Q2 2025 Evgo Inc Earnings Call

Conference Operator: I will be your conference operator today. At this time, I would like to welcome everyone to the EVgo Inc. Q2 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Heather Davis, Vice President of Investor Relations. Please go ahead.

And I will be your conference operator today.

At this time, I would like to welcome everyone to the EVgo Q2 2025 earnings call.

All lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad,

If you would like to redraw your question, press star 1 again, thank you. I would now like to turn the call over to Heather Davis, VP of investor relations. Please go ahead.

Heather Davis: Good morning and welcome to EVgo's second quarter 2025 earnings call. My name is Heather Davis, and I am the Vice President of Investor Relations at EVgo Inc. Joining me on today's call are Badar Khan, EVgo's Chief Executive Officer, and Paul Dobson, EVgo's Chief Financial Officer. Today, we will be discussing EVgo's second quarter 2025 financial results, 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.

Good morning and welcome to evgo second quarter 2025 earnings call.

My name is Heather Davis and I'm the vice president of investor relations at T.

Joining me on today's call are about our con, even those chief executive officer and Paul Dobson, he goes to Chief Financial Officer. Today we will be discussing even the second quarter, 2025 Financial results 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.

Heather Davis: 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 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 a reconciliation to the corresponding GAAP measures, can be found in the earnings material available on the Investor section of our website. With that, I will turn the call over to Badar Khan, EVgo's CEO.

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, our detailed in our SEC filing, including in the risk factors section of our most recent annual report on form, 10 K.

In quarterly reports of 410 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 a Reconciliation to the corresponding Gap. Measures can be found in the earnings materials available on the investor section of our website.

Badar Khan: Thank you, Heather. EVgo Inc. had yet another excellent quarter with strong operational performance and the achievement of important strategic milestones. We had particularly strong revenue this quarter, up 47% versus the same quarter last year. Adjusted EBITDA was more than $6 million better than last year, bringing us closer to our goal of break-even adjusted EBITDA for the full year. We had 4,350 stalls in operation and ended the quarter with $183 million in cash, cash equivalents, and restricted cash, which is $12 million higher than the prior quarter. Most importantly, this does not include $65 million in gross proceeds from the first drawdown from our commercial bank facility and expected 30C sale proceeds in August. On July 23rd, we closed the largest and first of its kind commercial bank financing for charging infrastructure in the U.S.

With that, I'll turn the call over to batter con evgo CEO.

Thank you, heather.

Indigo had yet another excellent quarter. The strong operational performance and achievement of important strategic milestones,

We had particularly strong Revenue, this quarter up 47% versus the same quarter last year adjusted. Evita was more than 6 million better than last year, bringing us closer to our goal of Break Even adjusted even though for the full year

We had 4,350 stores in operation and ended the quarter with 183 million cash, cash equivalents and restricted cash, which is 12 million higher than the prior quarter. And most importantly this not include 65 million in Gross proceeds from the first draw down from our Commercial Bank facility and expected 30 C sale proceeds in August

Badar Khan: for $225 million, with the ability to expand to $300 million and have already received a $48 million first drawdown. This is a major strategic milestone for the company, enabling us to accelerate our expansion and diversifying our funding sources with low-cost, non-diluted capital. As you will see, we expect to be able to increase our ending 2029 public stall guidance by approximately 3,500 more stalls than we had previously estimated to roughly 14,000 stalls. Strategically, EVgo Inc. is now very well positioned competitively as one of the best capitalized players in the sector. As always, we are focused on being disciplined in allocating capital, leveraging debt funding sources, and the growth of our balance sheet. At this time, we do not have a request in front of the Department of Energy LPO for our next advance.

On July 23rd, we closed the largest and first of its kind commercial bank financing for charging infrastructure in the U.S. for $225 million, with the ability to expand to $300 million, and we have already received a $48 million first drawdown.

This is a major strategic milestone for the company enabling us to accelerate our expansion and to varying our funding sources with low cost non-diluted capital.

As you will see, we expect to be able to increase our ending 2029 public store, guidance by approximately 3 and a half thousand more stalls than we had previously estimated to roughly 14,000 stalls.

Strategically if you go is now very well, positioned competitively as 1 of the best capitalized players in the sector. As always we are focused on being disciplined and allocating Capital leveraging, debt, funding sources and the growth of our balance sheet.

Badar Khan: One of the many attractive features of the Department of Energy loan is that there is no time limit when we need to request advances for specific tranches of eligible costs we incur other than the overall five-year availability period. Finally, we passed enough milestones this year to be able to forecast a reduction in net CapEx per stall for 2025 vintage stalls by 28% versus our initial expectations. A reduction in net CapEx per stall of this magnitude results in significantly higher returns. The outlook for EVgo Inc. as an owner-operator of DC fast charging remains very bright, with demand growth outstripping supply growth. The latest independent forecasts project that the increase in electric vehicles in operation is outpacing the more modest increase in the number of DCSC stalls in the U.S.

At this time, we do not have a request in front of the doe lpo for our next advanced.

1 of the many attractive features of the doe loan, is that, there is no time limit where we need to request? Advances for specific tranches of eligible costs? We incur other than the overall 5-year. Availability, period.

A reduction in net capex per store for 2025 vintage stalls by 28% versus our initial expectations.

A reduction in net capex for all of this magnitude results in significantly higher.

Currents.

Badar Khan: These latest forecasts take into account all of the federal administration's policies on electric vehicles, which results in EV/VIO over four times higher than today by 2030. As we are seeing from General Motors, Ford, and many others, major automakers continue to prioritize a growing lineup of affordable electric vehicles that appeal to all customer segments. Forecasts of the growth in DCSC stalls are not as robust, but anecdotally, we see a slowdown taking place among both the large number of smaller companies who are likely going to struggle to attract capital in this environment and also the small number of larger companies whose parents may be allocating capital to other priorities. The DCSC forecast shown here represents the industry continuing to grow at the same pace it did over the last 12 months.

The outlook for EVgo, an operator of DC fast charging, remains very bright. The demand growth outstrips supply growth; the latest independent forecasts project that the increase in electric vehicles in operation is outpacing the more modest increase in the number of DCFC stores in the U.S.

These latest forecasts take into account all

Illustrations, policies and electric vehicles. Which results in EV Vio over 4 times higher than today by 2030.

As we're seeing from GM Ford and many others, major automakers. Continue to prioritize. A growing lineup of the portable electric vehicles that appeal to all customer segments.

Forecasts of the growth in dcfc. Stalls are not as robust but anecdotally, we see a Slowdown taking place among both the large number of smaller companies who are likely going to struggle to attract capital in this environment and also the small number of larger companies whose parents may be allocating Capital to other priorities.

Badar Khan: As a result, we expect that the recent trend of more electric vehicles per fast charger is likely to continue, resulting in a promising macro environment for EVgo Inc. in this coming five-year period, which we expect will continue to drive up both EVgo Inc. market share and throughput per stall. This macro environment continues to be supplemented by multiple additional tailwinds that continue to show positive trends, like the electrification of rideshare, autonomous electric vehicles, and more affordable vehicles in both the new and used electric vehicle markets, attracting more customers without at-home charging and thus reliant on public fast charging. In June, Uber disclosed that the number of their EV drivers globally was up more than 60% versus the year prior. In the U.S., only just over a third had a dedicated home charger.

The dcfc forecast shown here, represents the industry continuing to grow at the same Pace. It did over the last 12 months.

As a result, we expect that the recent trend of more electric vehicles per fast charger is likely to continue, resulting in a promising macro environment for. Here we go. In this coming five-year period, we expect this trend will continue to drive up our market share and throughput.

Badar Khan: We are very pleased to close the commercial bank facility provided by a syndicate of global project finance banks led by SNBC and includes World Bank of Canada, ING, Bank of Montreal, and Investech. With an initial 325 basis points spread, this loan demonstrates the creditworthiness of our business that these commercial banks see and the confidence the banks have in the resilience of the cash flows generated by the ultra-fast charging infrastructure EVgo Inc. is building across the United States to give customers more choices to charge their electric vehicles. This facility is complementary and incremental to our $1.25 billion Department of Energy loan with a similar structure with standard project finance terms. It offers tremendous flexibility and can be used to finance the build-out of more EVgo-owned stall types, including dedicated hubs for autonomous vehicle partners.

this macro environment continues to be supplemented by multiple additional Tailwind that continue to show positive trends. Like the electrification of ride, share autonomous, electric vehicles, and more affordable vehicles in both the new and used electric vehicle markets, attracting more customers without at home charging and thus reliant on public fast charges in June. Uber disclosed that the number of their EV drivers globally was up more than 60% versus the year prior and in the US only just over a third had a dedicated home charger.

We are very pleased to have closed the Commercial Bank facility, provided by The Syndicate of global project Finance Banks. Led by SMBC and includes World Bank of Canada, ING Bank of Montreal and investec

With an initial 325 basis. Point spread this loan demonstrates, the credit worthiness of our business that these commercial Banks. See and the confidence to banks have in the resilience of the cash flows generated by the ultra fast. Charging infrastructure easygo is building across the United States.

To give customers more choices to charge their electric vehicles.

Badar Khan: We received a $48 million advance on July 24, and we have the ability to draw down on the facility monthly. We have the ability to go faster and build a higher number of stalls or go slower with lower deployment targets. All new EVgo-owned stalls can now be levered going forward. Additionally, this bank facility represents an important milestone in establishing long-term relationships with commercial lenders. We believe the opening of the commercial bank project financing market as a source of capital for public fast charging infrastructure reflects the maturity of the company, the profitability of the EVgo network, and confidence in management.

This facility is complimentary and incremental to our 1.25 billion doe loan for the similar structure with standard project. Finance terms, it offers tremendous, flexibility, and can be used to finance the buildout of more Indigo owned store types, including dedicated hubs for autonomous vehicle partners.

We received a $48 billion advance on July 24th, and we have the ability to draw down on the facility monthly.

We have the ability to go faster and build a higher number of stores, or go slower with lower deployment targets.

Or new Evo installs can now be levered going forward.

Additionally, this Bank facility represents an important milestone in establishing long-term relationships with commercial lenders.

Badar Khan: With the financing we now have in place, together with our targeted CapEx per stall and reinvesting excess operational cash flow over the next five years, we now expect to be able to more than quintuple our annual stall build schedule from 825 stalls in 2025 to up to 5,000 by 2029. That rate of growth in 2029 is more than double our earlier estimates. This accelerated pace meaningfully differentiates EVgo amongst U.S. fast charging companies and results in a level of scale that will become harder for others to replicate over time and deepens the competitive moat around our business. The second strategic development this quarter is that we are now forecasting a 28% reduction in 2025 vintage net CapEx per stall from our original estimate. This is an exciting milestone.

