown five times as much. In fact, the charging network, excluding fixed overhead and growth G&A, has been profitable since late 2023 and just becomes more and more profitable over time.

Going out to 2030, adjusted G&A barely doubles over 2025, resulting in a half a billion dollars charging gross profit dropping straight to the bottom line. By 2028, EVgo has the potential to be generating triple-digit millions in adjusted EBITDA with EBITDA margins in the mid-teens, and by 2030 this grows to the low- to mid-30% range. As you can see, all of this is without any contribution from our non-charging businesses, including AV, that have historically generated meaningful additional gross profit and for which we are not yet providing an illustrative forecast.

To summarize the story, EVgo has spent the past 15 years building a business model and a competitive moat that is hard to replicate and benefits from a number of growing megatrends and tailwinds that have already translated into strong financial results and will deliver even stronger results over the coming years. EVgo operates a highly differentiated, industry-leading charging platform that has meaningfully higher utilization than almost every one of our peers. This is not only driven by our proprietary site selection capabilities, but also best-in-class customer experience and customer engagement to a large and growing customer base.

Combined with leading partnerships across the broader industry, our ability to attract non-dilutive financing to accelerate our growth further separates us from our peers. Our focus on owning and operating our network, especially in the high-density urban centers where drivers need fast charging the most, results in a business model with strong and growing unit economics underpinned by equally compelling operating leverage. All of this benefits from a compelling macro backdrop that will propel the business for many years to come. Vehicles in operation are expected to more than double by 2030.

The share of public fast charging continues to rise due to the electrification of rideshare, more affordable vehicles, and faster charge rates. Standardized cables will double EVgo's addressable market over time. And of course, the rise of fully electric autonomous vehicles that will need to charge at fast-charging locations will just add to the growth we expect to see on our network. This is a capital efficient, accretive growth model that positions EVgo to compound intrinsic value as we continue to scale our network.

Taken together, our differentiated approach, the accelerating demand environment, and the strong returns of new investments give us deep confidence in the long-term value creation opportunity ahead. Beyond the core charging business, there is considerable upside in EVgo that we are beginning to evaluate and are likely to generate material additional EBITDA by 2030. We already generate revenues and margins from serving autonomous vehicle partners, which we have been doing for five years.

While this is a small part of EVgo today, the AV market is poised for tremendous growth and we believe our track record, partnerships, and competitive strengths position us well to deliver meaningful upside over the medium and long term. S. charging landscape is littered with companies that are not performing well. However, there are some with attractive site locations and high-quality assets that are failing to attract customers or lack the ability to scale.

As a result, there will likely be compelling inorganic opportunities for EVgo in the future. S. charging company that has successfully attracted non-diluting financing at scale, EVgo has the potential to generate half a billion dollars in adjusted EBITDA in the next five years, and given that, we are now planning to start exploring adjacencies on top of our core charging business. Today we provide charging infrastructure for passenger vehicles, but we can see various segments both within passenger vehicles and beyond with needs that we may be able to serve over time given our relationships and expertise.

-only business. Over the next five years we may choose to expand geographically.