EVgo (NASDAQ:EVGO) reported higher third-quarter charging revenue and a narrower adjusted EBITDA loss, but said slower electric vehicle sales and weaker-than-expected charging activity were prompting it to slow some deployments and reduce costs.
The charging network operator also said its board had formed a special committee to evaluate an unsolicited, non-binding take-private offer from majority shareholder LS Power for the shares it does not already own. The proposal values those shares at $2 apiece.
Chief Executive Officer Badar Khan said the committee consists of independent, disinterested directors and is working with independent legal and financial advisers. “No decisions have been made,” he said, adding that the company would not comment further on the proposal during the call.
Charging Growth Offset by Other Businesses
Third-quarter revenue fell 1% to $91 million from $92 million a year earlier, as growth in EVgo’s core charging network was offset by lower revenue from its other businesses. Charging network revenue rose 29% to $72 million, driven primarily by a larger operating network.
Revenue from the company’s eXtend business fell to $16 million from $32 million because of lower construction revenue. Chief Financial Officer Keefer Lehner said eXtend revenue would generally continue to decline over the next several quarters and reach an annual level of $5 million to $10 million by 2028. Autonomous vehicle and ancillary revenue was $3 million, down from $5 million.
Charging network gross margin increased to 39%, up 380 basis points, primarily because of increased network revenue from automakers. EVgo reported a third-quarter adjusted EBITDA loss of $3.5 million, compared with a $5 million loss a year earlier.
The company ended the quarter with 5,530 operating stalls, up 20% from a year earlier. Public network throughput rose 8% to 103 gigawatt-hours, but daily throughput per stall fell 4% to 283 kilowatt-hours.
Lehner said the decline in per-stall throughput reflected, in part, the expiration of automaker charging credits. Excluding those credits, daily throughput per stall rose 7% to 270 kilowatt-hours. Khan also cited a slower ramp at sites opened late in 2025, less competitive older equipment and a weaker-than-expected summer driving season.
Spending and Deployment Plans Adjusted
EVgo expects to add 1,075 to 1,275 stalls during 2026, including 600 to 750 public and autonomous vehicle stalls and 475 to 525 eXtend stalls. Lehner said the outlook reflects some construction moving into 2027 and certain sites returning to the development pipeline.
One large, 50-stall autonomous vehicle site is targeted to open in late December, though its opening could slip into early 2027, Lehner said. The timing also affects the company’s outlook for autonomous vehicle and ancillary revenue.
EVgo forecast full-year revenue of $375 million to $400 million and an adjusted EBITDA loss of $15 million to $30 million. It expects adjusted general and administrative expenses of about $145 million, below its initial guidance of $150 million to $155 million.
Khan said the company expects to spend approximately $100 million less in gross capital expenditures in 2026 than previously targeted. Cost controls, including measures involving headcount and discretionary spending, are expected to put 2027 adjusted general and administrative expenses at least 15% below the company’s prior implied view of $173 million to $178 million.
EVgo had approximately $787 million in available liquidity as of September 30, including cash, restricted cash and about $620 million in available capacity across its two debt facilities, Lehner said.
NACS Rollout and New Partnerships
EVgo is expanding access for vehicles using the North American Charging Standard, or NACS, including Tesla vehicles. Khan said the company had more than 290 operational NACS stalls, up from 100 at the end of last year, and expects approximately 400 by the end of 2026.
NACS vehicles accounted for approximately 9% of public network throughput. Khan said those drivers use both NACS stalls and CCS stalls with adapters. Although the NACS stalls are still ramping and are less productive than CCS stalls, their charging rate was 35% higher in the third quarter, reflecting the mix of newer vehicles and high-powered equipment.
The first EVgo-branded Supercharger site, developed under an agreement with Tesla, opened in the Chicago area. A second site outside Houston is expected in the fourth quarter. EVgo owns the chargers, selects their locations and sets prices, while Tesla builds, maintains and operates them, Khan said.
EVgo also expects expanded partnerships with shopping center owners Brixmor and Regency Centers to bring more than 900 new fast chargers to their properties. Separately, the company plans to begin deploying a new charging architecture capable of delivering up to 750 kilowatts in 2027.
About EVgo (NASDAQ:EVGO)
EVgo, Inc (NASDAQ: EVGO) operates a public electric vehicle charging network in the United States. The company develops, owns and operates fast-charging stations designed primarily for passenger vehicles, providing drivers with access to charging at shopping centers, grocery stores, retail locations, workplaces and other convenient destinations.
EVgo’s services include on-demand charging through its network and mobile app, as well as features such as payment processing, station availability information and vehicle-to-charger connectivity.