We believe the opening of the Commercial Bank project. Financing Market has a source of capital for public fast charging infrastructure, reflects the majority of the company, the profitability of the evgo network and confidence in management.

With the financing we now have in place, together with our targeted capex per store and reinvesting excess operational cash flow over the next five years, we now expect to be able to more than quintuple our annual store bill schedule from 80,025 stores in 2025 to up to 5,000 by 2029.

That rate of growth in 2029 is more than double our earlier estimates. This accelerated Pace. Meaningfully differentiates, Evo amongst us fast, charging companies and results in a level of scale that will become harder for others to replicate over time and deepens the competitive mode around our business.

Is that what we're now forecasting? A 28% reduction in the 2025 vintage net CapEx for Bristol from our original estimate.

Badar Khan: Even including the impact of global tariffs, we are still expecting an 8% improvement in vintage gross CapEx per stall versus what we initially expected for 2025. This improvement is driven by savings from lower contractor pricing, material sourcing, and increased use of prefabricated skids, some of which we shared in the last earnings call. Today, however, I am able to share that we now expect vintage CapEx offsets to be around 50% higher than we originally expected because more stalls we are operationalizing this year are expected to have state grants associated with them. Unlike many other charging companies, we have a large enough project pipeline where we can now move the timing of operationalizing assets from one quarter to another and from one year to another. That flexibility allows us to capture more state grants wherever those opportunities may arise.

This is an exciting milestone.

Even including the impact of global tariffs. We are still expecting an 8% Improvement in vintage growth, capex per store. Versus what we initially expected for 2025.

This Improvement is driven by savings from lower contract to pricing material sourcing and increased use of prefabricated skids. Some of which we shared in the last earnings call.

Today, however, I'm able to share that. We now expect the Vintage capex.

To be around 50% higher than we originally expected.

Because more stores that were operationalizing this year are expected to have state grants associated with them.

unlike many other charging companies we have a large enough project pipeline where we can now move the timing of operationalizing assets from 1 quarter to another and from 1 year to another

Badar Khan: As a reminder, capital offsets come from three sources: state and utility incentives, OEM infrastructure payments, and federal incentives like 30C. Our forecasted performance this year is a reminder that regardless of recent changes to federal incentives, state grants and incentives are alive and well. 30C will remain in effect for assets placed in service until the end of June 2026, nine months longer than many other incentives created by the IRA. As a result, we expect net vintage CapEx per stall to be significantly lower this year, materially enhancing our return on capital, especially considering the top 15% of our stalls are already generating $50,000 in cash flow per stall per year against a net one-time average CapEx of $74,000.

flexibility allows us to capture more state grants, wherever those opportunities may arise.

As a reminder, capital offsets come from three sources: state and utility incentives, OEM infrastructure payments, and federal incentives like 30C.

Our forecasted performance. This year is a reminder that regardless of recent changes to Federal incentives, state, grants and incentives are alive and well.

30C will remain in effect for assets placed in service until the end of June 2026—nine months longer than many other incentives created by the IRA.

As a result. We expect net vintage capex. Bristol to be significantly lower this year. Particularly enhancing our return on Capital

Badar Khan: Two consequences of shifting our project portfolio to capture state grants is that a certain number of stalls that were due to be operationalized in Q3 will now shift to Q4. Secondly, stalls with state grants tend to be a little less productive in terms of throughput per stall in the first year or two than other stalls without state grants. However, the lower CapEx more than makes up for it when we look at project returns. Our long-term expectation is to continue lowering gross CapEx per stall as a result of our next-generation charging architecture that remains on track for the end of next year.

Actually, considering the top 50% of our stalls are already generated in cash flow per store per year against a net 1-time. Average capex of 74,000

To consequences of Shifting, our project portfolio to capture state, grants that a certain number of stores that were due to be operationalized in Q3. Will now shift to Q4 and secondly, stores with state grants tend to be a little less productive in terms of throughput per store in the first year or 2 that other stores without state grants.

However, the lower capex, more than makes up for it. When we look at project returns.

Badar Khan: That said, we conservatively do not assume capital offsets are as high as the last two years, which still results in very favorable project returns, especially given the higher annual cash flow per stall levels we expect to reach by 2029. Let us now briefly turn to progress on our four key priorities: improving the customer experience, operating in CapEx efficiencies, capturing and retaining high-value customers, and securing additional complementary non-diluted financing to accelerate growth. Improving customer experience remains our number one priority, and our strong momentum from last year continues. This quarter, we experienced lower uptime on certain equipment types due to faulty firmware updates that were largely rectified in July. We decided to take that opportunity to tackle some legacy hardware issues across multiple charger types that resulted in higher associated maintenance costs.

Our long-term expectation is to continue lowering growth capex for stall as a result of our next Generation. Charging architecture that remains on track for the end of next year.

That said, we conservatively do not associate capital losses as high as the last two years, which still results in very favorable project returns, especially given the higher annual cash flow per store levels we expect to reach by 2029.

That's now briefly turned to progress on our 4, key priorities, improving the customer experience. Operating in capex efficiencies capturing and retaining high value customers and securing additional complimentary non-diluted financing to accelerate growth.

Improving customer experience. Remains our number 1 priority, and our strong momentum from last year continues.

Badar Khan: These efforts are fully aligned with our goal to continually improve the customer experience, and we are already seeing these efforts pay off with much higher throughput per stall in July. Building larger public sites with six to eight stalls is now our standard configuration. At the end of Q2, 24% of our sites had six stalls or more. We continue to deploy high-power chargers. The number of stalls served by a 350-kilowatt charger is now 57%, up from 41% a year ago and 25% two years ago. Autocharge+, our seamless plug-and-charge capability, continued to gain traction, accounting for 28% of sessions initiated. Finally, our customer success metric, or one-and-done, increased one percentage point this quarter versus last year, with 95% of sessions resulting in a successful charge on the first try.

This quarter, we experienced lower uptime on certain equipment types due to faulty firmware updates that were largely rectified in July. We decided to take that opportunity to tackle some legacy hardware issues across multiple charger types, which resulted in higher associated maintenance costs.

These efforts are fully aligned with our goal to continually improve the customer experience. And we are already seeing these efforts pay off with much higher throughput for all in July.

Building larger public sites with 6. To 8 stores is now our standard configuration.

at the end of the second quarter, 24% of our sites had 6 stores or more

We continue to deploy high power chargers. The number is still served by a 350. KW charger is now 57% up from 41% a year ago and 25% 2 years ago.

Auto charge plus our seamless plug and charge capability, continue to gain traction and accounting for 28% of sessions initiated.

Badar Khan: As we detailed in our Q1 earnings call in May, we expect that the impact of increased tariffs on our CapEx will be more than offset with capital efficiencies we've identified and implemented, and there is near zero impact on our operating costs from tariffs. EVgo Inc. continues to meet all our milestones in the development of our next-generation charging architecture we are jointly developing with Delta Electronics. We are on track to have our prototype and initial deployment in the back half of 2026. We remain focused on improving the profitability of the overall business while investing in the future growth of the company. We expect continued improvement in G&A as a percent of revenue throughout 2025. Over half of our throughput in Q2 came from frequent use sources: rideshare, OEM charging credit programs, and EVgo Inc. subscription plans.

Finally, our customer success metric, or "1 and done" increase, is up 1 percentage point this quarter compared to last year, with 95% of sessions resulting in a successful charge on the first try.

As we detailed in our first quarter earnings call in May, we expect that the impact of increased tariffs, along with our capex, will be more than offset by the capital efficiencies that we have identified and implemented.

And there is near-zero impact on our operating costs from tariffs.

Stones, the development of our next Generation charging architecture. We are jointly developing with Delta Electronics. We are on track to have our prototype and initial deployment in the back half of 2026.

We remain focused on improving, the profitability of the overall business, while investing in the future, growth of the company.

We expect continued Improvement in GNA as a percent of Revenue throughout 2025.

Badar Khan: This quarter, we've added to our dynamic pricing, digital marketing, customer acquisition, and reactivation capabilities with the deployment and use of AI agents to optimize and increase the effectiveness of our campaigns. In certain geographies, we launched seasonal-based pricing to help cover the increased costs from summer utility tariffs. Our second pilot site with native NACS connectors went live in June. The focus of the initial pilot in February was to validate technology, and for the second pilot, our focus is to get an early read on our ability to attract Tesla drivers with the NACS connectors installed. While it remains very early, we are encouraged by the fact that since going live with the NACS connectors, this site has had significantly more usage from Tesla drivers as it had prior to installing the NACS connectors.

Over half of our throughput in Q2 came from frequent use sources, ride, share, OEM charging credit programs and easygo subscription plans.

This quarter, we've added to our Dynamic pricing, digital marketing and customer acquisition and reactivation capabilities with the deployment and use of AI agents to optimize and increase the effectiveness of our campaigns.

Certain geographies, we launched seasonal based pricing to help cover the increased costs from Summer utility tariffs.

Badar Khan: Once we scale these tables across the rest of our network, because our charging stations are faster than Tesla and closer to where Tesla drivers live, work, and go about their lives, we expect to see potentially significant growth in usage per stall. This is because we expect to attract a greater share of Tesla drivers than before, and these drivers still make up the majority of EVs on the road. In August, we expect to add 30 more NACS connectors to more sites, and we expect to add around 100 NACS connectors to sites on a retrofit basis through the rest of the year. Finally, we are in construction of our first flagship sites with General Motors.

Our second pilot site with Native Max cables went live in June. The focus of the initial pilot in February was to validate technology. For the second pilot, our focus is to get an early read on our ability to attract Tesla drivers with Max cables installed. However, it remains very early. We are encouraged by the fact that since going live with the Max cables, this site has had significantly more usage from Tesla drivers than it had prior to installing the Max cables.

Once we scale these cables across the rest of our Network and because our charging stations are faster than Tesla and closer to where Tesla drivers live work and go about their lives. We expect to see potentially significant growth in usage, Bristol

This is because we expect to attract a greater share of testifiers than before and these drivers still make up the majority of EVS on the road.

In August, we expect to add 30 more Next cables to more sites, and we expect to add around a hundred Max cables to sites on a retrofit basis through the rest of the year.

