NASDAQ:EVGO EVgo Q1 2025 Earnings Report $3.41 -0.18 (-5.01%) As of 04:00 PM Eastern ProfileEarnings HistoryForecast EVgo EPS ResultsActual EPS-$0.09Consensus EPS -$0.11Beat/MissBeat by +$0.02One Year Ago EPS-$0.09EVgo Revenue ResultsActual Revenue$75.29 millionExpected Revenue$70.11 millionBeat/MissBeat by +$5.18 millionYoY Revenue Growth+36.40%EVgo Announcement DetailsQuarterQ1 2025Date5/6/2025TimeBefore Market OpensConference Call DateTuesday, May 6, 2025Conference Call Time8:00AM ETUpcoming EarningsEVgo's Q2 2025 earnings is scheduled for Tuesday, August 5, 2025, with a conference call scheduled at 8:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by EVgo Q1 2025 Earnings Call TranscriptProvided by QuartrMay 6, 2025 ShareLink copied to clipboard.Key Takeaways Record quarter with 36% year-over-year revenue growth and 60% network throughput increase, marking the 13th straight quarter of double-digit charging revenue growth. Secured a $1.25 billion DOE loan guarantee to finance growth, targeting adjusted EBITDA breakeven in 2025 and free cash flow breakeven in 2026 while tripling the installed base within five years. Anticipated $4–5 million tariff headwind on imported chargers in FY25, which management expects to offset entirely with $10 million in CapEx efficiencies, leaving adjusted EBITDA unaffected. Industry DC fast charging supply has been flat or declining, while EVgo’s focused financing and operational scale positions it to benefit from the supply-demand imbalance and sustain per-stall throughput growth. Signed a joint development agreement with Delta Electronics to co-develop next-generation charging architecture, aiming for a 30% reduction in gross CapEx per store with prototype in Q2 and production in H2 2026. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallEVgo Q1 202500:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipantsPresentationSkip to Participants Operator00:00:00Hello, and welcome to the EVgo Inc. Q1 twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I would now like to turn the conference over to Heather Davis, Vice President of Investor Relations. You may begin. Heather DavisVice President, Investor Relations at EVgo00:00:28Good morning and welcome to EVgoat's first quarter twenty twenty five earnings call. My name is Heather Davis and I'm the Vice President of Investor Relations at EVgo. Joining me on today's call are Badar Khan, EVgo's Chief Executive Officer and Stephanie Lee, Executive Vice President, Accounting and Finance. Our CFO, Paul Dobson is out this week due to a loss in the family a few days ago. Today, we will be discussing EVgoat's first quarter twenty twenty five financial results followed by a Q and A session. Heather DavisVice President, Investor Relations at EVgo00:01:05Today's call is being webcast and can be accessed on the Investors section of our website at investors.evgo.com. The call will be archived and available there 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. Factors that could cause actual results to differ materially from our expectations are detailed in our SEC filings, including the Risk Factors section of our most recent Annual Report on Form 10 ks and Quarterly Reports on Form 10 Q. The company's SEC filings are available on the Investors section of our website. Heather DavisVice President, Investor Relations at EVgo00:02:00These 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 Investors section of our website. With that, I'll turn the call over to Badar Khan, EVgo's CEO. Badar KhanCEO & Director at EVgo00:02:32EVgo had yet another record quarter of strong results. Customer consumption on our network continues to rise with average daily throughput per public stall rising by 36% versus the same quarter last year and up more than fivefold in three years. The combination of higher throughput per stall and more stalls resulted in an overall public network throughput growth of 60% versus last year, with Q1 representing the thirteenth consecutive quarter of double digit year over year growth in charging revenues, which is every single quarter since we've been public company. Total revenue grew 36% year over year at a near tenfold growth in three years. We added over 180 new operational stalls this quarter, including Xtend stalls and now have over 4,200 operational stalls. Badar KhanCEO & Director at EVgo00:03:28And finally, we began the year with a strong cash balance and prospects. We ended the quarter with 171,000,000 in cash, cash equivalents and restricted cash. And at the April, we received the next quarterly advance from the DOE loan as expected. As you all know, in December 2024, after an eighteen month process, we closed at a 1,250,000,000 loan guarantee with the Department of Energy Loan Programs Office that secures financing for our trajectory past adjusted EBITDA breakeven this year, leverage free cash flow breakeven next year and more than triples our installed base over the next five years throughout The United States. This puts us in a particularly strong competitive position within the EV fast charging landscape. Badar KhanCEO & Director at EVgo00:04:18Looking at the macro environment, the impact of tariffs on EVgo, both directly and indirectly, is expected to be relatively minimal. That's because only approximately 25% of the total CapEx cost per store is subject to tariffs, with the remainder being domestically sourced equipment and raw materials and construction costs. Our fiscal twenty twenty five net CapEx estimate includes CapEx for twenty twenty five vintage stores as well as spend incurred in 2025 for twenty twenty six vintage stores. And in fiscal twenty twenty five, we expect it to incur around $45,000,000 to $50,000,000 on imported chargers. However, we already have either inventory or on shipping containers just under half of that spend for imported equipment. Badar KhanCEO & Director at EVgo00:05:12Therefore, we expect an impact of around 4,000,000 to $5,000,000 depending on what the final tariff rate might be for these imports, what we negotiate with our suppliers and whether we're able to expand our existing U. S. Sourced production. In addition, we expect to deliver $10,000,000 in CapEx efficiencies this year that more than offset the estimated impact of tariffs in 2025. Because we are an owner operator and not an equipment seller, none of this is expected to impact adjusted EBITDA for our charging business. Badar KhanCEO & Director at EVgo00:05:47This past quarter saw particularly strong growth in non Tesla EV sales, which grew over 35% compared to Q1 last year. Chevy Equinox EV, Honda Prologue and Hyundai Ioniq five are among some of the best selling non Tesla models. It's especially encouraging to see this as the MSRP for the Equinox starts at around $35,000 Importantly, our business is increasingly not reliant on new EV sales in any one year and is instead reliant on the overall number of evenings on the road. We estimate less than 10% of 2025 revenue to come from new EVs purchased this year. And that percentage will shrink going forward as the EV car park grows. Badar KhanCEO & Director at EVgo00:06:36In addition, EVs sold in The U. S. Appear to have more domestic content on average versus ICE vehicles. Therefore, tariffs may have a bigger impact on ICE vehicles than EVs in The U. S. Badar KhanCEO & Director at EVgo00:06:51According to the DOE, the nationwide growth of DC fast charging stations has in fact been flat for the past seven quarters, with Q1 actually showing a 16% decline from the prior quarter. In a higher tariff environment, we expect the supply of new fast charging will continue to fall. That is because roughly half of new fast chargers deployed are sold to site hosts by companies like ChargePoint, which will likely see slower growth as site hosts pause or reconsider what they may view as discretionary investments outside of their core business, especially if these companies were relying on federal incentives that may also be on hold. 7% of new fast chargers that are funded by automotive OEMs other than Tesla are also likely to see slower growth as OEMs allocate capital to other priorities. Tesla's share of new fast charging has declined from around 70% in 2022 to less than 20% in the most recent quarter. Badar KhanCEO & Director at EVgo00:07:57Unlike other OEMs, it's unclear whether Tesla remains committed to the growth of fast charging given their other priorities. Oil and gas companies funding DCFC chargers made up only 1% of new chargers this past quarter according to the DOE and have already announced changes to their capital allocation priorities. That leaves 14% of new chargers funded by a large number of small private companies that we expect will struggle to attract financing in this environment, especially because of their small scale. Unlike almost every other fast charging owner and operator, EVgo is singularly focused on fast charging and has the financing in place, allowing us to continue to grow. As a result, demand for fast charging represented by the growth in EVVIO far exceeds the supply of fast charging stations nationwide. Badar KhanCEO & Director at EVgo00:08:56This supply demand imbalance has been one of the factors driving the fivefold growth in EVgo's throughput per public stall over the past three years and will continue to drive growth in throughput per stall for the foreseeable future. S and P Global's most recent base case forecast from March that takes into account the new administration's policies in electric vehicles suggests 31 of new car sales being fully electric by 02/1930, slightly above where China already is today. The downside forecast is 21% of new car sales, below where China is today, translating to between 45,000,000 EVs on the road by 02/1930. This is half of the target established by the Biden administration of 50% of new car sales by 02/1930. S and P Global's forecast for the supply of DCFC grows to 135,000 stalls by 02/1930 from around 50,000 at the end of twenty twenty four. Badar KhanCEO & Director at EVgo00:10:02In order to maintain the current ratio of EV to DCFC, the industry would need to deploy 40,000 fast chargers a year, which is over three times what was built in 2024. Given that we've now had seven flat to declining quarters of growth in DCSC supply, a flat growth scenario of no faster growth than today may even be too optimistic in a higher tariff environment. The result is a growing ratio of EVVIO to DCFC, which has driven the growth in EVgo throughput historically and a significantly higher ratio in both S and P's base and downside forecasts, which we expect will drive ongoing growth in EBITDA throughput and utilization per store in addition to growth due to network expansion for the foreseeable future. In a higher tariff environment, we may see impacts to both the numerator and denominator in this ratio, leaving the overall supply demand picture potentially even more attractive for EVgo than without the impact of tariffs. Let's now turn to progress on our four key priorities: improving our customer experience operating and CapEx efficiencies capturing and retaining high value customers and securing additional complementary non dilutive financing to accelerate growth. Badar KhanCEO & Director at EVgo00:11:30As always, improving our customer experience remains our number one priority and our strong momentum from last year has continued this quarter. Customers want a charger to be available when they pull up to an EVgo station and we are deploying larger sites where our standard configuration is now six to eight stalls per site. At the end of the first quarter, '20 '1 percent of our sites had six stalls or more. We continue to deploy ultrafast high powered chargers. The number of stalls served by a three fifty kilowatt charger is now 52%, up from 38% a year ago. Badar KhanCEO & Director at EVgo00:12:09AutoChargePlus, our seamless plug and charge capability, continued to gain significant traction in Q1 with auto enrollments from OEM partners. AutoChargePlus accounted for 27% of sessions initiated. And finally, our key customer success metric or one and done increased four percentage points this quarter versus last year with 95% of sessions resulting in a successful charge on the first try. In summary, another great quarter of achievement in improving our customer experience. We've also made excellent progress on our efficiency priorities. Badar KhanCEO & Director at EVgo00:12:46Most notably, we took the MOU with Delta Electronics we signed last October and converted it into a signed joint development agreement to co develop the next generation of charging architecture. EVgo and Delta are making meaningful progress on this initiative that's expected to lower our gross CapEx per store by 30%. We anticipate production of these stores to begin in the second half of twenty twenty six, and we plan to have a prototype for the second quarter of this year. We continue to drive operational efficiencies in our business with call center costs per call declining 37% in Q1 versus last year. Our twenty twenty five vintage CapEx per store is expected to be roughly $135,000 which is an 8% reduction from twenty twenty four vintage stores, including the impact of tariffs. Badar KhanCEO & Director at EVgo00:13:40Irigo's operations team has been diligently working to lower CapEx, and we're delivering savings from lower contractor construction pricing, material sourcing and increased use of prefabricated skids. We expect further improvements in G and A as a percentage of revenue for 2025 while investing in the growth of our business. We also continue to make great progress on our growth priority of capturing and retaining high value customers. 