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EVgo Warns It May Not Be Accurately Recognizing Revenue

Electric vehicle charging firm questions the accuracy of certain revenue transactions.

August 10, 2022

Executives at EVgo Inc. (EVGO), an operator of a fast charging EV network, cited rapid growth in retail charging for half the company’s overall second quarter growth. One day after its earnings call, when the company filed its latest quarterly report with the SEC, investors learned EVgo’s reported retail charging revenue may not be accurate.

On page 55 of the 60 page filing, EVgo revealed it had identified multiple new control deficiencies that amount to a material weakness in what the company calls its “retail charging revenue cycle.”

Though the company did not quantify the amount of revenue in question, it did state:

“The deficiencies resulted from ineffective control over the completeness and accuracy of retail charging revenue transactions…”

The company blamed the deficiencies on the complexity involved in managing high volume, low dollar value transactions.

EVgo says it’s developing a plan to fix the deficiencies.

DuDil has contacted EVgo and asked that it quantify the amount of revenue in question and when investors might expect an adjustment or restatement. We’ll update subscribers when new information is developed.

Related: CHPT, VLTA

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