Christopher Pierce

Chris Pierce from Needham & Company asked for clarification on the sequential changes in EVgo's average selling price (ASP) per kilowatt-hour, noting a mid-double-digit increase in the prior quarter followed by a high single-digit increase in the current quarter. He sought to understand the pricing levers available and whether OEM revenue might have distorted prior quarter figures.

Answer

CFO Paul Dobson stated that charging revenue per kilowatt-hour was broadly flat between Q2 and Q3 2025. He attributed the Q3 margin squeeze to increased energy costs from summer tariffs, as expected. Dobson reiterated that pricing has been generally steady, and overall margins have shown a general increase, which is expected to continue into Q4 2025 and 2026. He also mentioned that mixed effects (where volume of energy is dispensed) are considered when analyzing pricing.

Chris Pierce asked about the average selling price per kilowatt (ASP/kWh), noting a mid-double-digit increase in Q2 and a high single-digit increase in Q3, and sought to understand the pricing levers EVgo is utilizing.

Answer

CFO Paul Dobson clarified that pricing for charging revenue was broadly flat between Q2 and Q3. He explained that energy costs, particularly due to summer tariffs, increased in Q3, leading to a slight margin squeeze as expected. Overall, pricing has remained steady, with margins showing a general upward trend.

Chris Pierce from Needham & Company asked if EVgo is seeing increased competition for rideshare drivers and inquired about the factors driving the recent increase in average selling price per kilowatt-hour.

Answer

CEO Badar Khan responded that rideshare has remained a steady and significant contributor, consistently making up 20-25% of total kilowatt-hours. CFO Paul Dobson explained that the higher revenue per kWh is due to ongoing pricing tests, dynamic pricing initiatives, and a focus on maintaining a healthy margin over energy costs. He noted the spread widened to 32¢ per kWh, which is within the company's long-term target range.

Christopher Pierce questioned the interplay between dynamic pricing used to boost overnight utilization and the observed increase in average selling price (ASP), asking about the company's pricing power. He also requested clarification on network throughput seasonality.

Answer

CEO Badar Khan explained that dynamic pricing aims to maximize margin by shifting demand to open up capacity during peak hours, which can involve raising or lowering prices. He called this a key competitive advantage and confirmed no demand signals have caused them to reconsider their pricing strategy. Regarding seasonality, Khan noted Q1 throughput was broadly flat sequentially with Q4, as expected, and anticipates sequential growth through the rest of the year, aligning with typical vehicle miles traveled patterns.

Christopher Pierce asked if EVgo plans to accelerate its NACS connector rollout and for high-level thoughts on new competition, such as the IONNA charging network, which is planning a large national deployment.

Answer

CEO Badar Khan confirmed plans to deploy NACS cables throughout the network, starting with retrofits, to attract Tesla drivers and grow throughput. Regarding competition, he stated that the market is not a zero-sum game and more infrastructure stimulates overall EV demand, which benefits EVgo. He noted that competitors like IONNA may have different goals than maximizing utilization, and EVgo's focus on usage at well-located sites allows it to capture a disproportionate share of charging sessions.

Christopher Pierce from Needham & Company asked how EVgo reconciles building sites in lower-income areas under the DOE loan with potentially lower initial utilization, and questioned the remaining growth potential for utilization at the company's top-performing sites.

Answer

CEO Badar Khan explained there is significant overlap between Justice40 communities and the rural/low-income areas where EVgo already builds and qualifies for 30C credits, so he expects no material change to unit economics. He anticipates greater operating leverage on fixed costs as the network scales. Khan also pointed to company data showing that throughput at the top 15% of sites continues to grow significantly, and emphasized that the entire network's performance is improving.

Chris Pierce asked about the best possible outcome for the BLADE transaction a year from now, focusing on whether success would be defined by increased passenger throughput in New York, the addition of new routes, or seeding customer demand for air taxi services.

Answer

Rob Wiesenthal (CEO, BLADE) stated that the acquisition's thesis was to de-risk and accelerate Joby aircraft deployment into commercial service. He emphasized that success would involve achieving profitable growth through new routes (like the Westchester commuter route), expanding existing schedules, acquiring more customers, and gaining infrastructure access, all of which educate the public and provide a significant head start over competitors.

Chris Pierce of Needham & Company asked for an update on the Ohio manufacturing facility and the timeline for scaled production. He also inquired about the infrastructure build-out required for higher tempo flights in Dubai and whether the Blade acquisition provides exclusive assets or just a first-mover advantage.