55% of EVO's throughput came from rideshare, OEM charging credit and subscription accounts in Q1. This provides EVgo with a relatively predictable baseload level of demand on our network. Badar KhanCEO & Director at EVgo00:14:25In order to drive overall utilization up while mitigating the impact of congestion, thanks to the investments we have made in our customer marketing platform and dynamic pricing, we are now averaging double digit utilization in the overnight hours, effectively opening up capacity for more drivers during the peak hours. We expect the next major update to our dynamic pricing route rooms in the fourth quarter of this year. We launched native MAX connectors at our first site in February. The pilot of the technology validation is going well. We anticipate adding more NACS connectors to sites over the course of 2025. Badar KhanCEO & Director at EVgo00:15:06Later this year, we plan to launch the first of 400 new flagship stores in partnership with GM with the goal of delivering an elevated customer experience. As a reminder, these sites will feature up to 20 stalls and come with ultrafast three fifty kilowatt chargers, canopies, ample lighting, pull through stations and security cameras, and like all EVgo sites, will be located near a diverse set of amenities that customers can take advantage of while charging. Finally, we expect to expand the number of dedicated stalls serving autonomous vehicle partners, which could represent a very attractive source of potential growth for EVgo given we estimate we have a 20% share of operational sites serving the segment today. As for financing the growth of the business, we have now received both the first and second quarterly advances on our $1,250,000,000 loan guarantee with the DOE LPO. This loan ensures we are fully funded to add at least 7,500 stalls, more than tripling our installed base over the next five years. Badar KhanCEO & Director at EVgo00:16:13Looking ahead to the rest of the year, we expect a complete transfer of our 2024 vintage 30C income tax credits. Over the course of this year, we expect around 30% of our 2025 vintage CapEx to be offset from state, local and federal grants, utility incentives, OEM payments and 30C. Federal incentives in the form of the technology neutral 30C alternative fuels credit and NEVI represent approximately 10% of our 2025 vintage CapEx. As we've said before, we are not particularly reliant on federal incentives. And our next generation architecture program is targeting at least a 30% reduction in gross CapEx per store, significantly more than the value of these federal incentives. Badar KhanCEO & Director at EVgo00:17:06And finally, given the very strong cash flows from our operating assets, we continue to receive inbound interest and evaluate additional complementary non dilutive financing opportunities that would help fund the growth of any charging stations not included in the DOE loan funding to accelerate our growth and to provide diversity in our funding sources. Stephanie Lee will now cover our financial performance for Q1 together with our outlook for 2025. Stephanie LeeEVP - Accounting & Finance at EVgo00:17:37Thank you, Badar. Over the last three years, we have grown our operational installed base by 2.5 times, while our revenues have grown over 12 times. Increasing our scale and maintaining our focus on costs allows us to deliver improving bottom line performance. We continue to expect to achieve our target of adjusted EBITDA breakeven in 2025. Our public network throughput per stall has grown over three times in the last two years, significantly outpacing our charging stall growth. Stephanie LeeEVP - Accounting & Finance at EVgo00:18:08This accelerated performance is driven by multiple factors we've previously discussed, namely EV vehicle miles traveled parity with ICE, significant growth in rideshare, increased multifamily dwellers among EV drivers, increasing vehicle charge rates and larger, less efficient EVs coming to market. Throughput per public stall was two sixty six kilowatt hours per stall per day in Q1 compared to 196 a year ago and roughly flat sequentially, which reflects the seasonal shift from Q4 to Q1 as we saw last year. In the first quarter, total public network utilization increased to 24%, up from 19% a year ago. 67% of our public stalls had utilization greater than 15%. Fifty four % of our public stalls had utilization greater than 20%, and 32% of our public stalls had utilization greater than 30%. Stephanie LeeEVP - Accounting & Finance at EVgo00:19:07Each of these utilization categories have grown significantly over the last two years as the entire utilization curve is shifting to the right. Total throughput on the public network during the first quarter was 83 gigawatt hours, a 60% increase compared to last year. Revenue for Q1 was $75,000,000 which represents a 36% year over year increase. This growth was primarily driven by charging network and extend revenue. Total Charging Network revenues of $47,100,000 grew from $31,600,000 exhibiting a 49% year over year increase. Stephanie LeeEVP - Accounting & Finance at EVgo00:19:48Xtend revenues of $23,500,000 increased from $19,200,000 in the prior year, delivering growth of 23%. Charging Network gross margin in the first quarter was 37.1%, down three seventy basis points from the prior year. The prior year quarter included $2,500,000 of breakage revenue from one of our OEM charging credit program, which is winding down and similar levels of breakage were therefore not expected to recur. Excluding the impact of breakage revenue, our charging network gross margin would have grown 130 basis points year over year. Compared to the fourth quarter of twenty twenty four, charging network gross margin declined primarily due to higher maintenance costs incurred to improve reliability of our charging experience and higher property taxes, which typically increased on '1 each year. Stephanie LeeEVP - Accounting & Finance at EVgo00:20:42Our Extend revenue for the first quarter was up from the prior year due to more construction projects in process or completed and the recognition of certain construction change order costs that were incurred in the prior year. Adjusted gross profit was $25,400,000 in the first quarter of twenty twenty five, up from $17,300,000 in the first quarter of twenty twenty four. Adjusted gross margin was 33.7% in Q1, an increase of two forty basis points compared to last year. Adjusted G and A as a percentage of revenue also improved from 44.4% in the first quarter of twenty twenty four to 41.6% in Q1 of this year, demonstrating the operating leverage effect. Adjusted EBITDA was negative $5,900,000 in the first quarter of twenty twenty five, a $1,300,000 improvement versus negative $7,200,000 in the first quarter of twenty twenty four. Stephanie LeeEVP - Accounting & Finance at EVgo00:21:40Now turning to our 2025 guidance. EVgo continues our top line growth and path to profitability in 2025. Our stall build outlook for the year remains the same with 1,200 to over 1,400 new stalls comprised of seven fifty to eight fifteen public network stalls, 50 to H5 dedicated network stalls and four fifty to five fifty EVgo Xtend stalls. We continue to expect total revenues in the range of $340,000,000 to $380,000,000 As a reminder, we estimate only 10% of our total 2025 revenues are tied to new EV sales. We continue to expect charging network revenue to be two thirds of full year revenue. Stephanie LeeEVP - Accounting & Finance at EVgo00:22:26We anticipate sequential quarterly growth in our Charging Network revenues as we continue to expect quarter over quarter and year over year throughput growth. Similar to last year, we expect to see higher summer electricity costs impacting Q3 charging network gross margin. We continue to expect full year extend revenue to be broadly flat to last year with slightly lower revenues in the second half of twenty twenty five. We expect growth in full year ancillary revenue with most of that growth in Q4 driven by the dedicated fleet business. We expect adjusted G and A to increase modestly throughout 2025 as we continue to make investments in areas such as our next generation charging infrastructure. Stephanie LeeEVP - Accounting & Finance at EVgo00:23:09We continue to expect improvements in charging network gross margin and adjusted G and A as a percentage of revenue, driving bottom line adjusted EBITDA improvement. We therefore continue to target adjusted EBITDA breakeven in 2025 with a range of negative $5,000,000 to positive $10,000,000 We continue to expect fiscal CapEx net of offsets to be in the range of $160,000,000 to $180,000,000 We are ramping up our mobilizations with approximately 75% of our 2025 vintage public network sales expected to operationalize in the second half of twenty twenty five. Q4 is expected to account for approximately 50% of total 2025 public network installed. Operator, we can now open the call for Q and A. Operator00:23:58Thank Your first question comes from Andreas Sheppard with Cantor Fitzgerald. Your line is open. Badar KhanCEO & Director at EVgo00:24:22Good morning, Andreas. Andres SheppardAnalyst at Cantor Fitzgerald00:24:23Hi, everyone. Good morning. Congratulations on another great quarter and thank you so much for taking our questions. Maybe just to start, you touched on this briefly in your prepared remarks, hoping for maybe a bit more color. I'm wondering if you could maybe just give us a bit more cadence in terms of guidance for the rest of the year, particularly around cost of energy, ASPs. Andres SheppardAnalyst at Cantor Fitzgerald00:24:52You mentioned Q3, I think, will be the weakest. But basically, ASPs, gross margin and how we should think about the ramp up of the DOE loan, stalls throughout the rest of the year? Thank you. Badar KhanCEO & Director at EVgo00:25:07Andres, yeah. Yeah. We provided guidance. It hasn't changed since the last quarter. On the ramp up of the loan, we provided a stall build schedule on the last quarterly call, and that remains remains the same. Badar KhanCEO & Director at EVgo00:25:22So that's that's 750 to 850 stalls public network stalls for the full year together with about 50 to 85 dedicated stalls, 450 to 550, stalls through our extend program. So that hasn't changed. As also hasn't changed, we expect about 75% of the public stalls to be in the second half of the year, about 50% in q four. So you can you can kinda work out q two given we've got q one. In terms of the rest of the year, q three is typically the quarter as we saw last year where we got higher energy costs. Badar KhanCEO & Director at EVgo00:26:08That'll that'll really be the same shape for this year. In terms of average selling price, I'd expect us to see, you know, prices where they are today, maybe slightly expanding. I mean, Heather mean, Stephanie, any other comments in terms of guidance? Stephanie LeeEVP - Accounting & Finance at EVgo00:26:25No. I think that that covers it. Badar KhanCEO & Director at EVgo00:26:27Mhmm. K. Andres SheppardAnalyst at Cantor Fitzgerald00:26:31Got it. Okay. That's super helpful. I appreciate all that color. And maybe just a bit of an odd question. Andres SheppardAnalyst at Cantor Fitzgerald00:26:36But as we are seeing an acceleration in autonomous vehicles and self driving technology, Can you maybe remind us, you know, what what are EVgo's strategy to try to capture some of this market and and how you might address, autonomous vehicles charging in the future? Thank