8-K - EVGO - Equibles

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 1, 2024 ****

EVgo Inc.

(Exact name of registrant as specified in its charter)


Delaware		001-39572		85-2326098
(State or other jurisdiction of<br>incorporation)		(Commission File Number)		(I.R.S. Employer <br>Identification No.)


11835 West Olympic Boulevard , Suite 900E Los Angeles , California	****	90064
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: ( 877 ) 494-3833

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Shares of Class A common stock, $0.0001 par value per share	EVGO	The Nasdaq Global Select Market
Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50	EVGOW	The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

EVgo Inc. (the “Company”) issued a press release on August 1, 2024, announcing its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information furnished in this Current Report on Form 8-K (including exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
99.1	Press Release, dated August 1, 2024.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	EVgo Inc.
Date: August 1, 2024	By:	/s/ Stephanie Lee
	Name:	Stephanie Lee
	Title:	Interim Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

Exhibit 99.1

EVgo Inc. Reports Record Second Quarter 2024 Results

Achieves 6^th^ Consecutive Quarter of Triple Digit Year-Over-Year Network Throughput Growth

Raises Midpoint of Total Revenue Guidance by $10 Million

●	Revenue reached a record $66.6 million in the second quarter, representing an increase of 32% year-over-year.
●	Charging network revenue totaled $36.4 million in the second quarter, an increase of 146% year-over-year, representing the 7^th^ sequential quarter of double-digit charging revenue growth.
---	---
●	Network throughput reached a record 66 gigawatt-hours (“GWh”) in the second quarter, an increase of 164% year-over-year, representing the 6^th^ consecutive quarter of triple digit year-over-year growth.
---	---
●	Added more than 220 new operational stalls during the second quarter, including EVgo eXtend™ stalls.
---	---
●	Ended the second quarter with approximately 3,440 stalls in operation, including EVgo eXtend™ stalls.
---	---
●	Added over 131,000 new customer accounts in the second quarter, reaching more than 1 million overall at quarter end.
---	---

Los Angeles – August 1, 2024 – EVgo Inc. (Nasdaq: EVGO) (“EVgo” or the “Company”) today announced results for the second quarter ended June 30, 2024. Management will host a conference call today at 11 am ET / 8 am PT to discuss EVgo’s results and other business highlights.

Revenue reached $66.6 million in the second quarter of 2024, compared to $50.6 million in the second quarter of 2023, representing 32% year-over-year growth. Revenue growth was driven by year-over-year increases in charging network revenues.

Network throughput increased to 66 GWh in the second quarter of 2024, compared to 25 GWh in the second quarter of 2023, representing 164% year-over-year growth. The Company added over 131,000 new customer accounts during the second quarter of 2024, a 60% year-over-year increase in new accounts. The overall number of customer accounts was more than 1 million at quarter end, an increase of 59% year-over-year.

“EVgo delivered yet another quarter of great financial and operating results, including the 7^th^ sequential quarter of double-digit charging revenue growth,” said Badar Khan, EVgo’s CEO. “We are seeing continual record demand in the industry, which we are well situated to capture given our position as an owner operator and as evidenced by the tremendous growth in throughput and new customer accounts. We look forward to continuing to execute on our strategic priorities and building the critically important, fast charging, OEM-agnostic infrastructure necessary to deliver an excellent customer experience for EV drivers across the nation. We are confident this momentum will result in strong returns for our shareholders.”