Answer

Founder and CEO JoeBen Bevirt highlighted the progress at the Marina facility, which is doubling capacity, and noted the Dayton, Ohio facility is now coming online as part of a horizontal scaling strategy. For Dubai, he cited strong interest from real estate developers and progress from their partner Skyports. He confirmed the Blade deal includes valuable assets like exclusive lounges and a large network of landing locations.

Christopher Pierce inquired about the certification progress chart, asking if the gap between submitted and accepted plans indicated an FAA slowdown, and also requested guidance on production cadence to help model future operations.

Answer

Executive Chairman Paul Sciarra clarified that despite the chart's appearance, Joby achieved record progress in FAA documentation acceptance last quarter and that the agency remains fully engaged. Regarding production, Paul Sciarra and President of Aircraft OEM Didier Papadopoulos explained that the focus for 2025 is on increasing the volume of 'conforming' parts built to FAA specifications, rather than just total volume. They confirmed meeting the 2024 goal of producing parts equivalent to one aircraft per month and noted that over 95% of composite parts are already being made on a conforming basis.

Chris Pierce asked about Carvana's 3 million unit goal within 5 to 10 years, specifically what factors determine achieving it earlier or later, such as recon scale, personnel, end markets, or credit cycles, and what drives or could influence its timeline.

Answer

Ernie Garcia, Chief Executive Officer, explained that the 5 to 10-year timeline (2030-2035) corresponds to approximately 20-40% compounded growth. He stated that the primary determinant for achieving this goal is Carvana's ability to execute across the entire business, including buying, reconditioning, delivering, handling customer requests, and scaling all operations.

Chris Pierce asked a big-picture question about Carvana's 3 million unit goal, specifically what factors determine whether it's achieved earlier or later, such as recon scale, personnel, end markets, or credit cycles.

Answer

Ernie Garcia, Chief Executive Officer, explained that the 5 to 10-year timeline for the 3 million unit goal (corresponding to 20-40% compounded growth) is largely driven by Carvana's ability to execute. He emphasized that achieving this requires significant work across the entire business, including buying, reconditioning, delivering cars, handling customer requests, and scaling all operations, making execution the primary determinant of the timeline.

Chris Pierce of Needham & Company asked about the drivers of the higher VSC attach rate and the runway for ancillary products. He also posed a broader question about whether finding new loan investors creates a pricing power tailwind for the industry.

Answer

CFO Mark Jenkins stated that VSC gains come from continuous testing and data analysis, with more opportunity ahead. CEO Ernie Garcia explained that as Carvana grows, it expands the total buyer base for auto loans. He noted that empirically, it has become easier to sell loans as they've scaled, suggesting a favorable dynamic.

Chris Pierce of Needham & Company asked about the progress and runway for vehicle service contract (VSC) attach rates. He also inquired about the gain-on-sale market, asking if Carvana is uncovering new investors and gaining pricing power for its loans.

Answer

CFO Mark Jenkins stated that VSC attach rates have improved through testing and there are future opportunities to leverage data for further gains. CEO Ernie Garcia explained that as Carvana has scaled, it has become easier to attract a broad base of investors for its high-quality loan receivables, which he believes is a positive dynamic for the business.

Christopher Pierce asked for guidance on modeling the 'Other GPU' line, given its strength after one-time benefits, and inquired about the potential to re-engage with other dealers on the marketplace.

Answer

CFO Mark Jenkins attributed the strength in Other GPU to ongoing fundamental gains in the finance platform, including streamlined experiences, better data, and improved scoring algorithms. CEO Ernie Garcia clarified that the marketplace focus is now on large commercial sellers, not other dealers, as this approach is more scalable and better leverages the combined Carvana-ADESA capabilities.

Chris Pierce sought clarification on whether customers would be able to purchase International LT Series trucks upfitted by Aurora Innovation, or if these trucks are solely for Aurora's own operations. He also asked about the potential for OEMs to support multiple autonomous platforms and how Aurora views the competitive landscape, and inquired about the recent NVIDIA headlines concerning mobility and trucking in relation to Aurora's existing partnership with NVIDIA.