you. Badar KhanCEO & Director at EVgo00:26:56Yeah. Look. We as we said last quarter, we broke out the the number stalls, that are serving, that are dedicated stalls serving, the kind of autonomous vehicle segment. That's that's separated out in our store count from last quarter. And we more than doubled in 2024 the number of stalls that we currently already have in place serving that sec that segment. Badar KhanCEO & Director at EVgo00:27:23You know, we estimate there's not great data on this, but we estimate we've got about a 20% share, so a pretty good share of, dedicated stalls serving the segment. And so we're quite excited by it. These, stalls have a different cash flow profile. They're contracted cash flows versus our public stalls, which rely on charging revenue, of course. And so we're we're quite excited by it. Badar KhanCEO & Director at EVgo00:27:48We do think it could be a source of of interesting upside for the business given the the regulations around the space seems to be a little bit easier than than where we had them in the past. Andres SheppardAnalyst at Cantor Fitzgerald00:28:05Wonderful. Thank you so much. Really appreciate it, and congratulations on the quarter again. Well, pass it on. Badar KhanCEO & Director at EVgo00:28:10Yep. Operator00:28:12The next question comes from Chris Dendrinos with RBC Capital Markets. Your line is open. Chris DendrinosVice President at RBC Capital Markets00:28:20Yes. Good morning and thanks for taking the question. Badar KhanCEO & Director at EVgo00:28:22Absolutely. Chris DendrinosVice President at RBC Capital Markets00:28:24I guess maybe on the financing side of things, and it was great to see that you all got that second advance from the DOE. I guess maybe on the private side and you mentioned you're exploring some funding options. Can you provide an update on timing around that? And maybe what specifically are you all kind of looking at as far as options go? Thanks. Badar KhanCEO & Director at EVgo00:28:46Yes. I mean just on the first point, we are obviously very happy with where we are in financing. We've, we expect quarterly advances, in line with the agreement that we signed with the with the DOE in December. And this second quarter advance was, you know, in line with how we're asking our plans. In terms of additional financing, we we do continue to get just these cash flows generate so strong these assets generate so strong cash flows. Badar KhanCEO & Director at EVgo00:29:13You know, we continue to get quite a lot of interest from others. We're looking to finance further accelerate the growth of the business. And so that's really where the conversation is. Are there stores that are not eligible to be funded by DOE? We for instance, the AV space, but potentially others. Badar KhanCEO & Director at EVgo00:29:33But also just to type it. So it makes it makes good business sense to diversify your sources of funding. In terms of timing, we know we're in the dialogue today with folks. If we find something that is attractive for ourselves, counterparties, then we'll obviously look to execute. And I expect that that might take place some point during the course of this year. Chris DendrinosVice President at RBC Capital Markets00:29:53Got it. And then I guess maybe just a follow-up on that point around it being attractive and the ability to accelerate. I guess, are are you indicating that you you would look to potentially accelerate activity if you find an attractive, I guess, arm arm of financing? Is that is that correct? Thanks. Badar KhanCEO & Director at EVgo00:30:13Yeah. I mean, over the course of the five years, the the schedule that we've laid out, in the last two calls showed us showed what the stall schedule build schedule would look like under DOE, loan financing. And so what we're looking at is both from a a balance sheet and operational perspective, what would it take to increase that level of stall build out? You know, what we've got today gets us to about 11,000 stalls in about five years' time, and we provided those economics in the last two calls. Quite you know, what we're asking ourselves is what would it take to accelerate that schedule, build out over the next five years. Chris DendrinosVice President at RBC Capital Markets00:30:56Got it. Thank you. Badar KhanCEO & Director at EVgo00:30:58Yep. Operator00:31:00The next question comes from Chris McNally with Evercore ISI. Your line is open. Chris McnallyAnalyst at Evercore00:31:10Thanks so much, team, and thanks for taking the call. So I appreciate all of the 2,030 comments. I think we all see the huge growth in the car park that will eventually come. I think our question is around maybe your views on the potential changes of revoking IRA and or the EV EPA mandates, which may come. Sort of our thought is what if we get sort of that worst case scenario in the upcoming tax bill in the second half where incentives are removed and 2,030 targets are removed. Chris McnallyAnalyst at Evercore00:31:43My question is how does EV go potentially change their rollout strategy geographically within The U. S? Places like California become even more valuable given EV density, whereas maybe expansion states, there's a change in the math as a result of regulation changes. So big picture question, but I would appreciate your thoughts. Badar KhanCEO & Director at EVgo00:32:05Yeah. Chris, I mean, I think taking a step back as a reminder, our business is not true. You know, we're not selling cars. We're selling kilowatt hours. And so, what drives our business is both the the demand for kilowatt hours, which is represented by the growth in VIO, electric vehicle v I o, as well as, the supply of industry wide, DC fast chargers. Badar KhanCEO & Director at EVgo00:32:34And that's that's the sort of demand supply that, in fact, impacts the sale of kilowatt hours. And so what we see as we played out on that slide is even in the most conservative forecasts, which takes into account, you know, sort of a a shift in federal policies with respect to, you know, sale of electric vehicles, we would expect to see the ratio of cars to nationwide industry wide fast chargers to to still almost double. And so that supply demand picture remains very attractive for us given that it's only grown by about a third in the last three years. And yet in that same time period, our throughput per stall has grown fivefold. And so I think that that that is how we think about the the sort of situation. Badar KhanCEO & Director at EVgo00:33:31This is a pretty resilient the owner operator of fast charging business model is actually quite a resilient business model. With respect to your specific questions, sure, if, if we find that states continue to offer, incentives, for electric vehicles and other states aren't offering such attractive incentives, then we would, of course, expect to see more EV sales in individual states. Our network plan that we that we update continuously takes into account all of these sorts of forecasts, and we adjust. At any one point in time, we are, looking at a network plan that goes out two or three years that gives us quite a lot of optionality. We've got about 30,000 stalls that we've already identified across The United States that meet our return expectations, the kind of, returns that we're, we're demonstrating today. Badar KhanCEO & Director at EVgo00:34:26So we feel we've got tons of, flexibility and optionality to be able to shift to wherever demand is. Chris McnallyAnalyst at Evercore00:34:33That's that's that's excellent. And do you have a sense in those medium term, you know, geographic plans? I mean, if we're talking about EV VIO of, you know, to your to your point, the range of 20 to 26 in your in your in your forecast, you know, sort of 7% to 10% penetration of the car park. Where do you see sort of the most attractive markets, meaning where the return is the highest when you think about California, right, where it's sort of approaching Europe like penetration ratios. Just any rules of thumb that help us when we think about where a market becomes the most attractive once it hits the penetration level of the car park of x? Badar KhanCEO & Director at EVgo00:35:18Yeah. I mean, look. For us, when we think about return, we're obviously thinking about the productivity of the stalls, so the kilowatt hours, the throughput per stall per day, but we're also taking into account the cost of the stalls, so the CapEx, Cost of construction might vary across The United States, the availability of incentives. I will tell you that overall utilization as we show show today is 24%. We actually have higher utilization outside California. Badar KhanCEO & Director at EVgo00:35:47We've got more throughput in aggregate outside California. Some of our fastest and top states today are places like Texas, Florida, Arizona, Michigan, and and none of these states are in the, the the Clean Cars two program, that California has adopted. So, you know, I I expect these you know, I expect to see the growth in those states continue as they have done, in the last couple of years. Chris McnallyAnalyst at Evercore00:36:20That's really great. That helpful info on the on the sort of the the the micro markets, the the examples you gave. Thank you so much, team. Badar KhanCEO & Director at EVgo00:36:27Absolutely. Operator00:36:30The next question comes from Bill Peterson with JPMorgan. Your line is open. Badar KhanCEO & Director at EVgo00:36:37Good morning, Bill. Bill PetersonEquity Research at JP Morgan00:36:38Yes. Hi. Good morning. Thanks for taking the questions and nice job on the quarterly execution and it's nice to see the reiteration of the financial and other factors. You'd sound them alone, it seems like all systems are go, but just to remove any doubt, are there just any remaining items that you and the team are working through? Bill PetersonEquity Research at JP Morgan00:36:56I guess just want to try to understand how the current engagements are. Are they constructive? Are they or are they still probe around the edges or doing further investigations? And, you know, we understand that a lot of people at the LPO have left or or being forced out or or, you know, base leaving out their own will or whatever. Just what's your current level of engagements with the LPO? Badar KhanCEO & Director at EVgo00:37:14Yeah. I mean, it's built a very productive engagement with the LPO team. I I really can't comment on their overall staffing levels other than to say that the folks that we're working with are the same folks that we're working with over the last several months. You know? And our our quarterly advance, both the first and second and the monthly we have monthly draws and reimbursements in in line with our agreements. Badar KhanCEO & Director at EVgo00:37:41They're all progressing in the way that we expected. And so, you know, I you know, I you could call this sort of business as usual activity. You know, we're several months into this at this point, and, you know, we're, I think, pleased with how it's going. Bill PetersonEquity Research at JP Morgan00:37:59That that's great. Just wanted to just wanted to make sure. And then I I had some clarifying questions on the tariffs, and thanks for the the color on that. So, you know, what are the assumptions around the tariff rate to get to this $44,000,000 to $5,000,000 I guess, think of 32% on Taiwan as an example. Is that the right way? Bill PetersonEquity Research at JP Morgan00:38:16And I guess on this $10,000,000 in efficiencies, can you provide any additional color on that? It sounds like you're giving that anyway regardless of where the tariff environment still stands. And then maybe looking into next year, it sounds like you reiterated this sort of 30% CapEx reduction with the program you have with Delta. But is that reduction still assuming the same tariff environment we have today? And if so, like, how do you get there? Badar KhanCEO & Director at EVgo00:38:40Yeah. So, Bill, the the 4 to 5,000,000, that's, that's a fiscal year, not vintage year. So that is the impact on the the the calendar year capital spend that we incur in 2025, and that's based off about 45 to $50,000,000 of imports, of, of, you know, imported equipment where, you know, we've we've already got about half of that either already here in The States or on shipping containers, so there's no tariff on that. We expect about a 10% tariff on a quarter, of what we is not already here and about a 32% tariff on the other quarter. And that's really how you get to the 4 to 5,000,000. Badar KhanCEO & Director at EVgo00:39:24In terms of the efficiencies, yeah, these