Badar Khan: We look forward to opening these stations, which will feature up to 20 stalls and offer features like overhead canopies, lighting, for an elevated customer experience. We have made huge strategic progress on financing this quarter with the closing of the low-cost commercial bank facility. We expect to close our second sale of 30C income tax credits this week for our 2024 vintage portfolio for an anticipated $17 million of gross proceeds. As I said earlier, we now expect 45% CapEx offsets for our 2025 vintage stalls. Paul will now cover more detail on the commercial bank facility and how that relates to higher long-term estimates, our financial performance for Q2, and our updated outlook for 2025.

Finally, we are in construction of our first Flagship sites with General Motors. We look forward to opening these stations, which will feature up to 20 souls and offer features, like, overhead canopies lighting for an elevated customer experience.

We've made a huge strategic progress on financing this quarter with the closing of the low-cost Commercial Bank facility.

We expect to close our second sale of 30 C income tax credits this week for our 2024 vintage portfolio, with anticipated gross proceeds of $17 million.

As I said earlier, we now expect 45% capex. All sets for our 2025 vintage stores.

Paul will Now cover more detail on the commercial Bank facility and how that relates to higher long-term estimates.

Paul Dobson: Thank you, Badar. I will walk us through the summary loan terms in this facility. The flexible loan structure allows EVgo Inc. to build over 1,500 new public and dedicated stalls over the next three years and finances the 400 existing public stalls we added as collateral. As Badar Khan mentioned earlier, the facility allows us to finance stalls that would not have been eligible for debt financing under the Department of Energy loan. The interest rate is over plus 3.25% and a 25 basis point increase at the beginning of Q1. The facility has a five-year term and a three-year deployment period. EVgo Inc. will be able to draw against the loan facility monthly after a stall is operationalized for 60% of costs, including CapEx, capitalized G&A, and $31,000 of deployment expenses. As collateral for the loan, EVgo Inc.

Our financial performance for Q2 and our updated outlook for 2025.

Thank you, patar.

I'll walk us through a summary loan terms in this facility.

Flexible loan structure allows EVO to build over 1500 due public and dedicated stalls over the next 3 years and finances to 400 existing public stalls. We added this collateral

As batter mentioned earlier, facility allows us to finance calls but we wouldn't have been eligible for debt. Financing under the doe loan.

The interest rate is sulfur plus 3.25% and the 25th at the beginning of year 5.

Facility is a 5 year term and a 3 year deployment period.

Evo will be able to draw against the loan facility monthly offer stall as operationalized for 60% of costs including capex capitalized GNA and 31,000 of deployment expenses.

Paul Dobson: contributed 400 operational stalls into a project-level SPV, and we received $48 million of gross proceeds in July after closing. We expect to see incremental network growth for this facility starting in 2026, as it typically takes EVgo Inc. 12 to 18 months to get a site operational. In terms of expected stalls in operation, we are now including estimates of growth net of removals, averaging roughly 130 per year through our EVgo Renew program over this entire period, where we are removing legacy equipment from the network. EVgo Inc. now is fully capitalized to have roughly 14,000 projected public stalls by the end of 2029, which will increase operational efficiencies by leveraging economies of scale. This is approximately 3,500 stalls more than our previous estimate.

As collateral for the loan, Evo contributed, 400 operational stalls into a project level. SPV, and we've received 48 million of gross proceeds in July after closing.

We expect to see incremental Network growth from this facility starting in 2026 as it typically takes Evo, 12 to 18 months, to get the site operational.

In terms of expected stalls in operation, we are now including estimates of growth net of removals averaging. Roughly 130 per year through our ego renew program. Over this entire period.

We are removing legacy equipment from the network.

If Go Now is fully capitalized to have roughly 14,000 projected public stalls by the end of 2029, which will increase operational efficiencies by leveraging economies of scale. This is approximately 3,500 stalls more than our previous estimate.

Paul Dobson: As described in our fourth quarter 2024 earnings call in March, our unit economics continue to grow, and we expect to realize the operating leverage in our model through increased throughput per stall per day, leveraging fixed costs of stall, dependent costs such as rent, and a reduction in maintenance costs through our next-generation charging architecture. EVgo Inc. anticipates that in 2029, our stalls will generate $90,000 to $104,000 per year in revenue, charging network gross margin per stall in the range of 50% to 52%, and annual cash flow per stall in the $38,000 to $47,000 range. Adjusted EBITDA generation is also particularly strong. Because these per-stall cash flows include all costs other than fixed costs, which will be covered by this year, these stall-based cash flows fall straight to the bottom line.

As described in our fourth quarter, 2024 earnings call in March, our unit economics, continued to grow. And we expect to realize the operating leverage in our model through increased throughput for stall per day. Leveraging fixed costs install dependent costs, such as rent and a reduction in maintenance costs through our next Generation charging architecture.

Evo anticipates that in 2029, our stalls will generate between $90,000 and $104,000 per year in revenue.

Charging Network gross margin for stall in the range of 50% to 52% and annual cash flow for stall in the 38,000 47,000 range.

Adjusted. Even our generation is also particularly strong.

Because these personal cash flows include all costs other than in fixed costs, which will be covered by this year.

Paul Dobson: By 2029, the additional roughly 5,000 stalls that we plan to build that year will generate approximately $200 million incremental adjusted EBITDA annually. As we have discussed before, this represents a very compelling annual return on a one-time net CapEx per stall of $95,000. Applying this high and low-end annual cash flow per stall from our unit economics to the anticipated stalls in operation at the end of 2029, you have a very compelling business with $1.2 billion to $1.5 billion in annual revenue from the owned and operated charging business, generating $380 million to $570 million in annual adjusted EBITDA at 32% to 38% margins. We are assuming our total adjusted G&A increases up to two times in real dollar terms as we add to our gross G&A to build out the network, which again demonstrates the operating leverage in this business as the network is growing four times.

These stall based cash flows fall straight to the bottom line.

So by 2029, the additional roughly 5,000 stalls, that we plan to build that year will generate approximately 200 million incremental, adjusted, evida annually.

As we have discussed before, this represents a very compelling annual return on a 1-time. Net capex for stall of 95,000

Applying this high and low-end annual cash flow per stall, from our unit economics, to the anticipated stalls and operation. At the end of 2029, you have a very compelling business with $1.2 to $1.5 billion in annual revenue from the owned and operated charging business.

Generating 380 million to 570 million in annual adjusted. Evida

32% to 38% margins.

Paul Dobson: With the full utilization of the current loans, we expect to exit 2029 in the low net debt to adjusted EBITDA ratio of under 2.5 times, which provides us with additional debt capacity to finance growth well into the future. Since infrastructure companies with predictable adjusted EBITDA generation and margins typically have higher leverage ratios of five to six times, our expected ratio of less than 2.5 would provide us with significant incremental leverage capacity. Turning to more detail on our Q2 results. Over the past three years, we have grown our operational stall base by 2.6 times, while our revenues have grown 14 times. Increasing our scale and maintaining our focus on costs allows us to deliver improving bottom-line performance. Our public network throughput per stall has grown 2.5 times in the last two years, significantly outpacing our public charging network stall growth of 1.4 times.

We are assuming our total adjusted GNA increases up to 2 times in real dollar terms as we add to our growth of GNA to build up the network. Which again, demonstrates the operating leverage in this business, as the network is growing 4 times.

The volume utilization of the current phones. We expect to exit 2029 with a low net debt and adjusted EBITDA ratio of under 2.5 times, which provides us with additional debt capacity to finance growth well into the future.

Since infrastructure companies with predictable adjusted, even a generation and margins typically have higher leverage, ratios of 5 to 6 times. Our expected ratio of less than 2.5 would provide us with significant incremental. Leverage capacity.

Now, turning to more detail on our second quarter results.

Over the past 3 years, we have grown our operational stall Days by 2.6 times. While our revenues have grown 14 times.

Increasing our scale and maintaining our focus on costs, allows us to deliver improving or offline performance.

Paul Dobson: Throughput per public stall was 281 kilowatt-hours per stall per day in Q2 compared to 230 a year ago, a 22% increase and a 6% sequential. After a recent firmware update and incremental investment in Q2 maintenance, July average daily throughput approached 300 kilowatt-hours per stall per day. In the second quarter, total public network utilization increased to 22%, up from 20% a year ago. Total throughput on the public network during the second quarter was 88 gigawatt-hours, a 35% increase compared to last year. Revenue for Q2 was $98 million, which represents a 47% year-over-year increase with growth in nearly all revenue categories. Total charging network revenues were $51.8 million, exhibiting a 46% year-over-year increase. eXtend revenues were $37.4 million, delivering growth of 35%. We delivered more charging equipment into PFJ in the second quarter than anticipated as they accelerated their purchasing.

Our public network, throughput per stall has grown 2.5 times in the last 2 years, significantly outpacing, our public charging Network stall growth of 1.4 times.

Throughput per public stall. Was 281 kilowatt hours per stall per day in Q2 compared to 230 a year ago at 22% increase and up 6%, sequentially.

After a recent firmware update in incremental investment in Q2 maintenance, July, average, daily, throughput approached 300 kilowatt hours per stall per day.

In the second quarter total public network, utilization increased to 22% up from 20% a year ago.

Total throughput on the public network during the second quarter was 88 gigawatt hours, a 35% increase compared to last year.

Revenue for Q2 was 98 million, which represents 47% year-over-year increase with growth in nearly all revenue categories?

Total charging network revenues were $51.8 million, exhibiting a 46% year-over-year increase, extending revenues from $37.4 million and delivering growth of 35%.

Paul Dobson: Ancillary revenues of $8.8 million were up 157% versus last year, driven primarily by growth of the hubs business for autonomous vehicle companies. Charging network gross margin in the second quarter was 37.2%, up 210 basis points from the prior year. Adjusted gross profit of $28.4 million in the second quarter of 2025 is up from $17.7 million in the second quarter of 2024. Adjusted gross margin is 28.9% in Q2, an increase of 240 basis points compared to last year. Adjusted G&A as a percentage of revenue also improved from 38.5% in the second quarter of 2024 to 30.9% in Q2 of this year, demonstrating the operating income lever to the left. Adjusted EBITDA was negative $1.9 million in the second quarter of 2025, a $6 million improvement versus the second quarter of 2024. Turning to our 2025 guidance, EVgo Inc.

We delivered more charging equipment to PFJ in the second quarter than anticipated as they accelerate their purchasing.

Ancillary revenues at $8.8 million were up 157% versus last year.

Driven primarily by growth of the hubs business for autonomous vehicle companies.

The charging Network grows margin in the second quarter was 37.2% up 210 basis points from the prior year.

Justice gross profit of 28.4 million in the second quarter of 2025 is up from 17.7 million in the second quarter of 2024.

28.9% in Q2, an increase of 240 basis points compared to last year.

