EVGO Q3 CY2025 Deep Dive: Revenue Growth Driven by Network Expansion and Operational Leverage

Electric vehicle charging company EVgo (NASDAQ:EVGO) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 36.7% year on year to $92.3 million. The company’s full-year revenue guidance of $377.5 million at the midpoint came in 2.9% above analysts’ estimates. Its non-GAAP loss of $0.02 per share was 81.7% above analysts’ consensus estimates.

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StockStory’s Take

EVgo’s third quarter results reflected strong network expansion and operational discipline, with management highlighting improved stall deployment and steady revenue growth across all business categories. CEO Badar Khan credited the company’s consistent outperformance in revenue compared to electric vehicle adoption rates to targeted site selection and higher network utilization. Khan noted, “We continue to see improvement in adjusted EBITDA and are in a very strong liquidity position.” Furthermore, enhanced network effects from a growing customer base and continued progress in cost efficiencies contributed to the quarter’s performance.

Looking ahead, management’s updated outlook is shaped by anticipated gains in operating leverage, further deployment of ultrafast charging infrastructure, and expansion of the NACS connector rollout to attract more Tesla drivers. CFO Paul Dobson emphasized, “We expect to achieve adjusted EBITDA breakeven in the fourth quarter at the midpoint of our baseline guidance.” EVgo’s strategy incorporates scaling its next-generation charging stations, capitalizing on state and utility incentives, and leveraging fixed cost structures to accelerate profitability, while remaining cautious about seasonal fluctuations and evolving industry dynamics.

Key Insights from Management’s Remarks

Management attributed the quarter’s growth to higher utilization of ultrafast chargers, improvements in customer experience, and disciplined capital deployment, while also navigating shifts in stall deployment timing.

• Network expansion continued: EVgo ended the quarter with nearly 4,600 charging stalls in operation, with a large increase in deployment expected in the fourth quarter. This scale is driving higher network utilization and reinforcing the company’s competitive positioning.
• Ultrafast charging focus: The rollout of 350-kilowatt chargers accounted for almost 60% of throughput, supported by ongoing enhancements to charger reliability and performance. Management stressed that high utilization rates on these chargers are a core driver of revenue growth and future margin improvement.
• NACS connector pilot progress: The pilot program for NACS (North American Charging Standard) connectors expanded to about 100 locations, resulting in higher Tesla driver usage. Management described this as a key step before a larger rollout in 2026 to capture a greater share of the Tesla fleet charging market.
• Capital efficiency improvements: The company achieved a 27% reduction in net capital expenditures per stall for 2025 compared to initial plans, driven by savings from lower contractor pricing, improved material sourcing, and increased use of prefabricated skids.
• Dynamic pricing and customer experience: EVgo’s rollout of its first version of dynamic pricing network-wide in late 2024 has helped shift demand to off-peak times, improving overnight utilization and supporting better returns on capital. The EVgo app’s improved ratings are expected to drive further organic customer acquisition.

Drivers of Future Performance

EVgo’s management expects future performance to be driven by operating leverage, expanded Tesla-compatible infrastructure, and strategic capital deployment, balanced by seasonal and industry-specific risks.

• NACS rollout and Tesla access: Management views the expansion of NACS connectors as critical for attracting Tesla drivers, who currently represent a large portion of U.S. EVs but have limited access to non-Tesla networks. The planned 2026 scale rollout could significantly increase utilization and revenue per site.
• Operating leverage and cost structure: With roughly two-thirds of general and administrative costs fixed, the company anticipates accelerated EBITDA growth as charging network profits surpass these costs. This structure, alongside improved capital efficiency, is expected to drive margin expansion, especially as stall throughput increases.
• Industry and seasonal headwinds: Management acknowledged the potential for slower EV adoption growth and ongoing seasonality in vehicle miles traveled and energy tariffs. These factors may affect network throughput and margins, but the company’s diversified stall mix and focus on high-return locations are expected to mitigate some volatility.

Catalysts in Upcoming Quarters

In future quarters, our team will be watching (1) the pace and impact of the broader NACS connector rollout on Tesla driver adoption rates, (2) whether operating leverage leads to sustainable positive EBITDA, and (3) the mix and timing of new stall deployments, particularly as state and utility incentives evolve. Execution on next-generation charging architecture and dynamic pricing optimization will also be key milestones.

EVgo currently trades at $3.42, in line with $3.42 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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