efficiencies, you know, we we had a as we said last quarter, and we reported a 9% improvement reduction in our vintage 2024 CapEx per stall versus what we were expecting. We were expecting about a 60. We took about 9% off that in 2024. This year, we're expecting about 8% on versus where we ended 2024, and that's just our operations team just going about business. You know, construction pricing, material sourcing, prefab skids, we expected we'd be at 40% of our mix this year. Badar KhanCEO & Director at EVgo00:40:06It's gonna be a little higher. The cost per skid is gonna be a little lower, so it's just, you know, business as usual activity. For f y twenty six, we haven't provided guidance specifically for vintage f y twenty six CapEx, but, you know, you'd expect it to include, you know, the benefits from all the savings that we captured so far. In addition, by the second half of twenty six, we'll start to roll out our new charging a a charging architecture through the the development with Delta Electronics. That's a 30% improvement on that one sixty that we began that we we're expecting to begin 2024. Badar KhanCEO & Director at EVgo00:40:48So, you know, we're you know, this is just business as usual. We think that this is a a real source of competitive advantage for EVgo versus the, you know, dozens of dozens of other fast charging companies that that you're all aware of where we've got scale. We're able to partner with a global leader and really drive down, you know, efficiencies, in CapEx. So we're pretty pleased with where we are. Bill PetersonEquity Research at JP Morgan00:41:16Thanks for all the details, Byron. So it's terrific to hear that. And and, again, congrats on the quarter. Badar KhanCEO & Director at EVgo00:41:20Thanks so much. Operator00:41:22The next question comes from Chris Pierce with Needham and Company. Your line is open. Chris PierceSenior Analyst at Needham & Company00:41:31Hey, morning, everyone. Badar KhanCEO & Director at EVgo00:41:32Good morning. Chris PierceSenior Analyst at Needham & Company00:41:33Can you just walk me through when I think about dynamic pricing and you hit on another call about driving utilization in the overnight hours, I think about cost savings to the driver. But you guys grew ASP per watt, you know, mid single digits year over year. I just wanna get a sense of pricing power on the network you have, or how are you able to like, how those two sort of balance out? Badar KhanCEO & Director at EVgo00:41:59Yeah. Look. With dynamic pricing, what we're doing is we're looking to maximize margin. And so in some places, we're looking to that we may see ourselves increase price. In other places, we may see ourselves reduce price, but with the goal of maximizing margin. Badar KhanCEO & Director at EVgo00:42:19I would say that, again, this is another one of our sources of real competitive advantage versus these dozens of other smaller companies in the fast charging space or companies that just aren't focused on on utilization for whatever reason. You know, we are through both the investments we've made in our marketing, our understanding of customers, our reach out to customers, the dynamic pricing, which is effectively pricing signals. We are shifting who is charging at what time of the day where we are trying to open up, hours of the day that might be, peak hours of the day where we may have your price, you know, sort of in inelastic customers, and that that really is serving us very well. We expect the next round of the algorithms in this dynamic pricing to go live in the fourth quarter where I'm looking for, you know, the next level of sophistication here. And and this is not yeah. Badar KhanCEO & Director at EVgo00:43:22We're not talking about something being reinvented here. We're we're taking kind of concepts that have been very successfully executed in other parts of the economy, into the space. Chris PierceSenior Analyst at Needham & Company00:43:33Okay. And and is it safe to say you haven't seen anything any demand signals or anything that would cause you to back off the, you know, the level of pricing power you think you have on the network? Badar KhanCEO & Director at EVgo00:43:42You know, Chris, I didn't fully capture the question, but I think the answer is have we seen anything that would cause us to back off? The answer is no. Chris PierceSenior Analyst at Needham & Company00:43:50Okay. And then just lastly, housekeeping. Can you remind me, like, on the typical seasonality? I know this is sort of a young business, and you've had the growth you've had, so it's sort of hard to pick out the seasonality. But, you know, network throughput down modestly sequentially, but how should we think about seasonality the rest of the year? Chris PierceSenior Analyst at Needham & Company00:44:05And then when you layer on SAL growth too, like, how should we think about the cadence of network throughput? Badar KhanCEO & Director at EVgo00:44:09Yeah. I mean, look. So so network throughput is was actually kinda flat, to be honest. We had some rounding. So last quarter, we rounded up. Badar KhanCEO & Director at EVgo00:44:17This quarter, we're rounding down. So network throughput's kinda broadly flat, which is pretty much where it was almost exactly last year, between q four and q one. And so we we expected that. Certainly, we'd expect to see network throughput obviously grow in q two and q three, and q four as we same shape we saw last year sequentially from q four to q one. That's that really aligns with sort of VMT, vehicle miles traveled for EVs across United States. Badar KhanCEO & Director at EVgo00:44:46So I mean, that's really how we think about the profile. Chris PierceSenior Analyst at Needham & Company00:44:52Okay. Thank you. Badar KhanCEO & Director at EVgo00:44:53Yep. Operator00:45:02Your next question comes from Craig Irwin with ROTH Capital Partners. Your line is open. Badar KhanCEO & Director at EVgo00:45:08Good morning, Craig. Craig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLC00:45:09Good morning, Badar. Good morning, everyone. Thanks for taking my questions. So I wanted to ask about the progress with the Tesla connectors, the NAS connectors you mentioned earlier in prepared remarks. Can you maybe frame out for us where you're at with this? Craig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLC00:45:28Are you really just in testing? Or will we potentially see dozens or more stations retrofit over the course of the year? And is it fair for us to start asking about new customers added that are Tesla customers? I know you had another strong quarter with a 19,000 new customers. But, you know, is the is the Tesla fleet starting to layer in and and help you on the on the demand side? Badar KhanCEO & Director at EVgo00:45:58Yeah. Craig, so, I mean, clearly, with such a high percentage of, you know, well over half or more of overall EV, VIO being Tesla drivers and the fact that our charging stations are faster at three fifty kilowatt, and they tend to be closer to where all drivers, including Tesla drivers, live, work, and run errands versus highway stations, that we are very attracted, to, capturing this segment. But we need to do two things. We need to make sure that, you know, the the the system, you know, they work. And so what we've been doing this past quarter is going through that technology validation. Badar KhanCEO & Director at EVgo00:46:44That's both in terms of, you know, the connection, but also the speed. You know, at three fifty kilowatt, we need to have we need to have to make sure we got the right cables that can accommodate a higher speed than a Tesla supercharger. And, you know, the second thing that we need to make sure that we're we're paying very close attention to is if we take out a CCS connector, we don't end up killing demand for some period of time before the next cable catches up to where the demand was in the CCS cable. And so, you know, that that's really what we're juggling. Like, everything at EVgo, it's very data driven. Badar KhanCEO & Director at EVgo00:47:22So we are looking at sites across the country, that perhaps have opportunities for us to swap out a lower performing CCS cable with a max cable that is also located close to where Tesla drivers are based, which is, you know, frankly everywhere. So it's quite data intensive. We do expect to start rolling out these cables, but it's probably gonna be on a retrofit basis maybe in the hundred to a 50, you know, know, potentially, you know, give or take around those sorts of numbers over the course of this year. I for our next generation charging architecture, which will be second half of next year, we expect they'll be all max cables from the outset, if not before that, with the current generation chargers. Craig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLC00:48:08Excellent. Thank you for that update. So so my next question is on the extend revenue. So, again, this quarter was pretty strong, and it's nice to see you you're building a network out there with with partners and, you know, incremental incremental profits, incremental driver service, always a good thing. Do you have potential for other Xtend customers that could come in over the course of the next year? Craig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLC00:48:35And how should we think about the shape of Xtend growth, the revenue contribution, in this year? Is it gonna be as back end loaded, as the stall build out, or, is this something that's gonna be a little bit more linear as as we look at the year? Badar KhanCEO & Director at EVgo00:48:51Yeah. So just two things there on the on the extend business. We know we are not looking at we're not actively pursuing more extend partners, Craig, we've got a great relationship with, PFG, the product company, and we're deploying, you know, throughout the course of this relationship, 2,000 stalls. The the bill schedule there, we gave an illustrative view on the last quarter. So if you look at the last quarter slides, there's a a sort of little bar that's semi shaded that gives a sense of what that schedule could look like through 2028. Badar KhanCEO & Director at EVgo00:49:30In in terms of this year, the Xtend business is broadly half sorry, broadly flat in terms of revenue versus last year, slightly lower in the second half versus the first half. And remember, the revenues from Xtend are both equipment sale as well as construction revenues. So sometimes it could be a little lumpy, but it's, we expect it to broadly similar similar to last year, be a little less in the second half versus sec versus the first half. Craig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLC00:50:02Thank you for that. I'll I'll take the rest of my questions offline. Badar KhanCEO & Director at EVgo00:50:05Absolutely. Yeah. Thanks, Greg. Operator00:50:08This concludes this concludes the question and answer session. I'll turn the call to Badar Khan for closing remarks. Badar KhanCEO & Director at EVgo00:50:15Well, thank you, everyone. We had yet another strong quarter. With a strong balance sheet, we are in a particularly strong competitive position. Together with a business model that's minimally impacted by tariffs and a supply demand picture that should underpin continued growth, we are well on our way to delivering adjusted EBITDA breakeven this year, and I look forward to providing updates throughout the course of this year. Thanks very much, everyone. Operator00:50:41This concludes today's conference call. Thank you for joining. You may now disconnect.Read moreParticipantsExecutivesHeather DavisVice President, Investor RelationsBadar KhanCEO & DirectorStephanie LeeEVP - Accounting & FinanceAnalystsAndres SheppardAnalyst at Cantor FitzgeraldChris DendrinosVice President at RBC Capital MarketsChris McnallyAnalyst at EvercoreBill PetersonEquity Research at JP MorganChris PierceSenior Analyst at Needham & CompanyCraig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLCPowered by Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) EVgo Earnings HeadlinesEVgo secures up to $300 million loan to expand EV charging network across USJuly 29 at 2:35 AM | bizjournals.comEVgo Secures $225 Million Credit Facility for ExpansionJuly 28 at 7:47 AM | tipranks.comTrump’s Exec Order #14154 could be a “Millionaire-Maker”Former Presidential Advisor, Jim Rickards, says Trump could “rewire our economy and hand millions of Americans a chance at true financial independence in the months ahead.” We recently sat down with Rickards to capture all the key details on tape. July 29 at 2:00 AM | Paradigm Press (Ad)EVgo Inc. Announces