Business Highlights

●	Subaru Charging Credit: Subaru extended their charging credit program with EVgo, giving new Subaru Solterra drivers a $500 EVgo charging credit.
●	Stall Development: The Company ended the quarter with approximately 3,440 stalls in operation, including EVgo eXtend™ stalls. EVgo added over 220 new DC fast charging stalls during the quarter, including EVgo eXtend™ stalls.
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●	EVgo eXtend^TM^: EVgo ended the quarter with 190 operational EVgo eXtend™ stalls.
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●	Network Utilization: Utilization on the EVgo network in the second quarter of 2024 was 20%, up from approximately 11% in the second quarter of 2023.
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●	Average Daily Network Throughput: Average daily throughput per stall for the EVgo network was 227 kilowatt hours per day in the second quarter of 2024, an increase of 103% compared to 112 kilowatt hours per day in the second quarter of 2023.
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●	Commercial Charging: EVgo’s commercial charging business continues to grow driven by rideshare, with throughput increasing nearly threefold year-over-year.
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●	EVgo Autocharge+: Autocharge+ was over 18% of total charging sessions initiated in the second quarter of 2024, and the number of Autocharge+ charging sessions in the second quarter increased 202% compared to the second quarter of 2023.
---	---
●	PlugShare: PlugShare reached 5.3 million registered users and achieved 8.5 million check-ins since inception.
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Financial & Operational Highlights

The below represent summary financial and operational figures for the second quarter of 2024.

●	Revenue of $66.6 million
●	Network Throughput^1^ of 66 gigawatt-hours
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●	Customer Account Additions of over 131,000 accounts
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●	Gross Profit of $6.4 million
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●	Net Loss of $29.6 million
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●	Adjusted Gross Profit^2^ of $17.7 million
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●	Adjusted EBITDA^2^ of ($8.0) million
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●	Net Cash Provided By Operating Activities of $7.6 million
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●	Capital Expenditures of $24.2 million
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●	Capital Expenditures, Net of Capital Offsets^2^ **** of $13.8 million
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^1^ Network throughput for EVgo network excludes EVgo eXtend™ sites.

^2^ Adjusted Gross Profit, Adjusted EBITDA, and Capital Expenditures, Net of Capital Offsets are non-GAAP measures and have not been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). For a definition of these non-GAAP measures and a reconciliation to the most directly comparable GAAP measure, please see “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures” included elsewhere in this release.


(unaudited, dollars in thousands)		Q2'24		Q2'23		Better (Worse)	Q2'24 YTD		Q2'23 YTD		Better (Worse)
Network Throughput (GWh)			66		25	164%		119		43	177%
Revenue		$	66,619	$	50,552	32%	$	121,777	$	75,852	61%
Gross profit		$	6,398	$	5,529	16%	$	13,239	$	5,570	138%
Gross margin	****		9.6%		10.9%	(130) bps		10.9%		7.3%	360 bps
Net loss		$	(29,610)	$	(21,539)	(37)%	$	(57,803)	$	(70,620)	18%
Adjusted Gross Profit¹		$	17,658	$	12,853	37%	$	34,945	$	19,258	81%
Adjusted Gross Margin^1^			26.5%		25.4%	110 bps		28.7%		25.4%	330 bps
Adjusted EBITDA^1^		$	(7,982)	$	(10,553)	24%	$	(15,189)	$	(30,620)	50%

^1^Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted EBITDA are non-GAAP measures and have not been prepared in accordance with GAAP. For a definition of these non-GAAP measures and a reconciliation to the most directly comparable GAAP measures, please see “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures” included elsewhere in these materials.


(unaudited, dollars in thousands)		Q2'24			Q2'23			Change	Q2'24 YTD			Q2'23 YTD			Change
	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****
Cash flows provided by (used in) operating activities		$	7,556		$	(3,182)		337%	$	(6,526)		$	(22,525)		71%

GAAP capital expenditures		$	24,196		$	34,811		(30)%	$	45,267		$	100,057		(55)%
Capital offsets:
OEM infrastructure payments		$	5,956		$	6,022		(1)%	$	11,782		$	9,917		19%
Proceeds from capital-build funding			4,459			2,040		119%		6,139			4,256		44%
Total capital offsets			10,415			8,062		29%		17,921			14,173		26%
Capital Expenditures, Net of Capital Offsets^1^		$	13,781		$	26,749		(48)%	$	27,346		$	85,884		(68)%

^1^Capital Expenditures, Net of Capital Offsets are non-GAAP measures and have not been prepared in accordance with GAAP. For a definition of these non-GAAP measures and a reconciliation to the most directly comparable GAAP measures, please see “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures” included elsewhere in these materials.


