EVgo (EVGO) Q1 2025: Throughput per Stall Jumps 36%, Underscoring Supply-Demand Imbalance Tailwind

2025-05-06 | By EarningsIQ Research

EVgo’s Q1 showcased a decisive step-up in network utilization, with throughput per public stall rising sharply and utilization curves shifting meaningfully right. The company’s singular focus on fast charging, coupled with disciplined capex execution and a robust DOE loan pipeline, positions it to outpace peers as supply growth in fast charging stalls stalls nationwide. With a minimal tariff impact and a growing baseload from rideshare and OEM partnerships, EVgo’s path to EBITDA breakeven appears increasingly credible—even as the broader EV infrastructure market faces policy and macro headwinds.

Summary

• Utilization Inflection: Public stall throughput and overall utilization hit new highs, propelling network efficiency gains.
• Capex Discipline: Cost reductions and next-gen charger development drive margin resilience against tariff and inflation risks.
• Strategic Funding: DOE loan advances and non-dilutive financing optionality provide growth visibility and capital flexibility.

Performance Analysis

EVgo’s Q1 2025 results highlight a business scaling both revenue and operational leverage, with total revenue up 36% year-over-year and network throughput per public stall up 36% year-over-year. This growth is underpinned by a five-fold increase in throughput per stall over three years, reflecting both rising EV vehicle miles traveled (VMT, a measure of how much EVs are driven) and a persistent supply-demand imbalance in U.S. fast charging infrastructure. Notably, total public network utilization reached 24%, up from 19% a year ago, with 54% of stalls now above 20% utilization, a key threshold for network economics.

Charging network revenue, now 63% of total, grew 49% year-over-year, outpacing the 23% growth in extend revenue, which is driven by third-party network buildouts. Gross margin for charging network dipped versus last year, but excluding non-recurring OEM breakage revenue, underlying margin improved 130 basis points, reflecting operational cost control and scale benefits. Adjusted EBITDA improved to negative $5.9 million, with the company reiterating its target of breakeven by year-end. Capex discipline was evident, with a $10 million efficiency target for 2025 expected to more than offset tariff impacts.

• Utilization Curve Shift: Over two-thirds of stalls now exceed 15% utilization, with a third above 30%—a marked improvement in network productivity.
• Rideshare and OEM Baseload: 55% of throughput comes from rideshare, OEM credits, and subscriptions, anchoring predictable demand.
• Capex Efficiencies Outpace Tariff Headwinds: Ongoing cost reductions in construction and materials are expected to neutralize tariff cost inflation.

EVgo’s ability to grow revenue faster than stall count, while steadily improving operating leverage, signals a maturing business model that is less vulnerable to short-term swings in new EV sales or federal incentives.

Executive Commentary

Strategic Positioning

1. Fast Charging Focus and Supply-Demand Tailwind

EVgo’s exclusive focus on DC fast charging positions it as a pure-play beneficiary of the widening gap between EV adoption and public charger deployment. With nationwide fast charger growth flat to declining for seven quarters, and S&P Global forecasting a need for triple the current annual deployment to maintain today’s EV-to-charger ratio, EVgo’s existing network is increasingly valuable. Unlike diversified peers, EVgo’s scale and operational discipline enable it to capture incremental demand as competitors and site hosts slow expansion due to tariffs and capital constraints.

2. Capital Structure and Growth Visibility

The $1.25 billion DOE loan guarantee secures funding for more than tripling the installed base over five years, with over 7,500 new stalls planned. Quarterly advances are on track, and management is actively exploring non-dilutive private financing for segments not covered by DOE, such as autonomous vehicle (AV) charging. This capital flexibility supports both baseline and accelerated growth scenarios, depending on market conditions and funding availability.

3. Capex Efficiencies and Next-Gen Technology

EVgo’s partnership with Delta Electronics to co-develop next-generation charging architecture is expected to lower gross capex per stall by 30% starting in 2026, with a prototype due this year. Operational cost reductions are already evident, with 9% and 8% capex per stall improvements for 2024 and 2025, respectively. Increased use of prefabricated skids and improved contractor pricing further enhance margin resilience.

4. Baseload Demand and Dynamic Pricing

Rideshare, OEM charging credits, and subscriptions now drive over half of network throughput, creating a predictable demand floor. Dynamic pricing algorithms are being refined to shift demand to off-peak hours, maximize margin, and manage congestion. The next major algorithm update is set for Q4 2025, aiming for further sophistication in network monetization.