Commercial Bank Loan Facility to Accelerate Nationwide Infrastructure BuildoutJuly 28 at 7:00 AM | globenewswire.comEVgo: Charging Up To Lock Down Customer ExperienceJuly 28 at 3:07 AM | seekingalpha.comEVGO Stock Price Prediction: Where EVgo Could Be by 2025, 2026, 2030July 27 at 7:00 AM | finance.yahoo.comSee More EVgo Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like EVgo? Sign up for Earnings360's daily newsletter to receive timely earnings updates on EVgo and other key companies, straight to your email. Email Address About EVgoEVgo (NASDAQ:EVGO), Inc. owns and operates a direct current fast charging network for electric vehicles (EVs) in the United States. The company offers electricity directly to drivers, who access its publicly available networked chargers; original equipment manufacturer charging and related services; fleet and rideshare public charging services; and charging as a service and fleet dedicated charging services. It also provides ancillary services, such as customization of digital applications, charging data integration, loyalty programs, access to chargers behind parking lot or garage pay gates, microtargeted advertising, and charging reservations; and hardware, design, and construction services for charging sites, as well as ongoing operations, maintenance, and networking and software integration solutions through eXtend. In addition, it offers PlugShare such as data, research, and advertising services and equipment procurement and operational services. EVgo, Inc. was incorporated in 2010 and is headquartered in Los Angeles, California.EVgo, Inc. operates as a subsidiary of EVgo Holdings LLC.View EVgo ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles RCL Stock Sinks After Earnings—Is a Buying Opportunity Ahead?Amazon's Pre-Earnings Setup Is Almost Too Clean—Red Flag?Deckers Stock Recovers on Strong Earnings—More Upside Ahead?3 Reasons Tesla's Post-Earnings Hangover Looks Like a BuyCan Qualcomm Shock Wall Street With Its Q3 Earnings?T-Mobile Earnings Show You Why This Is a Stock to HoldAmerican Airlines Earnings Miss, But Bulls Aren’t Backing Off Upcoming Earnings American Electric Power (7/30/2025)Automatic Data Processing (7/30/2025)ARM (7/30/2025)Equinix (7/30/2025)Robinhood Markets (7/30/2025)Lam Research (7/30/2025)MercadoLibre (7/30/2025)Meta Platforms (7/30/2025)Microsoft (7/30/2025)QUALCOMM (7/30/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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PresentationSkip to Participants Operator00:00:00Hello, and welcome to the EVgo Inc. Q1 twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I would now like to turn the conference over to Heather Davis, Vice President of Investor Relations. You may begin. Heather DavisVice President, Investor Relations at EVgo00:00:28Good morning and welcome to EVgoat's first quarter twenty twenty five earnings call. My name is Heather Davis and I'm the Vice President of Investor Relations at EVgo. Joining me on today's call are Badar Khan, EVgo's Chief Executive Officer and Stephanie Lee, Executive Vice President, Accounting and Finance. Our CFO, Paul Dobson is out this week due to a loss in the family a few days ago. Today, we will be discussing EVgoat's first quarter twenty twenty five financial results followed by a Q and A session. Heather DavisVice President, Investor Relations at EVgo00:01:05Today's call is being webcast and can be accessed on the Investors section of our website at investors.evgo.com. The call will be archived and available there 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. Factors that could cause actual results to differ materially from our expectations are detailed in our SEC filings, including the Risk Factors section of our most recent Annual Report on Form 10 ks and Quarterly Reports on Form 10 Q. The company's SEC filings are available on the Investors section of our website. Heather DavisVice President, Investor Relations at EVgo00:02:00These 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 Investors section of our website. With that, I'll turn the call over to Badar Khan, EVgo's CEO. Badar KhanCEO & Director at EVgo00:02:32EVgo had yet another record quarter of strong results. Customer consumption on our network continues to rise with average daily throughput per public stall rising by 36% versus the same quarter last year and up more than fivefold in three years. The combination of higher throughput per stall and more stalls resulted in an overall public network throughput growth of 60% versus last year, with Q1 representing the thirteenth consecutive quarter of double digit year over year growth in charging revenues, which is every single quarter since we've been public company. Total revenue grew 36% year over year at a near tenfold growth in three years. We added over 180 new operational stalls this quarter, including Xtend stalls and now have over 4,200 operational stalls. Badar KhanCEO & Director at EVgo00:03:28And finally, we began the year with a strong cash balance and prospects. We ended the quarter with 171,000,000 in cash, cash equivalents and restricted cash. And at the April, we received the next quarterly advance from the DOE loan as expected. As you all know, in December 2024, after an eighteen month process, we closed at a 1,250,000,000 loan guarantee with the Department of Energy Loan Programs Office that secures financing for our trajectory past adjusted EBITDA breakeven this year, leverage free cash flow breakeven next year and more than triples our installed base over the next five years throughout The United States. This puts us in a particularly strong competitive position within the EV fast charging landscape. Badar KhanCEO & Director at EVgo00:04:18Looking at the macro environment, the impact of tariffs on EVgo, both directly and indirectly, is expected to be relatively minimal. That's because only approximately 25% of the total CapEx cost per store is subject to tariffs, with the remainder being domestically sourced equipment and raw materials and construction costs. Our fiscal twenty twenty five net CapEx estimate includes CapEx for twenty twenty five vintage stores as well as spend incurred in 2025 for twenty twenty six vintage stores. And in fiscal twenty twenty five, we expect it to incur around $45,000,000 to $50,000,000 on imported chargers. However, we already have either inventory or on shipping containers just under half of that spend for imported equipment. Badar KhanCEO & Director at EVgo00:05:12Therefore, we expect an impact of around 4,000,000 to $5,000,000 depending on what the final tariff rate might be for these imports, what we negotiate with our suppliers and whether we're able to expand our existing U. S. Sourced production. In addition, we expect to deliver $10,000,000 in CapEx efficiencies this year that more than offset the estimated impact of tariffs in 2025. Because we are an owner operator and not an equipment seller, none of this is expected to impact adjusted EBITDA for our charging business. Badar KhanCEO & Director at EVgo00:05:47This past quarter saw particularly strong growth in non Tesla EV sales, which grew over 35% compared to Q1 last year. Chevy Equinox EV, Honda Prologue and Hyundai Ioniq five are among some of the best selling non Tesla models. It's especially encouraging to see this as the MSRP for the Equinox starts at around $35,000 Importantly, our business is increasingly not reliant on new EV sales in any one year and is instead reliant on the overall number of evenings on the road. We estimate less than 10% of 2025 revenue to come from new EVs purchased this year. And that percentage will shrink going forward as the EV car park grows. Badar KhanCEO & Director at EVgo00:06:36In addition, EVs sold in The U. S. Appear to have more domestic content on average versus ICE vehicles. Therefore, tariffs may have a bigger impact on ICE vehicles than EVs in The U. S. Badar KhanCEO & Director at EVgo00:06:51According to the DOE, the nationwide growth of DC fast charging stations has in fact been flat for the past seven quarters, with Q1 actually showing a 16% decline from the prior quarter. In a higher tariff environment, we expect the supply of new fast charging will continue to fall. That is because roughly half of new fast chargers deployed are sold to site hosts by companies like ChargePoint, which will likely see slower growth as site hosts pause or reconsider what they may view as discretionary investments outside of their core business, especially if these companies were relying on federal incentives that may also be on hold. 7% of new fast chargers that are funded by automotive OEMs other than Tesla are also likely to see slower growth as OEMs allocate capital to other priorities. Tesla's share of new fast charging has declined from around 70% in 2022 to less than 20% in the most recent quarter. Badar KhanCEO & Director at EVgo00:07:57Unlike other OEMs, it's unclear whether Tesla remains committed to the growth of fast charging given their other priorities. Oil and gas companies funding DCFC chargers made up only 1% of new chargers this past quarter according to the DOE and have already announced changes to their capital allocation priorities. That leaves 14% of new chargers funded by a large number of small private companies that we expect will struggle to attract financing in this environment, especially because of their small scale. Unlike almost every other fast charging owner and operator, EVgo is singularly focused on fast charging and has the financing in place, allowing us to continue to grow. As a result, demand for fast charging represented by the growth in EVVIO far exceeds the supply of fast charging stations nationwide. Badar KhanCEO & Director at EVgo00:08:56This supply demand imbalance has been one of the factors driving the fivefold growth in EVgo's throughput per public stall over the past three years and will continue to drive growth in throughput per stall for the foreseeable future. S and P Global's most recent base case forecast from March that takes into account the new administration's policies in electric vehicles suggests 31 of new car sales being fully electric by 02/1930, slightly above where China already is today. The downside forecast is 21% of new car sales, below where China is today, translating to between 45,000,000 EVs on the road by 02/1930. This is half of the target established by the Biden administration of 50% of new car sales by 02/1930. S and P Global's forecast for the supply of DCFC grows to 135,000 stalls by 02/1930 from around 50,000 at the end of twenty twenty four. Badar KhanCEO & Director at EVgo00:10:02In order to maintain the current ratio of EV to DCFC, the industry would need to deploy 40,000 fast chargers a year, which is over three times what was built in 2024. Given that we've now had seven flat to declining quarters of growth in DCSC supply, a flat growth scenario of no faster growth than today may even be too optimistic in a higher tariff environment. The result is a growing ratio of EVVIO to DCFC, which has driven the growth in EVgo throughput historically and a significantly higher ratio in both S and P's base and downside forecasts, which we expect will drive ongoing growth in EBITDA throughput and utilization per store in addition to growth due to network expansion for the foreseeable future. In a higher tariff environment, we may see impacts to both the numerator and denominator in this ratio, leaving the overall supply demand picture potentially even more attractive for EVgo than without the impact of tariffs. Let's now turn to progress on our four key priorities: improving our customer experience operating and CapEx efficiencies capturing and retaining high value customers and securing additional complementary non dilutive financing to accelerate growth. Badar KhanCEO & Director at EVgo00:11:30As always, improving our customer experience remains our number one priority and our strong momentum from last year has continued this quarter. Customers want a charger to be available when they pull up to an EVgo station and we are deploying larger sites where our standard configuration is now six to eight stalls per site. At the end of the first quarter, '20 '1 percent of our sites had six stalls or more. We continue to deploy ultrafast high powered chargers. The number of stalls served by a three fifty kilowatt charger is now 52%, up from 38% a year ago. Badar KhanCEO & Director at EVgo00:12:09AutoChargePlus, our seamless plug and charge capability, continued to gain significant traction in Q1 with auto enrollments from OEM partners. AutoChargePlus accounted for 27% of sessions initiated. And finally, our key customer success metric or one and done increased four percentage points this quarter versus last year with 95% of sessions resulting in a successful charge on the first try. In summary, another great quarter of achievement in improving our customer experience. We've also made excellent progress on our efficiency priorities. Badar KhanCEO & Director at EVgo00:12:46Most notably, we took the MOU with Delta Electronics we signed last October and converted it into a signed joint development agreement to co develop the next generation of charging architecture. EVgo and Delta are making meaningful progress on this initiative that's expected to lower our gross CapEx per store by 30%. We anticipate production of these stores to begin in the second half of twenty twenty six, and we plan to have a prototype for the second quarter of this year. We continue to drive operational efficiencies in our business with call center costs per call declining 37% in Q1 versus last year. Our twenty twenty five vintage CapEx per store is expected to be roughly $135,000 which is an 8% reduction from twenty twenty four vintage stores, including the impact of tariffs. Badar KhanCEO & Director at EVgo00:13:40Irigo's operations team has been diligently working to lower CapEx, and we're delivering savings from lower contractor construction pricing, material sourcing and increased use of prefabricated skids. We expect further improvements in G and A as a percentage of revenue for 2025 while investing in the growth of our business. We also continue to make great progress on our growth priority of capturing and retaining high value customers. 