EVgo Inc.

Thank you for standing by. Welcome to the EVGO second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that this conference is being recorded. I would now like to hand the conference over to your speaker today, Heather Davis, Vice President of Investor Relations. Please go ahead.

Good morning and welcome to EVgo's second quarter 2026 earnings call. My name is Heather Davis and I am the Vice President of Investor Relations at EVgo. Joining me on today's call are Badar Khan, EVgo's Chief Executive Officer, and Keefer Lehner, EVgo's Chief Financial Officer. Today we will be discussing EVgo's second quarter 2026 financial results and our outlook for the year. 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.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 risk and uncertainty. including expectations about future performance. Factors that could cause actual results to differ materially from our expectations are detailed in our SEC filings including in the risk factor 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 definitions and applicable reconciliations 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 Badar Khan, EVGO's CEO.

Thank you, Heather. EVGO delivered solid results for the second quarter in line with our expectations while continuing to build a durable nationwide infrastructure network. We have a proven track record of growth in both operational stalls and revenue. Since 2021, the year we went public, Our operational stalls are expected to increase nearly four-fold by the end of 2026. We've delivered consistent growth year in and year out. Total revenue is expected to increase even faster at 19 times by the end of 2026. Revenue growth is driven by a combination of stall additions, increasing daily throughput per stall, and our non-charging revenue tied to extend and autonomous vehicles lines of business. What's really impressive is through 2025, our revenue compound annual growth rate has exceeded 100%, putting us in the top 1% of US public company revenue growth rates and around three times higher than our public charging peers. We are thrilled to announce that EVgo and Tesla have entered into an agreement to deploy EVgo branded superchargers. Through this agreement, EVgo will own these EVgo-branded superchargers, select their location, and set pricing, while Tesla builds and operates the chargers under a long-term arrangement. We expect to deploy EVgo superchargers in dozens of cities across the US starting this year. Together with the next connectors we are rolling out across our existing network, this more than doubles our addressable market by reaching both Tesla and non-Tesla NAX drivers. This enables EVgo to accelerate our deployment of NAX connectors with a goal of all 2023 vintage and newer sites having a NAX connector within the next two years. These V4 superchargers are 500 kilowatts and equipped with Tesla's Magic Dock technology, enabling effortless charging for all EV drivers. serving both NACs and CCS vehicles with no adapter needed. Consistent with our existing strategy, these sites on the EVO network will be located near the retail shops, restaurants, and everyday destinations where drivers already spend time, with up to 20 stalls per site and longer cables so every driver can easily plug in, regardless of in-location on the vehicle. EVgo Supercharger locations will be available in Tesla's NAV and Trip Planner, and all EVgo stations with NAX connectors will also be available in the Tesla NAV once a driver enables third-party stations. Importantly, we expect to deploy these assets with little to no incremental growth G&A at a gross capital cost per stall broadly equivalent to our current bills and we expect to finance these stalls through existing EVgo financing sources. Buying these V4 superchargers from Tesla also diversifies our supply chain toward more U.S. made chargers. In addition to EVgo superchargers, we continue to make progress on our next generation charging architecture being developed at EVgo's Innovation Lab with the first units expected to be installed by the end of If you go, it's among the top three largest fast charging operators in the country, along with Tesla and Electrify America, and is around 14 times larger than the average of the rest of the industry. We built our network at great sites near amenities that EV drivers are looking for. We believe our real estate relationships and site selection process, together with our rideshare partnerships with leading companies like Uber and Lyft, and the rest of the industry. The combination of industry leading scale and partnerships, investment class customer engagement and experience supported by our next generation charging architecture is what drives five-fold higher utilization at our sites versus the rest of the industry. With almost 5,400 stalls, including 4,000 EVGO owned and operated, EVGO is the third largest public fast charging network in the U.S. We have over a 15-year track record, identifying and deploying over 1,200 utility-connected sites at optimal urban and suburban locations across the U.S. Our sites, our existing sites