EVgo Narrows Loss to $3.5 Million, Weighs $2-a-Share Take-Private Bid

EVgo (NASDAQ:EVGO) cut its third-quarter adjusted EBITDA loss to $3.5 million from $5 million a year earlier, yet chose the same earnings call to disclose that slower electric vehicle sales and weaker charging activity are forcing it to slow deployments and trim costs. The narrowing loss deserves scrutiny: revenue actually fell 1%, to $91 million from $92 million, because strength in the core charging network masked declines everywhere else.

The board, meanwhile, has formed a special committee of independent, disinterested directors to evaluate an unsolicited, non-binding take-private offer from majority shareholder LS Power for the shares it does not already own, at $2 apiece. Chief Executive Officer Badar Khan said the committee is working with independent legal and financial advisers. "No decisions have been made," he said, and declined further comment on the proposal during the call. Readers should note what was not said: no timetable, no price negotiation, and no indication of how the committee values the stock.

What is driving the numbers?

The charging network delivered the growth. Network revenue rose 29% to $72 million on a larger operating footprint, and network gross margin expanded 380 basis points to 39%, primarily on increased revenue from automakers.

The offset came from the other businesses:

• eXtend revenue fell to $16 million from $32 million on lower construction revenue. Chief Financial Officer Keefer Lehner said eXtend will generally decline over the next several quarters, reaching $5 million to $10 million annually by 2028.
• Autonomous vehicle and ancillary revenue was $3 million, down from $5 million.

EVgo ended the quarter with 5,530 operating stalls, up 20% year over year. Public network throughput rose 8% to 103 gigawatt-hours. But daily throughput per stall fell 4% to 283 kilowatt-hours. Lehner attributed part of the decline to the expiration of automaker charging credits; excluding them, per-stall throughput rose 7% to 270 kilowatt-hours. Khan added three further drags: a slower ramp at sites opened late in 2025, less competitive older equipment, and a weaker-than-expected summer driving season. The credits masked the real utilization picture; the ex-credit figure is the honest one.

How is EVgo adjusting its plans?

For 2026, EVgo expects to add 1,075 to 1,275 stalls: 600 to 750 public and autonomous vehicle stalls, plus 475 to 525 eXtend stalls. Lehner said the outlook reflects some construction moving into 2027 and certain sites returning to the development pipeline.

A 50-stall autonomous vehicle site is targeted for late December, though its opening could slip into early 2027, affecting the autonomous vehicle revenue outlook. Full-year guidance calls for revenue of $375 million to $400 million and an adjusted EBITDA loss of $15 million to $30 million. Adjusted general and administrative expenses should reach about $145 million, below initial guidance of $150 million to $155 million.

Khan said the company expects to spend roughly $100 million less in gross capital expenditures in 2026 than previously targeted. Cost controls, including measures on headcount and discretionary spending, should put 2027 adjusted G&A at least 15% below the prior implied view of $173 million to $178 million. The company held approximately $787 million in available liquidity as of September 30, including cash, restricted cash and about $620 million in available capacity across two debt facilities. Cuts of this scale buy time; they do not by themselves produce profitability.

What about the NACS rollout?

EVgo now operates more than 290 NACS stalls, up from 100 at the end of last year, and expects approximately 400 by the end of 2026. NACS vehicles accounted for roughly 9% of public network throughput, using both NACS stalls and CCS stalls with adapters. Although NACS stalls remain less productive than CCS stalls while ramping, their charging rate was 35% higher in the quarter, reflecting newer vehicles and high-powered equipment.

The first EVgo-branded Supercharger site, built under an agreement with Tesla, opened in the Chicago area; a second site outside Houston is expected in the fourth quarter. EVgo owns the chargers, selects locations and sets prices, while Tesla builds, maintains and operates them, Khan said. Expanded partnerships with shopping center owners Brixmor and Regency Centers are expected to bring more than 900 new fast chargers to their properties, and a new architecture delivering up to 750 kilowatts is planned for 2027.

A narrowing loss, a $787 million liquidity cushion and a pending $2-a-share bid do not settle the question of whether demand will catch up with the buildout.