Q3 2025 EVgo Inc Earnings Call

Speaker #1: Thank you for standing by. At this time, I would like to welcome everyone to the EVgo third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise.

Operator: Thank you for standing by. At this time, I would like to welcome everyone to the EVgo third quarter twenty twenty-five 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #2: Good Good morning and welcome to EVgo's third quarter 2025 earnings call. My name is Heather Davis, and I am the Vice President of Investor Relations at EVgo.

Heather Davis: Good morning, welcome to EVgo's Q3 2025 Earnings Call. My name is Heather Davis, and I am the Vice President of Investor Relations at EVgo. Joining me on today's call are Badar Khan, EVgo's Chief Executive Officer, and Paul Dobson, EVgo's Chief Financial Officer. Today, we will be discussing EVgo's Q3 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 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.

Speaker #2: 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 third quarter 2025 financial results, followed by a Q&A session.

Speaker #2: 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 along with the company's earnings release and investor presentation after the conclusion of this call.

Speaker #2: During the call, management will be making forward-looking statements that are subject to risks and uncertainties, including expectations about future performance. Factors that could cause actual results to differ materially from our expectations are detailed in our SEC filings including in the risk factor section of our most recent annual report on Form 10-K, and quarterly reports on Form 10-Q.

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 materials available on the investor section of our website. With that, I'll turn the call over to Badar Khan, EVgo's CEO.

Speaker #2: 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.

Speaker #2: 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 materials available on the investor section of our website.

Speaker #2: With that, I'll turn the call over to Badar Khan, EVgo's CEO.

Speaker #3: Thank you, Heather. EVgo delivered another solid quarter of results. Furthering our position as an industry leader built for long-term success. We delivered total revenue of $92 million and record charging network revenues.

Badar Khan: Thank you, Heather. EVgo delivered another solid quarter of results, furthering our position as an industry leader built for long-term success. We delivered total revenue of $92 million and record charging network revenues. We ended the quarter with almost 4,600 stalls in operation and expect to see a very large Q4 for stall deployment. We continue to see improvement in adjusted EBITDA. From a liquidity standpoint, we are in a very strong position with a higher cash balance at the end of the quarter than last quarter. In October, we received the latest advance for $41 million from the DOE loan, which is being used to accelerate the nationwide build-out of EV charging infrastructure, offering American drivers more choices on where they charge.

Speaker #3: We entered the quarter with almost 4,600 stalls in operation and expect to see a very large fourth quarter for stall deployment. And we continue to see improvement in adjusted EBITDA.

Speaker #3: From a liquidity standpoint, we are in a very strong position with a higher cash balance at the end of the quarter than last quarter.

Speaker #3: In October, we received the latest advance of $41 million from the DOE loan, which is being used to accelerate the nationwide build-out of EV charging infrastructure, offering American drivers more choices on where they charge.

Speaker #3: As you recall from the last call, we closed on a first-of-its-kind transformational commercial financing facility in July for $225 million, with potential to expand up to $300 million.

Badar Khan: As you recall from the last call, we closed on a first of its kind transformational commercial financing facility in July for $225 million with potential to expand up to $300 million, which we believe reflects the confidence these banks have in the resilience of the cash flows generated by our ultra-fast charging infrastructure. We have now received two draws from this facility for a total of $59 million. We've expanded our pilot for J3400 connectors, more commonly known as NACS, and now have roughly 100 NACS cables installed. We're encouraged to see an increase in Teslas charging at EVgo. We continue to improve returns on capital deployed by lowering net CapEx per stall. With 2025 vintage net CapEx per stall now expected to be lower than our initial plan by 27%.

Speaker #3: Which we believe reflects the confidence these banks have in the resilience of the cash flows generated by our ultra-fast charging infrastructure. We have now received two draws from this facility for a total of $59 million.

Speaker #3: We've expanded our pilot for J3400 connectors, more commonly known as NACs, and now have roughly 100 NACs cables installed. We're encouraged to see an increase in Tesla's charging at EVgo.

Speaker #3: And we continue to improve returns on capital deployed by lowering net CapEx per stall with 2025 vintage net CapEx per stall now expected to be lower than our initial plan by 27%.

Badar Khan: Unlike other companies in the EV charging space, EVgo's revenue has grown consistently and predictably faster than the growth in EV vehicles in operation, growing at double the CAGR of VIO growth over the past 4 years. This is due to both market factors and company-specific factors, we believe this outperformance of revenue growth over VIO growth is set to continue for the foreseeable future. Today's market-wide tailwinds include higher usage fueled by rideshare electrification, expansion of affordable vehicles, bringing more drivers to public charging, faster vehicle charge rates with a shift towards larger, less efficient cars. Historically, EV vehicle miles traveled has steadily closed the gap to their ICE counterparts.

Badar Khan: Company-specific factors that are driving EVgo's outsized growth include our network planning, which looks for better locations with high utilization compared to the rest of the industry, building better charging stations, and our expanding network effect of more than 1.6 million customer accounts. The Q3 saw a historic number of EV sales in the US ahead of the federal tax credits expiring. While we won't speculate on the level of EV sales in Q4 and 2026, it will result in an ever-increasing number of EVs on the road. Although EV projections today are lower than in the past, the latest forecast for EV VIO growth remains strong, albeit with a slower rate of growth.

Badar Khan: Our charging revenue forecast based on our updated unit economics and forecasted stall growth we discussed last quarter also conservatively assumes a lower rate of growth than we've delivered historically, yet still represents 3 to 4 times annualized growth from today. As we noted earlier, we are nearing a critical milestone, delivering breakeven adjusted EBITDA, which we expect to achieve in Q4. Over the past 4 years, quarterly revenue and gross profit have accelerated 15 to 19-fold, whereas quarterly adjusted G&A has only grown modestly because most of our G&A is actually fixed. As a result, we are predictably reaching adjusted EBITDA inflection to positive in Q4. After this inflection, EVgo has two sources of operating leverage that will position us for accelerated adjusted EBITDA growth in the future.

Badar Khan: First, something we have been benefiting from over the past 4 years, is that we have leverage within our charging network cost of sales. Approximately 28% of our cost of sales is fixed on a per-stall basis. As throughput per stall grows, so does the charging network gross margin. These fixed costs on a per-stall basis include rent and property taxes. Secondly, once stall-based cash flow or charging network gross profit less sustaining G&A exceeds the total of growth and corporate G&A, which are largely fixed, all profits from the charging network fall straight to the bottom line, accelerating adjusted EBITDA growth. With approximately two-thirds of our G&A cost base largely fixed today, this represents very strong operating leverage. In fact, excluding growth G&A, EVgo is already adjusted EBITDA positive, we are choosing to incur growth expenses given the strong returns associated with deploying new stalls.

Approximately 28% of our cost of sales is fixed on a personal basis. So as throughput per store grows, so does the charging Network gross margin? These fixed costs on a personal basis include rent and property taxes.

Secondly, once store-based cash flow or charging Network, gross profit less sustaining GNA.

Feeds the total of growth and corporate GNA, which are largely fixed. All profits, from the charging Network, for straight to the bottom line, accelerating adjusted evict, Doug group.

Badar Khan: Making this even more attractive for investors is that we have the financing in place through 2029 to deploy all these new stalls without the need for any additional equity capital. The expected result is a very attractive business by 2029, with half a billion in adjusted EBITDA at mid-30s adjusted EBITDA margins. For almost 2 years, EVgo has been delivering one of the highest levels of network usage across the industry. Again, this is driven by both market and company-specific factors. Average daily throughput per stall is an important KPI to view network performance, and it is growing, driven by both time-based utilization as well as charge rates, both of which have been growing for the past 4 years.

In fact, excluding growth GNA evgo is already adjusted, but that positive, but we are choosing to incur growth expenses. Given the strong returns associated with deploying new stalls.

Making this even more attractive for investors. Is that we have the financing in place through 2029 to deploy all these new stalls without the need for any additional Equity capital.

The expected result is a very attractive business by 2029, with half a billion in adjusted EBITDA at mid-30s adjusted deeper-to-margins.

For almost two years, Evo has been delivering some of the highest levels of network usage across the industry. Again, this is driven by both market and company-specific factors.

Badar Khan: Rising charge rates are a significant tailwind we benefit from, as higher charge rates deliver more kilowatt hours at the same utilization level and tend to result in higher levels of EV adoption, in turn, increasing demand for our fast chargers. Higher charge rates also improve returns on capital deployed because they allow us to dispense more kilowatt hours from the existing assets without the need to deploy more capital. Higher charge rates come from improved battery technology in EVs, as well as EVgo deploying more 350-kilowatt ultra-fast, high-powered infrastructure. Average daily throughput per stall has grown more than six-fold from less than 50 kilowatt hours in Q1 2022 to 295 this quarter. We conservatively assume only slightly higher utilization by 2029.

Average daily, throughput per stall is an important kpi to view Network performance and it is growing driven by both time-based utilization as well as charge rates both of which have been growing for the past 4 years.

Rising charge rates are a significant tailwind we benefit from, as higher charge rates deliver more kilowatt-hours at the same utilization level and tend to result in higher levels of EV adoption. In turn, this increases demand for our fast chargers.

Higher charge rates, also improve Returns on Capital deployed, because they allow us to dispense more kilowatt hours from the existing assets without the need to deploy more capital.

