Company Overview
Shares of electric vehicle charging company EVgo jumped in the afternoon session on Friday after positive analyst ratings highlighted a favorable outlook, with a consensus of six analysts holding a ‘Buy’ rating, and 83% of analysts recommending either a ‘Buy’ or ‘Strong Buy’ for the stock. The timing couldn’t be better for this under-the-radar charging network operator.
EVgo’s revenue grew 92% year over year to $62.5 million last quarter, and since March 2021, trailing-12-month revenue is up 1,530%, making EVgo one of the fastest-growing businesses in the world. Analysts are forecasting revenue of $361.2 million for 2025, which would be a 50% year-over-year increase, and in the third quarter, the company posted record revenue of $67.5 million, a 92% year-over-year increase. EVgo owns one of the largest networks of charging stations for electric vehicles in the United States with over 1,100 locations and 3,680 charging ports, positioning it as a critical infrastructure play as EV adoption accelerates.
Key Technical and Fundamental Drivers
Friday’s Analyst-Driven Pop → 4.4% Gain EVgo jumped 4.4% on Friday after positive analyst ratings highlighted a favorable outlook, with 83% of six analysts recommending either a ‘Buy’ or ‘Strong Buy’ for the stock, signaling growing Wall Street confidence.
Explosive Revenue Growth → 92% YoY EVgo’s revenue grew 92% year over year to $62.5 million last quarter, and since March 2021, trailing-12-month revenue is up 1,530%, making it one of the fastest-growing businesses in the world.
Massive Federal Backing → $1.05B Loan Guarantee The company has received conditional commitment of financing of loan guarantees worth about $1.05 billion, which will be used to build about 7,500 fast charging stations across the country.
Network Scale → 1,100+ Locations EVgo owns one of the largest networks of charging stations for electric vehicles in the United States with over 1,100 locations and 3,680 charging ports, and is trying to expand mightily to take advantage of the growth in electric vehicles.
Path to Profitability → Improving Margins For 2025, analysts expect EVgo’s revenue to grow 41% to $362 million with a positive adjusted EBITDA of $7 million, and for 2026, revenue is expected to rise 33% to $479 million as adjusted EBITDA surges to $50 million.
Market Takeaway
EVgo represents a rare opportunity to invest in critical EV infrastructure at an early stage of the market’s development, with the company posting some of the fastest revenue growth in the entire stock market – 1,530% since March 2021. While Tesla operates a vertically integrated charging network for its own vehicles, all other EV owners need third-party charging stations, creating a massive addressable market that EVgo is aggressively capturing with over 1,100 locations nationwide.
The $1.05 billion federal loan guarantee commitment is a game-changer that will fund construction of 7,500 new fast charging stations, essentially quintupling the current network size. This massive infrastructure investment by the government validates EVgo’s business model and removes a major capital constraint. With analysts projecting the company will turn EBITDA positive in 2025 ($7 million) and then surge to $50 million in 2026, EVgo is approaching a critical inflection point where hyper-growth meets improving unit economics. The stock trades at less than 1x this year’s sales despite 40%+ revenue growth expectations, making it remarkably cheap for a company with this growth profile and federal backing. As EV adoption continues to expand from the current sub-10% market share, EVgo stands to benefit from every incremental electric vehicle that hits American roads