Answer

Co-Founder and CEO Chris Urmson stated that initially, Aurora will own and operate the International trucks in a 'transportation as a service' model, with direct customer purchases being a future consideration. He reiterated Aurora's goal to have the Aurora Driver available on all OEM platforms, embracing competition. Regarding NVIDIA, Chris Urmson acknowledged Aurora's ongoing work with NVIDIA and AUMOVIO on the third-generation hardware kit, noting it's positive to see others adopting NVIDIA's technology.

Chris Pierce asked whether customers would be able to purchase International LT Series trucks upfitted by Aurora Innovation, or if these trucks are primarily for Aurora's own operational proof points. He also inquired about the future market landscape, specifically if OEMs might offer multiple autonomous platforms for customers to choose from, and sought clarification on NVIDIA's recent mobility announcements in relation to Aurora's existing partnership with NVIDIA.

Answer

Co-Founder and CEO Chris Urmson clarified that initially, Aurora will own and operate these International trucks in a 'transportation as a service' model, generating revenue. He reiterated Aurora's long-term goal to make the Aurora Driver available on all OEM platforms, embracing competition. Regarding NVIDIA, Chris Urmson acknowledged NVIDIA's good products and others' adoption, noting Aurora has been collaborating with NVIDIA and Continental Autonomous Mobility on the third-generation hardware kit for some time.

Chris Pierce from Needham & Company sought clarification on the alignment between PACCAR's comments on "validated production" and Aurora's development with prototype parts. He also asked for Aurora's view on the future competitive landscape, specifically whether OEMs will work with multiple autonomous partners.

Answer

CEO Chris Urmson distinguished between the OEM's vehicle platform development and Aurora's driver development, stating they are parallel processes. He explained that Aurora's hardware is advancing while supporting OEM partners as they mature their truck platforms. On industry structure, Urmson stated Aurora's aspiration is to "drive every truck," but acknowledged the market is large enough for competition, expressing confidence in Aurora's current leadership position.

Chris Pierce inquired about Aurora's strategy of leaning into mapping technology and asked for quantification of the increased truck utilization and service life benefits from autonomous operation.

Answer

CEO Chris Urmson defended their use of maps, comparing it to the strategic advantage of having deep local knowledge, calling it a light operational lift for a massive benefit. CFO David Maday addressed utilization by explaining that the consistency of the Aurora Driver—lacking aggressive or unpredictable behaviors—leads to more predictable wear and tear, which is a key advantage for service, reliability, and warranty, beyond just extended operating hours.

Christopher Alan Pierce asked if investors should reset retail gross profit per unit (GPU) expectations modestly lower given the recent pricing discussions. He also sought a comparison of the current inventory and pricing situation to past depreciation events, specifically whether CarMax is prioritizing margin over aggressive pricing.

Answer

Bill Nash, President and CEO, maintained the full-year retail GPU target as 'similar year-over-year' but expected Q3 retail GPU to be more in the historical range, down from last year's record high. He also anticipated wholesale GPU to be similar year-over-year but Q3 to align with historical averages. Mr. Nash clarified that past depreciation events (e.g., $3,000 over months) were more severe than the current $1,000 over a month. He explained that while holding margins made sense in some past events, the current situation warranted aggressive pricing to clear inventory.

Chris Pierce asked if the current conversation around pricing implies that investors should reset retail Gross Profit Per Unit (GPU) expectations modestly lower. He also sought clarification on whether the current inventory situation and CarMax's response differ from past depreciation events (e.g., calendar 2023/2024) where the company prioritized holding margins.

Answer

President and CEO Bill Nash advised that for the full year, retail GPU should remain similar to last year, though Q3 might be lower than last year's record high, returning to historical ranges. He also expected wholesale GPU to follow a similar pattern. Nash distinguished the current $1,000 depreciation event over one month from past $3,000 events over several months, noting that the current strategy was to move inventory quickly, whereas in past events, holding margins made more sense given the market dynamics.

Christopher Alan Pierce asked if investors should reset retail GPU expectations lower given the recent pricing discussions. He also sought confirmation that the current situation is not comparable to the calendar 2022 period when CarMax had excess inventory and held margins, leading to a longer inventory reset.

Answer

President and CEO Bill Nash maintained that retail GPU for the full year should be similar year-over-year, though Q3 is expected to be below last year's record high and closer to historical averages. He clarified that the current $1,000 depreciation over one month is different from previous $3,000 events over several months, and the company's strategy this time was to drive sell-through, indicating a more nimble response.

Chris Pierce of Needham & Company asked for an explanation of the significant year-over-year improvement in 'other gross profit,' particularly from service, and questioned the outlook for SG&A leverage.