Our charge rates come from improved battery technology for TVs, as well as the ease of deploying more. The 350-kilowatt ultra-fast, high-powered infrastructure,

Badar Khan: With rising charge rates, we expect to see 450 to 500 average daily throughput by 2029. This higher throughput per stall, combined with many more stalls deployed, is what has been and will continue to drive growth in revenues. Not only have we been delivering some of the best performing usage across the industry, we're focused on ensuring our chargers perform to their maximum potential and can maintain increasing utilization rates. Today, nearly all stalls deployed are 350-kilowatt chargers, which delivered almost 60% of our throughput in the quarter. These chargers are the most representative of our expected future network since we estimate well over 90% of our throughput in 2029 will come from these chargers. Utilization on the EVgo network has surpassed others in the industry, our expectations, and the expectations of the equipment providers.

Average daily throughput. Bristol has grown more than six-fold, from less than 50 kilowatt-hours in Q1 2022 to 20,095 this quarter. We conservatively assumed only slightly higher utilization by 2029, but with rising charge rates, we expect to see 450 to 500 average daily throughput by 2029.

This higher throughput per store, combined with many more stalls deployed, is what has been and will continue to drive growth in revenues.

Not only have we been delivering some of the best performing usage across the industry. We're focused on ensuring our chargers perform to their maximum potential and can maintain increasing utilization rates.

Today nearly all stalls deployed are. 350, kilowatt Chargers, which delivered, almost 60% of our throughput in the quarter.

These Chargers are the most representative of our expected future network. Since we estimate well over 90% of our throughput in 2029, will come from these Chargers.

Badar Khan: This high usage placed stress on our Signet chargers, which were the first 350-kilowatt chargers we deployed. After performing root cause analysis in conjunction with Signet in 2024, we embarked on a number of tech enhancements. A year later, Signet chargers are performing very strongly with usage already close to our long-term target in 2029. We are now at a similar junction with our Delta chargers, which have comprised almost all new builds since 2024. EVgo is embarking on the same kind of tech enhancements we did with Signet, and we're confident we will see the same strong performance step-up as we've seen with the Signets.

Utilization on the EVO network has surpassed all those in the industry, our expectations, and the expectations of the equipment providers.

This High usage, placed stress on our signature Chargers which were the first 350, kilowatt Chargers. We deployed after performing root cause analysis in conjunction. With Signet in 2024, we embarked on a number of tech enhancements and a year later Signet Chargers are performing very strongly with usage. Already close to our long-term Target in 2029.

Badar Khan: As an industry leader, we are focused on ensuring we have the best quality hardware through ongoing maintenance, periodic enhancement of specific components, and our next generation charging stations, which we are actively developing at our innovation lab in El Segundo. Our next generation of charging architecture is being designed not only for a better experience and lower cost, but also being developed and qualified for these higher levels of utilization from the start. This project is being led by the EVgo team and features a robust design for reliability methodology, including best-in-class hardware design and software, taking into account our learnings from our 15 years of experience in EV charging and over 1.6 million customer accounts, all of which sets us apart from the rest of the industry.

We are now at a similar Junction with our Delta Chargers, which have comprised, almost all new bills. Since 2024 either go is embarking on the same, kind of Technic, we did with Signet. And we're confident, we will see the same strong performance step up. As we've seen with the signets. As an industry, leader we are focused on ensuring, we have the best quality Hardware through ongoing maintenance, periodic enhancement of specific components and our next Generation charging stations, which we are actively developing at our Innovation lab in El sugundo.

Our new generation of charging architecture is being designed, not only for a better experience and lower cost but also being developed and qualified for these higher levels of utilization from the start. This project is being led by the evgo team and features. A robust designed for reliability methodology, including best-in-class, Hardware design and software taking into account, our learnings from our 15 years of experience, in EV charging and over 1.6 million customer accounts, all of which sets us apart from the rest of the industry.

Badar Khan: The next generation charging architecture is expected to lower our gross CapEx per stall by over 25% in 2029 versus 2023, delivering even stronger returns on capital deployed. In the meantime, we've been driving down both gross and net CapEx per stall over the last three years. In 2025, vintage gross CapEx per stall is expected to be 17% lower than 2023, driven by savings from lower contractor pricing, material sourcing, and increased use of prefabricated skids. When you include capital offsets, our CapEx per stall is expected to be reduced by 40%, resulting in vintage net CapEx per stall of $75,000. As a reminder, capital offsets come from three sources: state and utility incentives, OEM infrastructure payments, and federal incentives like 30C.

The next generation of charging architecture is expected to lower aggro, capex, per store by over 25%. In 2029 versus 2023, delivering even stronger returns on capital deployed.

15% lower than 2023 driven by savings from lower contractor, pricing material sourcing and increased use of prefabricated skids.

When you include Capital offsets our capex. Crystal is expected to be reduced by 40%. Resulting in vintage. Net capex for stall of 75,000.

Badar Khan: Our forecasted performance this year is a reminder that despite the fact that federal incentives for EV charging will sunset in the summer of 2026, state grants and utility incentives are alive and well. As we said last quarter, in order to capture some of these state grants, a certain number of stalls that were due to be operationalized in the H2 of the year have shifted out by a few weeks, lowering the total number of stalls that we expect to deploy in calendar 2025. Our long-term expectation is to continue lowering gross CapEx per stall as a result of our next generation architecture, but we conservatively assume we do not have the same level of offsets as we've seen in the past couple of years.

As a reminder, Capital offsets come from 3 sources, State and utility incentives, OEM infrastructure payments and federal incentives like 30C.

Our forecasted performance. This year is a reminder that despite the fact that Federal incentives for EV charging will sunset in the summer of 2026 state grants, and utility incentives are alive. And well, as we said last quarter in order to capture some of these state grants, a certain number of stalls that were due to be operationalized in the second half of the year have shifted out by a few weeks, lower in the total number of stores that we expect to deploy in calendar 2025.

Our long-term expectation is to continue lowering gross, capex per store as a result of our next Generation architecture, but we conservatively assumed. We do not have the same level of offsets as we've seen in the past couple of years.

Badar Khan: Let's now briefly turn to progress on our 4 key priorities: delivering a best-in-class customer experience, operating in CapEx efficiencies, capturing and retaining high-value customers, and securing additional complementary non-dilutive financing to accelerate growth. As we discussed earlier, our next generation charging architecture will take our customer experience to the next level. We've completed the enhancement of a number of components in our Signet 350 kW chargers and are now embarking on a similar campaign for our Delta 350 kW chargers. In terms of efficiencies, while the next generation charging architecture is expected to deliver CapEx efficiencies by 2027, we're making great progress in the near term too, lowering 2025 vintage net CapEx by 27% versus our plan for the year, and we continue to see a reduction in G&A as a percent of revenue for 2025 versus prior years.

Let's now briefly turn to progress on our 4 key priorities, delivering a best-in-class. Customer experience operating in capex. Efficiencies capturing and retaining high-value customers and securing additional complimentary non-diluted financing to accelerate growth.

As we discussed earlier, our next Generation, charging architecture will take our customer experience to the next level. We've completed the enhancement of a number of components. In our Signet. 350, kilowatt Chargers and are now embarking on a similar campaign. For our Delta 350 kilowatt Chargers.

In terms of efficiencies, while the Next Generation charging architecture is expected to deliver capex, efficiencies by 2027. We're making great progress in the near-term, too. Lowering 2025 vintage. Net capex by 27% versus our plan for the year.

Badar Khan: The EVgo app has now reached an overall rating of 4.5 on the Apple App Store, which is a key threshold above which we would expect to see accelerated organic customer acquisition. We're thrilled with reaching this milestone. Our next pilot has continued to expand from 2 sites last quarter to almost 100 stalls as of the end of October. In this pilot, we continue to test our ability to attract native NACS vehicles to our network. We remain encouraged by the higher number of Tesla drivers at these stalls than they had prior to installing the NACS cables. This is a key part of our iterative learning process before a much wider scale rollout plan for 2026. On financing, we've made excellent progress this year.

And we continue to see a reduction in GNA as a percent of revenue for 2025 versus the prior year.

The evgo app has now reached an overall rating of 4.5 on the Apple App Store which is a key threshold about which we would expect to see, accelerated organic customer acquisition and we're thrilled with reaching this milestone.

Our next pilot has continued to expand from 2 sites. Last quarter to almost 100 stalls as of the end of October. In this pilot, we continue to test our ability to attract native Max vehicles to our Network.

And we remain encouraged by the higher. Number of Tesla drivers at these stalls than they had. Prior to installing the next tables. This is a key part of our iterative learning process before a much wider scale, roll out plan for 20206.

Badar Khan: Between continued advances under the DOE loan, closing the sale of our 2024 vintage 30C portfolio, and of course, the transformational first of its kind commercial financing facility. As we noted earlier, we expect 40% capital offsets for the 2025 vintage CapEx. We have the financing in place to increase our annual stall build to up to 5,000 stalls a year by 2029 without the need for any new equity capital. Now, Paul will share more detail on our Q3 results.

And on financing we've made excellent progress. This year between continued advances, under the doe loan, closing the sale of our 2024 vintage 30C portfolio and of course the transformational first of its kind commercial financing facility.

As we noted earlier, we expect 40% capital offsets for the 2025 vintage capex.