		6/30/2024	6/30/2023	Increase
Stalls in operation or under construction:	****
EVgo Network		3,690	3,180	16%
EVgo eXtend™		480	—	*
Total stalls in operation or under construction		4,170	3,180	31%

Stalls in operation:
EVgo Network		3,250	2,520	29%
EVgo eXtend™		190	—	*
Total stalls in operation		3,440	2,520	37%

* Percentage not meaningful.

2024 Financial Guidance

EVgo is updating 2024 guidance as follows:

●	Raising the midpoint of total revenue guidance by $10 million with total revenue guidance of $240 - $270 million
●	Adjusted EBITDA^*^ of ($44) – ($34) million
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* A reconciliation of projected Adjusted EBITDA (non-GAAP) to net income (loss), the most directly comparable GAAP measure, is not provided because certain measures, including share-based compensation expense, which is excluded from Adjusted EBITDA, cannot be reasonably calculated or predicted at this time without unreasonable efforts. For a definition of Adjusted EBITDA, please see “Definitions of Non-GAAP Financial Measures” included elsewhere in this release.

Conference Call Information

A live audio webcast and conference call for EVgo’s second quarter earnings release will be held today at 11 am ET / 8 am PT. The webcast will be available at investors.evgo.com, and the dial-in information for those wishing to access via phone is:

Toll Free: (888) 340-5044 (for U.S. callers) Toll/International: (646) 960-0363 (for callers outside the U.S.)

Conference ID: 6304708

This press release, along with other investor materials that will be used or referred to during the webcast and conference call, including a slide presentation and reconciliations of certain non-GAAP measures to their nearest GAAP measures, will also be available on that site.

About EVgo

EVgo (Nasdaq: EVGO) is a leader in electric vehicle charging solutions, building and operating the infrastructure and tools needed to expedite the mass adoption of electric vehicles for individual drivers, rideshare and commercial fleets, and businesses. EVgo is one of the nation’s largest public fast charging networks, featuring over 1,000 fast charging locations across more than 35 states, including stations built through EVgo eXtend™, its white label service offering. EVgo is accelerating transportation electrification through partnerships with automakers, fleet and rideshare operators, retail hosts such as grocery stores, shopping centers, and gas stations, policy leaders, and other organizations. With a rapidly growing network and unique service offerings for drivers and partners including EVgo Optima™, EVgo Inside™, EVgo Rewards™, and Autocharge+, EVgo enables a world-class charging experience where drivers live, work, travel and play.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “assume” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based on management’s current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. You are cautioned, therefore, against relying on any of these forward-looking statements. These forward-looking statements include, but are not limited to, express or implied statements regarding EVgo’s

future financial and operating performance, revenues, market size and opportunity, capital expenditures and offsets; EVgo’s confidence that “this momentum will result in strong returns for our shareholders”; EVgo’s progress on its network buildout, customer experience, technological capabilities and cost efficiencies; growth in the Company’s throughput; growth in the Company’s commercial charging business; and the Company’s collaboration with partners. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of EVgo’s management and are not predictions of actual performance. There are a significant number of factors that could cause actual results to differ materially from the statements made in this press release, including changes or developments in the broader general market; EVgo’s dependence on the widespread adoption of EVs and growth of the EV and EV charging markets; competition from existing and new competitors; EVgo’s ability to expand into new service markets, grow its customer base and manage its operations; the risks associated with cyclical demand for EVgo’s services and vulnerability to industry downturns and regional or national downturns; fluctuations in EVgo’s revenue and operating results; unfavorable conditions or disruptions in the capital and credit markets and EVgo’s ability to obtain additional financing on commercially reasonable terms; EVgo’s ability to generate cash, service indebtedness and incur additional indebtedness; any current, pending or future legislation, regulations or policies that could impact EVgo’s business, results of operations and financial condition, including regulations impacting the EV charging market and government programs designed to drive broader adoption of EVs and any reduction, modification or elimination of such programs; EVgo’s ability to adapt its assets and infrastructure to changes in industry and regulatory standards and market demands related to EV charging; impediments to EVgo’s expansion plans, including permitting and utility-related delays; EVgo’s ability to integrate any businesses it acquires; EVgo’s ability to recruit and retain experienced personnel; risks related to legal proceedings or claims, including liability claims; EVgo’s dependence on third parties, including hardware and software vendors and service providers, utilities and permit-granting entities; supply chain disruptions, inflation and other increases in expenses; safety and environmental requirements or regulations that may subject EVgo to unanticipated liabilities or costs; EVgo’s ability to enter into and maintain valuable partnerships with commercial or public-entity property owners, landlords and/or tenants (collectively “Site Hosts”), original equipment manufacturers (“OEMs”), fleet operators and suppliers; EVgo’s ability to maintain, protect and enhance EVgo’s intellectual property; and general economic or political conditions, including the conflicts in Ukraine, Israel and the broader Middle East region, and elevated rates of inflation and associated changes in monetary policy. Additional risks and uncertainties that could affect the Company’s financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations of EVgo” in EVgo’s most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”), as well as its other SEC filings, copies of which are available on EVgo’s website at investors.evgo.com, and on the SEC’s website at www.sec.gov. All forward-looking statements in this press release are based on information available to EVgo as of the date hereof, and EVgo does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by applicable law.