Adjusted DNA as a percentage of revenue also improved from 38.5% in the second quarter of 2020 to 30.9% in Q2 of this year. Demonstrated the operating number to 5.

Adjusted evida was negative, 1.9 million.

6 million improvement versus the second quarter of 2024.

Now, turning to our 2025 guidance.

Paul Dobson: anticipates we'll add 800 to 850 new public and dedicated stalls in 2025, with over half the stalls going operational in the fourth quarter. Total fiscal net CapEx has been reduced to $140 million to $160 million, reflecting the capital efficiencies we are realizing this year and faster expected development timeline, resulting in less capital spent in 2025 for 2026 vintage stalls. In addition, we forecast to add new eXtend stalls of 475 to 525 this year. Revenue for the full year is expected to be $350 million to $380 million, an increase of $5 million at the midpoint compared to our prior guidance. Charging network revenues are estimated to be roughly 60% of total revenues in 2025. We're expecting sequential improvement in the third and fourth quarters for charging network revenues. We expect the 2025 charging network margin profile to be like 2024.

DV go. Anticipates will add 800 850, new public, and dedicated stalls in 2025 with over. Half the Stalls going operational in the board of quarter.

Total fiscal. Net capex has been reduced to 140 million, to 160 million reflecting the capital efficiencies. We are realizing this year and faster. Expected development guidelines, resulting in less Capital spending in 2025 for 2026 into installs.

In addition, we forecast to add new extend stalls of 475 to 525 this year.

Revenue for the full year is expected to be 350 to 380 million dollars, an increase of 5 million at the midpoint compared to our prior guidance.

Charging Network Revenue.

Our estimate is to be roughly 60% of total revenues in 2025.

Paul Dobson: Our third quarter charging network margin will decrease seasonally due to higher summer electricity rates and resume its upward trajectory in Q2. Full-year eXtend revenues are anticipated to increase around 25% versus last year, and ancillary revenues will be more than doubled this year. We expect both eXtend and ancillary revenues will be lower than Q2 in the third quarter. eXtend revenues are expected to be relatively evenly distributed in the third and fourth quarter. Ancillary revenues are anticipated to have a much higher fourth quarter following revenue recognition milestones. We are investing in accelerating the growth of EVgo Inc., including investments in our operations and deployment team to increase stall growth, as well as our next-generation charging architecture. Adjusted G&A for 2025 is expected to be flat, Q4 2024 run rate plus inflation, reflecting investments in growth with some offsets due to efficiencies.

We're expecting sequential Improvement in the third. And fourth quarters for charging Network revenues. We expect the 2025 charging Network margin profiles to be like 2024

Our third quarter, charging Network margin will decrease, seasonally due to higher summer, electricity rates, and resumed, its upward trajectory in Q4.

All year extend revenues, are anticipated to increase around 25% versus last year and an ancillary revenues. Will be more than doubled this year.

We expect both extend and ancillary revenues will be lower than Q2 in the third quarter.

Extend revenues are expected to be relatively evenly distributed in the third and fourth quarter.

Silvery revenues are anticipated to have a much higher fourth quarter, following revenue recognition milestones.

We're investing in accelerating the growth of the ego, including investments, in our operations, and employment team to increase stall growth, as well as our next Generation architecture.

Paul Dobson: These investments for accelerated growth will continue in 2026, and we therefore anticipate similar growth in adjusted G&A next year. EVgo Inc. continues to make progress towards adjusted EBITDA break-even. In 2025, we continue to expect adjusted EBITDA in the range of negative $5 million to positive $10 million. Following our anticipated revenue trajectory for the back half of the year, we expect Q3 adjusted EBITDA to be negative and lower than Q2 and positive for the fourth quarter. Top-line growth financed with low-cost non-diluted capital, coupled with leverage in our operating model, is expected to deliver compelling shareholder returns. We look forward to keeping you apprised of our progress. Operator, you can now open the call for Q&A.

Adjusted tiene for 2025 is expected to be flat to the Q4 2024, run rate plus inflation reflecting investments in growth with some offsets due. To efficiencies these Investments for Accelerated growth will continue in 2026 and we therefore anticipate similar growth in adjusted GNA next year.

Evo continues to make progress towards adjusted EBITDA, even in the outbreak. Even in 2025, we continue to expect adjusted EBITDA in the range of negative $5 million to positive $10 million.

Following our anticipated Revenue trajectory for the back half of the year, we expect, Q3 and Justice, Eva to be negative and lower than Q2.

And positive for the fourth quarter.

Topline growth Finance, with low cost non-dilutive Capital, coupled with leverage in our operating model is expected to deliver compelling shareholder returns.

We look forward to keeping you apprised of our progress, operator.

You can now open a call for Q.

Conference Operator: At this time, I would like to remind everyone in order to ask a question, press star, then the number one on your telephone keypad. We encourage everyone to limit yourselves to one question and one follow-up. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of David Arcaro with Morgan Stanley. Your line is open.

At this time, I would like to remind everyone in order to ask the question press star, then the number 1 on your telephone keypad. We encourage everyone to limit yourselves to 1 question in 1 follow up.

We will pause for just a moment to compile the Q&A roster.

Your first question comes from the line of David Aro with Morgan Stanley. Your line is open.

David Arcaro: Oh, hi. Thanks. Good morning.

Badar Khan: Morning.

Oh hi, thanks. Good morning.

Morning.

David Arcaro: Maybe first on the CapEx trends and offsets here. Great to see. I was just wondering if there was a geographic trend that is driving the capital offsets going to 45%. Were you targeting states in a different way based on demand that you are seeing, or were there changes in state incentives? Just wondering what shifted that geographic trend around.

Um,

Badar Khan: Well, look, I think, thank you, David, for the question. I think that one of the key things we wanted to communicate here is that not only are we focused on EBITDA generation with strong margins, we are also very much focused on delivering strong returns on capital for shareholders. Being able to lower our vintage CapEx per stall by almost 30% is very much aligned with that. Our first priority, of course, is to lower gross CapEx per stall, which is a trajectory we have been on for some time, and we have been successful at, and we are looking to continue with our next-generation charging architecture. On the offsets, we are absolutely pleased with where we are this year. We had a very high level of offsets for vintage 2024 in the 50% range.

Maybe first on uh on the uh capex Trends and offsets here. Uh uh great to see and and I was just wondering if there was a geographic Trend uh that's driving. The capital offsets going to 45%, um, you know, were you targeting States in a different way based on demand that you're seeing or whether changes in state incentives? Just wondering what uh, shifted that um, Geographic Trend around.

Badar Khan: This year, the offsets are also looking like they are going to be very strong. We have seen that already for our first half-year deployments, where offsets are at that sort of 45% range. These grants are really coming from all over the United States, to be perfectly honest. For the first half of the year, we have a lot of grants and incentives from California, but the rest are coming from states like Florida, Ohio, Pennsylvania, Washington. It is really all over the United States. I think a key point here, of course, is that regardless of what happens with federal incentives, state grants and utility incentives remain alive and well.

Being able to lower our vintage capex per store. By almost 30% is is very much aligned with that. Our first priority, of course is to lower gross capex for stall, which is a trajectory we've been on for some time and we've been successful at and we are looking to continue with our next Generation architecture on the offsets. You know, we're absolutely pleased with where we are this year. We had a, a very high level of offsets for basic 2024. In the first 50%, uh, range this year, the offsets are, uh, also looking like they're going to be very strong, and we've seen that already for our first half Year. Deployments, where offsets are at that?

Uh, sort of 45% range, and these, these grants are really coming from all over the. The United States, to perfectly honest. Um, uh, for the first half of the year, we have a lot of grants in, uh, grants and and incentives from California, but the rest are coming from States, like, Florida, Ohio, Pennsylvania Washington. And so it's, um, you know, it's really all over the United States. I think a key Point here, of course, is that uh, you know, regardless of what happens with Federal incentives, state grants, and utility incentives, remain alive and well.

David Arcaro: Excellent. Yeah, thanks for that, Badar Khan. Good to see. I was just wondering, any updates on the Department of Energy loan in terms of availability, any recent conversations you've had around drawdowns that you would highlight? I know you're not currently looking for one, but curious just any background color there.

Badar Khan: Yeah, the project is performing very strongly, and that is the nature of the dialogue that we have with the DOE. It represents excellent credit quality, which hopefully you can see from our earnings today. We are not dependent on the IRA or 30C remaining in place, so our dialogue with the DOE LPO staff remains a very productive conversation. I think the big strategic news this quarter is that we are no longer reliant on just one source of financing. The proceeds, as we just laid out today, from the commercial bank loan and the gross proceeds from 30C are three times what a quarterly advance would have been if we had from the DOE this quarter. We are very focused on not just being disciplined in our allocation of capital, but also disciplined in the growth of our balance sheet.

Excellent. Yeah, thanks for that color. Um, good to see uh and I was just wondering uh any updates um on the doe Loan in terms of availability, any recent conversations, you've had around uh draw Downs um that you would highlight. I know you're not currently looking for 1 but curious just any uh background color there.

Yeah, I mean, the project is performing very strongly and that's the the nature of the dialogue that we have with the doe. Uh, it represents excellent credit quality, which hopefully you can see from the, uh, earnings today. Uh, we are not dependent on the IRA, uh, or 30C remaining in place. And so, our dialogue with the doe lpo staff remains, you know, a very productive, uh, conversation. Uh, I think the big strategic news is quarter is that we are no longer reliant on, just 1 source of financing.

Badar Khan: I think the good news, one of the many sources of good news, is that there is really no time limit on when we request advances for eligible CapEx with the DOE loan other than the five-year availability period. We can incur the CapEx now, and if we want to drop it into the DOE loans at some point within the next five years, we can, or with the commercial bank facility. Of course, the commercial bank facility also allows us to fund stalls that are not eligible for the DOE loan, which I think is also very attractive. It allows all of our stalls at this point to be levered going forward.

The proceeds as you as as we just laid out today from the commercial bank loan and the pro, the gross proceeds from 30C are 3 times, what a quarterly Advanced uh would have been if we uh from the doe uh this quarter. And so we're very focused on not just being disciplined in our allocation of capital but also disciplined in the growth of our balance sheet.

Uh, and I think the good news for 1 of the, many sources of good news is that there's really no time limit on when we request advances for eligible, capex, with the doe loan other than the 5-year availability period. And so we can incur the capex now, and if we want to drop it into the doe loans, you know, at some point within the next 5 years, we can or, uh, with the with the Commercial Bank facility, of course, the Commercial Bank facility. Also, uh, allows us to, uh, fund stores that are not eligible for the doe loan, which I think is also very attractive, it allows all of our stores at this point to be lever going forward.