We have the financing in place to increase our annual store build to up to 5,000 stalls. A year by 2029 without the need for any new Equity capital.

Now Paul will share more detail on our third quarter results.

Paul Dobson: Thank you, Badar. Operational stall growth is one of the key components of growing EVgo's revenue. We ended Q3 with 4,590 stalls in operation, a 2.7 times increase compared to the end of 2021. Our customer base has grown almost 5-fold over that same period, which contributes to the network effect driving increased usage on our network. We've grown the total energy dispensed on EVgo's network to 350 GWh over the trailing 12 months, a 13-fold increase over that same period. Revenues of $333 million over the last 12 months have increased over 15 times since 2021. Charging network gross margin has grown from the mid-teens to the mid-to-high thirties, reflecting the leverage of fixed cost of sales on a per-stall basis as throughput per stall rises.

Thank you batter.

Operationally, stall growth is one of the key components of growing EVgo's revenue.

We ended Q3 with 4,590 stalls and operation at 2.7 times increase compared to the end of 2021.

Our customer base has grown almost 5 whole over that same period which contributed to the network effect driving increased usage on our Network.

We've grown the total energy dispensed on EOS Network to 350 gigawatt hours over the trailing, 12 months of 13 fold increase over that same period.

Revenues of $333 million over the last 12 months have increased over 15 times since 2021.

Paul Dobson: Importantly, we continue to deliver improving profitability and adjusted EBITDA margin has made significant improvements driven by increasing revenues, leverage of fixed costs, and disciplined cost management. Total throughput on the public network during Q3 was 95 GWh, a 25% increase compared to last year. Revenue for Q3 was $92 million, which represents a 37% year-over-year increase with growth in all three revenue categories. Total charging network revenues were $56 million, exhibiting a 33% increase. eXtend revenues were $32 million, delivering growth of 46%. Ancillary revenues of roughly $5 million were up 27%. Charging network gross margin in Q3 was 35%, up 1 percentage point. Q3 adjusted gross profit of $27 million was up 48% versus the prior year. Adjusted gross margin was 29% in Q3, an increase of 230 basis points.

Charging Network. Gross margin has grown from the mid teams to the mid to high 30s, reflecting The Leverage of fixed cost of sales on a personal basis as throughput per stall Rises.

And importantly, we continue to deliver improving profitability, and adjusted EV/EBITDA margin has made significant improvements, driven by increasing revenue, leverage of fixed costs, and disciplined cost management.

5 KW hours, the 25% increase compared to last year.

Revenue per Q3 was 92 million which represents a 37% year-over-year increase with growth in all 3 Revenue categories.

Total charging Network revenues were 56 million. Exhibiting, a 33% increase extend revenues were 32 million delivery growth of 46%.

In salary, revenue was roughly $5 million, which was up 27%.

Charging Network gross margin in the third quarter was 35%.

Upper percentage point.

Third quarter adjusted gross profit of $27 million was up 48% versus the prior year.

Paul Dobson: Adjusted G&A as a percentage of revenue also improved from 40% in Q3 2024 to 34% in Q3 2025, demonstrating the operating leverage effect. Adjusted EBITDA was -$5 million in Q3 2025, a $4 million improvement versus Q3 2024. Now turning to our 2025 guidance. We anticipate some of the public and dedicated stalls we forecasted to be operationalized in December 2025 will now be open in January 2026. As such, our EVgo public and dedicated stall expectation for the year is 700 to 750. The shift in deployments to January 2026 will be reflected in our 2026 guidance, which we expect to issue with our Q4 results in early 2026.

Adjusted gross margin was 29% in Q3 and increase of 230 basis points.

Adjusted GNA as a percentage of revenue improved from 40% in the third quarter of 2024 to 34% in Q3 of this year, demonstrating the operating leverage effect.

Adjusted EBITDA was -$5 million in the third quarter of 2025.

$4 million improvement versus the third quarter of 2024.

Now, turning to our 2025 guidance.

We anticipate some of the public in dedicated stalls. We forecasted to be operationalized in December. Will now be open in January 2026.

As such, our EVgo public and dedicated stall expectation for the year is 700 to 750.

Paul Dobson: We are increasing our expectation of the number of extend stalls operationalized this year to 550 to 575 due to the great progress we've been seeing all year with our partner Pilot Flying J. As a result, Q4 is expected to represent a very big quarter for newly operationalized stalls. Overall, we will deploy slightly fewer total stalls in 2025 compared to our guidance in Q2. The mix has changed, with fewer public and dedicated stalls and more extend stalls. We have not only been focused on capital efficiency, but also reducing the length of time it takes for us to develop and build stalls. As a result, we now expect fiscal net CapEx for 2025 in the range of $100 to 110 million, driven primarily by less spend this year on 2026 extend stalls.

this shift in Employments to January will be reflected in our 2026 guidance, which we expect to issue with our Q4 results in early 2026.

However, we are increasing our expectation of the number of extend stalls. Operationalized this year to 550 to 575 due to the great progress. We've been seeing all year with our partner Pilot Flying J.

As a result Q4 is expected to represent a very big quarter for newly operationalized stalls.

Overall, we will deploy slightly fewer total stalls in 2025 compared to our guidance in Q2. However, the mix has changed, with fewer public and dedicated stalls and more extended stalls.

We have not only been focused on capital efficiency, but also on reducing the length of time it takes for us to develop and build stalls.

Paul Dobson: We are now forecasting a wide range of outcomes for the Q4 and full year than we normally would, substantially due to a potential contract closeout payment to EVgo in relation to dedicated stalls we were building for one of our autonomous vehicle partners that has decided to exit the robotaxi business. There is currently uncertainty on both the quantum and timing of these payments. Because this amount could be very significant, we are issuing a baseline guidance that does not include this item and an upside guidance that includes it. Our prior revenue and adjusted EBITDA guidance did assume a smaller range from this matter in 2025. As the matter has progressed, we now believe the range of outcomes could be much wider. In addition, the matter may not be concluded this year and may slip into the new year.

As a result. We now expect fiscal net, capex for 2025. In the range of 100 to 110 million driven, primarily by less than this year, on 2026 inch installs.

We are now forecasting a wide range of outcomes for the fourth quarter and full year, then we normally would, substantially due to a potential contract closeout payment to EVgo in relation to dedicated stalls. We were building for one of our autonomous vehicle partners that decided to exit the robo-taxi business.

There is currently uncertainty on both the quantum and timing of these payments and because the cmode could be very significant, we are issuing a baseline guidance. That does not include this item and an upside guidance, that includes it.

Our prior revenue and adjusted Eva guidance did assume a smaller range from this matter in 2025.

As the matter is progressed, we now believe the range of outcomes could be much wider.

In addition, the matter may not be concluded this year and may slip into the new year.

Paul Dobson: For the full year 2025, we expect total baseline revenues will be in the $350 to $365 million range, with baseline adjusted EBITDA in the -$15 million to -$8 million range. Our baseline revenue and adjusted EBITDA guidance are relatively in line with our prior view, excluding our prior estimate for the ancillary upside. Including the ancillary revenue upside of up to $40 million, 2025 revenues are expected in the range of $350 to $405 million, with adjusted EBITDA in the -$15 million to +$23 million range. There are a few moving parts for the applied Q4, so let's unpack those a bit.

For the full year 2025, we expect total baseline revenues to be in the $350 million to $365 million range, with baseline adjusted EBITDA in the negative $15 million to negative $8 million range.

Our baseline revenue and adjusted EBITDA guidance are relatively in line with our prior view, excluding our prior estimate for the ancillary upside.

Including the auxiliary Revenue upside of up to 40 million.

2025 revenues are expected to be in the range of $350 million to $405 million, with adjusted EBITDA in the negative range of -$5 million to a positive $23 million.

Paul Dobson: Charging network revenues are estimated to be near 60% of total revenues for the full year, in line with prior guidance. We're anticipating continued sequential improvement in Q4. We expect the 2025 charging network margin profile to be consistent with 2024. Q4 charging network margin should improve compared to Q3 2025. Our EVgo eXtend business with the Pilot Company continues to perform better than expectations. Full year EVgo eXtend revenues are anticipated to be approximately 30% higher than prior year EVgo eXtend revenues, slightly higher than prior guidance. We'll be more than halfway through the build program with Pilot by the end of this year and thus expect 2026 EVgo eXtend revenues to be similar to 2025. Ancillary revenues are expected to grow significantly in 2025, driven by our dedicated hubs business serving other autonomous vehicle partners.

There are a few moving parts for the applied Q4, so let's unpack those a bit.

Charging network revenues are estimated to be near 60% of total revenues for the full year, in line with prior guidance.

We're anticipating continued sequential Improvement in the fourth quarter.

We expect the 2025 charging Network margin profile to be consistent of 2024.

Improved compared to Q3 25.

Our extended business, with a pilot company, continues to perform better than expectations.

For Q3 2025, revenues are anticipated to be approximately 30% higher than the prior year. Extend revenues slightly higher than prior guidance.

We'll be more than halfway through the build program with pilot by the end of this year. And thus, expect 2026 extend revenues to be similar to 2025

Paul Dobson: Baseline ancillary revenues are expected to show at least 50% growth before any potential upside. Adjusted G&A for 2025 is expected to be approximately $125 to 127 million for the full year. In 2026, we're continuing to invest in growth, therefore anticipate G&A increasing by approximately 20%. We expect to achieve adjusted EBITDA breakeven in Q4 at the midpoint of our baseline guidance. This is a significant milestone for the company. Operator, we can now open the call for Q&A.