Financial Statements

EVgo Inc. and Subsidiaries

Condensed Consolidated Balance Sheets


	****	June 30,		****	December 31,
		2024			2023
(in thousands)		(unaudited)
Assets	****		****			****
Current assets
Cash, cash equivalents and restricted cash		$	162,736		$	209,146
Accounts receivable, net of allowance of $553 and $1,116 as of June 30, 2024 and December 31, 2023, respectively			34,771			34,882
Accounts receivable, capital-build			13,217			9,297
Prepaid expenses and other current assets			14,747			14,081
Total current assets			225,471			267,406
Property, equipment and software, net			403,418			389,227
Operating lease right-of-use assets			79,444			67,724
Other assets			2,098			2,208
Intangible assets, net			43,845			48,997
Goodwill			31,052			31,052
Total assets		$	785,328		$	806,614

Liabilities, redeemable noncontrolling interest and stockholders’ equity (deficit)
Current liabilities
Accounts payable		$	16,165		$	10,133
Accrued liabilities			38,742			40,549
Operating lease liabilities, current			6,484			6,018
Deferred revenue, current^1^			28,610			32,349
Other current liabilities			94			298
Total current liabilities			90,095			89,347
Operating lease liabilities, noncurrent			73,239			61,987
Earnout liability, at fair value			345			654
Asset retirement obligations			19,829			18,232
Capital-build liability			41,479			35,787
Deferred revenue, noncurrent			64,290			55,091
Warrant liabilities, at fair value			2,746			5,141
Total liabilities			292,023			266,239
Commitments and contingencies
Redeemable noncontrolling interest			479,710			700,964
Stockholders' equity (deficit)			13,595			(160,589)
Total liabilities, redeemable noncontrolling interest and stockholders' equity (deficit)		$	785,328		$	806,614

^1^ In 2024, deferred revenue, current, and customer deposits were combined into a single line item. Previously reported amounts have been updated to conform to the current period presentation.

EVgo Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(unaudited)


