EVgo's Strong Q1 Performance Fuels Confidence in FY25 Outlook

EVgo Inc. (NASDAQ: EVGO) delivered a robust first-quarter 2025 performance, exceeding revenue estimates and narrowing its net loss. The company’s Q1 results, coupled with reaffirmed full-year guidance, signal progress toward its goal of achieving adjusted EBITDA breakeven by year-end. Here’s why investors should take notice.

A Strong Start to 2025

EVgo reported Q1 revenue of $75.3 million, a 36% year-over-year (YoY) increase, surpassing analyst estimates of $71.4 million. The company’s core charging network revenue rose 49% YoY to $47.1 million, driven by a 60% surge in network throughput to 83 gigawatt-hours (GWh). This metric, a key indicator of EV adoption and charging demand, has grown fivefold since 2022, underscoring the sector’s momentum.

The company also added 180 new operational stalls during the quarter, bringing its total to 4,240 stalls, with 52% now featuring ultra-fast 350-kW chargers. This expansion supports EVgo’s strategy to dominate high-demand corridors, such as the I-95 and I-5 corridors, where it plans to deploy 400 new flagship sites with GM.

Guidance Reaffirmed: Growth and Efficiency

EVgo reaffirmed its FY2025 guidance, projecting revenue of $340 million to $380 million and an adjusted EBITDA range of $(5 million to $10 million. Management emphasized its path to breakeven adjusted EBITDA by year-end, citing operational improvements and cost efficiencies.

The company’s adjusted EBITDA improved to $(5.9 million in Q1 2025, an 18% improvement over the prior-year period. This progress aligns with its focus on reducing costs, including a 37% decline in call center expenses per call YoY and a 24% drop in capital expenditures per stall compared to 2024.

Strategic Tailwinds and Mitigated Risks

EVgo’s success hinges on its owner-operator model, which allows it to control pricing, maintenance, and partnerships. The company’s $1.25 billion U.S. Department of Energy (DOE) loan guarantee, with $94 million already drawn, funds its goal to deploy 7,500 fast-charging stalls by 2030. This contrasts with competitors reliant on third-party operators, which may struggle with scalability and profitability.

While tariffs on imported chargers pose a risk, EVgo mitigates this by sourcing 75% of its CapEx domestically and negotiating supplier terms. CEO Badar Khan noted that tariffs would affect only 25% of CapEx, with $10 million in annual efficiencies offsetting potential costs.

Why Investors Should Pay Attention

EVgo’s Q1 results and reaffirmed guidance reflect its ability to execute in a competitive market. Key metrics like “one and done” charging success rates (95%) and 24% utilization rates (up from 19% in 2024) highlight strong customer satisfaction and network efficiency.

The company’s diversified revenue streams—including high-margin Xtend construction projects (up 23% YoY) and partnerships with OEMs—reduce reliance on volatile EV sales. Only 10% of 2025 revenue is tied to new EV purchases, insulating EVgo from annual sales fluctuations.

Risks and Considerations

Despite its progress, EVgo remains unprofitable on a net basis, with a Q1 loss of $(0.09) per share. The road to breakeven EBITDA requires sustained demand growth and cost discipline. Additionally, the EV charging market’s rapid expansion could intensify competition, particularly from Tesla’s Supercharger network and Walmart’s growing partnerships.

Conclusion: A Strong Bet on EV Infrastructure

EVgo’s Q1 results and reaffirmed FY2025 outlook position it as a leader in fast-charging infrastructure, capitalizing on rising EV adoption and government incentives. With a $340M–$380M revenue target and adjusted EBITDA breakeven within reach, the company is well-positioned to benefit from the $1.25 billion NEVI program and its own DOE-backed expansion.

Investors should note the stock’s valuation: EVGO trades at just 1.2x the high end of its 2025 revenue guidance, compared to peer Plug Power’s 3.5x valuation. This discount reflects EVgo’s unprofitability but also presents a potential buying opportunity as it scales toward breakeven.

While challenges like tariffs and competition remain, EVgo’s execution to date—evidenced by 13 consecutive quarters of charging revenue growth and a fivefold throughput increase since 2022—suggests the company is on the right path. For investors seeking exposure to EV infrastructure, EVGO’s strong fundamentals and strategic positioning make it a compelling play for long-term growth.