David Arcaro: Yeah, absolutely. Okay, great. Thank you so much.

Yeah, absolutely. Okay, great. Well thank you so much.

Conference Operator: Your next question comes from the line of Chris Dendrinos with RBC Capital Markets. Your line is open.

Your next question.

Chris Dendrinos: Yeah, good morning. Thank you. I wanted to ask a little bit on the utilization rate this quarter. I think you mentioned that there was a firmware update that went through it. In July, you all had, like, I guess, maybe a significant increase in the utilization rate as that got rectified. Can you maybe just provide a bit more detail about that? Maybe how long the issue was lasting and sort of what you are seeing now coming out of that?

Yeah, good morning, thank you. Um, I wanted to ask a little bit on the utilization rate this quarter. And I think you mentioned that there was a firmware, um, update that that went through it. Um, and then in July, you all had like I guess maybe a significant increase in in the utilization rate as that and I got rectified. You maybe just provide a bit more detail about that. Um, maybe how long the, the issue was was last thing, and sort of what you're seeing now coming out of that, thanks.

Badar Khan: Thanks, Chris. We did have a quality firmware update at the beginning of Q2, which was largely addressed at this point. Given that we had these issues, we proactively took that opportunity to address some legacy charger issues at the same time and invested in maintenance to get a stronger network. We thought that made sense to tackle both issues at the same time. As we said on the call, we could see average throughput per stall for July approached 300, which is quite a bit higher than what we saw in the Q2 average. I think what is most interesting here is that, as an indication of true demand on the network, the average throughput on the chargers where we were not experiencing these issues was meaningfully higher than the chargers where we were taking these steps on maintenance and the firmware.

Thanks, Chris. Yeah, we we did have a fall too far, more update, uh, at the beginning of the quarter, uh, in Q2, um, which you know is largely addressed at this point, we given that we had these issues. We did proactively take that opportunity to address some Legacy Charter issues. At the same time and invested in maintenance to get really just to get a, a stronger Network. We um, we thought that made sense to the tackle, both issues at the same time and then as we said on the core, we can see average throughput for store for July approached 300, which is, you know, quite a bit higher than uh what we saw in the Q2 average. I think what's really kind of most interesting here is that

As an indication of true Demand on the network, the average throughput on the Chargers that where we weren't experiencing, these issues was meaningfully higher.

Badar Khan: I think that actually also really validates the decision and the path that we are on with our next-generation charging architecture, where, as I said before, I do not believe that anybody else in our sector, or very many others in our sector, is able to do, where we own the firmware and the development of critical components like the dispenser. It is very much part of our journey of taking that customer experience to the next level.

and I think that actually also, you know, really validates the decision, and the path that we're on where our with our next Generation architecture, where

As I said before, I don't believe that really anybody else in our setting, we're very many others. In our sector is able to do where we own the firmware and the development of critical components, you know, like the dispenser. And it's it's very much part of our journey of of taking that customer experience to the next level.

Chris Dendrinos: Got it. Thanks. Then maybe on the next-generation charging architecture, you highlighted some promising, I guess, call it initial results from some of the deployments that you have done so far. I guess, how are you thinking about deploying those longer term? What are you looking for that would maybe drive you to accelerate deployment? Are you already seeing things, given the kind of results you have seen so far, that would drive you to maybe try to accelerate the deployment of those next-generation charging architectures? Thanks.

Badar Khan: Chris, I think the NACS cable and the autonomous vehicle space are both really interesting sources of upside for the company here. I can talk about the AV space maybe later on. On the NACS, we had a couple of pilot sites in the first half of the year. One was around technology validation. It is super important that we are focusing on the customer experience, making sure the technology works. The second site was really geared around, are we able to attract more Tesla drivers? I would say that I think the team is really pretty excited about the results. They are early. What I said in the call is that Tesla driver usage was significantly higher on that site than pre-installation of the NACS cable. I do think it is early days. We are going to have about 30 NACS cables installed in August.

Got it. Thanks. And then maybe on the on the next cable on you and you highlighted some promising, um, I guess call it initial results from, from some of the deployments that you've done so far. I guess, how are you thinking about deploying those longer term and, and sort of what are you looking for? That? Would maybe drive you to accelerate deployment? Or are you already seeing things given the kind of results you've seen so far? That would would drive you to? Maybe try to accelerate the deployment of those next cables? Thanks.

Chris. I mean, I think that the next cable and the autonomous vehicle space are are both. I think really interesting uh sources of upside for for the company here. And up we can talk about the ab space maybe later on. But on the next you know, we had a couple of Pilots sites in the first half of the Year 1 was around technology validation. It's super important that we are you know again focusing on the customer experience making sure the technology works but the second side was really geared around. Are we able to attract more Tesla drivers? Uh and I and I would say that I think the team is you know

Badar Khan: At this point, we are looking at 100 for the full year. These will all retrofit before we start doing native, so not retrofit, but original equipment connectors next year. I think that if we continue to see what we saw so far, for sure we will be looking at our ability to deploy more NACS cables. We want to just be certain about this. Everything that we have done at EVgo Inc. has been very thoughtful and very analytically based, whether it is the algorithms, the site selection, through to the AI in our marketing or AI agents in our marketing and customer outreach. Here, we do not want to pull out a productive CCS cable unless we are sure we can make it an even more productive NACS cable, which again, the first site is definitely showing. That is what we are looking at.

Already pretty excited about the results. Uh, they're early, but you know what, what they said on the call is that, uh, Tesla driver, usage was significantly higher on that site than pre-installation of The Knack cable. You know, I I do think it's early days, we're going to have about 30 cables Max cables uh installed in August and we're at this point, we're looking at 100 for the full year, these are all retrofit before we start doing native. So, um, not retrofit, but a original equipment connectors in next year. Um, but like, I mean, I think that if we continue to see what we saw, so far, you know, for sure we'll be looking at, uh, our ability to deploy more next cables. Uh, but, you know, we want to just be certain about this, uh, everything that we've done at at evgo, has been very thoughtful and very analytically based, uh, whether it's the algorithms, the site selection, uh, you know, through to the AI.

In our marketing or AI agents in our marketing and customer Outreach here. We don't want to pull out a productive CCS cable. Uh, unless we're sure we can make it an even more productive, Max cable, which again, the first sight is definitely showing but but that's what we're looking at.

Chris Dendrinos: Got it. Thank you.

Got it. Thank you.

Conference Operator: Your next question comes from the line of Bill Peterson with JPMorgan. Your line is open.

Your next question comes from the line of Bill Peterson with JP Morgan. Your line is open.

Chris Dendrinos: Thanks.

Badar Khan for Bill Peterson: Good morning. This is Badar Khan for Bill Peterson. Thanks so much for taking our questions. Your updated build schedule looks quite robust, especially in the 2028 to 2029 timeframe. Can you help us understand why the builds are so back half weighted if you have the liquidity available to you now? How do you think about balancing the EV/VIO to DCFC ratio across the market versus capturing market share early on from competitors potentially?

Good morning. This is

Connie on for, for billing, so much for taking our questions.

Badar Khan: I mean, look, I think on the build schedule, there are really three things that have increased the schedule versus what we last indicated, which would have been about six months ago after the Department of Energy loan. Those are the commercial bank facility and the fact that we are lowering our CapEx per stall. We have been talking about it for a year, but we never reflected that lower CapEx per stall in our long-term forecasts. Lastly, we are generating quite significant excess operational cash flow. We thought for simplicity's sake, we would assume that we would be reinvesting that cash flow into new stalls. To be honest, the reality is, as Paul Dobson said, we have actually got a fairly reasonable amount of capacity for additional leverage in the back half of this five-year period. Regardless, we think that is a good enough proxy.

Um, your updated Bills schedule looks, you know, quite robust, especially in the 28 to 29 time frame, um, can you help us understand why the builds are so back half weighted. If you have the, you know, liquidity available to you now. And how do you think about balancing, the EV Vio to dcfc ratio, um, across the market versus capturing market, share early on from, you know, competitors potentially

Yeah, I mean, look, I think the on the Bills schedule. Uh, they're already 3 things that have increased, uh, the schedule versus what we last.

Uh indicated, which would have been about 6 months ago after the, the doe loan and those are the the Voyager the the Commercial Bank facility. Um, and the fact that we are lowering our capex per stool, we've been talking about it for a year but we'd never reflected. That lower capex per stool in our long-term forecasts and then, lastly, we are generating, you know, quite significant excess operational, cash flow. Uh, and so we thought for Simplicity sake, we would assume that we'd be reinvesting that cash flow into, uh, into new stalls. You know, to be honest, the reality is, is Paul says

yeah, we've actually got fairly significant, you know fairly uh,

Badar Khan: That results in a very significant increase of stalls that we deploy that we are now fully capitalized for, which I think is the important point. In terms of whether we could go faster in the very near term, the next year or two, we really are, we have been talking about a 12 to 18-month timeline that takes from start to finish to deploy stalls. That is still, I think, in place. I think in the medium term, though, we are looking at ways where we can reduce that overall elapsed time. We know, and the market knows, that it is possible to deploy at a much higher rate. We have seen certainly one competitor deploy at a significantly higher rate. Of course, we have got a lot of folks in our team from Tesla today.

You know, a reasonable amount of, uh, of capacity um, for additional leverage, uh, in the back half of this 5 year period. But regardless, we think that's a good enough proxy in term and that results in a very significant increase in and of stores that we deploy that we're now fully capitalized forward, which I think is the important point.

Badar Khan: I expect that over the course of the next year or so, you may hear me provide updates on what we are doing to be able to reduce that elapsed time and effectively go bigger and faster.

I think in the uh, in the medium term, though, you know, we are looking at ways where we can reduce that, uh, overall elapsed time, uh, you know, we know and the market knows that it is possible to deploy at a much higher rate. We've seen certainly 1 competitor deploy at a significantly higher rate and of course we've got a lot of folks in our team from Tesla today. And so you know I expect that over the course of the next year or so you may hear me provide updates on uh what we're doing to be able to reduce that elapsed time and effectively go bigger and faster.

Badar Khan for Bill Peterson: Appreciate that, Badar Khan. Thank you. Maybe to follow up on an earlier question about utilization, should we expect to see any kind of seasonality from here on out? Do you maybe expect to see increased usage by Tesla users with the NACS connectors integration driving higher utilization over time? Also, totally recognize that we've seen third-party reports that utilization fell in Q2 across the U.S. public network. If there's anything else to call out there, that would be great.

You see that color? Thank you.

