EVgo Inc.

Hello and welcome to the EVGO Inc. Q1 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session, and if you would like to ask a question during this time, please press star 1 on your telephone keypad. I would now like to turn the conference over to Heather Davis, Vice President of Investor Relations. You may begin.

Good morning. Welcome to EVgo's first quarter 2025 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 Badr 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 EVgo's first quarter 2025 financial results, followed by a Q&A session. Today's call is being webcast and can be accessed on the investor section of our website at investors.ebgo.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-K and quarterly reports on Form 10-Q. The company's SEC filings are available on the investor section of our website. These 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 investor section of our website. With that, I'll turn the call over to Badr Khan, EVGO's CEO.

EVGO 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 five-fold in three years. 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 13th 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 and a near tenfold growth in three years. We added over 180 new operational stalls this quarter, including extend stalls, and now have over 4,200 operational stalls. And finally, we began the year with a strong cash balance and prospects. We ended the quarter with 171 million in cash, cash equivalents and restricted cash. And at the start of April, we received the next quarterly advance from the DOE loan as expected. As you all know, In December 2024, after an 18-month process, we closed at a $1.25 billion loan guarantee with the Department of Energy Loan Programs Office that secures financing for our trajectory past adjusted EBITDA breakeven this year, leveraged 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 the EV fast charging landscape. Looking 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 2025 net capex estimates as well as spend incurred in 2025 for 2026 vintage stalls. And in fiscal 25, we expected to incur around $45 to $50 million on imported chargers. However, we already have either inventory or on shipping containers just under half of that spend for imported equipment. Therefore, we expect an impact of around $4 to $5 million, 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. source production. In addition, we expect to deliver $10 million in capex efficiencies this year that more than offset the estimated impact of tariffs in 2025. Because we on Tesla EV sales, which grew over 35% compared to Q1 last year. Chevy Equinox EV, Honda Prologue, and Hyundai Ioniq 5 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. That percentage will shrink going forward as the EV car park grows. In addition, EVs sold in the US appear to have more domestic content on average versus ICE vehicles. Therefore, tariffs may have According 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. Seven percent 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. Unlike 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 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, As a result, demand for fast charging represented by the growth in EVVIO far exceeds the supply of fast charging stations nationwide. This supply-demand imbalance has been one of the factors driving the five-fold growth in EVVO's throughput per public stall over the past three years and will continue to drive growth S&P Global's most recent base case forecast from March this year that takes into account the new administration's policies in electric vehicles suggests 31% of new car sales being fully electric by 2030, slightly above where China already is today. The downside forecast is 21% of new car sales below where China is today, translating to between 19 and 26 million EVs on the road by 2030. This is half of the target established by the Biden administration of 50% of new car sales by 2030. S&P Global's forecast for the supply of DCFC grows to 135,000 stalls by 2030, from around 50,000 at the end of 2024. In 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 DCFC 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 EV-VIO to DCFC which has driven the growth in easy-go throughput historically and a significantly higher ratio in both S&P's base and downside forecasts, which we expect will drive ongoing growth in easy-go throughput and utilization per stall, 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 in CapEx efficiencies, capturing and retaining high-value customers, and securing additional complementary non-diluted financing to accelerate growth. As 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, 21% of our sites had six stalls or more. we continue to deploy ultra-fast high-powered chargers. The number of stalls served by a 350-kilowatt charger is now 52 percent, up from 38 percent a year ago. AutoCharge Plus, our seamless plug-and-charge capability, continued to gain significant traction in Q1 with auto-enrollments from OEM partners. 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. Most 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 stall by 30 percent. We anticipate production of these stalls to begin in the second half of 2026 and we plan to have a prototype by the second quarter of this year. We continue to drive operational efficiencies in our business with call center costs vintage stalls, including the impact of tariffs. EVgo'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&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 EVGO'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. In order to drive overall utilization up while mitigating the impact of congestion, thanks to the investments effectively opening up capacity for more drivers during the peak hours. We expect the next major update to our dynamic pricing algorithms in the fourth quarter of this year. We launched native NAX connectors at our first site in February. The pilot of the technology validation is going well. We anticipate adding more NAX connectors to sites over the course of 2025. Later this year, we plan to launch the first of 400 new flagship stalls in partnership with GM with the goal of delivering an elevated customer experience. As a reminder, these sites will feature up to 20 stalls. They come with ultra-fast 350-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 this segment today. As for financing the growth of the business, we have now received both the first and second quarterly advances on our $1.25 billion loan guarantee with the DOE LPO. Sloan ensures we are fully funded to add at least 7,500 stalls, more than tripling our installed base over the next five years. Looking 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 stall significantly more than the value of these federal incentives. And 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.