		Three Months Ended								Six Months Ended
		June 30,								June 30,
(in thousands, except per share data)	****	2024		****	2023		****	Change %	****	2024		****	2023		****	Change %
Revenue	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****	****
Charging, retail	****	$	22,336	****	$	9,085	****	146%	****	$	40,662		$	15,700		159%
Charging, commercial			7,094			2,418		193%			12,933			4,133		213%
Charging, OEM			3,638			986		269%			6,370			1,538		314%
Regulatory credit sales			1,749			1,613		8%			3,783			2,828		34%
Network, OEM			1,627			742		119%			5,050			3,441		47%
Total charging network			36,444	****		14,844		146%			68,798			27,640		149%
eXtend			27,667			33,281		(17)%			46,818			43,573		7%
Ancillary			2,508			2,427		3%			6,161			4,639		33%
Total revenue			66,619			50,552		32%			121,777			75,852		61%
****
Cost of sales
Charging network^1^			23,979			12,009		100%			43,489			21,988		98%
Other^1^			25,093			25,731		(2)%			43,541			34,669		26%
Depreciation, net of capital-build amortization			11,149			7,283		53%			21,508			13,625		58%
Total cost of sales			60,221			45,023		34%			108,538			70,282		54%
Gross profit			6,398			5,529		16%			13,239			5,570		138%
****
Operating expenses
General and administrative			33,827			34,333		(1)%			68,053			72,222		(6)%
Depreciation, amortization and accretion			4,958			4,783		4%			9,943			9,567		4%
Total operating expenses			38,785			39,116		(1)%			77,996			81,789		(5)%
Operating loss			(32,387)			(33,587)		4%			(64,757)			(76,219)		15%
****
Interest income			2,064			2,199		(6)%			4,337			4,197		3%
Other expense, net			(8)			(1)		(700)%			(17)			—		*
Change in fair value of earnout liability			101			2,496		(96)%			309			433		(29)%
Change in fair value of warrant liabilities			677			7,391		(91)%			2,395			1,011		137%
Total other income, net			2,834			12,085		(77)%			7,024			5,641		25%
Loss before income tax expense			(29,553)			(21,502)		(37)%			(57,733)			(70,578)		18%
Income tax expense			(57)			(37)		(54)%			(70)			(42)		(67)%
Net loss			(29,610)			(21,539)		(37)%			(57,803)			(70,620)		18%
Less: net loss attributable to redeemable noncontrolling interest			(19,233)			(14,513)		(33)%			(37,593)			(50,518)		26%
Net loss attributable to Class A common stockholders		$	(10,377)		$	(7,026)		(48)%		$	(20,210)		$	(20,102)		(1)%
****
Net loss per share to Class A common stockholders, basic and diluted		$	(0.10)		$	(0.08)				$	(0.19)		$	(0.25)
Weighted average common stock outstanding, basic and diluted			105,584			85,320					105,130			78,196

* Not meaningful

^1^ In the fourth quarter of 2023, the Company changed the presentation of cost of sales to disaggregate such costs between “charging network” and “other.” Previously reported amounts have been updated to conform to the current presentation.

EVgo Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(unaudited)


	****	Six Months Ended
	****	June 30,
(in thousands)		2024		****	2023
Cash flows from operating activities
Net loss		$	(57,803)		$	(70,620)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation, amortization and accretion			31,451			23,192
Net loss on disposal of property and equipment, net of insurance recoveries, and impairment expense			5,497			6,008
Share-based compensation			10,103			14,922
Change in fair value of earnout liability			(309)			(433)
Change in fair value of warrant liabilities			(2,395)			(1,011)
Other			5			(155)
Changes in operating assets and liabilities
Accounts receivable, net			112			(11,422)
Prepaid expenses, other current assets and other assets			1,324			3,779
Operating lease assets and liabilities, net			(3)			642
Accounts payable			6,130			(2,872)
Accrued liabilities			(5,764)			2,925
Deferred revenue^1^			5,461			12,458
Other current and noncurrent liabilities			(335)			62
Net cash used in operating activities			(6,526)			(22,525)
Cash flows from investing activities
Capital expenditures			(45,267)			(100,057)
Proceeds from insurance for property losses			152			159
Net cash used in investing activities			(45,115)			(99,898)
Cash flows from financing activities
Proceeds from issuance of Class A common stock under the ATM			—			5,828
Proceeds from issuance of Class A common stock under the equity offering			—			128,023
Proceeds from capital-build funding			6,139			4,256
Payments of deferred debt issuance costs			(908)			—
Payments of deferred equity issuance costs			—			(4,751)
Net cash provided by financing activities			5,231			133,356
Net (decrease) increase in cash, cash equivalents and restricted cash			(46,410)			10,933
Cash, cash equivalents and restricted cash, beginning of period			209,146			246,493
Cash, cash equivalents and restricted cash, end of period		$	162,736		$	257,426

^1^ In 2024, deferred revenue, current, and customer deposits were combined into a single line item. Previously reported amounts have been updated to conform to the current period presentation.