have approximately 600 megawatts of connected power capacity, including approximately 45% unutilized capacity at current utilization levels. Over the next five years, our installed base is expected to quadruple to over two gigawatts of utility connected capacity with approximately one gigawatt of potential usage expansion. We are beginning to evaluate whether there are complementary revenue streams available to us to monetize this excess capacity, whether that is utilized as demand response, battery energy storage systems, or capacity for a distributed edge AI inference network. Our network strategy has always been to locate sites in urban and suburban locations close to where drivers go about their lives, and therefore, by definition, close proximity to energy demand which is potentially very attractive. EV vehicles in operation have grown at a 40 percent TAGR since 2021 and are expected to grow another 17 percent annually through 2030 to reach nearly 13 million by the end of 2030 according to S&P's latest forecast from June 2026. Our total BIO is expected to be lower than previous forecasts and a half years with an underlying growth rate that remains highly supportive of our business model and one that is highly attractive even when compared to other high growth sectors. The EV market appears to be stabilizing after the loss of federal incentives at the end of Q3 25 with higher gas prices pinching American Wallet 247,000 up 15% from Q1. About a dozen states are offering EV incentives to consumers to spur EV adoption. Most notably, California has recently announced consumer incentives, rideshare incentives, and charging incentives for rideshare drivers. Consumer incentives aim to backfill the expired federal tax with $3,500 for new EVs and $1,750 for used vehicles. For rideshare drivers, the California incentives expected to go live in Q3 are even stronger with incentives of $20,000 for new EVs and $14,000 for used EVs for income qualifying drivers. The used market remains a bright spot for EV sales with both new drivers for trying out fully electric cars at cheaper price points, and for EVgo because used vehicle owners are less likely to have charging at home and more reliant on public fast charging. With over 1.5 million vehicles coming off lease between 2026 to 2028, this used vehicle supply not only helps meet consumer demand, but also provides a significant tailwind for EVgo. With our updated view of the underlying market, were showing what an illustrative owned and operated EVGO network could look like by 2028 and by 2030. Despite near-term market noise, we continue to expect EVGO to be generating recurring adjusted EBITDA of approximately half a billion dollars by 2030. The economics of our business are driven by three things. Number of stalls in operation, daily throughput per stall, and operating leverage. These three factors combine to deliver compelling unit economics and returns. With the financing we have in place, we are increasing store growth from the net five to 600 average level, that's net of removals, over the past three years to around seven to 900 in 2026 to four to 5,000 by 2030. This results in a network that is around four times larger than the end of last year by 2030. Daily throughput per stall has already grown nearly fivefold between 2022 and 2025, driven by the growth of electric vehicles on the road, together with EVGO's meaningfully higher utilization in almost all our peers, and with a stall underwriting process that we continually review and update. We are particularly excited about our latest 2026 vintage and especially 2027 vintage, which we are expecting to be our best ever Over the next five years, we're conservatively expecting a smaller increase in daily throughput per stall than we've experienced over the past three years. Underscoring our confidence in this illustrative forecast is the fact that our mature 350 kilowatt stalls are already delivering daily throughput per stall at the mid 350 level, which is what we assume by 2028. and by 2030, it'll be over 95%. Operating leverage exists in two places, and we can see the track record very clearly in our actual results. We've operating leverage in charging gross margin, where 25 to 30% of charging cost of sales is fixed, like site rent, resulting in higher gross margin as throughput rises. We've seen charging gross margin rise from near 15% to nearly 40% last year, and is projected to be around 50% by 2030 as throughput per stall rises. And we have significant operating leverage in adjusted G&A, where around two-thirds of G&A is largely fixed overhead and the cost of growing the network. As you can see, adjusted G&A has only grown by around $35 million in three years, whereas charging revenue has grown five times as much. In fact, the charging network excluding fixed overhead and growth G&A has been profitable since late 2023 and just becomes more and more profitable over time. Going out to 2030, adjusted G&A barely doubles over 2025, resulting in a half a billion dollars in charging gross profit dropping straight to the bottom line. EVGO has the potential to be generating