Thank you, Badar. Over the last three years, we have grown our operational stall base by two and a half times, while our revenues have grown over 12 times. Increasing our scale and maintaining our focus on cost allows us to deliver improving bottom line performance. We continue to expect to achieve our target of adjusted EBITDA break even in 2025. Our public network throughput per stall has grown over three times in the last two years, significantly outpacing our charging stall growth. This accelerated performance is driven by multiple factors we previously discussed, namely EV vehicle miles traveled parity with ICE, significant growth in ride share, increased multifamily dwellers among EV drivers, increasing vehicle charge rates, and larger, less efficient EVs coming to market. throughput per public stall was 266 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%. 54% of our public stalls had utilization greater than 20% and 32% of our public stalls had utilization greater than 30%. Each 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 million, which represents a 36% year-over-year increase. This growth was primarily driven by charging network and extend revenue. Total charging network revenues of $47.1 million grew from $31.6 million, exhibiting a 49% year-over-year increase. Extend revenues of $23.5 million increased from $19.2 million in the prior year. delivering growth of 23%. Charging network growth margin in the first quarter was 37.1%, down 370 basis points from the prior year. The prior year quarter included $2.5 million of breakage revenue from one of our OEM charging credit programs, which is winding down, and similar levels of breakage were therefore not expected to recur. Excluding the impact of breakage revenue, our charging network growth margin would have grown 130 basis points year over year. Compared to the fourth quarter of 2024, charging network growth margin declined primarily due to higher maintenance costs incurred to improve reliability of our charging experience and higher property taxes, which typically increase from January 1st of each year. Our extended 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 a prior year. Adjusted growth profit was $25.4 million in the first quarter of 2025, up from $17.3 million in the first quarter of 2024. Adjusted growth margin was 33.7% in Q1, an increase of 240 basis points compared to last year. Adjusted G&A as a percentage of revenue also improved from 44.4% in the first quarter of 2024 to 41.6% in 2-1 of this year, demonstrating the operating leverage effect. Adjusted EBITDA was negative $5.9 million in the first quarter of 2025, a $1.3 million improvement versus negative $7.2 million in the first quarter of 2024. Now, 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 750 to 815 public network stalls, 50 to 85 dedicated network stalls, and 450 to 550 EVgo-extend stalls. We continue to expect total revenue in the range of $340 million to $380 million. 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. We 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 growth margins. We continue to expect full-year extend revenue to be broadly flat to last year, with slightly lower revenues in the second half of 2025. 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&A to increase modestly throughout 2025 as we continue to make investments in areas such as our next-generation charging infrastructure. We continue to expect improvements in charging network growth margin and adjusted G&A as a percentage of revenue, driving bottom line adjusted EBITDA improvements. We therefore continue to target adjusted EBITDA breakeven in 2025 with a range of negative $5 million to positive $10 million. We continue to expect fiscal capex net of offset to be in the range of $160 million to $180 million. We are ramping up our mobilizations with approximately 75% of our 2025 vintage public network cells expected to operationalize in the second half of 2025. Q4 is expected to account for approximately 50% of total 2025 public network cells. Operator, we can now open the call for Q&A.

Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. If you would like to withdraw your questions, simply press star one again. Please ensure you are not on speakerphone and that your phone is not on mute when called upon. Thank you. Your first question comes from Andreas Shepherd with Cantor Fitzgerald. Your line is open.

Morning, Andreas. Hi, 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. You 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.

Andres, 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 the same. 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. Also hasn't changed, we expect about 75% of the public stalls to be in the second half of the year, about 50% in Q4. So you can kind of work out Q2 given we've got Q1. In terms of the rest of the year, Q3 is typically the quarter, as we saw last year, where we got higher energy costs. That'll really be the same shape for this year. In terms of average selling price, I'd expect us to see prices where they are today, maybe slightly expanding.

Got it. Okay. That's super helpful. I appreciate all that color. And maybe just a bit of an odd question, but as we are seeing an acceleration in autonomous vehicles and self-driving technology, can you maybe remind us, you know, what are EVgo's strategy to try to capture some of this market and how you might address autonomous vehicles charging in the future? Thank you.

Yeah, look, as we said last quarter, we broke out the number of stalls that are serving, that are dedicated stalls serving the kind of autonomous vehicle segment. And so that's separated out in our stall count from last quarter. And we more than doubled in 2020. 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. by it. We do think it could be a source of interesting upside for the business, given the regulations around the space seems to be a little bit easier than where we had them in the past.

Wonderful. Thank you so much. Really appreciate it. And congratulations on the quarter again. We'll pass it on.

The next question comes from Chris Dendrinos with RBC Capital Markets. Your line is open.

Yeah, good morning, and thanks for taking the question. Absolutely. I 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? you know, what specifically are you all kind of looking at as far as options go?