Ciliary revenue is expected to grow significantly in 2025, driven by our dedicated hubs business serving other autonomous vehicle partners. Baseline ancillary revenues are expected to show at least 50% growth before any potential upside.

Adjusted GNA for 2025 is expected to be approximately $125 million to $127 million for the full year.

In 2026, we're continuing to invest in growth. Therefore, anticipate GNA increasing by approximately 20%.

We expect to achieve adjusted evida break, even in the fourth quarter. At the midpoint of our Baseline guidance. This is a significant milestone for the company.

Operator, we can now open the call for Q&A.

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. Your first question comes from the line of Chris Dendrinos with RBC Capital Markets. Please go ahead.

And your first question comes from the line of Chris Dendrinos with RBC Capital Markets. Please go ahead.

Chris Dendrinos: Yeah, good morning.

Badar Khan: Hi, Chris.

Badar Khan: Thanks for taking the questions. Morning.

Badar Khan: Morning.

Chris Dendrinos: I guess maybe just start out here and, you know, you mentioned some commentary around, you know, the EV demand outlook, and I know you wouldn't comment on it, but maybe could you kind of walk through how you're thinking about EV demand in relation to your longer-term outlook, and what are the puts and takes that would maybe make you know, slow development down or speed development up? Thanks.

Yeah, good morning. Thanks for taking the questions morning. Um, I guess maybe just start out here and, and, you know, you mentioned some, some commentary around, you know, the EV, uh, demand Outlook and and you wouldn't comment on it, but maybe could you kind of walk through how you're thinking about EV demand in relation to your longer term, Outlook, and what are the puts and takes that would maybe make you, you know, slow slow development down or or speed development up? Thanks.

Badar Khan: Hey, Chris. I think EVs, the number of EVs on the road have grown, as you can see, three to four-fold in the past 4 years. Today there's around 100 battery electric vehicle models available, and that's, you know, it was probably about 34 years ago. We see these cars are increasingly affordable and just great cars to drive. You know, I think in some ways, EV sales forecasts sometimes, to me anyway, feel like a pendulum swinging back and forth. They were probably too high a few years ago, maybe the pendulum swung back, maybe it's too low today, driven by a view of these incentives that have just expired. I actually think that we'll see higher sales than what the current forecasts show because the cars they're just great to drive.

Yeah. Hey Chris.

Look, I think EVS uh the number of EVS in the road have grown. As you can see, 3 to 4 fold in the past 4 years. Um today there's around 100 electric battery, electric vehicle models available. And that's you know, was probably about 30 4 years ago. We see these cars, there was increasingly affordable and just just great cars to drive.

um,

You know, I I think in some ways EV sales forecasts, sometimes to me anyway feel like a pendulum swinging back and forth. They were probably too high a few years ago and maybe the pendulum swung back. And maybe it's too low today driven by a view of these incentives that have just expired.

Paul Dobson: They're, in many cases, they're getting better, and I think it's just a matter of time before they're cheaper. As it relates to our business, the way we think about our charging stalls is, of course, whether we're able to generate the kind of strong returns on capital we're generating today. You can see, or most people can see that we're at 2 to 3-year payback here. As we look at the market, we think about the ratio of cars per fast charger nationwide. Over the last several years, that ratio has been growing, meaning there is more upside on usage per stall. That's in fact what we've seen. We've seen our usage per stall go up 6-fold.

I actually think that we'll see higher sales than what the current forecasts show because the cars are just great to drive. In many cases, they're getting better, and I think it's just a matter of time before they're cheaper.

Um,

As it relates to our business. The way we think about our uh charging stalls is of course whether we're able to generate the kind of strong Returns on Capital, we're generating today and you can see where most people can see that we're we're at 2 to 2 to 3 year payback here.

Paul Dobson: We don't see that picture getting any worse than today. Therefore, you know, if it gets better today, then that's, you know, even better for us. If it's no worse than today, we will expect to be deploying charging stalls that are generating the kind of returns that we are today. That's how we think about the capital deployment in the business.

As we look at the market, we think about the ratio of cars to fast chargers nationwide, and over the last several years, that ratio has been growing. This means there is more upside on usage or stalls, and that's in fact what we've seen. We've seen our usage pistol go up sixfold. We don't see that.

Picture getting any worse than today and therefore we, you know, if it gets better to the day then that's, you know, even better for us. If it's no worse than today, we will expect it to be deploying charging stalls that are generating the kind of returns that we are today. And that's how we think about the capital deployment in the business.

Chris Dendrinos: Got it. Thank you. Then as a follow-up, you know, you mentioned, you're seeing an uptick in Teslas charging on your network with the rollout of that next cable. Can you maybe kind of?

Badar Khan: Yeah

Chris Dendrinos: quantify here what you're seeing early days? Thanks.

Got it. Thank you. And then, as a follow-up, you mentioned, um, you're seeing an uptick in Tesla's charging on your network with the rollout of that next cable. Can you kind of quantify here what you're seeing in the early days? Thanks.

Badar Khan: Yeah, it's still a little too early to quantify or to give you a real quantification. We've gone from a couple of sites that we talked about last quarter to almost 100 cables as of the end of October. The team here and myself are pretty excited about what we're seeing. Tesla driver usage is higher at these sites than they were pre-installation. These are all retrofit. I expect that we will do what we've done, you know, in everything else in the business, which is, you know, sort of very data-based analysis of the situation.

Yeah, I would say it's still a little too early to quantify or to give you a real quantification. We've gone from a couple of sites that we've talked about last quarter to almost a hundred cables as of the end of October.

Our team here and myself are pretty excited about what we're seeing, uh, test the driver usage is higher, uh, at these sites, um, uh, than they were pre-installed. These are all retrofit

I expect that.

They will do what we've done.

You know, sort of a very database.

Badar Khan: If we are, you know, continue to have the kind of confidence we have today that we're able to put these retrofit cables at sites that are targeted sites close to where we believe Tesla drivers live and work and run errands, and we continue to see that sort of Tesla usage rise, we'll look to scale rollout in 2026. I think we'll keep it at this sort of 100 level for another quarter or so, make sure that we remain confident in the results and then really scaling it out next year.

We are, you know, Jenner, continue to have the kind of confidence we have today that we're able to put these retrofit cables at sites that are targeted sites, close to where we believe Tesla drivers live and work in one area.

And we continue to see that uh that sort of um Tesla usage rise. Will look to scale roll out in 2026. I think we'll keep it, keep it at this at 100 level for other quarter or so, uh, make sure that we remain confident in the results and then really, scaling it out next year.

Chris Dendrinos: Got it. Thank you.

Badar Khan: Yeah.

Got it. Thank you.

Operator: Your next question comes from the line of Bill Peterson with JPMorgan. Please go ahead.

Your next question comes from the line of Bill Peterson with J.P. Morgan. Please go ahead.

Badar Khan: Yeah. Hi.

Badar Khan: Hi, Bill.

Badar Khan: Good morning, thanks for taking the questions.

Badar Khan: Yeah

Badar Khan: I realize you're gonna provide more granularity on stall guidance for next year. You gave some framework for eXtend. If you look at the guidance, assuming some of the pushouts in the next year, your prior guidance from the middle of the year was around, I don't know, 1,400 or so, 1,350 to 1,500 at the midpoint. I guess, conceptually, should we think of that coming in lower maybe perhaps towards where you had provided guidance at the start of 2025, which was more in the 1,000 to 1,200 range? I was just trying to get a sense of how we should think about that, as well as really the build plan over the next 5 years. Should that be tracking more like what we saw at the start of the year?

Yeah. Hi. Good morning. Uh, and thanks for taking the questions. Um yeah. I realize you're going to provide more granularity on on stall guidance for next year you give you give some framework for extend but

If you look at the guys, assuming some of the push-outs in the next year.

Your prior guidance from the middle of the year was around. I don't know. 1400 or so. 1350 to 1500 at the midpoint

Bill Peterson: Just trying to get a sense given the realities that we may be probably seeing negative year-on-year growth for EV, you know, each EV demand maybe for the next several quarters.

I guess it conceptually should we think of that coming in lower, maybe perhaps towards where you had provided guidance at the start of 2025, which was more in the thousands and $1,200 range. I was just trying to get a sense of how we should think about that, as well as is really the bill plan over the next 5 years. Should that be tracking more like what we saw at the start of the year? Just trying to get a sense given the realities that we may be facing.

Obviously in negative year on year growth for Ev, you know, EV demand early for the, for the next several quarters.

Badar Khan: Yeah. Hey, Bill, we haven't yet provided guidance for 2026, as you said. I think looking back to what we said last quarter is actually a useful starting point. On our call last quarter, you're exactly right, we said that we would expect to see 1,350 to 1,500 stalls for 2026. To be clear, that was our owned and operated stalls. That 1,350 to 1,500, that's our public network and our dedicated stalls. That's about double the rate of growth that we're at today. This year in 2025, the larger number that you mentioned, includes our EVgo eXtend stalls. We were at the sort of 800-ish public and dedicated plus EVgo eXtend for 2025.