55% of EVO's throughput came from rideshare, OEM charging credit and subscription accounts in Q1. This provides EVgo with a relatively predictable baseload level of demand on our network. Badar KhanCEO & Director at EVgo00:14:25In order to drive overall utilization up while mitigating the impact of congestion, thanks to the investments we have made in our customer marketing platform and dynamic pricing, we are now averaging double digit utilization in the overnight hours, effectively opening up capacity for more drivers during the peak hours. We expect the next major update to our dynamic pricing route rooms in the fourth quarter of this year. We launched native MAX connectors at our first site in February. The pilot of the technology validation is going well. We anticipate adding more NACS connectors to sites over the course of 2025. Badar KhanCEO & Director at EVgo00:15:06Later this year, we plan to launch the first of 400 new flagship stores in partnership with GM with the goal of delivering an elevated customer experience. As a reminder, these sites will feature up to 20 stalls and come with ultrafast three fifty kilowatt chargers, canopies, ample lighting, pull through stations and security cameras, and like all EVgo sites, will be located near a diverse set of amenities that customers can take advantage of while charging. Finally, we expect to expand the number of dedicated stalls serving autonomous vehicle partners, which could represent a very attractive source of potential growth for EVgo given we estimate we have a 20% share of operational sites serving the segment today. As for financing the growth of the business, we have now received both the first and second quarterly advances on our $1,250,000,000 loan guarantee with the DOE LPO. This loan ensures we are fully funded to add at least 7,500 stalls, more than tripling our installed base over the next five years. Badar KhanCEO & Director at EVgo00:16:13Looking ahead to the rest of the year, we expect a complete transfer of our 2024 vintage 30C income tax credits. Over the course of this year, we expect around 30% of our 2025 vintage CapEx to be offset from state, local and federal grants, utility incentives, OEM payments and 30C. Federal incentives in the form of the technology neutral 30C alternative fuels credit and NEVI represent approximately 10% of our 2025 vintage CapEx. As we've said before, we are not particularly reliant on federal incentives. And our next generation architecture program is targeting at least a 30% reduction in gross CapEx per store, significantly more than the value of these federal incentives. Badar KhanCEO & Director at EVgo00:17:06And finally, given the very strong cash flows from our operating assets, we continue to receive inbound interest and evaluate additional complementary non dilutive financing opportunities that would help fund the growth of any charging stations not included in the DOE loan funding to accelerate our growth and to provide diversity in our funding sources. Stephanie Lee will now cover our financial performance for Q1 together with our outlook for 2025. Stephanie LeeEVP - Accounting & Finance at EVgo00:17:37Thank you, Badar. Over the last three years, we have grown our operational installed base by 2.5 times, while our revenues have grown over 12 times. Increasing our scale and maintaining our focus on costs allows us to deliver improving bottom line performance. We continue to expect to achieve our target of adjusted EBITDA breakeven in 2025. Our public network throughput per stall has grown over three times in the last two years, significantly outpacing our charging stall growth. Stephanie LeeEVP - Accounting & Finance at EVgo00:18:08This accelerated performance is driven by multiple factors we've previously discussed, namely EV vehicle miles traveled parity with ICE, significant growth in rideshare, increased multifamily dwellers among EV drivers, increasing vehicle charge rates and larger, less efficient EVs coming to market. Throughput per public stall was two sixty six kilowatt hours per stall per day in Q1 compared to 196 a year ago and roughly flat sequentially, which reflects the seasonal shift from Q4 to Q1 as we saw last year. In the first quarter, total public network utilization increased to 24%, up from 19% a year ago. 67% of our public stalls had utilization greater than 15%. Fifty four % of our public stalls had utilization greater than 20%, and 32% of our public stalls had utilization greater than 30%. Stephanie LeeEVP - Accounting & Finance at EVgo00:19:07Each of these utilization categories have grown significantly over the last two years as the entire utilization curve is shifting to the right. Total throughput on the public network during the first quarter was 83 gigawatt hours, a 60% increase compared to last year. Revenue for Q1 was $75,000,000 which represents a 36% year over year increase. This growth was primarily driven by charging network and extend revenue. Total Charging Network revenues of $47,100,000 grew from $31,600,000 exhibiting a 49% year over year increase. Stephanie LeeEVP - Accounting & Finance at EVgo00:19:48Xtend revenues of $23,500,000 increased from $19,200,000 in the prior year, delivering growth of 23%. Charging Network gross margin in the first quarter was 37.1%, down three seventy basis points from the prior year. The prior year quarter included $2,500,000 of breakage revenue from one of our OEM charging credit program, which is winding down and similar levels of breakage were therefore not expected to recur. Excluding the impact of breakage revenue, our charging network gross margin would have grown 130 basis points year over year. Compared to the fourth quarter of twenty twenty four, charging network gross margin declined primarily due to higher maintenance costs incurred to improve reliability of our charging experience and higher property taxes, which typically increased on '1 each year. Stephanie LeeEVP - Accounting & Finance at EVgo00:20:42Our Extend revenue for the first quarter was up from the prior year due to more construction projects in process or completed and the recognition of certain construction change order costs that were incurred in the prior year. Adjusted gross profit was $25,400,000 in the first quarter of twenty twenty five, up from $17,300,000 in the first quarter of twenty twenty four. Adjusted gross margin was 33.7% in Q1, an increase of two forty basis points compared to last year. Adjusted G and A as a percentage of revenue also improved from 44.4% in the first quarter of twenty twenty four to 41.6% in Q1 of this year, demonstrating the operating leverage effect. Adjusted EBITDA was negative $5,900,000 in the first quarter of twenty twenty five, a $1,300,000 improvement versus negative $7,200,000 in the first quarter of twenty twenty four. Stephanie LeeEVP - Accounting & Finance at EVgo00:21:40Now turning to our 2025 guidance. EVgo continues our top line growth and path to profitability in 2025. Our stall build outlook for the year remains the same with 1,200 to over 1,400 new stalls comprised of seven fifty to eight fifteen public network stalls, 50 to H5 dedicated network stalls and four fifty to five fifty EVgo Xtend stalls. We continue to expect total revenues in the range of $340,000,000 to $380,000,000 As a reminder, we estimate only 10% of our total 2025 revenues are tied to new EV sales. We continue to expect charging network revenue to be two thirds of full year revenue. Stephanie LeeEVP - Accounting & Finance at EVgo00:22:26We anticipate sequential quarterly growth in our Charging Network revenues as we continue to expect quarter over quarter and year over year throughput growth. Similar to last year, we expect to see higher summer electricity costs impacting Q3 charging network gross margin. We continue to expect full year extend revenue to be broadly flat to last year with slightly lower revenues in the second half of twenty twenty five. We expect growth in full year ancillary revenue with most of that growth in Q4 driven by the dedicated fleet business. We expect adjusted G and A to increase modestly throughout 2025 as we continue to make investments in areas such as our next generation charging infrastructure. Stephanie LeeEVP - Accounting & Finance at EVgo00:23:09We continue to expect improvements in charging network gross margin and adjusted G and A as a percentage of revenue, driving bottom line adjusted EBITDA improvement. We therefore continue to target adjusted EBITDA breakeven in 2025 with a range of negative $5,000,000 to positive $10,000,000 We continue to expect fiscal CapEx net of offsets to be in the range of $160,000,000 to $180,000,000 We are ramping up our mobilizations with approximately 75% of our 2025 vintage public network sales expected to operationalize in the second half of twenty twenty five. Q4 is expected to account for approximately 50% of total 2025 public network installed. Operator, we can now open the call for Q and A. Operator00:23:58Thank Your first question comes from Andreas Sheppard with Cantor Fitzgerald. Your line is open. Badar KhanCEO & Director at EVgo00:24:22Good morning, Andreas. Andres SheppardAnalyst at Cantor Fitzgerald00:24:23Hi, everyone. Good morning. Congratulations on another great quarter and thank you so much for taking our questions. Maybe just to start, you touched on this briefly in your prepared remarks, hoping for maybe a bit more color. I'm wondering if you could maybe just give us a bit more cadence in terms of guidance for the rest of the year, particularly around cost of energy, ASPs. Andres SheppardAnalyst at Cantor Fitzgerald00:24:52You mentioned Q3, I think, will be the weakest. But basically, ASPs, gross margin and how we should think about the ramp up of the DOE loan, stalls throughout the rest of the year? Thank you. Badar KhanCEO & Director at EVgo00:25:07Andres, yeah. Yeah. We provided guidance. It hasn't changed since the last quarter. On the ramp up of the loan, we provided a stall build schedule on the last quarterly call, and that remains remains the same. Badar KhanCEO & Director at EVgo00:25:22So that's that's 750 to 850 stalls public network stalls for the full year together with about 50 to 85 dedicated stalls, 450 to 550, stalls through our extend program. So that hasn't changed. As also hasn't changed, we expect about 75% of the public stalls to be in the second half of the year, about 50% in q four. So you can you can kinda work out q two given we've got q one. In terms of the rest of the year, q three is typically the quarter as we saw last year where we got higher energy costs. Badar KhanCEO & Director at EVgo00:26:08That'll that'll really be the same shape for this year. In terms of average selling price, I'd expect us to see, you know, prices where they are today, maybe slightly expanding. I mean, Heather mean, Stephanie, any other comments in terms of guidance? Stephanie