EVgo (NASDAQ:EVGO) Exceeds Q3 Expectations

Electric vehicle charging company EVgo (NASDAQ:EVGO) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 36.7% year on year to $92.3 million. The company’s full-year revenue guidance of $377.5 million at the midpoint came in 2.9% above analysts’ estimates. Its GAAP loss of $0.09 per share was 19.2% above analysts’ consensus estimates.

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“EVgo delivered another quarter of record charging network revenue, underscoring the strength of our business model and growing consumer demand for fast charging,” said Badar Khan, EVgo’s CEO.

Company Overview

Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, EVgo’s sales grew at an incredible 85.9% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. EVgo’s annualized revenue growth of 55.2% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

EVgo also discloses its number of gigawatt-hours sold, which reached 95 in the latest quarter. Over the last two years, EVgo’s gigawatt-hours sold averaged 27.6% year-on-year growth. Because this number is lower than its revenue growth during the same period, we can see the company’s monetization has risen.

This quarter, EVgo reported wonderful year-on-year revenue growth of 36.7%, and its $92.3 million of revenue exceeded Wall Street’s estimates by 0.7%.

Looking ahead, sell-side analysts expect revenue to grow 30.3% over the next 12 months, a deceleration versus the last two years. Still, this projection is admirable and implies the market sees success for its products and services.

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Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.

EVgo’s high expenses have contributed to an average operating margin of negative 83.4% over the last five years. Unprofitable industrials companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.

On the plus side, EVgo’s operating margin rose over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to reach long-term profitability.

This quarter, EVgo generated a negative 36.9% operating margin.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Although EVgo’s full-year earnings are still negative, it reduced its losses and improved its EPS by 15.7% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. We hope to see an inflection point soon.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For EVgo, its two-year annual EPS growth of 2.5% was lower than its five-year trend. We hope its growth can accelerate in the future.

In Q3, EVgo reported EPS of negative $0.09, up from negative $0.11 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects EVgo to perform poorly. Analysts forecast its full-year EPS of negative $0.39 will tumble to negative $0.46.

Key Takeaways from EVgo’s Q3 Results

We were impressed by EVgo’s optimistic full-year EBITDA guidance, which blew past analysts’ expectations. We were also glad its full-year revenue guidance exceeded Wall Street’s estimates. On the other hand, its EBITDA missed. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 2.5% to $3.50 immediately after reporting.

EVgo may have had a good quarter, but does that mean you should invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.