Yeah, we haven't yet provided guidance for 2026 as, as you said, uh, but I think looking back to what we said last quarter is actually a useful starting point. Um, and on our coal last quarter, we, you're exactly right. We said that we would expect to see, 1350 to 1500 stalls, uh, for 2026. And, and to be clear, that was our owned and operated stalls at 1350 to 1500. That's our public network and our dedicated schools. So that's that's about double the rate of growth that we're at today. Uh, this year in 2025,

The larger number that you mentioned. Uh, was includes our extend stalls.

Badar Khan: We now see 2025, you know, a little bit lower, more EVgo eXtend, a little less public and dedicated. On the public and dedicated side, it's, you know, we would be looking at about a doubling of where we're at this year for 2026. We're pretty excited by it. We're generating the kind of returns that we'd expect that we've been, you know, talking about for the last couple of years or the last several months or the last several quarters. As long as we are generating those kind of returns, then we expect our shareholders would want us to deploy that capital.

Uh, so we were at the sort of 800, uh, public and and dedicated plus extend, uh, for 2020, uh 5, uh we we now see 2025, you know, a little bit lower more extend, a little less public and dedicated. But on the the public and dedicated side, it's it's uh, you know, we would be looking at, uh, about a double in what we're at this year for 2026. So we're we're pretty excited by it. We're generating the kind of returns that we'd expect that we didn't, you know, we're talking about for the last couple of years or the last several months or last several quarters. And as long as we are generating, those kind of returns, then we expect our shareholders who want us to to deploy that capital.

Bill Peterson: Thanks. Thanks, Badar Khan. I'd like to try to understand this ancillary upside a bit more. Just to be clear, this was not contemplated in your prior guidance, right? If that's the case, trying to get a sense of what this closeout could mean for future revenue impact. In other words, was there some sort of expectation that this dedicated fleet customer would have been continuing beyond 2025? Any additional color would be helpful here.

Thanks, thanks Banner. Um, I'd like to try to understand this this ancillary upside a bit more and just to be clear, this is not contemplated in your in your prior guidance, right? So and then if that's the case, trying to get a sense of what this closeout could mean for future Revenue impact. In other words, was there some sort of expectation that this dedicated Fleet customer would have been continuing Beyond 2025 any additional color would be helpful here.

Badar Khan: Yeah. We had assumed a smaller range, you know, from this sort of contract closeout in 2025 in our prior guidance. It was in the $10 to 15 million range. If you look at our guidance today, we're pretty much at the same place as we were last quarter. If you just take today's baseline guidance, excluding our updated view, add on the $10 to 15 million that we assumed in our prior guidance, and you're at pretty much the same place. In terms of the update, you know, it's a larger range, so the upside is quite a bit higher than we had thought earlier in this year. Also there could be a timing issue where it occurs, it slips into next year.

Yeah, so we we had assumed a smaller range. Um,

you know from this uh, contract blows out in 2025 in our product guidance, it was in the 1015 million dollar range and so if you look at our guidance today,

We're pretty much at the same place as we were last quarter. So if you just take today's baseline guidance, excluding our updated view, and add on the $10 to $15 million that we assumed in our prior guidance, you’re pretty much in the same place.

Badar Khan: We don't assume that this is a recurring thing, Bill. You know, we consider this a one-off, and that's why we're separating it out, so you can see the very strong trajectory of the underlying baseline business.

In terms of the the update um, you know, it is a, it's a, it's a, a larger range. So the upside is quite a bit higher than we had thought earlier in this year but also there could be a timing issue where it occurs it slips into into next year. We don't assume that this is a recurring thing bill. So this is you know we consider this a a 1-off

And that's why we're separating it out. So you can see the trajectory very strong trajectory of the underlying Baseline business.

Bill Peterson: Okay. Yeah, thanks for the update and color.

Badar Khan: Yeah. Absolutely.

Yeah. Thanks for the update and tell her. Yeah.

Operator: Your next question comes from the line of Stephen Gengaro with Stifel. Please go ahead.

From the line of Steven, Jenaro with stipho. Please go ahead.

Stephen Gengaro: Thank you. Good morning, everybody. Two things from me. I guess the first is, you talk about Q4 and maybe getting to EBITDA breakeven at the midpoint of your guidance. Can you just remind us as we sort of think about seasonal patterns, as you get into 2026 without specific numbers, should we be thinking about this as when you get there, you should stay there, and then progress from there? Or are there some seasonal noise we should be contemplating in our models just to make sure we're in line with how you're thinking about things?

Uh, thank you. Good morning everybody.

Uh, 2 things from me. I guess the F, the first is you talk about fourth quarter and and maybe getting to IAA break even at the midpoint of your guidance.

Can you just remind us as we sort of think about seasonal patterns?

Uh as you get into 26 without specific numbers, should we be thinking about this as when you get there you should stay there uh and then progress from there or there's some seasonal noise. We should be contemplating in our models just to make sure we're in line with how you're thinking about things.

Badar Khan: Yeah. Let me talk about the seasonality point in just one second, Stephen. But you're right. The company has, at maybe at a macro level, very strong operating leverage, where around two-thirds of our G&A is, you know, kind of largely fixed. When the growing profits from the charging network exceed those costs, all that profit goes straight to the bottom line. I'm talking about charging network gross profit less sustaining G&A. That's the point where EBITDA really accelerates. Looking back, that's how we've gone from an $80 million loss to approaching breakeven. It's really how we get to half a billion in adjusted EBITDA in 4 to 5 years' time.

Badar Khan: To your question more specifically around the near term, in Q4 this, in Q3 and in Q4, this year, we still have gross profit from our non-charging businesses that are helping to cover those fixed costs. In 2026, the charging network profits, again, that's charging network gross profit less sustaining G&A, will be higher without any contribution from our non-charging business to cover those fixed costs. That's where we see things really accelerate. We think that'll be in the second half of next year. In terms of the seasonality point, we do have seasonality. We do see it in terms of the, in terms of vehicle miles traveled, so there's a little less VMT, and therefore a little less throughput per stall per day in the, in kind of Q1 in the winter than in the summer.

Yeah, let me just let me talk about the seasonality point in this in just 1 second, Stephen B. But, but, but you're right. The, the the company has at maybe at the macro level, very strong operating leverage where around 2/3 of our GNA is, you know, kind of largely fixed. And so, when the growing profits from the charging Network exceed, those costs, all that profit goes, straight to the bottom line. I'm talking about charging Network, gross profit less sustaining GNA, and that's the point where ibitta really accelerates, uh, looking back. That's how we've gone from an 80 million dollar loss to approaching Break Even. Uh, and it's really how we get to half a billion in an adjustability, but down 4 to 5 years time.

Into your question, more specifically around the near-term in Q4 this in, in Q3. And in Q4 this year, we still have gross profit from our non-charged costs.

Badar Khan: We also see seasonality in terms of charge rates. Charge rates tend to be a little lower in the winter than in the warmer summer months. We also see seasonality in terms of gross charging gross margin, where we have higher cost of sales, energy cost of sales, higher tariffs in the summer months. Those are probably the main sort of seasonality things that we see. You know, as I said, once that charging network gross profits exceed fixed costs, that's the point where you see the EBITDA growth just really accelerate. We're getting closer and closer to that point. Very excited about it.

But in 2026, the charging Network profit. So, again, that's charging Network. Close profit, less sustaining GNA will be higher without any contribution from our non-charged business to cover those fixed costs. And that's where we see things with accelerate, we think that'll be in in the second half of next year. Uh, in terms of the seasonality point, we do have seasonality. We do see it in terms of the, uh, in terms of vehicle miles travel. So there's a little less VMT, uh, and therefore a little less throughput per store per day in the in its kind of q1 in the winter than in the summer.

We also see seasonality, since seasonality, in terms of charge rates, charge rates tend to be a little lower, uh, in the winter than in the warmer summer months. And we also see seasonality in terms of gross charging gross margin where we have higher cost of sales energy cost of sales, higher tariffs in the summer months. Those are probably the main sort of seasonality things that we see in.

Stephen Gengaro: Great. Thank you. Then my other question was just around industry dynamics. How do you think about, I mean, you've laid things out very well as far as your plans through 2029. How do you think about just the number of players in the industry consolidation in the US market, and how do you think that plays out over the next couple of years?

You know, as I said once, once that charging Network gross, uh, profits exceed fixed costs, that's the point where you see the the iBot growth just really accelerate. And we're, we're getting closer and closer to that point. Pretty excited by it.

Great, thank you. And then my other question was just around industry dynamics and how you think about it. I mean, you've laid things out very well as far as your plans through 2029. How do you think about just the number of players in the industry? Industry consolidation in the U.S. market? And how do you think that plays out over the next couple of years?

Badar Khan: Yeah. I mean, look, we think that we've got a number of sources of competitive advantage where, you know, specifically we focus very much on site selection, so building sites where drivers are. As a result, generating the kind of returns that we're generating today. We do not see that across the rest of the industry. Either people are focused on chasing, you know, federal grants that may not necessarily be the most productive sites, or their goal isn't necessarily to maximize returns in charging but, you know, but in terms of encouraging people to buy electric vehicles. We know that charging or range anxiety is alongside the upfront price, one of the two biggest reasons for, you know, for even faster adoption of electric vehicles.