Use of Non-GAAP Financial Measures

To supplement EVgo’s financial information, which is prepared and presented in accordance with GAAP, EVgo uses certain non-GAAP financial measures. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EVgo uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. EVgo believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of EVgo’s recurring core business operating results.

EVgo believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing EVgo’s performance. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. EVgo believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by EVgo’s institutional investors and the analyst community to help them analyze the health of EVgo’s business.

For more information on these non-GAAP financial measures, including reconciliations to the most comparable GAAP measures, please see the sections titled “Definitions of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Financial Measures.”

Definitions of Non-GAAP Financial Measures

This release includes some, but not all of the following non-GAAP financial measures, in each case as defined below: “Charging Network Margin,” “Adjusted Cost of Sales,” “Adjusted Cost of Sales as a Percentage of Revenue,” “Adjusted Gross Profit (Loss),” “Adjusted Gross Margin,” “Adjusted General and Administrative Expenses,” “Adjusted General and Administrative Expenses as a Percentage of Revenue,” “EBITDA,” “EBITDA Margin,” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” and “Capital Expenditures, Net of Capital Offsets.” With respect to Capital Expenditures, Net of Capital Offsets, pursuant to the terms of certain OEM contracts, EVgo is paid well in advance of when revenue can be recognized, and usually, the payment is tied to the number of stalls that commence operations under the applicable contractual arrangement while the related revenue is deferred at the time of payment and is recognized as revenue over time as EVgo provides charging and other services to the OEM and the OEM’s customers. EVgo management therefore uses these measures internally to establish forecasts, budgets, and operational goals to manage and monitor its business, including the cash used for, and the return on, its investment in its charging infrastructure. EVgo believes that these measures are useful to investors in evaluating EVgo’s performance and help to depict a meaningful representation of the performance of the underlying business, enabling EVgo to evaluate and plan more effectively for the future.

Charging Network Margin, Adjusted Cost of Sales, Adjusted Cost of Sales as a Percentage of Revenue, Adjusted Gross Profit (Loss), Adjusted Gross Margin, Adjusted General and Administrative Expenses, Adjusted General and Administrative Expenses as a Percentage of Revenue, EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Capital Expenditures, Net of Capital Offsets are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These measures should not be considered as measures of financial performance under GAAP and the items excluded from or included in these metrics are significant components in understanding and assessing EVgo’s financial performance. These metrics should not be considered as alternatives to net income (loss) or any other performance measures derived in accordance with GAAP.

EVgo defines Charging Network Margin as total charging network revenue less charging network cost of sales divided by total charging network revenue. EVgo defines Adjusted Cost of Sales as cost of sales before (i) depreciation, net of capital-build amortization, and (ii) share-based compensation. EVgo defines Adjusted Cost of Sales as a Percentage of Revenue as Adjusted Cost of Sales as a percentage of revenue. EVgo defines Adjusted Gross Profit (Loss) as revenue less Adjusted Cost of Sales. EVgo defines Adjusted Gross Margin as Adjusted Gross Profit (Loss) as a percentage of revenue. EVgo defines Adjusted General and Administrative Expenses as general and administrative expenses before (i) share-based compensation, (ii) loss on disposal of property and equipment, net of insurance recoveries, and impairment expense, (iii) bad debt expense (recoveries), and (iv) certain other items that management believes are not indicative of EVgo’s ongoing performance. EVgo defines Adjusted General and Administrative Expenses as a Percentage of Revenue as Adjusted General and Administrative Expenses as a percentage of revenue. EVgo defines EBITDA as net income (loss) before (i) depreciation, net of capital-build amortization, (ii) amortization, (iii) accretion, (iv) interest income, (v) interest expense, and (vi) income tax expense (benefit). EVgo defines EBITDA Margin as EBITDA as a percentage of revenue. EVgo defines Adjusted EBITDA as EBITDA plus (i) share-based compensation, (ii) loss on disposal of property and equipment, net of insurance recoveries, and impairment expense, (iii) loss (gain) on investments, (iv) bad debt expense (recoveries), (v) change in fair value of earnout liability, (vi) change in fair value of warrant liabilities, and (vii) certain other items that management believes are not indicative of EVgo’s ongoing performance. EVgo defines Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of revenue. EVgo defines Capital Expenditures, Net of Capital Offsets as capital expenditures adjusted for the following capital offsets: (i) all payments under OEM infrastructure agreements excluding any amounts directly attributable to OEM customer charging credit programs and pass-through of non-capital expense reimbursements, and (ii) proceeds from capital-build funding. The tables below present quantitative reconciliations of these measures to their most directly comparable GAAP measures as described in this paragraph.