Badar Khan: For sure, on the NACS cable, that has been the hypothesis that we have talked about. To the earlier question, we are quite excited about that. It is early days, and we do not want to get carried away. I think it is really important just to bring out something that we have also been talking about, which is that we saw pretty healthy growth in throughput per stall sequentially. That was because of rising charge rates. The higher the charge rate, the less the utilization we need for the same kilowatt-hours dispensed. Our long-term forecast is actually only 23% to 26% utilization, but with an 80-kilowatt charge rate. That actually translates to about a usage per stall, kilowatt-hours per stall that is about 60% greater than today.

Maybe to follow up on an earlier question about utilization. Um, should we expect to see any kind of seasonality from here on out? And do you maybe expect to see increased usage, um, by Tesla users within Knox, integration driving higher utilization over time. Um, also totally recognize that also, we we've seen third-party reports that utilization kind of fell on the second quarter, um, across the US public network. So, um, if there's anything else to call out there, that'd be great.

Well, for sure, on the, the next table. I mean, that's, that's been the hypothesis that we've talked about. Um, and so, to the earlier question, uh, you know, we, we know, we, we are quite excited about that. It's early days when we don't want to get carried away. Uh, but I think, I think it's really important just to bring up something that we've also been talking about which is that

We saw pretty healthy growth in throughput per stall sequentially.

And that was because of rising charge rates.

Higher the charge rate, the less the utilization we need for the same kilowatt hours dispensed.

Badar Khan: If we look back over the last three years, our charge rates have actually grown about 20 kilowatts in the last three years. That is when we had slower chargers. Three years ago, only 12% of our chargers were 350-kilowatt chargers. Today, it is about 57%. Three years ago, the charge rates in the cars were slower. So 20 kilowatts in three years going backwards, our long-term economics, as you can see in the chart, suggests a growth of just around 30 kilowatts in four and a half years, but with faster machines and faster charging cars. This is a tailwind that we have been talking about, and I think we are really seeing that come through. It is really not just about utilization. It is really also about utilization and charge rate that is driving the throughput per stall up. We are really pleased to see that.

Our long-term forecast is actually the only 23 to 26% utilization, but with an 80 kilowatt charge rate, and that actually translates to about a, a a usage per stall for hours for stall, that's about 60% greater than today. If we look back over the last 3 years, our charge rates have actually grown about 20, kilowatts in the last 3 years. And that's when we had slower Chargers 3 years ago, only 12% of our chargers with 350 kilowatts today. It's about 57%, 3 years ago, the charge rates in the cars were slower. So, you know, 20 kilowatts in 3 years going backwards, our long-term view economics uh as you can see in the charts suggests a growth of just around 30 kilowatts within 4 and a half years, but with faster, machines and faster, charging cars. And so we're, you know, this is a Tailwind that we've been talking about and I think we're really seeing that come through. Uh, and so, you know, it's it's really not just

Badar Khan: To your question about seasonality, yes, we do have seasonality in charge rates typically. We have seen seasonality in different parts of our business, but on charge rates, they tend to be a little lower in the winter months, tend to be a little higher in the summer months. That is the growth that we have seen in the last three years. Operator, can we go to the next question?

About utilization. It's really also about utilization and charge rate that's driving the the throughput for all up and we're really pleased to see that.

And, and to your question about seasonality. Yes. We do have seasonality in charge rates. Typically, uh, We've seasonality in different parts of our business, but on charge rates, you know, there tend to be a little lower, uh, in the winter months. Tend to be a little higher in the summer months. Uh, but the, you know, the growth that we've seen in the last 3 years, you know?

Operator. Can we go to the next question?

Conference Operator: Your next question comes from the line of Andras Shepard with Cantor Fitzgerald. Your line is open.

your next question comes from the line is Andrea Shepard with cancer, Fitzgerald, your line is open,

David Arcaro: Hey, good morning, everyone. Congratulations on the quarter, and thanks for taking our questions.

Badar Khan: Yeah.

Hey, good morning everyone. Congratulations on the quarter, and thanks for taking our questions.

David Arcaro: I think a lot of our key questions have been asked, but I wanted to maybe hone in on self-driving technology. As we are ramping up robotaxis and self-driving across the country, curious if you can maybe give us a sense of your strategy to capture as much of this market share as possible. How are you thinking about capturing these autonomous vehicles that are ramping up, and what are some plans to maybe differentiate EVgo Inc.? Thank you.

Yeah. Um, I I want, um, you know, I think a lot of our key questions have been asked but I wanted to maybe um, hone in on, on self-driving. Technology, you know, as we're ramping up Robo, taxis and and self-driving across, uh, the country seriously, if you can maybe give us a sense of kind of your strategy to capture, um, you know, as much of this uh, market share as as possible. You know. How are you thinking about uh, capturing this autonomous vehicles that are ramp

Badar Khan: I mean, look, along with the NACS cable, I think that this is one of the two sources of upside in the business. It is probably not in anyone's forecast. We do think it is a really interesting and potentially significant source of upside if indeed the AV space grows, which certainly it does seem as though it is going to. I know, as I think you pointed out and others have, these are going to be electric vehicles, and they are not looking to be charged in slow charging locations. That makes zero sense. We have been building and operating dedicated sites for autonomous vehicle partners for a number of years. Last year, we more than doubled the number of stalls at these dedicated sites to serve this space to 110 stalls.

Up and and what are some plans to be differentiate illegal? Thank you.

Yeah. I mean, look, we I mean, along with an axe cable. I think that this is a 1 of the 2 sources of of upside, uh, in the business as is probably not in anyone's forecasts, but we do think it's a really interesting and potentially significant source of upside. If if indeed the a space grows, which certainly it does seem as though, it's going to

Uh, I know as you as I think you pointed out on others, have these are these are these are these are going to be electric vehicles and they're not looking to be charged in slow, charging locations. Uh,

Badar Khan: We actually separated it out in our stall disclosure and our public disclosure. It is sort of wrapped up in what we call ancillary at the beginning of this year. As Paul Dobson said in our guidance, we do expect to see a more than doubling of ancillary revenues this year over last year. We are pretty excited by it. We think that the counterparties that we work with are pleased with the way that we are able to deploy fast charging speeds that are appropriate for those vehicles. Obviously, we are pretty good at it, building charging sites, whether they are public or for dedicated. We think that we have got a great relationship with these folks, and we are excited about the dialogue that we are having with them.

We know we have been building and operating dedicated sites for autonomous vehicle partners for a number of years. Last year, we more than doubled the number of stalls at these dedicated sites to serve uh this space uh, to 110 schools, and we actually separated it out in our store disclosure and our public disclosure. It's sort of wrapped up in what we call ancillary, uh, at the beginning of this year. As Paul said, in our guidance, we do expect to see you are more than doubling of ancillary revenues, uh, of this year over over last year. And so, we're, we're pretty excited by it. Um, you know, we think that the, uh, you know, the the counterparties that we work with are are are pleased with the way that we're able to deploy. Uh,

Badar Khan: Of course, now that we are fully capitalized and the commercial bank facility allows us to lever those stalls where we do not think they are eligible for Department of Energy loan funding, I think we are actually in a really pretty good space and pretty good place.

Charging speeds that are that are appropriate for, uh, for the, uh, for those vehicles. Uh, obviously we're a pretty good at it, uh, building building charging sites whether they're public or for dedicated. Um, and so, we know we think that we've got, you know, a great relationship with these folks, and we're excited about the dialogue that we're having with them, um, and of course, now that we're fully capitalized, and the Commercial Bank facility allows us to to leverage those stalls where we don't think they're eligible for doe loan, funding. We think we're

Actually a really pretty good space and pretty good place.

David Arcaro: Got it. Thanks, Badar Khan. That's super helpful. Appreciate that, Badar Khan. Maybe just as a quick follow-up, can you just remind us what are maybe the key catalysts to look for maybe in Q3 and Q4? Thank you.

Got it. Thanks for that that super helpful, appreciate that color and maybe just as a quick follow-up. Can you just remind us? You know what are maybe the the key Catalyst uh to look for maybe in Q3 and and Q4 thank you.

Badar Khan: Well, look, I mean, we are just focused on executing the business. We are fully capitalized at this point. We know the charger issues that we talked about, the firmware, and our choice to invest in the maintenance of some of these legacy issues is largely behind us, but we expect to be pretty much wrapped up with that activity by the early part of this Q3 period. I think that sort of just watch us execute. We are just heads down executing, and that is really what we are focused on.

Well, look, I mean, I, you know, we we are just focused on on executing the business. Uh, you know, interest we are uh, we're we're cap. You know, we're fully capitalized at this point. Um, we we know the the charger issues that we talked about the firmware, and our choice to invest in the maintenance of some of these Legacy issues is largely behind us, but we expect to be pretty much wrapped up with that activity by, you know, the early part of this Q3, uh, period. Um, uh, you know, I think that just sort of just blocked us execute. That's where we're just headed down executing and that's really what we're focused on.

David Arcaro: Got it. Thank you so much. Congrats again. I will pass it on.

Badar Khan: Lunch.

Got it. Thank you so much. Congrats again, I'll pass it on.

Conference Operator: Your next question comes from the line of Stephanie Lee with Stifel. Your line is open.

Thanks so much.

Your your next question comes from the line of Stephen gangaru with steel. Your line is open.

Paul Dobson: Thanks. Good morning, everybody.

Badar Khan: Hi, Stephen.

Paul Dobson: Two things for me. The first is pretty thorough. I am not sure you will want to answer, but when we think about your guidance for this year, do you think as you get into next year, you will be positive EBITDA in every quarter?

Uh, thanks. Good morning, everybody. Uh,

2 things for me. The first is I'm I'm not sure you you'll want to answer but when we think about your guidance for this year, do you think as you get into next year? You'll be positive, even though in every quarter

Badar Khan: Yeah, Stephen, we are not going to get into the guidance for 2026 just orally. But I think that if you think about what is really driving EBITDA for us, it is the measure that we have spoken about for the last year, last several years now, which is that throughput per stall per day. That is rising. It continues to rise. It is rising sequentially. Yes, there is sometimes seasonality in that, again, the winter months. It can be a little bit flattish in the Q4 to Q1. But that is going to be a big driver of growth in the business. That is what we are seeing. So I think that is probably all I am going to share at this point in terms of findings.

Yeah. Stephen what, you know we're not gonna we're um we're not going to get into the guidance for 2026, uh, uh, just so early, um, you know, but you know, I think that, you know, if you think about what's really driving, uh, IBA for us, it is

that we've spoken about for the last year and you know, last couple last several years now, which is that throughput for soul per day and that's Rising uh, that continues to rise. It's rising sequentially. Yes, there's sometimes seasonality in that. Again, the winter months, it can be a little bit flattish, uh, in the kind of Q4 if you want.