Yeah. I mean look we we are um, we're we're we think that we've got a number of sources of competitive Advantage where, you know, specifically, we we focus very much on site selection. So building sites where drivers are and and as a result generally, the kind of returns that we're generating today. We don't, we do not see that across the rest of the industry, either. They're people are focused on chasing, you know, uh, you know, federal grants, uh, that may not necessarily be the most productive sites or their goal isn't necessarily to to maximize returns and charging. But uh, you know on, but in terms of encouraging people to buy electric vehicles, we know that charging, uh, cha charges

Badar Khan: Some companies are focusing on building charging stations to sell cars. When we think about, you know, we've got scale, that translates to advantages in customer experience, the remote monitoring and diagnostics, the kind of marketing dynamic pricing I talk about every quarter. The supply chain relationships, we talked about those relationships on the call today. You know, these are not things that we see with the rest, many others in the space. The average number of charging stations across this industry amongst our competitors are significantly smaller than us. You know, when I think about these advantages, next generation architecture, our balance sheet, it seems to me that we'd expect to see a smaller number of other peers in the network in the industry.

Range anxiety is alongside the upfront, price, 1 of the 2, biggest reasons for, uh, for, you know, for even faster, adoption of electric vehicles. And so some companies are uh, focusing on building charging stations to sell cars.

Uh, when we think about, you know, we've got the scale.

Things that we see with the rest. Many others in the space, the average number of charging stations across this industry, amongst our competitors significantly smaller than us,

Badar Khan: I'm thrilled when we see our peers building charging stations because that will ultimately encourage EV adoption. As I said before, I expect that'll result in more throughput per stall for our network because we've got faster charging stations and better located sites. To me, that's maybe one way of thinking about this landscape.

And so you know, when I think about these advantages Next Generation architecture our balance sheet, it it seems to me that uh we'd expect to see a a smaller number of compet of other peers in the network uh in the industry.

Um, I I am

Stephen Gengaro: Perfect. Yeah, thank you for the details.

thrilled when we see our peers building charging stations because that will ultimately encourage EV adoption. And as I said before, I expect that a result in more throughput pistols for our our Network because we've got faster charging, uh, stations and and better located sites. So I mean that's maybe, uh, 1 way of thinking about this landscape.

Badar Khan: Yeah.

Perfect. Yeah, thank you for the details.

Yeah.

Operator: Your next question comes from the line of Craig Irwin with Roth Capital Partners. Please go ahead.

Craig Irwin: Good morning, and thanks for taking my questions. Badar, I was hoping we could dig in a little bit more on the experience you're seeing out there with the new NACS connectors, right? You know, this is an exciting opportunity for you given the size of the Tesla fleet, and that, you know, it's early days for the OEMs to cut over to the NACS connector where they're heading longer term. Can you maybe unpack for us what the actual utilizations are or early experiences on utilization around NACS? I mean, are you seeing the Tesla drivers come back repetitively to the same locations, use multiple locations?

Your next question comes from the line of Craig Irwin with Roth Capital, my partners, please go ahead.

Uh, good morning and thanks for taking my questions.

So Bonner, I I was hoping we could dig in a little bit more on the the experience you're seeing out there with the uh, the new knacks connectors, right. Um, you know, this is an exciting opportunity for you given the size of the uh, the Tesla Fleet. Um and that, you know, it's early days for the oems to cut over to the next connector where where they're heading longer term.

Craig Irwin: You know, how should we think about the build here and the tempo, and what would you use to guide your change-out of additional locations in the future? You know, are there specific data points or other metrics you would use to, you know, to guide the adoption of these cables?

Um, can you maybe, um, unpack for us what they actually utilizations are or early experiences on utilization, around, um, around Max. I mean, are you seeing the tester drivers? Come back repetitively to the same locations. Use multiple locations. Um, and, you know, how should we think about the, um, the build here and the tempo and and what would you use to, to, to guide your, um, your change out of additional locations in the future? You know, Are there specific uh data points or or um, other metrics you would use to uh, you know, to guide the uh the the adoption of these cables.

Badar Khan: Yeah. Morning, Craig Irwin. We completely agree with you that the upside here is quite significant. As you said, and we've talked about on prior calls, there's a significant amount of the vehicle fleet that are Tesla vehicles that are generally not charging on our charging stations. Being able to access, you know, roughly half of all the VIO, it was just a giant step up for us. We're pretty excited by it. We also know that switching out a CCS cable that is very productive, I mean, we can see we're at an average of almost 300 kWh per stall per day across the network, is not something that we want to take for granted.

Yeah, morning Craig, we, you know, we are completely agree with you. That the upside here is quite significant

As you said, and we've talked about on the prior calls. There are, uh, there's a significant amount of the vehicle Fleet, uh, that our Tesla vehicles that are generally not charging on our charging stations and so being able to access, you know, roughly half of all the io.

It was just a giant step up for us, and so we're pretty excited by it. Um, we also know that switching out a CCS cable that is very productive. I mean, we can see, we're at an average of almost 300 kilowatt hours per store per day across the network is not something that we want to, you know.

Badar Khan: We are being very thoughtful about switching out the CCS cables with these NACS cables. It does take us a few months to ramp up. Throughput per stall on our CCS cables with drivers that are very familiar with EVgo. We wanna make sure that we're being thoughtful about that switchover and attracting Tesla vehicles. In the early part of the year, it was all about making sure that we've got cables that can withstand the high power. These are liquid cool cables. We've got the right technology, and I think we've proven that. We've gone up to 100 cables as of the end of October, and we're gonna spend some months now making sure that we're learning everything we need to be learning in terms of all the questions that you asked.

We we saw something we wanted to take for granted and so we are being very thoughtful about switching out the CCS cables with these Max cables. It does take us.

A few months to ramp up, uh, throughput per store on our CCS cables with with drivers that are very familiar with easygo. And so we want to make sure that we're we're being thoughtful about that switch over and attracting tester vehicles. And the only part of the year was all about making sure that we got cables that can withstand the high power. So these are liquid cool cables.

And we've got the right technology and I think we've proven that.

Badar Khan: What is the behavior of Tesla drivers in terms of the charging stations, repeat, at the same location, other locations? How are they identifying EVgo stations? How can we help them to identify and locate our stations even better? We expect in 2026, when we issue our guidance, that this will be a fairly key part of our stall rollout schedule. As I said before, I expect a lot of the 2026 will be retrofit. I do expect there'll be a scale rollout of the next cables next year. Again, attracting roughly half the market that isn't really charging in our network today. That could be a big source of upside.

We've gone up to 100 cables as of the end of October and we're going to spend some months. Now, making sure that um, we're learning everything, we need to be learning in terms of all the questions that you asked.

What is the behavior of Tesla? Uh, drivers in terms of the the charging stations repeat at the same location? Other locations. How are they identifying Evo stations? How can we help them to identify and locate our stations even better?

Badar Khan: For the new stations, at some point in 2026, perhaps around the middle of the year, new charging stations from the get-go, not just retrofit, will include the next cables. You're gonna have to wait until our guidance for 2026 before we reveal that. As always, Craig Irwin, I think as you've seen, we're gonna be pretty thoughtful and pretty analytical about all this.

We expect in 2026 when we issue our guidance, that this will be a fairly uh, key part of our stool uh rollout schedule. As I said before, I expect a lot of the 2026 will be retrofit. I do expect it to be a scale, roll out of the next cables, next year. And again, attracting roughly half the market that isn't really, uh, charging in our state, in our Network today, that could be a big source of upside.

uh, and for the new stations at some point in 2026,

Perhaps around the middle of the year uh new charging stations from the get-go. Not just retrofit will include the next cables, but you're going to have to wait until uh our guidance for 2026 before we reveal that as always, Greg, I think as you've seen we're going to be pretty thoughtful and pretty and to go about all this.

Craig Irwin: Understood. That definitely makes sense. My next question is about dynamic pricing. You know, in your past couple calls, you'd shared some real points of success where that's actually driven, you know, much better utilization for the network in the overnight. Can you maybe share some more detail with us on where you stand with dynamic pricing? You know, the peak to trough variance in rates, the geographic success. You know, what should we be looking at to understand this business and what it could mean for EVgo, you know, over the next number of quarters?

so my next question um, is about Dynamic pricing, um, you know, your past couple calls uh you shared some, some some real points of success where that's actually driven, uh, you know, much better utilization for for the network and the overnight

Uh, can you maybe?

Share some more detail with us on on where you stand with Dynamic pricing, you know, the peak to trough, uh, variance in in rates. Um, the geographic, uh, success.

Um, you know what, what should we be looking at to understand this business and what it could mean, for evgo, uh, you know, over over the next number of quarters

Badar Khan: It's super exciting, Craig. We've got first, I will call it a sort of a first version or a one dot O, if you will, of dynamic pricing across our entire network. We rolled that out, I wanna say, throughout 2024. Maybe late 2024, actually, I should say. We have it across all geographies, across all charging stations. There are some limitations around the number of, you know, combinations of prices and the frequency of change, which will come through our next version, our next iteration of dynamic pricing. We were expecting that to be in Q4 of this year, Craig, but we've got such a large Q4 build-out.

