EVGO INC (NASDAQ:EVGO) Reports Mixed Q3 2025 Results as Strong Growth Offsets Earnings Miss

EVGO INC (NASDAQ:EVGO) reported its third-quarter 2025 financial results, delivering a performance that presented a mixed picture for investors. The company posted strong top-line growth but fell short of revenue expectations, while its earnings loss was slightly wider than analysts had projected. The subsequent market reaction appears to reflect this nuanced outcome, balancing robust operational expansion against ongoing profitability challenges.

Earnings and Revenue Versus Estimates

The core financial metrics from the quarter reveal where EVgo met and where it missed market expectations.

• Revenue: The company reported total revenue of $92.3 million, a significant 37% increase compared to the third quarter of 2024. However, this figure came in just below the analyst consensus estimate of $93.8 million.
• Earnings Per Share (EPS): EVgo reported a non-GAAP loss per share of $0.09. This was slightly deeper than the estimated loss of $0.0893 anticipated by analysts.

While the revenue miss is narrow, it occurred in a market that often penalizes companies for failing to meet top-line expectations, even when growth is substantial. The slightly larger-than-expected loss per share underscores the company's continued investments in growth ahead of profitability.

Market Reaction and Price Action

The market's initial response to the earnings report has been notably positive. The stock is indicating a strong pre-market surge of approximately 7.9%. This upward move suggests that investors are choosing to focus on the company's strong operational growth and future guidance rather than the minor earnings miss. This positive sentiment marks a sharp reversal from the stock's recent performance, which saw declines of around 16.8% over the past month.

Operational Highlights and Business Momentum

Beyond the headline financial figures, EVgo's press release highlighted several key areas of operational strength that likely contributed to the positive investor sentiment.

• Record Charging Revenue: The core charging network business generated a record $55.8 million in revenue, marking the 15th consecutive quarter of double-digit year-over-year growth.
• Infrastructure Expansion: The company added more than 280 new operational charging stalls during the quarter, ending the period with 4,590 total stalls—a 25% year-over-year increase.
• Network Utilization: Network throughput reached a record 95 gigawatt-hours, up 25% from the prior year, indicating higher usage of its existing infrastructure.
• Customer Growth: EVgo added over 149,000 new customer accounts, bringing its total to 1.6 million.

Financial Outlook Versus Estimates

Management provided updated financial guidance for the full year 2025, which offers a clearer picture of its path toward profitability. The company introduced a two-tiered forecast: a baseline and a scenario that includes potential upside from ancillary activities.

• Revenue Guidance: EVgo expects full-year 2025 revenue between $350 million and $365 million for its baseline, with an ancillary upside potentially pushing the total to a range of $350 million to $405 million.
• Adjusted EBITDA Guidance: The company anticipates its full-year Adjusted EBITDA loss to be between $15 million and $8 million at the baseline. With the ancillary upside, it projects a range from a $15 million loss to a $23 million profit.

This outlook is particularly significant when compared to analyst expectations. The company's baseline revenue guidance of up to $365 million is close to the analyst sales estimate of $374.4 million for the full year. More importantly, the high end of its Adjusted EBITDA guidance, which includes a potential path to profitability, appears to be a key driver behind the positive market reaction, signaling a nearing inflection point.

Conclusion

EVgo's third-quarter results paint a picture of a company in a high-growth phase, aggressively expanding its physical network and customer base. While it marginally missed revenue and EPS estimates, the market's positive response indicates that investors are more focused on the strong operational momentum and the company's confident outlook for the coming quarters. The guidance suggesting a potential turn to positive Adjusted EBITDA in the near future seems to have outweighed the minor quarterly misses. The challenge for EVgo remains in executing its fully financed growth plan to achieve that profitability while maintaining its rapid expansion.

For a more detailed look at EVgo's historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research before making any investment decisions.