Thanks. Yeah, I mean, just, you know, just on the first point, you know, we are obviously very happy with where we are in financing. We expect quarterly advances in line with the agreement that we signed with the DOE in December. And this second quarter advance was, you know, in line with our ask and our plans. In terms of additional financing, we flows. 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? For instance, the AV space, but potentially others. But also just to make 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 and counterparties uh then we'll obviously look to execute and i expect that that might take place some point during the course of this year got it and then i guess maybe just to follow up on that point around it being attractive and the ability to accelerate um i guess are you indicating that you you would look to potentially accelerate activity if you find an attractive

I guess, arm of financing. Is that correct?

Thanks. Yeah, I mean, over the course of the five years, the schedule that we've laid out and the last two calls showed us, showed what the stall schedule, build schedule would look like under DOE loan financing. And so, all build out. What we've got today gets us to about 11,000 stalls in about five years' time. We provided those economics in the last two calls. What we're asking ourselves is, what would it take to accelerate that schedule build out over the next five years?

Got it. Thank you.

Yep. The next question comes from Chris McNally with Evercore ISI. Your line is open.

Thanks so much, team, and thanks for taking the call. So I appreciate all of the 2030 comments. I think we all see the huge growth in the car park that will eventually come. I think, you know, our question is around maybe your views on the potential changes of, you know, revoking IRA and or the EV EPA mandates which may come. our thought is, you know, what if we get sort of that worst case scenario in the upcoming tax bill in the second half where incentives are removed and 2030 targets are removed? You know, my question is, how does EV Go potentially change their rollout strategy geographically within the US? You know, places like California become you know, even more valuable given EV density, whereas maybe expansion states, you know, there's a change in the math as a result of regulation changes. So big picture question, but I would appreciate your thoughts.

Yeah, Chris, I mean, I think taking a step back as a reminder, you know, our business is not, you know, we're not selling cars. We're selling kilowatt hours. And so what drives our business is both the demand for kilowatt 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 uh uh you know sort of a shift in federal policies with respect to uh you know sale of electric vehicles we would expect to see the ratio of cars to 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 store has grown five fold and so I think that that that is how we incentives for electric vehicles and other state The 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. able to shift to wherever demand is.

And do you have a sense in those medium term geographic plans? I mean, if we're talking about EV, VIO, to your point, a range of 20 to 26 in your forecast, 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, you know, California, right, where it's sort of approaching Europe-like penetration ratios? Just, you know, any rules of thumb that help us when we think about, you know, where a market becomes the most attractive once it hits a penetration level of the car park of X?

Yeah, I mean, look, for us, when we think about return, per stall per day, but we're also taking into account the cost of the stall, so the capex, the cost of construction might vary across the United States, the availability of incentives. I will tell you that overall utilization, as we've in aggregate outside California. Some of our fastest and top states today are places like Texas, Florida, Arizona, Michigan, and none of these states are in the Clean Cars 2 program that California has adopted. So I expect to see the growth in those states continue as they have done in the last couple of years.

That's really great helpful info on the micro markets, the examples you gave. Thank you so much, team. Absolutely.

The next question comes from Bill Peterson with JP Morgan. Your line is open.

Good morning, Bill. Yeah, 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. It sounds 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? I guess just want to try to understand how the current engagements are. Are they constructive? Or are they still probing around the edges or doing further investigations? And we understand that a lot of people at the LPO have left or are being forced out or leaving it at their own will or whatever. Just what's your current level of engagements with the LPO?

Yeah, I mean, it's a very productive engagement with the LPO team. 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. Our quarterly advance, both the first and in the way that we expected. And so you could call this sort of business as usual activity. We're several months into this at this point, and we're, I think, pleased with how it's going.

That's great. Just wanted to make sure. And then I had some clarifying questions on the tariffs, and thanks for the color on that. You know, what are the assumptions around the tariff rate to get to this 4 to 5 million? You know, I guess think of 32% on Taiwan as an example. Is that the right way? And I guess on this 10 million in efficiencies, can you provide any additional color on that? It sounds like you're getting that anyway, regardless of where the tariff environment still stands. And then maybe looking in the 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, how do you get there?

Yeah. So Bill, the $4 to $5 million, that's a fiscal year, not vintage years. That is the impact on the calendar year capital spend that we incur in 2025. And that's based off about $45 to $50 million of imported equipment where 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 you get to the four to five million. In terms of the efficiencies, yeah, these efficiencies, you know, 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 160. We took about 9% off that in 2024. This year, we're expecting about an 8%. ended 2024 and that's just our operations team just going about business uh you know construction pricing material sourcing prefab skids we expected to be about 40 percent of our mix this year it's going to be a little higher the cost per skid is going to be a little lower so it's just you know business as usual activity for FY26 uh we haven't provided guidance specifically for but you'd expect it to include the benefits from all the savings that we captured so far. In addition, by the second half of 26, we'll start to roll out our new charging architecture through the development with Delta Electronics. That's a 30% improvement on that 160 that we began, that we were expecting to begin 2024. This is just business as usual. We think that this is a real source of competitive advantage for EVgo versus the dozens of other fast charging companies that you're all aware of, where we've got scale, we're able to partner with a global leader and really drive down efficiencies.