It's super exciting, right? We've got done first, I will call on the sort of the first version or a 1.0 if you will of dynamic pricing cross our entire network, we roll that out. Uh I want to say throughout 2020 uh

4. Um, maybe late 2024, actually, I should say

and um, we

Badar Khan: I think as you, as you will have heard from Paul Dobson, we've got about, you know, 350 to 400 stalls that we'll be deploying. This is public, and the dedicated stalls, so the owned and operated network in Q4, and the eXtend stalls on top of that. We felt that it was more sensible not to try and take on too many things. The next iteration of our dynamic pricing will get rolled out in this, in the first, at the end of Q1 of next year. In terms of what the impact is, I mean, you can see our revenue per kWh is pretty flat. We're growing throughput per stall. Obviously very happy about that.

have it across all geographies across all charging stations, there is some limit. There are some limitations around the number of, um, you know, combinations of prices and the frequency of change uh, which will come through our next version. Our next iteration of dynamic pricing. We were expecting that to be in the fourth quarter of this year. Correct? But we've got such a large, a fourth quarter.

Quarter buildout. Uh,

I think as you as you will have heard from Paul, we've got about, you know, 350 to 400 stalls. That would be deploying. This is public.

And uh, the dedicated store, so they owned and operated Network in the fourth quarter. And, uh, so the extent stalls on top of that, we felt that it was

Badar Khan: We see double digit utilization in the overnight hours, which I think is pretty extraordinary. We're talking about 3:00 AM. A lot of that is all through dynamic pricing, and our approach to the way that we communicate with our customers. Shifting usage from peak times to off-peak or overnight hours. These are all the kind of things that we're deploying that results in growing throughput per stall, growing utilization, while minimizing, you know, wait times or queuing times, and providing opportunities for customers to charge at rates that are appropriate for them.

More more sensible to get, not not the time to take on too many things. So the next exploration of our Dynamic pricing will get rolled out in this. In the first at the end of the first quarter of next year, uh, in terms of what the impact is. I mean you can see our uh, Revenue per kilowatt hours, pretty flat with growing throughput, for all obviously, very happy about that. We see double digit utilization in the overnight hours.

Which I think is pretty extraordinary and we're talking about 3:00 in the morning. Uh, a lot of that is all through Dynamic pricing and our, and our approach to the way that we communicate with our customers. So shifting usage from peak times to off peak, or overnight hours. And these are all the kind of things that we're deploying that results in. Uh, growing throughput per store growing utilization. While minimizing, uh, you know, weight times or queuing times and providing opportunities for customers to charge at rates that are appropriate for them.

Craig Irwin: Thank you for that. If I could sneak in a third one. The autonomous vehicle fleet out there is growing, right? There's many more cities where we're seeing adoption and, you know, vehicles training. You know, new vehicles in commercial operation. But many cities training. You know, I'm gonna guess that some of these leading companies are using the EVgo network, or at least their own proprietary stations, you know, built and managed by EVgo. How does revenue recognition work for you on these things? When they're in training, are they actually, you know, generating revenue already on the EVgo network? Are they already customers, or do we see site commissioning when they go commercial?

Thank you for that. If I could sneak in a a third 1, the um autonomous vehicle Fleet out there is growing, right? There's uh many more cities where we're seeing adoption and uh, you know, Vehicles training, um you know, new vehicles in commercial operation. Um, but but many cities training um, and uh, you know, I'm going to guess that, uh, some of these leading, um, leading companies are using the, uh, the Evo, the Evo Network, um, or at least their own proprietary stations, you know, built and managed by Evo.

Craig Irwin: You know, how do we think about fleet growth correlating to, you know, demand growth for EV? Is this something that should be sort of one-to-one, or is this something that happens sort of in increments or steps? Any color there for us to understand the, you know, how these businesses are interconnected?

Um, how does revenue recognition work for you on these on these things when they're in training? Are they actually, you know, generating Revenue already on the, uh, on the EVO Network. Um, are they already customers? Or do we see site commissioning, when they go commercial? Um, and uh, you know, how how do we think about Fleet growth correlating to, you know, demand growth for Ev? Is this, is this something that should be sort of 1 to 1? Or is this something that, that happens sort of an increments or steps? Any caller there for us to understand the, uh, you know, how these these businesses are interconnected?

Badar Khan: Yeah. Look, both the NACS point and the autonomous vehicles are the, you know, two big sources of upside for the company over the coming years. We completely agree with you that we see that autonomous vehicles as a potentially very significant, very interesting source of upside. I do see the space growing, potentially very quickly. These are all electric vehicles, they'll all be needing to be charged at fast charging sites, not slow charging. Yes, we are working with all the leading players in the EV space, in the AV space, in terms of building dedicated sites for these AV partners.

Badar Khan: Today, the way that we are contracting with them, we've got effectively a monthly, you know, rent, so, you know, dollars per stall per month from when the stall is operational, whether anything is charging there or not. That's the nature of the contracts today. We're in the foothills, in fact, in my mind, in this industry. The structure of these contracts may very well evolve or very likely to evolve over the coming years. That's the way that we're contracted. In terms of revenue recognition, these are long-term contracts, there's typically a gain on sale with this long-term, you know, revenue stream that's recognized when the stall goes live or around when the stall goes live.

Yeah, look the your the both the Naps going on, the autonomous vehicles are you know too big uh uh sources of upside for the company over the coming years? Um and we completely agree with you that we see that autonomous vehicles as a potentially very significant, uh, and very interesting source of upside. I do see the space flowing uh, potentially very quickly. These are all electric vehicles and they'll all be needing to be charged at uh, fast charging sites, not slow charging. And yes, we are working with all the leading players in the EV space in in the 80s space uh in terms of building dedicated sites, for these 80 Partners today, the way that we are Contracting with them, we've got

Crystal per month from when the store is operational.

Whether anything is charging there or not. And that's the nature of the contract today. We're in the foothills and faculty in this, in my mind, in this industry. And so.

Badar Khan: Anything else, Paul, in terms of revenue recognition that is important here?

Paul Dobson: No. No, that's good, Badar. That's pretty much how it works. They are long-term contracts with basically a fixed fee, a fixed monthly fee. That's the cash flow that we receive. Because they are long-term contract, or some of them are, I shouldn't say they all are, but some of them are long-term contracts, under accounting, it's considered to be a deemed sale, a sale lease accounting. With some of them, with the longer term contracts, we do recognize a gain on sale on the construction costs. There's a markup to what we think is fair market value for this site, and then that gain is recognized when the site goes live, when the customer or the client takes over, the partner takes over the site.

The, the structure of these contracts may may very well evolved. We're very likely to evolve over the coming years, but that's the way that we're contracted in terms of Revenue recognition. It's a, it's, these are long-term contracts, and so there's typically a, uh, a gain on sale. Uh, with this long-term, uh, you know, you know, Revenue stream, that's recognized. When the store goes live or around when the store goes live, anything else, Paul in terms of Revenue recognition, that is important to, you know. No, that's that's good about it. That's, um, that's pretty much how it works. They are, they are long-term contracts with basically a fixed fee. A fixed monthly fee per have some cash flow that we receive

But because they are long-term contracts or some of them are I shouldn't say they all are but some of them are long-term contracts under accounting. It's, it's considered to be a deemed sale. So uh, say at least accounting,

So with some of them with the longer term contracts, we do recognize a gain on sale, uh, the construction costs. So there's a markup to what we think is fair market value for this site and then that gain is recognized, and the site goes live. Let me when the customer and the client takes over the department takes over the site.

Paul Dobson: After that, it is basically the operating cash flows for maintaining the site that we receive. When we have that gain on sale, we're bringing forward some of the economic value, that creates a receivable. When we receive the money in, we draw down that receivable over time, over the life of the contract. It's a bit tricky. I know we said last time we'll do a webinar or teach-in on how it all works. We'll just sort of provide, you know, annual guidance as to where we think in total the revenue is gonna come.

And then after that, it is basically the operating cash flows for maintaining the site that that we receive. And we have, we have that gain on sale. We're bringing forward some of the economic value and so that creates a receivable. So then, when we receive the money in, we draw down that receivable over time what would the life of the contract? So it's a bit tricky. I know we said last time we we'll do a webinar or teach in on how it all works. Um we'll just sort of provide you know annual guidance as to where we think in total. And so we're just going to

Craig Irwin: Excellent. Well, you've confirmed for me that it's an exciting business, and I think that's what investors really need. Congratulations.

Badar Khan: Yeah.

Craig Irwin: On the progress across the board.

Badar Khan: Thanks so much, Craig.

Excellent. Well, you've confirmed for me that it's an exciting business, and I think that's what investors really mean. So, congratulations on the progress across the board.

Thanks so much Greg.

Operator: Again, if you would like to ask a question, press star one on your telephone keypad. Your next question comes from the line of Brett Castelli with Morningstar. Please go ahead.

again, if you would like to ask a question press star 1 on your telephone keypad,

on your next question comes from the line of Brett, castelli with Morning Star, please go ahead.

Badar Khan: Morning, Brett.

Morning, Brett.

Brett Castelli: Hi. Good morning. Just sticking with autonomy, I wanted to come back to this contract closeout here that you talked about and really understand more medium to long term. Does that at all impact sort of the prior range of expectations you gave us in terms of stalls and build-out for that particular part of the network?

Hi, good morning, just sticking with autonomy. Um, I wanted to come back to this contract, closeout here, that you talked about, and really understand more medium. And long term, does that at all Impact, sort of the prior range of expectations? You gave us in terms of um stalls and build out for that particular uh, part of the network.

