LS Power Offers to Buy Remaining EVgo Shares for $2 at 59% Premium
Key Facts
On Nov. 2, 2026, LS Power submitted a non-binding cash proposal to buy all outstanding Class A shares of EVgo that it does not own for $2 per share. The price represents a 59% premium to the stock’s Oct. 30 closing price and a 62% premium to its 30-day volume-weighted average price through that date, according to a letter from LS Power attached to a filing with the U.S. Securities and Exchange Commission. The company said it would not proceed with the proposal unless an independent special committee of the board recommended it. The letter described it as “only a non-binding expression of interest,” with LS Power retaining the right to amend or withdraw it. EVgo confirmed that its board had received the proposal, but no definitive agreement has been announced.
The takeover attempt comes from a shareholder that already holds a large stake in EVgo. LS Power said it owns about 178 million shares of Classes A and B, representing about 56% of the outstanding voting securities. Under the terms of the letter, an independent special committee, advised by independent legal and financial advisers, must review the proposal and make a recommendation to the board. LS Power made proceeding with the transaction contingent on the committee’s recommendation, making its assessment a key step before any progress on the proposal. The offered price of $2 remains above the two comparison prices cited in the letter, but the proposal has not become a binding agreement.
Behind the offer, EVgo’s second-quarter results showed a mixed picture between charging activity and total revenue. Charging network revenue rose 19% year over year to $61 million, while total revenue fell 16% to $82.648 million, from $98.030 million in the second quarter of 2025. The company attributed the decline mainly to a 52% drop in eXtend unit revenue and a 64% decline in autonomous vehicle and other revenue. The network delivered 99 gigawatt-hours of energy, up 13% year over year, while operating public charging ports reached 5,380, an increase of 24%. Chief Executive Badr Khan said the company had delivered “another quarter of solid execution,” with growth in charging network revenue and continued expansion of its fast-charging platform.
But growth in charging-related revenue did not prevent a decline in profitability metrics. Gross margin fell to 8.9% in the second quarter, compared with 14.2% in the same period a year earlier. The net loss widened to $46.342 million from $29.821 million. Average daily throughput per port across EVgo’s public network was also 276 kilowatt-hours, compared with 281 kilowatt-hours in the second quarter of 2025. These figures put network expansion and increased total throughput alongside lower average port utilization and margin pressure. The results thus showed a divergence between growth in charging network activity and declines in total revenue and profitability.
EVgo lowered its fiscal 2026 outlook to total revenue of between $400 million and $430 million and an adjusted loss before interest, taxes, depreciation and amortization of between $5 million and $25 million. The company said it expects the first and fourth quarters to be the strongest of the year for non-charging revenue. It reported in its quarterly filing that it had $197.7 million in cash, cash equivalents and restricted cash as of June 30, 2026. It estimated that this balance would cover its working capital and capital expenditure needs for at least 12 months from the filing date. This liquidity provides financial context for the company’s plans and annual outlook as the independent committee evaluates the proposal.
On expansion, EVgo and Tesla said they had signed an agreement to deploy EVgo-owned, EVgo-branded V4 chargers, with rollout set to begin in 2026. Each site is expected to include up to 20 ports. EVgo chargers will appear in Tesla vehicles’ navigation system and trip planner. The information in the results did not specify a total number of sites, but it cited a plan to add hundreds of chargers. EVgo is scheduled to report third-quarter results on Nov. 9, 2026, with a management webcast at 9 a.m. Eastern Time, corresponding to 6 a.m. Pacific Time.