Answer

EVP and CFO Enrique Mayor-Mora attributed the $30 million improvement in service margin to cost coverage, volume-based leverage, and efficiency gains. He and CEO Bill Nash noted that Q1 is seasonally the strongest for service and that the company remains committed to levering SG&A, with continued opportunities for efficiency across the business.

Christopher Pierce asked if selling more 6- to 10-year-old vehicles due to credit spectrum expansion creates competition with a new set of dealers and if this shift provides a tailwind for gross profit per unit (GPU).

Answer

CEO William Nash clarified that CarMax has always sold 1- to 10-year-old cars and the focus remains on meeting their strict quality standards, which many older cars do not. EVP Jon Daniels added that CAF's full-spectrum lending is disconnected from inventory strategy, as their lending partners finance all vehicle ages. Nash confirmed that older vehicles, when reconditioned to CarMax standards, are less of a commodity and do tend to carry a higher margin.

Christopher Pierce asked if CarMax has data to support the thesis that financially pinched consumers are shifting from the new car market to the used car market.

Answer

CEO William Nash pointed to macro data showing the overall used car market has been depressed, particularly the 0-4 year-old segment, which he interprets as a sign that consumers are pinched. He views the eventual recovery of the market to historical norms as a significant future opportunity for CarMax.

Christopher Pierce asked if the CDK Global outage provided a competitive benefit to sales comps during the quarter and sought clarity on the future drivers of 'Other Gross Margin,' including potential headwinds.

Answer

President & CEO William Nash stated that the CDK outage had no material impact, as CarMax's sales comp cadence improved throughout the quarter. EVP & CFO Enrique Mayor-Mora explained that Other Gross Profit growth was driven by strong performance in Service and EPP, which he expects to continue. He clarified that a potential charge of up to $10 million related to logistics optimization would impact the 'other income/expense' line, not gross margin.

Asked for a deeper explanation of the Zometric acquisition, including the specific product gaps it fills, its revenue model (equipment vs. services), and the competitiveness of its target market segment compared to home charging.

Answer

The Zometric acquisition was strategic to fill a critical gap in Blink's portfolio for a cost-optimized charger for the price-sensitive fleet and multifamily market segments. The deal brings a combination of product sales and a charge point operator (CPO) business with recurring network fees. It also added key technical talent to the leadership team. The target market is considered less competitive than the residential charging market.

Chris Pierce asked for a deeper understanding of the Zometric acquisition, questioning which specific product gaps it fills, whether it generates charging revenue or just equipment sales, and how it will impact future growth. He also inquired about the competitiveness of the market segment Zometric serves.

Answer

President, CEO & Director, Michael Battaglia, explained that Zometric fills a critical gap for a cost-optimized charger for the price-sensitive fleet and multifamily segments, a deficiency previously identified by the company. He clarified that the acquisition brings a combination of product sales, recurring network fee revenue from its charge point operator (CPO) business, innovative network technology, and key executive talent. Battaglia also noted this market segment is less competitive than the residential charging market.

Questioned the strategic shift towards the owner-operator model, asking if it was a permanent change or a reaction to the market, and inquired about the impact on margins throughout the year.

Answer

The company clarified that becoming an owner-operator is a long-term strategic goal, not a short-term reaction, and that product sales will continue to be a part of the business. They do not expect the shift to negatively impact overall margins, noting that margins improved in 2024 despite lower product sales.

Chris Pierce of Needham & Company inquired about the revenue timeline for the new premium insurance provider, asking when new contracts would materially impact growth. He also questioned if this new revenue could offset typical Q4 seasonality and sought clarity on the potential for further operating expense leverage.

Answer

CEO Matt Booth stated that revenue from new insurance partners should begin to contribute in late Q3 or early Q4, targeting 20% to 30% post-Autonomous growth. He also noted that AI initiatives are flattening the seasonality curve. Corporate Controller & Principal Accounting Officer, Andrea Makkai, added that ongoing OpEx costs from the Autonomous business are expected to be minimal, supporting the goal of non-GAAP breakeven.

Chris Pierce asked about the timing of revenue contribution from the newly signed premium insurance provider and other mid-market companies, and whether this new revenue could offset typical Q4 seasonality. He also inquired about the potential for further GAAP OpEx leverage.