triple-digit millions in adjusted EBITDA, with EBITDA margins in the mid-teens, and by 2030, this grows to the low to mid-30% range. As you can see, all of this is without any contribution from our non-charging businesses, including AV, that have historically generated meaningful additional gross profit, and for which we are not yet providing an illustrative forecast. To summarize the story, Evigo has spent the past 15 years building a business model and a competitive mode that is hard to replicate and benefits from a number of growing mega trends and tailwinds that have already translated into strong financial results and will deliver even stronger results over the coming years. Evigo operates a highly differentiated, industry-leading charging platform that has meaningfully higher utilization than almost every one of our peers. is not only driven by our proprietary site selection capabilities, but also best-in-class customer experience and customer engagement to a large and growing customer base, combined with leading partnerships across the broader industry. Our ability to attract non-dilutive financing to accelerate our growth further separates us from our peers. Our focus on owning and operating our network, especially in the high density urban All of this benefits from a compelling macro backdrop that will propel the business for many years to come. Vehicles in operation are expected to more than double by 2030. The share of public fast charging continues to rise due to the electrification of rideshare, more affordable vehicles, and faster charge rates. Standardized cables will double are all capital-efficient, accretive growth model that positions EVGO to compound intrinsic value as we continue to scale our network. Taken together, our different approach, the accelerating demand environment, and the strong returns of new investments give us deep confidence in the long-term value creation opportunity ahead. Beyond the core charging business, there is considerable upside in EVGO that we are beginning to evaluate and are likely to generate material additional EBITDA by 2030. We already generate revenues and margins from serving autonomous vehicle partners, which we have been doing for five years. While this is a small part of EVgo today, the AV market is poised for tremendous growth, and we believe our track record, partnerships and competitive strengths position us well to deliver meaningful upside over the medium and long term. and more. As a result, there will likely be compelling inorganic opportunities for EVgo in the future as the only pure play US charging company that has successfully attracted non-diluting financing at scale. EVgo has the potential to generate half a billion dollars in adjusted EBITDA in the next five years and given that, we are now planning to start a Today we provide charging infrastructure for passenger vehicles, but we can see various segments both within passenger vehicles and beyond with needs that we may be able to serve over time given our relationships and expertise. Similarly, today EVgo is a U.S. only business. Over the next five years, we may choose to expand geographically. Thank you. Thank you. and others. This year, we have formed a small but dedicated corporate development team to begin evaluating these opportunities, and I look forward to providing more details over the coming quarters. Ethigo offers differentiated growth at an attractive valuation. Based on five-year consensus estimates, we're growing EBITDA faster than every comparable industry we benchmark against by a wide margin. And yet, we trade at a fraction There's not a small gap. That's the kind of setup that often gets re-rated once the market catches up to the growth curve. And why do we benchmark against digital infrastructure, renewable energy, waste management, fuel distribution, energy infrastructure and utilities? Because structurally, these are all businesses where you spend the capital once, you build the towers, the pipelines, substations, the routes, and then you monetize that fixed asset base over a long horizon with high incremental margins as utilization clients. They're essential service networks, highly visible demand, and meaningful barriers to entry once they're built out. That's exactly our model with our public fast charging network. We're building infrastructure American needs, and every dollar of capex we've already put in the ground gets more profitable as utilization scales. And that shows up on the right side of the slide. within our own EV charging category, our EBITDA margins are projected to be among the best in the peer group. So it's not just that we're growing faster than the broader infrastructure peers that are trading at many times our multiple, within our own competitive set, we're also one of the most profitable operators with a superior business model. Put those two things together, infrastructure grade growth margins that are expected to lead our direct peer set, and you get why we think EVgo is mispriced today. Now, I'll turn it over to Keefer to share financial details from the second quarter on EVgo's 2026 outlook.