LeeEVP - Accounting & Finance at EVgo00:26:25No. I think that that covers it. Badar KhanCEO & Director at EVgo00:26:27Mhmm. K. Andres SheppardAnalyst at Cantor Fitzgerald00:26:31Got it. Okay. That's super helpful. I appreciate all that color. And maybe just a bit of an odd question. Andres SheppardAnalyst at Cantor Fitzgerald00:26:36But as we are seeing an acceleration in autonomous vehicles and self driving technology, Can you maybe remind us, you know, what what are EVgo's strategy to try to capture some of this market and and how you might address, autonomous vehicles charging in the future? Thank you. Badar KhanCEO & Director at EVgo00:26:56Yeah. Look. We as we said last quarter, we broke out the the number stalls, that are serving, that are dedicated stalls serving, the kind of autonomous vehicle segment. That's that's separated out in our store count from last quarter. And we more than doubled in 2024 the number of stalls that we currently already have in place serving that sec that segment. Badar KhanCEO & Director at EVgo00:27:23You know, we estimate there's not great data on this, but we estimate we've got about a 20% share, so a pretty good share of, dedicated stalls serving the segment. And so we're quite excited by it. These, stalls have a different cash flow profile. They're contracted cash flows versus our public stalls, which rely on charging revenue, of course. And so we're we're quite excited by it. Badar KhanCEO & Director at EVgo00:27:48We do think it could be a source of of interesting upside for the business given the the regulations around the space seems to be a little bit easier than than where we had them in the past. Andres SheppardAnalyst at Cantor Fitzgerald00:28:05Wonderful. Thank you so much. Really appreciate it, and congratulations on the quarter again. Well, pass it on. Badar KhanCEO & Director at EVgo00:28:10Yep. Operator00:28:12The next question comes from Chris Dendrinos with RBC Capital Markets. Your line is open. Chris DendrinosVice President at RBC Capital Markets00:28:20Yes. Good morning and thanks for taking the question. Badar KhanCEO & Director at EVgo00:28:22Absolutely. Chris DendrinosVice President at RBC Capital Markets00:28:24I guess maybe on the financing side of things, and it was great to see that you all got that second advance from the DOE. I guess maybe on the private side and you mentioned you're exploring some funding options. Can you provide an update on timing around that? And maybe what specifically are you all kind of looking at as far as options go? Thanks. Badar KhanCEO & Director at EVgo00:28:46Yes. I mean just on the first point, we are obviously very happy with where we are in financing. We've, we expect quarterly advances, in line with the agreement that we signed with the with the DOE in December. And this second quarter advance was, you know, in line with how we're asking our plans. In terms of additional financing, we we do continue to get just these cash flows generate so strong these assets generate so strong cash flows. Badar KhanCEO & Director at EVgo00:29:13You know, we continue to get quite a lot of interest from others. We're looking to finance further accelerate the growth of the business. And so that's really where the conversation is. Are there stores that are not eligible to be funded by DOE? We for instance, the AV space, but potentially others. Badar KhanCEO & Director at EVgo00:29:33But also just to type it. So it makes it makes good business sense to diversify your sources of funding. In terms of timing, we know we're in the dialogue today with folks. If we find something that is attractive for ourselves, counterparties, then we'll obviously look to execute. And I expect that that might take place some point during the course of this year. Chris DendrinosVice President at RBC Capital Markets00:29:53Got it. And then I guess maybe just a follow-up on that point around it being attractive and the ability to accelerate. I guess, are are you indicating that you you would look to potentially accelerate activity if you find an attractive, I guess, arm arm of financing? Is that is that correct? Thanks. Badar KhanCEO & Director at EVgo00:30:13Yeah. I mean, over the course of the five years, the the schedule that we've laid out, in the last two calls showed us showed what the stall schedule build schedule would look like under DOE, loan financing. And so what we're looking at is both from a a balance sheet and operational perspective, what would it take to increase that level of stall build out? You know, what we've got today gets us to about 11,000 stalls in about five years' time, and we provided those economics in the last two calls. Quite you know, what we're asking ourselves is what would it take to accelerate that schedule, build out over the next five years. Chris DendrinosVice President at RBC Capital Markets00:30:56Got it. Thank you. Badar KhanCEO & Director at EVgo00:30:58Yep. Operator00:31:00The next question comes from Chris McNally with Evercore ISI. Your line is open. Chris McnallyAnalyst at Evercore00:31:10Thanks so much, team, and thanks for taking the call. So I appreciate all of the 2,030 comments. I think we all see the huge growth in the car park that will eventually come. I think our question is around maybe your views on the potential changes of revoking IRA and or the EV EPA mandates, which may come. Sort of our thought is what if we get sort of that worst case scenario in the upcoming tax bill in the second half where incentives are removed and 2,030 targets are removed. Chris McnallyAnalyst at Evercore00:31:43My question is how does EV go potentially change their rollout strategy geographically within The U. S? Places like California become even more valuable given EV density, whereas maybe expansion states, there's a change in the math as a result of regulation changes. So big picture question, but I would appreciate your thoughts. Badar KhanCEO & Director at EVgo00:32:05Yeah. Chris, I mean, I think taking a step back as a reminder, our business is not true. You know, we're not selling cars. We're selling kilowatt hours. And so, what drives our business is both the the demand for kilowatt hours, which is represented by the growth in VIO, electric vehicle v I o, as well as, the supply of industry wide, DC fast chargers. Badar KhanCEO & Director at EVgo00:32:34And that's that's the sort of demand supply that, in fact, impacts the sale of kilowatt hours. And so what we see as we played out on that slide is even in the most conservative forecasts, which takes into account, you know, sort of a a shift in federal policies with respect to, you know, sale of electric vehicles, we would expect to see the ratio of cars to nationwide industry wide fast chargers to to still almost double. And so that supply demand picture remains very attractive for us given that it's only grown by about a third in the last three years. And yet in that same time period, our throughput per stall has grown fivefold. And so I think that that that is how we think about the the sort of situation. Badar KhanCEO & Director at EVgo00:33:31This is a pretty resilient the owner operator of fast charging business model is actually quite a resilient business model. With respect to your specific questions, sure, if, if we find that states continue to offer, incentives, for electric vehicles and other states aren't offering such attractive incentives, then we would, of course, expect to see more EV sales in individual states. Our network plan that we that we update continuously takes into account all of these sorts of forecasts, and we adjust. At any one point in time, we are, looking at a network plan that goes out two or three years that gives us quite a lot of optionality. We've got about 30,000 stalls that we've already identified across The United States that meet our return expectations, the kind of, returns that we're, we're demonstrating today. Badar KhanCEO & Director at EVgo00:34:26So we feel we've got tons of, flexibility and optionality to be able to shift to wherever demand is. Chris McnallyAnalyst at Evercore00:34:33That's that's that's excellent. And do you have a sense in those medium term, you know, geographic plans? I mean, if we're talking about EV VIO of, you know, to your to your point, the range of 20 to 26 in your in your in your forecast, you know, sort of 7% to 10% penetration of the car park. Where do you see sort of the most attractive markets, meaning where the return is the highest when you think about California, right, where it's sort of approaching Europe like penetration ratios. Just any rules of thumb that help us when we think about where a market becomes the most attractive once it hits the penetration level of the car park of x? Badar KhanCEO & Director at EVgo00:35:18Yeah. I mean, look. For us, when we think about return, we're obviously thinking about the productivity of the stalls, so the kilowatt hours, the throughput per stall per day, but we're also taking into account the cost of the stalls, so the CapEx, Cost of construction might vary across The United States, the availability of incentives. I will tell you that overall utilization as we show show today is 24%. We actually have higher utilization outside California. Badar KhanCEO & Director at EVgo00:35:47We've got more throughput in aggregate outside California. Some of our fastest and top states today are places like Texas, Florida, Arizona, Michigan, and and none of these states are in the, the the Clean Cars two program, that California has adopted. So, you know, I I expect these you know, I expect to see the growth in those states continue as they have done, in the last couple of years. Chris McnallyAnalyst at Evercore00:36:20That's really great. That helpful info on the on the sort of the the the micro markets, the the examples you gave. Thank you so much, team. Badar KhanCEO & Director at EVgo00:36:27Absolutely. Operator00:36:30The next question comes from Bill Peterson with JPMorgan. Your line is open. Badar KhanCEO & Director at EVgo00:36:37Good morning, Bill. Bill PetersonEquity Research at JP Morgan00:36:38Yes. Hi. Good morning. Thanks for taking the questions and nice job on the quarterly execution and it's nice to see the reiteration of the financial and other factors. You'd sound them alone, it seems like all systems are go, but just to remove any doubt, are there just any remaining items that you and the team are working through? Bill PetersonEquity Research at JP Morgan00:36:56I guess just want to try to understand how the current engagements are. Are they constructive? Are they or are they still probe around the edges or doing further investigations? And, you know, we understand that a lot of people at the LPO have left or or being forced out or or, you know, base leaving out their own will or whatever. Just what's your current level of engagements with the LPO? Badar KhanCEO & Director at EVgo00:37:14Yeah. I mean, it's built a very productive engagement with the LPO team. I I really can't comment on their overall staffing levels other than to say that the folks that we're working with are the same folks that we're working with over the last several months. You know? And our our quarterly advance, both the first and second and the monthly we have monthly draws and reimbursements in in line with our agreements. Badar KhanCEO & Director at EVgo00:37:41They're all progressing in the way that we expected. And so, you know, I you know, I you could call this sort of business as usual activity. You know, we're several months into this at this point, and, you know, we're, I think, pleased with how it's going. Bill PetersonEquity Research at JP Morgan00:37:59That that's great. Just wanted to just wanted to make sure. And then I I had some clarifying questions on the tariffs, and thanks for the the color on that. So, you know, what are the assumptions around the tariff rate to get to this $44,000,000 to $5,000,000 I guess, think of 32% on Taiwan as an example. Is that the right way? Bill PetersonEquity Research at JP Morgan00:38:16And I guess on this $10,000,000 in efficiencies, can you provide any additional color on that? It sounds like you're giving that anyway regardless of where the tariff environment still stands. And then maybe looking into next year, it sounds like you reiterated this sort of 30% CapEx reduction with the program you have with Delta. But is that reduction still assuming the same tariff environment we have today? And if so, like, how do you get there? Badar KhanCEO & Director at EVgo00:38:40Yeah. So, Bill, the the 4 to 5,000,000, that's, that's a fiscal