Answer

CEO Matthew Booth stated that revenue from new clients should begin to materialize in late Q3 and early Q4, reiterating a 20-30% growth target post-Autonimo. He added that AI initiatives are helping to flatten the seasonality curve. Corporate Controller Andrea Makkai clarified that a Q2 Autonimo-related cost was a one-time expense and that ongoing OpEx from that business will be minimal, keeping the company on track for non-GAAP breakeven.

Chris Pierce of Needham & Company inquired about the timing for new revenue from the recently signed premium insurance provider and when Urgently expects to see a significant impact on growth. He also asked if this new revenue could offset typical Q4 seasonality and questioned how much further operating expense leverage could be achieved.

Answer

CEO Matt Booth stated that revenue from new insurance partners should begin to materialize in late Q3 and early Q4 2025, reiterating the company's target of 20-30% growth after cycling the Autonomo business. He noted that AI initiatives are helping to flatten the seasonality curve. Corporate Controller Andrea Makkai added that the Q2 Autonomo-related operating expense was a one-time cost and that the company expects ongoing OpEx to be minimal, keeping them on track for non-GAAP breakeven.

Chris Pierce inquired about the revenue timeline for the newly signed premium insurance provider and other mid-market companies, asking when these would contribute to growth. He also questioned if this new revenue could offset typical Q4 seasonality and sought clarity on the potential for further operating expense leverage.

Answer

CEO Matt Booth stated that revenue from new insurance partners should begin to materialize in late Q3 and early Q4, targeting 20% to 30% post-Autonomous growth. He also noted that AI initiatives are helping to flatten the seasonality curve. Corporate Controller Andrea Makkai added that a one-time historical compliance cost related to Autonomous was incurred in Q2, and ongoing OpEx is expected to be minimal, supporting the goal of non-GAAP breakeven.

Christopher Pierce asked for details on the progress with new partners, the strategy for re-entering the mid-market insurance vertical via a 'Champion Challenger' model, and the potential impact on gross margins. He also inquired about the remaining potential for OpEx leverage and the timing and mechanics of the dual-source insurance model.

Answer

CEO Matthew Booth clarified that a recent major renewal was with a large fleet management company, not a new OEM. He stated that after 18 months of improving unit economics, Urgently is now well-positioned to re-enter the insurance market. CFO Timothy Huffmyer added that while major Otonomo-related cost reductions are complete, further OpEx efficiencies are expected in 2025, albeit at a slower pace. Booth also explained that the dual-source model is already in use with some clients and he expects the trend to accelerate as large customers seek vendor redundancy.

Christopher Pierce inquired about the net revenue impact of gaining three new partners while losing one, the business categories of the new partners, and whether the new contracts were won competitively. He also asked for clarification on the Q1 2025 revenue comparison, considering the previously announced customer nonrenewal, and questioned the drivers behind the sequential gross margin improvement in Q3.

Answer

CEO Matt Booth stated that the three new partners—a mix of fleets, insurance, and B2B2C clients won through competitive processes—will more than offset the revenue from the lost partner with equal or better margins. CFO Tim Huffmyer confirmed that Q1 2025 will still be a challenging year-over-year comparison due to the prior customer loss. Regarding gross margins, CEO Matt Booth attributed the sequential strength to a favorable job mix, despite typical seasonal pressures.

Chris Pierce from Needham & Company asked for clarification on the 500 basis point unit growth headwind, questioning if it was driven by dealers retaining more vehicles or by lower platform conversion rates, and inquired about the competitive landscape.

Answer

CEO George Chamoun and CFO Bill Zarella clarified that the headwind was primarily due to lower-than-expected conversion rates in the back half of the quarter, a trend they saw across the industry. They noted that dealer inventory retention is a separate, ongoing industry challenge. Chamoun added that conversion rates began improving in July, partly due to ACV's own initiatives like no-reserve sales.

Christopher Pierce from Needham & Company asked about the competitive landscape, particularly regarding moves by CarMax and Carvana, and how sophisticated dealers are leveraging ACV's real-time data. He also requested clarification on the year-to-date performance of the dealer wholesale market.

Answer

CEO George Chamoun positioned ACV as a "neutral partner" for dealers, contrasting with competitors who are also retailers. He detailed how top dealers use ACV's AI tools for automated pricing, sourcing cars from service lanes, and receiving dynamic retail price recommendations. Chamoun clarified that the dealer wholesale market was up "low single digits" in Q1, which aligns with the company's "flattish" full-year outlook.