Reconciliations of Non-GAAP Financial Measures

The following unaudited table presents a reconciliation of EBITDA, EBITDA Margin, Adjusted EBITDA, and Adjusted EBITDA Margin to the most directly comparable GAAP measure:


(unaudited, dollars in thousands)		Q2'24		****	Q2'23		****	Change	****	Q2'24 YTD		****	Q2'23 YTD		****	Change

GAAP revenue		$	66,619		$	50,552		32%		$	121,777		$	75,852		61%

GAAP net loss		$	(29,610)		$	(21,539)		(37)%		$	(57,803)		$	(70,620)		18%
GAAP net loss margin			(44.4%)			(42.6%)		(180) bps			(47.5)%			(93.1)%		4,560 bps

Adjustments:
Depreciation, net of capital-build amortization			11,288			7,407		52%			21,764			13,875		57%
Amortization			4,342			4,117		5%			8,805			8,236		7%
Accretion			477			542		(12)%			882			1,081		(18)%
Interest income			(2,064)			(2,199)		6%			(4,337)			(4,197)		(3)%
Interest expense			—			—		* %			—			—		* %
Income tax expense			57			37		54%			70			42		67%
EBITDA		$	(15,510)		$	(11,635)		(33)%		$	(30,619)		$	(51,583)		41%
EBITDA margin			(23.3%)			(23.0%)		(30) bps			(25.1)%			(68.0)%		4,290 bps


Adjustments:
Share-based compensation		$	5,402		$	8,495		(36)%			10,103			14,922		(32)%
Loss on disposal of property and equipment, net of insurance recoveries, and impairment expense			2,757			2,389		15%			5,497			5,849		(6)%
Loss on investments			—			5		(100)%			5			4		25%
Bad debt expense			81			56		45%			311			153		103%
Change in fair value of earnout liability			(101)			(2,496)		96%			(309)			(433)		29%
Change in fair value of warrant liabilities			(677)			(7,391)		91%			(2,395)			(1,011)		(137)%
Other^1^			66			24		175%			2,218			1,479		50%
Total adjustments			7,528			1,082		596%			15,430			20,963		(26)%
Adjusted EBITDA		$	(7,982)		$	(10,553)		24%		$	(15,189)		$	(30,620)		50%
Adjusted EBITDA Margin			(12.0%)			(20.9%)		890 bps			(12.5%)			(40.4)%		2,790 bps

*	Percentage greater than 999%, bps greater than 9,999 or not meaningful.
^1^	For the six months ended June 30, 2024, comprised primarily of costs related to the organizational realignment announced by the Company on January 17, 2024. For the six months ended June 30, 2023, comprised primarily of costs related to the previous reorganization of Company resources announced by the Company on February 23, 2023 and the petition filed by EVgo in the Delaware Court of Chancery in February 2023 seeking validation of EVgo's charter and share structure (the "205 Petition").

The following unaudited table presents a reconciliation of Charging Network Margin to the most directly comparable GAAP measures:


(unaudited, dollars in thousands)	Q2'24		****	Q2'23		****	Change	****	****	Q2'24 YTD		****	Q2'23 YTD		****	Change

GAAP total charging network revenue	$	36,444		$	14,844		146%			$	68,798		$	27,640		149%
GAAP charging network cost of sales		23,979			12,009		100%				43,489			21,988		98%
Charging Network Margin		34.2%			19.1%		1,510 bps				36.8%			20.4%		1,640 bps

The following unaudited table presents a reconciliation of Adjusted Cost of Sales, Adjusted Cost of Sales as a Percentage of Revenue, Adjusted Gross Profit and Adjusted Gross Margin to the most directly comparable GAAP measures:


(unaudited, dollars in thousands)	Q2'24		****	Q2'23		****	Change	****	Q2'24 YTD		****	Q2'23 YTD		****	Change

GAAP revenue	$	66,619		$	50,552		32%		$	121,777		$	75,852		61%
GAAP cost of sales		60,221			45,023		34%			108,538			70,282		54%
GAAP gross profit	$	6,398		$	5,529		16%		$	13,239		$	5,570		138%
GAAP cost of sales as a percentage of revenue		90.4%			89.1%		130 bps			89.1%			92.7%		(360) bps
GAAP gross margin		9.6%			10.9%		(130) bps			10.9%			7.3%		360 bps

Adjustments:
Depreciation, net of capital-build amortization	$	11,149		$	7,283		53%		$	21,508		$	13,625		58%
Share-based compensation		111			41		171%			198			63		214%
Total adjustments		11,260			7,324		54%			21,706			13,688		59%
Adjusted Cost of Sales	$	48,961		$	37,699		30%		$	86,832		$	56,594		53%
Adjusted Cost of Sales as a Percentage of Revenue		73.5%			74.6%		(110) bps			71.3%			74.6%		(330) bps

Adjusted Gross Profit	$	17,658		$	12,853		37%		$	34,945		$	19,258		81%
Adjusted Gross Margin		26.5%			25.4%		110 bps			28.7%			25.4%		330 bps

The following unaudited table presents a reconciliation of Adjusted General and Administrative Expenses and Adjusted General and Administrative Expenses as a Percentage of Revenue to the most directly comparable GAAP measures:


(unaudited, dollars in thousands)		Q2'24		****	Q2'23		****	Change	****	Q2'24 YTD		****	Q2'23 YTD		****	Change
GAAP revenue		$	66,619		$	50,552		32%		$	121,777		$	75,852		61%
GAAP general and administrative expenses		$	33,827		$	34,333		(1)%		$	68,053		$	72,222		(6)%
GAAP general and administrative expenses as a percentage of revenue			50.8%			67.9%		(1,710) bps			55.9%			95.2%		(3,930) bps

Adjustments:
Share-based compensation		$	5,291		$	8,454		(37)%		$	9,905		$	14,859		(33)%
Loss on disposal of property and equipment, net of insurance recoveries, and impairment expense			2,757			2,389		15%			5,497			5,849		(6)%
Bad debt expense			81			56		45%			311			153		103%
Other^1^			66			24		175%			2,218			1,479		50%
Total adjustments			8,195			10,923		(25)%			17,931			22,340		(20)%
Adjusted General and Administrative Expenses		$	25,632		$	23,410		9%		$	50,122		$	49,882		0%
Adjusted General and Administrative Expenses as a Percentage of Revenue			38.5%			46.3%		(780) bps			41.2%			65.8%		(2,460) bps

^1^	For the six months ended June 30, 2024, comprised primarily of costs related to the organizational realignment announced by the Company on January 17, 2024. For the six months ended June 30, 2023, comprised primarily of costs related to the previous reorganization of Company resources announced by the Company on February 23, 2023 and the 205 Petition.

The following unaudited table presents a reconciliation of Capital Expenditures, Net of Capital Offsets, to the most directly comparable GAAP measure:


(unaudited, dollars in thousands)	Q2'24		****	Q2'23		****	Change	****	Q2'24 YTD		****	Q2'23 YTD		****	Change
								****
GAAP capital expenditures	$	24,196		$	34,811		(30)%		$	45,267		$	100,057		(55)%

Capital offsets:
OEM infrastructure payments	$	5,956		$	6,022		(1)%		$	11,782		$	9,917		19%
Proceeds from capital-build funding		4,459			2,040		119%			6,139			4,256		44%
Total capital offsets		10,415			8,062		29%			17,921			14,173		26%
Capital Expenditures, Net of Capital Offsets	$	13,781		$	26,749		(48)%		$	27,346		$	85,884		(68)%

For investors: **** investors@evgo.com

For Media: press@evgo.com

Source: EVgo Inc.