Thanks for all the details, Botter. It's terrific to hear that and again, congrats on the quarter. Thanks so much.

The next question comes from Chris Pierce with Needham and Company. Your line is open.

Hey, good morning, everyone. Morning. Can you just walk me through, you know, when I think about dynamic pricing and you hit on it on the call about driving utilization in the overnight hours, I think about, you know, cost savings to the driver. but you guys grew ASP per watt, mid-single digits year over year. I just want to get a sense of pricing power on the network you have, or how those two sort of balance out.

Yeah, look, with dynamic pricing, what we're doing is we're looking to maximize margin. And so in some places, we're looking reduce price, but with the goal of maximizing margin. I would say that again, this is another one of our sources of real competitive 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 price sort of inelastic customers. And 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 the next level of sophistication. of the economy into the space.

Okay. And is it safe to say you haven't seen anything, any demand signals or anything that would cause you to back off the love of pricing power you think you have on the network?

You know, Chris, I didn't fully capture the question, but I think the answer is if we've seen anything that would cause us to back off, the answer is no.

Okay. 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 and then when you layer on cell growth too like how should we think about the cadence of network throughput yeah i mean look so network throughput is was actually kind of flat to be honest uh we had some rounding so last quarter we rounded up this quarter rounding down so

flat, which is pretty much where it was almost exactly last year, between Q4 and Q1. And so we expected that, certainly. We'd expect to see network throughput obviously grow in Q2, Q3, and Q4, as the same shape we saw last year sequentially from Q4 to Q1. That really aligns with sort of VMT. I mean, that's really how we think about the profile.

Okay. Thank you.

Yep.

Again, ladies and gentlemen, if you have a question, it is star one on your telephone keypad. Your next question comes from Craig Irwin with Roth Capital Partners. Your line is open.

Morning, Craig. Good morning. Morning, everyone. Thanks for taking my question. So I wanted to ask about the progress with the Tesla connectors, the NAS connectors you mentioned earlier in your prepared remarks. Can you maybe frame out for us where you're at with this? Are you really just in testing, or will we potentially see dozens or more stations retrofit over the course of the year? know is it fair for us to start asking about the uh the new customers added that are that are tesla customers i know you had a another strong quarter with 119 000 new customers um but you know is the is the tesla uh fleet starting to layer in and help you on the on the demand side um yeah um craig something clearly uh with such a high percentage of well over half or more of

overall EV, VIO being Tesla drivers, and the fact that our charging stations are faster at 350 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 capture in this segment. Well, we need to do two things. We need to make sure that, you know, the system, you know, they work. And so what we've been doing this past quarter is going through that technology validation. That's both in terms of, you know, the connection, but also the speed. You know, at 350 kilowatt, we need to have, we need to make sure we've got the right cables that can accommodate a higher speed than a Tesla supercharger. And, you know, the second thing that we need 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 that's really what we're juggling. Like everything at EVgo, it's very data driven. So we are looking at sites across the country that perhaps have opportunities for CCS cable with a max cable that is also located close to where Tesla drivers are based which is frankly everywhere so it's quite data intensive we do expect to start rolling out these cables but it's probably going to be on a retrofit basis maybe in the 100 to 150 you know potentially give or take around those sorts of numbers over the course of this year Ike's for our next Excellent.

Thank you for that update. So my next question is on the extend revenue. So again, this quarter was pretty strong. And it's nice to see you building a network out there with partners and, you know, incremental profits, incremental driver service, always a good thing. Do you have potential for other extend customers that could come in over the course of the next year And how should we think about the shape of extend growth, the revenue contribution in this year? Is it going to be as back-end loaded as the stall build-out, or is it something that's going to be a little bit more linear as we look at the year?

Yeah, so just two things there on the extend business. We are not looking at partners. We've got a great relationship with PFJ, the pilot company, and we're schedule there. We gave an illustrative view on the last quarter. So if you look at the last quarter slides, there's a little bar that's semi-shaded that gives a sense of what that schedule could look like through 2028. In terms of this year, the extend business is broadly half, sorry, broadly flat in terms of revenues. from extend are both equipment sale as well as construction revenues so sometimes it could be a little lumpy but it's uh we expect to be broadly the similar similar last year maybe a little less in the second half versus versus the first half thank you for that i'll take the rest of my questions offline absolutely yeah thanks ray this concludes this concludes the question and answer session i'll turn the call to batter khan for closing remarks Well, 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 just a bit of break-even.

This concludes today's conference call. Thank you for joining. You may now disconnect.