Paul Dobson: That's fair. I guess the other thing, you mentioned earlier in the call in your prepared remarks about the economics of some of the chargers that are being driven by grants and maybe being a bit lighter at the beginning of the lifecycle. Is that something that we will observe in the numbers? We are chopping through stall just so we kind of know what to look out for, or is it just not big enough to kind of really move those numbers around too much?

But um you know, that's going to be a big driver of uh of of growth in the business and you know, we're at what we're seeing. So I think that's probably all I'm gonna share at this point in terms of 202.

That's that's fair. Um, and

I guess the other thing you mentioned earlier in the call and it's fair to Marks about the, the economics of some of the Chargers that are being driven by grants.

And maybe being a bit lighter in the beginning of the life cycle is, is that something?

We will observe.

In numbers which open throughput skull.

Badar Khan: It can a little bit, Stephen. I think the really important point here is, a couple of points here is that these are not federal incentives, right? That's, I think, number one. I think that the state and utility space is very productive and supportive for EV charging infrastructure build-out. I think that the second point is that even if they're a little less productive in the first sort of periods, first few periods, these are phenomenally strong returns on capital invested. From our perspective, yes, we're obviously looking at EBITDA generation and at very strong EBITDA margins, which is the business that we've laid out here. But it's also important to us that we're deploying capital that's delivering strong returns for shareholders on the capital invested. I think that's what we're seeing with some of our choices.

Like just so we kind of know what to look out for or just a big enough to kind of really move those numbers around too much.

You know what? It kind of a little bit. Uh Stephen um you know and I think that you know the I think the really important Point here is there a couple points here is that these are not federal incentives. Right? So that's I think, number 1, I think that the the state and utility space is is you know very productive uh

I, you know, I think that um, the second point is that

Badar Khan: I think the fact that we've got such a large pipeline, which a lot of other smaller charging companies just don't have, allows us to move some stalls where we think we can get some great grants from one quarter to another or from one year to another. That's what we saw this year where we did actually move some of our sites around. It forced us to push some sites from Q3 into Q4, but we thought that was worth it because just the level of offsets is just so great and the returns, of course, in that capital is just so strong.

Even if they're a little less productive in the first sort of periods. First few periods. Um these are phenomenally strong Returns on Capital invested and so as you know from our perspective, you know, yes we're obviously looking at uh EBA generation and and very strongly with the margins, which is, you know, the business that we've laid out here. But it's also important to us that we're deploying Capital, that's delivering strong returns uh, you know, for shareholders on the capital invested and I think that's what we're seeing with uh with some of our choices. I think the fact that we've got such a large pipeline which you know, a lot of other you know, smaller charging companies just don't have

Allows us to move some stores where we think we can get some great grants from one quarter to another or from one year to another. And that's what we saw this year; we did actually move some of our sites around. We had a report that forced us to push some sites through Q3 into Q4.

but we thought that was worth it because the uh, this the level of offsets is just so great and the returns of course, in that capital is just so strong

Paul Dobson: Great. That's great detail. If I could ask you one other quick one, understanding the NACS cable rollout, you know, we are big fans of Tesla, but not everybody is these days. Is there any targeted marketing that you're thinking about or you've done for Tesla drivers? You know, you see these stickers on Teslas, the owners that are mad at Elon, etc. Has anybody thought about something like that you've done or you're thinking about any kind of campaign like that?

Great, that's great detail. And if I could ask you 1 other quick 1, I understanding the next cable roll out,

are we, we're big fans of Tesla but not everybody is these days. Is there any targeted marketing that you're thinking about or you've done?

For Tesla drivers because these stickers on Teslas that owners that are mad at Elon, Etc. Is there, has anybody thought about something like that you've done? Or are you thinking about it, any kind of campaign like that?

Badar Khan: Yeah. I mean, look, I know that this space feels like it's very heavily politicized. We're running this business as an infrastructure business where we're deploying capital that's returning strong returns for shareholders and strong EBITDA generation, strong margins. We try not to get too political about stuff. We just think that's not necessarily always the best thing. However, you know, we're very analytical. So where we're putting these NACS cables over the course of this year are in locations where we know there are Tesla drivers, where those Tesla drivers we expect will come over to our stations because there isn't a Tesla supercharger nearby. As I said on the call today, we're just taking our capabilities to the next level. We've got these AI agents now that are creating messages, and they are figuring out which customers to send which message to at what time.

Yeah, I mean look as a

I know that this space is very feels like it's very heavily politicized, you know, we're running this business uh, as an infrastructure business where we're deploying Capital that's returning, strong returns for shareholders and strongly, but that generation strong margins. We try not to get too political about stuff. We just think that's not necessarily always the best thing. However uh you know we're very analytical. So you know where we're putting these uh, knacks cables. Uh, over the course of this year are in locations where we know there are Tesla drivers where we those Tesla drivers, we expect will come over to our stations because there isn't a Tesla Supercharger nearby. And as I said on the call today you know we're just taking our capabilities to the next level. We've got these AI agents now that are creating messages and they are figuring out uh, you know, which customers to send

Badar Khan: I think that we're, that's sort of broadly what we're doing to get to the right level of interest at our stations at the right time. I think that for the NACS cables where we're attracting Tesla drivers, with frankly charging stations that are faster, these are largely 350-kilowatt stalls that we're deploying today versus the supercharger network at 250 and closer to where they label their amenities. We think that it's a very interesting and successful, should be a very successful approach.

And which message to at what time. And I think that we're, uh, you know, that's sort of, you know, broadly what we're doing to get to the right level of interest at our stations at the right time. And I think that uh for the next uh cables we're attracting Tesla drivers with with frankly charging stations that are faster. These are 350 largely 350 kilowatt stalls that we're deploying today versus the supercharger Network at 250 and closer to where they live with their amenities. We think that is a very, you know, interesting and successful should be a very successful approach.

Paul Dobson: Thanks. As always, great detail. I appreciate it.

Thanks. As always, great detail. I appreciate it.

Conference Operator: Your next question comes from the line of Craig Urban with Roth Capital Partners. Your line is open.

David Arcaro: Good morning, and thanks for taking my questions. Paul, in your prepared remarks, you mentioned the ancillary revenue progression over the next couple of quarters, the fact that we should have a pretty strong fourth quarter. Can you maybe give us a little bit of color as far as the strengths that we had in the second quarter and how that is likely to materialize relative to your execution over the last couple of months? Anything else you could share to help us understand the way this is rolling out?

Your next question comes from the line of Craig. Urban with Ross, Capital Partners, your line is open.

Paul Dobson: Sure. Yeah. We did have strong non-charging revenue overall in the quarter, both the ancillary and the eXtend business. With the eXtend business, I will just talk about that one for a quick second. What we saw was higher level of equipment sales with eXtend as our partners sought to print forward equipment purchases. With the ancillary revenue, a large part of that growth is due to our hubs business. When we set our guidance for the year, the hubs business is a relatively new business. We are still learning what the economics could be and negotiating contracts. We have got a better line of sight overall into what our hubs business is going to generate this year in terms of revenue.

Good morning and thanks for taking my questions. Um, Paul in your prepared remarks, uh, you mentioned, um, the uh, ancillary Revenue, um, progression over the next couple of quarters. The fact that we should have a, um, a pretty strong fourth quarter. Um, can you maybe, um, give us a little bit of color as far as, um, the strengths that we had in the second quarter, um, and how, how that's likely to materialize, um, relative to um, you know, your execution, over the last couple months. Um, and anything else you could, uh, share, uh, to help us understand, uh, you know, the, uh, the way this is rolling out.

Sure, yeah. So, yeah, we did have strong non- charging Revenue, uh, overall in in the learner, both the ancillary and the extend, the extent business. So, the, with the extend business, we'll just talk about that 1 for for a quick second. So we what we saw was higher level of equipment sales with extent, um as uh as our partners brought you sought to print forward equipment purchases

Paul Dobson: With the ancillary revenues, which is largely the hubs business, we expect it is going to more than double from last year, from 2024. We are expecting also to have a much higher fourth quarter as well, given some of the revenue recognition nuances in the hubs business. Again, it is largely because we now have a better line of sight to the nearer term as to where we expect it is going to end up. There is some lumpiness to it, I will admit, with the hubs business due to some of the accounting. As we go forward and it becomes a much bigger part of our revenue mix, we will provide more specific guidance on it that I think will be helpful.

uh hubs business is going to generate uh this year in terms of uh in terms of Revenue, so what they're in but the ancillary revenues which is you know, largely the hubs business we expect it's going to more than double uh

from last year, from 2024,

Um, we're expecting also to have a much higher fourth quarter, uh, as well, given some of the revenue recognition, um, nuances in the, in the, uh, hubs business. Um, again, it's, it's largely, because we now have a better line of sight, uh, to the nearer term as to where we expect it's going to end up. There is some lumpiness to it. I, I will admit that the hub's business, um, due to some of the accounting, and as we go forward, and it becomes a much bigger part of our of our Revenue mix. We'll provide more specific guidance on it. Um, that I think will be helpful.

David Arcaro: Thank you for that. Badar Khan, you are clearly executing well versus your financial targets. You are delivering, and you have been for several quarters. It does look like you are adding a little bit of expenses to the model. Maybe there is a bigger opportunity or a different opportunity set. Can you talk a little bit about your priorities as you look for opportunities for investment over the next couple of years? Real-time pricing, I guess, is one thing that has got a lot of attention over the last several months. There are several things we could touch on. What do you see as the most important areas for investment at EVgo Inc. over the next several quarters?

Thank you for that.

So, and then bought her, um, you're clearly executing well, um, versus your financial targets, right? You're you're delivering, um, you know, and you have been for several quarters. Um, but it, it does look like you're adding a little bit of expenses to the model. So maybe maybe there's uh a bigger opportunity or or a different opportunity set. Um, Can can you talk a little bit about your priorities as as you uh as you look for opportunities for investment over the next couple years. Um, you know,

Badar Khan: Thanks, Craig. Look, the single biggest use of cash in this business is the capital that goes into the charging infrastructure. We are very focused on both capital efficiencies per stall. That is gross CapEx per stall. We have talked about the offsets for quite a bit here, but the first priority is on gross CapEx per stall, which we have been lowering. I think in part of that journey in terms of your question is the investment we are making into our next-generation charging architecture. Our strategy is to be able to get the benefits of being vertically integrated without being vertical, without the risks and the costs of manufacturing. That is why that partnership with Delta Electronics is so important. It is why our taking ownership of the firmware, which is the issue that we saw in Q2, is so important.