Badar Khan: No, it does not. The range that we provided last quarter on the last quarterly earnings call for public and dedicated build targets, you know, remain valid, remain the same as they are. As Bill asked up front, next year we were looking at 1,350 to 1,500 public and dedicated. The majority of that is public. We have not yet broken out how many are public versus dedicated. Dedicated are these stalls for autonomous vehicle partners. As Craig said, I think that remains a very exciting and very interesting source of upside. We just need to make sure that, you know, if we are doing significantly more dedicated stalls, that they are meeting our return expectations, that the economics are attractive for us.

Uh, no, it does not. So the, um, uh, the range that we provided last quarter,

On the last quarterly earnings call for public and dedicated Bill targets, you know, remain valid, remain the same as they are.

Uh, as the last upfront. Uh, next year we were looking at 1350 to 1500 public and dedicated. The majority of that is public. We have not, we have not yet broken out how many are public versus dedicated. Dedicated are these goals for autonomous vehicle Partners. As Craig said, I think that that remains a very, very exciting and very interesting source of upside, we just need to make sure that the, you know, if we are doing a significantly more dedicated stalls that they are meeting our return expectations,

Badar Khan: We can see very strong and very attractive economics for our public network. Yeah, the contract closeout, there's really one company that was gonna get in the robotaxi space in a pretty big way that's decided to exit, but there are many others that are, you know, building out these businesses, and we're working with them all.

let the economics are attractive for us. We can see very strong and very attractive economics for our public network.

And so the yeah, the contract flows out, there's really 1.

1 company that was uh going to get in the robot taxi space, in a in a pretty big way that solid to exit. But there are many others that are

That are, you know, building out these businesses and we're working with them all.

Brett Castelli: Okay. I just wanted to ask on the charging network gross margin. We've seen more muted margin expansion within that line item year-end 2025. Can you remind me sort of the drivers behind that and then how we should think about margin expansion within that line item, in 2026? Thanks.

Okay.

and then I just want to ask on the charging Network gross margin, we've seen more muted margin expansion, within that line item here in 2025

Can you remind me for the drivers behind that and then how we should think about margin expansion within that line item in 2026?

Thanks.

Badar Khan: Yeah. Maybe I'll just start and then, Paul, I can ask you just to sort of.

Paul Dobson: Yeah.

Badar Khan: -provide some of the details. I mean, we are seeing charging network gross margin expand, Brett, year over year. There is seasonality, so Q3 is seasonally the lowest margin percent typically quarter over the course of the year because we get the higher summer tires. We saw that last year. You see that this year. This year is higher than last year over year. The operating leverage, we've got two sources of operating leverage, one in the G&A, which we talked about earlier, and then operating leverage within the charging network, cost of sales, where about 30% of that is fixed. As usage per stall grows, that margin just expands. That certainly we fully expect to see continue over the next several years.

This seasonality. So Q3 is seasonally the lowest.

Margin percent typically quarter over the course of the year because we get to higher summer Tires. We saw that last year you see that this year, uh, this year is higher than last year, uh, year-over-year.

And the the operating leverage. We've got 2 sources of operating leverage 1 in the GNA, which we talked about earlier and then operating leverage within the charging Network cost of sales, where about 30% of that is fixed. And so, is usage. Bristol grows uh, that margin just expands

Badar Khan: Paul, any other color or any other detail that might be helpful in the near term?

Paul Dobson: Sure, yeah. When we look over year-over-year and say, I'll talk about Q1 2024 first. In that quarter, we did have a large amount of breakage revenue, which has got a 100% margin. That's customer credits. When they expire, we recognize that as revenue and as margin, that increased Q1 2024. If you took that out and just looked at 2024 by quarter versus 2025 by quarter, it generally shows an increase, a 2 percentage point increase quarter over quarter. If you look at, you know, where we are in Q3 2025 at 35%, which is about 1% increase over 2024. In 2024, that increase from Q3 to Q4 was a 6 percentage points, in the prior year it was about 5 percentage points.

And that so, you know, we fully expect to see continued over the next several years. But Paul, any other color, or any other detail that might be helpful in the near term. Sure. Yeah. So when when, when we look over year over year,

And say, I'll talk about q1 24 first. So in, in that quarter we did have, uh, a large amount of breakage, uh, Revenue which has got a 100% margin of. So that's, that's customer. Um, credits when they expire we we recognize that as, as revenue and as margin and that increased q1 24, if you took that out and it just looked at 24 by quarter versus, uh, 25 by quarter, it generally shows an increase, a couple percentage Point increase,

Quarter over quarter. And then if you look at, you know, where we are in Q3 25, 35% which is about 1% increase over 24.

Paul Dobson: We would expect Q4 2025 to follow a similar pattern and be, you know, 6, 7 percentage points higher than Q3 this year. We see that pattern continuing to move up steadily as we get the, you know, operating leverage, as we've shown in our unit economics as well. When you correct for a couple of those things and then look at the quarter-over-quarter and think about the seasonality, I do think you see improvement.

In 24 that increase from Q3 to Q4 was a 6 percentage points. And in the prior year was about 5 percentage points.

so, we would expect Q4 25 to follow a similar pattern in the

You know 67 percentage points higher in Q3 uh this year and we see that pattern moving continuing to move up steadily as we've shown in our as we get the you know the operating Leverage.

um,

As we've shown in our unit economics as well. So uh, when you correct for a couple of those things and then look at the quarter of the quarter and think about the seasonality, I do think you see Improvement.

Brett Castelli: That's great. Thank you. I'll leave it there.

That's great. Thank you. I'll leave it there.

Badar Khan: Thanks.

Operator: Your next question comes from the line of Chris Pierce with Needham & Company. Please go ahead.

Line of Chris Pierce with Neiman Company. Please go ahead.

Chris Pierce: Hey, good morning, everyone. Just one question for me. If I look at last quarter, if we calculate ASP per kilowatt, there was, you know, a mid-double digit increase, it's kinda a high single digit increase kind of moving down sequentially in Q3. I just wanna understand how to think about the pricing leverage you guys are pulling and have available to pull, kind of going back to Craig's question on dynamic pricing. Is it that OEM revenue sort of distorted things in Q2 and made things look a little more robust than they actually were? I just kinda wanna get a sense of pricing across the buckets there and how to think about ASP per watt.

Hey, good morning everyone. Uh, just one question for me. If I look at last quarter, if we calculate ASP per kilowatt, there was, you know, a mid double-digit increase. And then it’s kind of a high single-digit increase, kind of moving down sequentially in the third quarter. I just want to understand how I think about.

The pricing levers you guys are pulling and have available, kind of going back to price. Question on dynamic pricing, or is it that OEM revenue sort of distorted things in the second quarter and made things look a little more robust than they actually were? I just kind of want to get a sense of pricing across the buckets there and how to think about ASP for a lot.

Badar Khan: Yeah. Paul, do you wanna take that?

Paul Dobson: Sure, yeah. When I look at the pricing, the charging revenue overall, I see Q2 versus Q3 to be broadly flat. I see of course, the costs, the energy costs in particular, increasing in Q3, as you talked about, because of, you know, summer tariffs, the seasonality there. We see, you know, a bit of a squeeze in the margin in Q3 as expected. As I mentioned before, our pricing has been generally pretty steady, and our margins have been showing a general increase overall, which we expect to continue into Q4 and follow a similar pattern into 2026 as well. There is some, you know, mix effects.

Yeah, Paul. Do you want to take that? Oh yeah. So what would I look at the the pricing the charging Revenue.

Overall, I see Q2 of yours and Q3 to be broadly flat, and I see the course of costs.

The energy cost in particular increasing in Q3 to talk about because of you know, summer tariffs.

Paul Dobson: When we look at pricing, we have to think about where the volume of energy is coming from and being dispensed to. It's been broadly flat across the portfolio in the quarter.

The seasonality there. So we see um, you know, a bit of a, a bit of a squeeze um, in the margin of Q3 as as expected. But as I mentioned before, uh our pricing, our pricing has been generally pretty steady and our margins have been showing that the general increase overall, which we expect to continue to keep for and follow a similar pattern into 26, as well. There is some, you know, mixed effects. Um, when we look at pricing, we have to, we have to think about where, where the volume of energy is coming from, and being dispensed to, but it's been broadly blocked, uh, across the portfolio from the corner.

Chris Pierce: Okay, perfect. Thank you.

Okay, perfect. Thank you.

Badar Khan: Thanks, Chris.

Thanks Chris.

Operator: There are no further questions at this time. I will now turn the call back over to Badar Khan for closing remarks.

There are no further questions at this time. I will now turn the call back over to about our con for closing remarks.

Badar Khan: Great. Well, look, thank you, everybody. We had another solid quarter of great operational performance and, you know, hitting strategic milestones. We can clearly see that we're nearing the inflection to adjusted EBITDA breakeven. With the operating leverage that we have, we can see accelerated EBITDA growth coming soon. I look forward to sharing that progress with you on the next call. Thanks, everybody.

Great. Well, thank you, everybody. We had another solid quarter of great operational performance, and we are heading toward strategic milestones. We can clearly see that we're nearing the inflection to adjust the default breakeven, and with the operating leverage that we have, we can see accelerated EBITDA growth coming soon. I look forward to sharing that progress with you in the next call. Thanks, everybody.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Ladies and gentlemen, that concludes today's call, thank you all for joining. You may now disconnect