5. Technology and Customer Experience Initiatives

EVgo is rolling out NACS (North American Charging Standard) connectors to better serve Tesla drivers, with 100-150 retrofits planned this year. The AutoCharge Plus plug-and-charge system is gaining traction, with 95% first-try success rates. Upcoming flagship sites with GM will feature up to 20 ultra-fast stalls and enhanced amenities, targeting an elevated customer experience and higher throughput.

Key Considerations

EVgo’s Q1 results reflect a business at the intersection of accelerating EV adoption and structural underinvestment in public fast charging. The company’s competitive advantages are increasingly visible in network utilization, capital access, and cost structure. However, execution on next-gen technology and continued capital discipline will be critical as the market evolves.

Key Considerations:

• Supply-Demand Imbalance: Flat charger deployment nationwide supports higher utilization and pricing power for existing networks.
• DOE Loan Execution: Timely advances and adherence to stall build schedule underpin growth visibility, but require continued operational delivery.
• Tariff and Policy Risk Mitigation: Minimal direct tariff exposure and capex savings buffer against macro and regulatory volatility.
• Technology Differentiation: Next-gen charger rollout and dynamic pricing are essential to sustain margin and customer experience gains.
• Baseload Demand Anchors: Rideshare and OEM partnerships reduce volatility from cyclical new EV sales or incentive changes.

Risks

EVgo faces risks from potential changes in federal EV incentives, regulatory uncertainty, and macroeconomic headwinds, though its business is less directly tied to new EV sales than peers. Tariff escalation could pressure capex, but ongoing cost reductions appear to offset this for now. Execution risk remains in scaling next-gen technology and maintaining high network reliability as utilization rises. Any material delay in DOE loan advances or private financing could slow stall deployment and growth.

Forward Outlook

For Q2 and the remainder of 2025, EVgo guided to:

• Stall build of 1,200 to 1,400 new stalls, with 75% of public network stalls operationalizing in H2 and 50% in Q4.
• Total revenue of $340 million to $380 million, with charging network revenue comprising two-thirds of the total.

For full-year 2025, management reiterated:

• Adjusted EBITDA breakeven target, with a range of negative $5 million to positive $10 million.
• Capex net of offsets between $160 million and $180 million.

Management highlighted that Q3 margins will be seasonally lower due to higher electricity costs, but expects sequential revenue growth and improving G&A leverage. The next-gen charger prototype is due in Q2, with production in H2 2026.

• Baseload demand from rideshare and OEMs remains strong.
• Potential acceleration of stall build if attractive private financing is secured.

Takeaways

EVgo’s Q1 results reinforce its position as a leading pure-play in U.S. fast charging, with utilization and network economics moving decisively in its favor as supply growth lags demand.

• Utilization and Throughput Surge: The company’s ability to drive higher usage per stall and capture a growing share of high-value customers supports margin expansion and capital efficiency.
• Capex and Technology Execution: Ongoing cost reductions and the Delta partnership underscore a clear path to margin improvement and competitive differentiation.
• Funding Optionality and Visibility: The DOE loan guarantee and active pursuit of non-dilutive financing provide both baseline stability and upside optionality, supporting accelerated growth if market conditions allow.

Conclusion

EVgo’s Q1 performance demonstrates a business scaling into a favorable market structure, with utilization, cost discipline, and capital access all trending positively. As the supply-demand imbalance in U.S. fast charging persists, EVgo’s focused execution and strategic funding position it to capture disproportionate share of future growth.

Industry Read-Through

EVgo’s results offer a clear signal for the broader EV infrastructure sector: supply constraints and capital discipline are now the primary drivers of network value, not just new EV sales. Companies with scale, operational focus, and funding visibility will be best positioned to monetize rising utilization as public charging becomes a bottleneck for EV adoption. Tariff and policy volatility will likely accelerate consolidation and weed out undercapitalized players, reinforcing the importance of cost discipline and predictable baseload demand through partnerships. The next two years will separate infrastructure leaders from laggards as the market shifts from buildout to network monetization and efficiency.

EVGO Industrials EV Infrastructure Fast Charging Capex DOE Loan Utilization Rideshare