year, not vintage year. So that is the impact on the the the calendar year capital spend that we incur in 2025, and that's based off about 45 to $50,000,000 of imports, of, of, you know, imported equipment where, you know, we've we've already got about half of that either already here in The States or on shipping containers, so there's no tariff on that. We expect about a 10% tariff on a quarter, of what we is not already here and about a 32% tariff on the other quarter. And that's really how you get to the 4 to 5,000,000. Badar KhanCEO & Director at EVgo00:39:24In terms of the efficiencies, yeah, these efficiencies, you know, we we had a as we said last quarter, and we reported a 9% improvement reduction in our vintage 2024 CapEx per stall versus what we were expecting. We were expecting about a 60. We took about 9% off that in 2024. This year, we're expecting about 8% on versus where we ended 2024, and that's just our operations team just going about business. You know, construction pricing, material sourcing, prefab skids, we expected we'd be at 40% of our mix this year. Badar KhanCEO & Director at EVgo00:40:06It's gonna be a little higher. The cost per skid is gonna be a little lower, so it's just, you know, business as usual activity. For f y twenty six, we haven't provided guidance specifically for vintage f y twenty six CapEx, but, you know, you'd expect it to include, you know, the benefits from all the savings that we captured so far. In addition, by the second half of twenty six, we'll start to roll out our new charging a a charging architecture through the the development with Delta Electronics. That's a 30% improvement on that one sixty that we began that we we're expecting to begin 2024. Badar KhanCEO & Director at EVgo00:40:48So, you know, we're you know, this is just business as usual. We think that this is a a real source of competitive advantage for EVgo versus the, you know, dozens of dozens of other fast charging companies that that you're all aware of where we've got scale. We're able to partner with a global leader and really drive down, you know, efficiencies, in CapEx. So we're pretty pleased with where we are. Bill PetersonEquity Research at JP Morgan00:41:16Thanks for all the details, Byron. So it's terrific to hear that. And and, again, congrats on the quarter. Badar KhanCEO & Director at EVgo00:41:20Thanks so much. Operator00:41:22The next question comes from Chris Pierce with Needham and Company. Your line is open. Chris PierceSenior Analyst at Needham & Company00:41:31Hey, morning, everyone. Badar KhanCEO & Director at EVgo00:41:32Good morning. Chris PierceSenior Analyst at Needham & Company00:41:33Can you just walk me through when I think about dynamic pricing and you hit on another call about driving utilization in the overnight hours, I think about cost savings to the driver. But you guys grew ASP per watt, you know, mid single digits year over year. I just wanna get a sense of pricing power on the network you have, or how are you able to like, how those two sort of balance out? Badar KhanCEO & Director at EVgo00:41:59Yeah. Look. With dynamic pricing, what we're doing is we're looking to maximize margin. And so in some places, we're looking to that we may see ourselves increase price. In other places, we may see ourselves reduce price, but with the goal of maximizing margin. Badar KhanCEO & Director at EVgo00:42:19I would say that, again, this is another one of our sources of real competitive advantage versus these dozens of other smaller companies in the fast charging space or companies that just aren't focused on on utilization for whatever reason. You know, we are through both the investments we've made in our marketing, our understanding of customers, our reach out to customers, the dynamic pricing, which is effectively pricing signals. We are shifting who is charging at what time of the day where we are trying to open up, hours of the day that might be, peak hours of the day where we may have your price, you know, sort of in inelastic customers, and that that really is serving us very well. We expect the next round of the algorithms in this dynamic pricing to go live in the fourth quarter where I'm looking for, you know, the next level of sophistication here. And and this is not yeah. Badar KhanCEO & Director at EVgo00:43:22We're not talking about something being reinvented here. We're we're taking kind of concepts that have been very successfully executed in other parts of the economy, into the space. Chris PierceSenior Analyst at Needham & Company00:43:33Okay. And and is it safe to say you haven't seen anything any demand signals or anything that would cause you to back off the, you know, the level of pricing power you think you have on the network? Badar KhanCEO & Director at EVgo00:43:42You know, Chris, I didn't fully capture the question, but I think the answer is have we seen anything that would cause us to back off? The answer is no. Chris PierceSenior Analyst at Needham & Company00:43:50Okay. And then just lastly, housekeeping. Can you remind me, like, on the typical seasonality? I know this is sort of a young business, and you've had the growth you've had, so it's sort of hard to pick out the seasonality. But, you know, network throughput down modestly sequentially, but how should we think about seasonality the rest of the year? Chris PierceSenior Analyst at Needham & Company00:44:05And then when you layer on SAL growth too, like, how should we think about the cadence of network throughput? Badar KhanCEO & Director at EVgo00:44:09Yeah. I mean, look. So so network throughput is was actually kinda flat, to be honest. We had some rounding. So last quarter, we rounded up. Badar KhanCEO & Director at EVgo00:44:17This quarter, we're rounding down. So network throughput's kinda broadly flat, which is pretty much where it was almost exactly last year, between q four and q one. And so we we expected that. Certainly, we'd expect to see network throughput obviously grow in q two and q three, and q four as we same shape we saw last year sequentially from q four to q one. That's that really aligns with sort of VMT, vehicle miles traveled for EVs across United States. Badar KhanCEO & Director at EVgo00:44:46So I mean, that's really how we think about the profile. Chris PierceSenior Analyst at Needham & Company00:44:52Okay. Thank you. Badar KhanCEO & Director at EVgo00:44:53Yep. Operator00:45:02Your next question comes from Craig Irwin with ROTH Capital Partners. Your line is open. Badar KhanCEO & Director at EVgo00:45:08Good morning, Craig. Craig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLC00:45:09Good morning, Badar. Good morning, everyone. Thanks for taking my questions. So I wanted to ask about the progress with the Tesla connectors, the NAS connectors you mentioned earlier in prepared remarks. Can you maybe frame out for us where you're at with this? Craig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLC00:45:28Are you really just in testing? Or will we potentially see dozens or more stations retrofit over the course of the year? And is it fair for us to start asking about new customers added that are Tesla customers? I know you had another strong quarter with a 19,000 new customers. But, you know, is the is the Tesla fleet starting to layer in and and help you on the on the demand side? Badar KhanCEO & Director at EVgo00:45:58Yeah. Craig, so, I mean, clearly, with such a high percentage of, you know, well over half or more of overall EV, VIO being Tesla drivers and the fact that our charging stations are faster at three fifty kilowatt, and they tend to be closer to where all drivers, including Tesla drivers, live, work, and run errands versus highway stations, that we are very attracted, to, capturing this segment. But we need to do two things. We need to make sure that, you know, the the the system, you know, they work. And so what we've been doing this past quarter is going through that technology validation. Badar KhanCEO & Director at EVgo00:46:44That's both in terms of, you know, the connection, but also the speed. You know, at three fifty kilowatt, we need to have we need to have to make sure we got the right cables that can accommodate a higher speed than a Tesla supercharger. And, you know, the second thing that we need to make sure that we're we're paying very close attention to is if we take out a CCS connector, we don't end up killing demand for some period of time before the next cable catches up to where the demand was in the CCS cable. And so, you know, that that's really what we're juggling. Like, everything at EVgo, it's very data driven. Badar KhanCEO & Director at EVgo00:47:22So we are looking at sites across the country, that perhaps have opportunities for us to swap out a lower performing CCS cable with a max cable that is also located close to where Tesla drivers are based, which is, you know, frankly everywhere. So it's quite data intensive. We do expect to start rolling out these cables, but it's probably gonna be on a retrofit basis maybe in the hundred to a 50, you know, know, potentially, you know, give or take around those sorts of numbers over the course of this year. I for our next generation charging architecture, which will be second half of next year, we expect they'll be all max cables from the outset, if not before that, with the current generation chargers. Craig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLC00:48:08Excellent. Thank you for that update. So so my next question is on the extend revenue. So, again, this quarter was pretty strong, and it's nice to see you you're building a network out there with with partners and, you know, incremental incremental profits, incremental driver service, always a good thing. Do you have potential for other Xtend customers that could come in over the course of the next year? Craig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLC00:48:35And how should we think about the shape of Xtend growth, the revenue contribution, in this year? Is it gonna be as back end loaded, as the stall build out, or, is this something that's gonna be a little bit more linear as as we look at the year? Badar KhanCEO & Director at EVgo00:48:51Yeah. So just two things there on the on the extend business. We know we are not looking at we're not actively pursuing more extend partners, Craig, we've got a great relationship with, PFG, the product company, and we're deploying, you know, throughout the course of this relationship, 2,000 stalls. The the bill schedule there, we gave an illustrative view on the last quarter. So if you look at the last quarter slides, there's a a sort of little bar that's semi shaded that gives a sense of what that schedule could look like through 2028. Badar KhanCEO & Director at EVgo00:49:30In in terms of this year, the Xtend business is broadly half sorry, broadly flat in terms of revenue versus last year, slightly lower in the second half versus the first half. And remember, the revenues from Xtend are both equipment sale as well as construction revenues. So sometimes it could be a little lumpy, but it's, we expect it to broadly similar similar to last year, be a little less in the second half versus sec versus the first half. Craig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLC00:50:02Thank you for that. I'll I'll take the rest of my questions offline. Badar KhanCEO & Director at EVgo00:50:05Absolutely. Yeah. Thanks, Greg. Operator00:50:08This concludes this concludes the question and answer session. I'll turn the call to Badar Khan for closing remarks. Badar KhanCEO & Director at EVgo00:50:15Well, thank you, everyone. We had yet another strong quarter. With a strong balance sheet, we are in a particularly strong competitive position. Together with a business model that's minimally impacted by tariffs and a supply demand picture that should underpin continued growth, we are well on our way to delivering adjusted EBITDA breakeven this year, and I look forward to providing updates throughout the course of this year. Thanks very much, everyone. Operator00:50:41This concludes today's conference call. Thank you for joining. You may now disconnect.Read moreParticipantsExecutivesHeather DavisVice President, Investor RelationsBadar KhanCEO & DirectorStephanie LeeEVP - Accounting & FinanceAnalystsAndres SheppardAnalyst at Cantor FitzgeraldChris DendrinosVice President at RBC Capital MarketsChris McnallyAnalyst at EvercoreBill PetersonEquity Research at JP MorganChris PierceSenior Analyst at Needham & CompanyCraig IrwinManaging Director, Senior Research Analyst at Roth Capital Partners, LLCPowered by