Uh Real Time pricing I guess is 1 thing. That's got a lot of attention over the last several months. You know there's several things we could touch on what do you see as as the most important areas for investment um, at evgo over the next over the next several quarters.

Thanks Greg. I mean look the the the single biggest um, use of cash in this business is the capital uh, that goes into the charging uh infrastructure and so, you know, we are very focused on. They're both Capital efficiencies, uh, per stool that's gross capex per store. You know, we're we've talked about things that are offsets for quite a bit here, but the first priority is on Gross capex for all, which we've been lowering, uh, but I think in part of that journey in terms of your question, is the investment we're making into our next Generation, charging architecture. You know, we are, you know what our strategy is to be able to get the benefits of the vertically integrated without being vertically that without the, the, the risks and the costs of manufacturing. That's why that partnership with Delta Electronics is so important. It's why the, you know, our taking ownership of the firmware that which is

Badar Khan: It takes that customer experience to the next level. That is what we are investing in. We see that investment show up in OpEx. Ultimately, the goal there is to lower our gross CapEx per stall in line with the slide that we showed earlier for the second half of 2026. You are right. We are also investing in marketing, in customer marketing, in customer approach, the databases, these AI agents. We have invested over a long period in the algorithms behind our site selection, which we think is one of the many sources of competitive advantage for us. You picked up on dynamic pricing as an area of investment since last year, again, which we can see paying off in the unit economics schedule. We are thrilled. I think one major, maybe the last point to leave, is that the company has tremendous operating leverage.

The issue that we saw in Q2 is so important and it takes that customer experience the next level that is what we're investing in and we see that investment show up in Opex.

Badar Khan: If you look at the fixed costs in this business versus the total G&A, it is pretty high. Once you cover your fixed costs, all of that cash flow above fixed costs falls to the bottom line. That is why this business model is just so, to me, so compelling. The EBITDA generation after this year is really pretty exciting. That is what we are trying to convey when we, every few months, we put out these long-term financials.

But ultimately it's the goal. There is to lower our growth capex per store in line with the slide that we showed, uh, earlier, uh, you know, for the second half of 2026 but you're right. We're also investing in marketing in customer marketing, customer approached the databases, these AI agents. Um, we've invested in over a long period in the algorithms behind our site selection, uh, which we think is a 1 of the many sources of competitive Advantage for us. So, um, you picked up on Dynamic pricing as in an area of investment since last year again. Which we can see paying off in the unit economics uh schedule. So we're we're thrilled. Um but you know I think the I think 1 major maybe the last point to leave is that the companies has tremendous operating leverage. If you look at the fixed costs, in this business versus the total GNA, it's really high. And so once you cover your fixed costs, all of that cash flow above fixed costs,

False with the bottom line. And that's why, uh, this business model is just so to me, so compelling the, the iPad generation. Uh, after this year is,

It's really pretty exciting.

Uh, and that's what we're trying to convey uh, when we every few months we put out these long-term financials.

David Arcaro: Fantastic. Just another one, if I may, firmware. You mentioned the firmware issue in the quarter. Can you maybe share with us what sort of a headwind this was on throughputs across the network or any other color for us to understand the financial impact?

Badar Khan: Yeah, I mean, look, we said that in July, the firmware issues, they are kind of at this point, they are largely behind us. We did, at the same time, decide to take some, put some stalls into maintenance because we are seeing these issues anyway in terms of customer experience. That will be largely addressed through the first part of Q3. But if you look at our July throughput, it was approaching 300 kilowatt-hours per stall per day. That is quite a bit higher than what we saw in the average in Q2. That is probably a good enough proxy for where throughput, you know, your question in terms of where throughput could have been.

Fantastic. And, and, and just another 1. If I met firmware, you, you mentioned the firmware issue in the quarter. Um, can you maybe, um, share with us? What a, what sort of a headwind this was on throughputs across the network or any other color for us to understand the financial impact.

David Arcaro: Excellent. Well, thanks again, and congrats on the strong performance.

Throughput. It's, it was approaching 300 kilowatt hours per store per day. And that's, you know, that's quite a bit higher than what we saw in the average in Q2. And that's, you know, that's probably a good enough proxy for, uh, you know, where, where throughput, you know your question in terms of what throughput could have been.

Badar Khan: Thanks so much.

Excellent. Well, thanks again. And congrats on the strong performance.

Thanks so much.

Conference Operator: Your next question comes from the line of Chris Pierce with Needham & Company. Your line is open.

Chris Dendrinos: Hey, good morning, everyone. I was just wondering, are you seeing increased competition for rideshare drivers? I mean, I know it is just one article, one headline, but you know, we will talk about 40-plus stalls going in at LAX and things like that. I just was wondering if more people are realizing how interesting this business is or the frequency with which these drivers have to charge.

Your next question comes from the line of Christopher Pierce. We need to have in company. Your line is open,

Hey, good morning everyone. I was just wondering, is it? Are you seeing increased competition for Ryan? Share drivers. I, I mean, I know it's just 1 Article 1 headline, but, you know, we talked about 40 plus dollars going in at LAX and things like that. I just was wondering, if sort of more people are realizing how interesting this business is or the frequencies of which these drivers you know have to charge.

Badar Khan: Look, it is hard because there are so many companies in the space that are private and small. It is hard to know, to be perfectly honest. When we have looked at our own throughput, rideshare has been pretty steady in the 20% to 25% of our total kilowatt-hours, or I do not know how many quarters at this point. It is usually maybe a couple of years at this point. So rideshare is going great for us. It has been a steady contributor to our kilowatt-hours in aggregate. It remains the case. We are thrilled. We have been saying forever that rideshare is a significant source of upside. That is beyond that battery electric vehicle, the DCSC charging ratio, which is also a macro supply-demand factor that benefits the business. We are thrilled.

Uh, I mean, look, it's it's hard.

So many companies.

in the space that are

Uh, you know, it's hard. It's hard to know to perfectly honest. When we look at our own, uh throughput, you know ride, share, you know, it's it's been pretty steady in the 2025 percent of our total, yellow 1 hours. So I don't know how many quarters at this point. Um, it's usually maybe a couple of years at this point. So uh, you know, ride shares. Going great for us, has been a steady contributor to our kilowatt hours in aggregate.

Badar Khan: I think that a lot of companies, smaller private companies in this space, anecdotally, we wonder whether they will be able to attract capital, quite honestly, just because of their smaller scale.

A Remains the case, uh, we're thrilled. Uh, we've been saying forever that ride share is a, uh, a significant source of of upside. That's beyond that battery electric vehicle. The dcse charging ratio which is also a a macro uh, Supply demand factor that benefits the business. So yeah, we're thrilled. I mean I think that a lot of companies smaller private companies in this space. Uh, you know,

You know, anecdotally, you know, we we we wonder whether they'll they'll be able to attract Capital, uh, quite honestly just because they're smaller scale.

Chris Dendrinos: Got it. Okay. Can you just touch on lastly, ASP per watt? It looked like it was up pretty smartly quarter over quarter, and that is after a Q1 increase from Q4 last year. I just wanted to kind of, if you could touch on pricing power, or is this dynamic pricing that you are kind of able to flex, or is this, you know, people that are on a monthly plan, but because of the firmware issue, the charger that they go to was down, so you had a one-time benefit there?

Got it, okay? And can you just touch on lastly, ASP per watt. It looked like it was up.

Paul Dobson: Yeah. I will take that one. We have seen our revenue, particularly our pricing increase, as we have talked about on other calls as well. We are continuously testing our pricing and our pricing programs, dynamic pricing. We are just talking about rideshare and trying to incentivize rideshare drivers to go off-peak and trying to influence the shape of our utilization curve as well. It has all resulted in us having the ability and watching customers' reaction, seeing how much we can move prices up. We also, though, when we look to price, we also look at what is the revenue minus our throughput costs, which are mostly our energy costs. As energy costs increase or decrease, we want to make sure that we maintain a spread or widen that spread to some degree.

Pretty smartly quarter over quarter and that's after a 1 Q increase from 4 q last year. I just wanted to kind of you could touch on pricing power, or is this a dynamic pricing that you kind of able to flex or is this, you know, people that are on a monthly plan but because of the firmware issue, they the charger that they go to was down. So you had a 1 time benefit there.

yeah, so I I think

So yeah, we have seen uh our Revenue per kilowatt, our pricing increase since we've talked about on other other calls as well. We're continuously testing, um, you know, our pricing and our our pricing programs Dynamic pricing. We're just talking about ride, share and trying to incentivize ride, share drivers to go, you know, off peak and trying to, you know, influence the shape of our utilization, uh, curves as well and it's all resulted in a

Having the ability and you know, watching customers reaction.

Seeing you know how much we can move prices up.

Paul Dobson: I think that is really the most important point in the quarter where we saw that spread increase last year from, I think, $0.29 a kilowatt-hour to $0.32 a kilowatt-hour, which is right in the middle of our long-term guidance. We are kind of approaching the spread where we think long-term, it could add up. We will continue to test these programs with customers, making sure that we are delivering value to our customers, retaining them, looking at the long-term value of customers as well, as wanting to see the short-term pricing opportunities to make sure that we are maximizing the value and increasing retention as well.

Uh, we also though, you know, when we look to price, we also look at, you know, what is the what is the revenue? Minus our our throughput cost which mostly our energy costs. And so as energy costs increase or decrease, you know, we want to make sure that we maintain a spread or, you know, widen that spread uh to to some degree. And I think that's really the most important point. You know, in the corner where we saw that spread increase last year from I think 29 cents a kilowatt hour to 32 cents a kilowatt hour.

Which is right in the middle of our long-term guidance. So we're, we're kind of approaching the spread where where we think, you know, long term you know it could end up but we'll continue to test these programs with customers. Making sure that we're delivering value to our customers retain them looking at the long term value of customers, as well as not to the short term pricing opportunities.

Uh, you know, it makes it more maximizing, the value and and increasing retention as well.

Chris Dendrinos: Okay. Thanks for the detail. Appreciate it.

Okay, thanks for the details. Appreciate it.

Conference Operator: I will now turn the call back to Badar Khan, CEO, for closing remarks.

Yep.

Badar Khan: Great. Well, thank you, everyone.

I will now turn the call back to Bar can CEO for closing remarks.

Thank you, everyone.

Conference Operator: Ladies and gentlemen, that concludes today's call. You may now disconnect. Thank you and have a great day.

Ladies and gentlemen that concludes today's call, you may now disconnect thank you and have a great day.