Christopher Pierce questioned the conservative 'flat market volumes' forecast for 2025 given reports of strong January auction volumes, and asked about the competitive impact of tech updates from rivals like CarMax and Carvana.

Answer

CEO George Chamoun explained that while January was strong for ACV, February data appears mixed, and given various market crosswinds like interest rates, it is prudent to forecast a flat market. He emphasized that ACV's guidance range accounts for potential upside. Regarding competition, he reiterated that ACV has always faced competition but feels confident in its broad value proposition, including its marketplace, transport, capital, and pricing tools, which positions them as a strong partner for dealers.

Christopher Pierce inquired about the revenue mix between the auction and assurance segments within the ARPU metric and the long-term competitive implications if large retailers like Carvana grow their own wholesale operations.

Answer

CFO Bill Zerella advised against analyzing auction and assurance revenue separately, noting that GAAP accounting can distort trends. CEO George Chamoun addressed the competitive dynamic, explaining that ACV's strategy is to empower the thousands of franchise and independent dealers with technology like AI-driven appraisal and sourcing tools, enabling them to effectively compete against larger, consolidated players.

Chris Pierce from Needham & Company inquired about the key drivers of Marketplace revenue growth, specifically the balance between dealer count and revenue per dealer, and the remaining whitespace for the current product suite. He also asked about the macro impact of increasing used car supply on the business.

Answer

CEO Jason Trevisan explained that significant growth runway exists for both core and add-on products, with over 50% penetration opportunity for most cross-sell items. He noted that while used inventory is up, it remains below pre-COVID levels, highlighting the importance of the sourcing intelligence technology developed at CarOffer. This technology helps dealers 'buy right,' which is crucial in the current market, and CarGurus plans to leverage it across its broader dealer base.

Christopher Pierce asked if personalized search and comparison pages are being monetized directly and sought clarification on whether the acquisition insights report recommends specific vehicles from other wholesale platforms.

Answer

Jason Trevisan, CEO, clarified that direct monetization remains through the featured listings model, while personalized search improves organic results, boosting lead quality and quantity for all dealers. Sam Zales, President and COO, explained that the acquisition insights report recommends the *make and model* a dealer should source for their local market, not a specific vehicle. Trevisan added that the future vision could involve pointing dealers to specific cars on CarGurus' own wholesale platform.

Chris Pierce of Needham & Company questioned the drivers behind the sequential momentum in dealer revenue, asking if it was due to units, pricing, or dealer quality. He also asked about the decision to pull back on investments while showing growth and sought clarity on the outlook for OEM incentive revenue.

Answer

President & CEO Jantoon Reigersman attributed the momentum to simultaneous improvements in both network and marketing efficiency. CFO Oliver Foley added that ancillary dealer revenues from sourcing and marketing solutions also contributed. Foley clarified that investments were shifted from field sales to product enhancements that lift close rates, creating more leverage for future growth. Reigersman affirmed that the company remains very bullish on the long-term opportunity in OEM incentive revenue.

Christopher Pierce asked if TC+ sales are additive for dealers, what the economic benefit is for TrueCar, and whether the pause in dealer sales headcount is a reaction to current dealer feedback or an anticipation of future uncertainty.

Answer

Jantoon Reigersman (executive) confirmed that for the pilot dealer, TC+ has driven both a shift to online transactions and incremental sales volume. He clarified that TC+ sales are currently monetized like standard leads to facilitate testing, with plans for a different model at scale. He also stated the headcount pause is a proactive measure in anticipation of market uncertainty, not a reaction to current dealer sentiment.

Christopher Pierce requested more detail on the consultative approach, asking how TrueCar helps dealers convert leads, and also asked about the performance and growth potential of TrueCar Marketing Solutions (TCMS).

Answer

Executive Jantoon Reigersman explained that the service team provides hands-on help with dynamic pricing, system engagement, and sales staff training on lead nurturing. CFO Oliver Foley added that TCMS revenue declined slightly in Q4 due to a strategic streamlining of the offering, but it is being positioned to be a major growth driver in 2025.

Christopher Pierce sought confirmation on American Express cycling out as an affinity partner, its potential impact on unit volumes, and whether the TrueCar Marketing Solution (TCMS) is attracting new dealers or primarily serving as an add-on for existing clients.

Answer

Executive Jantoon Reigersman confirmed that AmEx will exit the program in April, describing it as a successful but finite partnership. He noted the company is already in discussions with other parties to replace the volume. CFO Oliver Foley quantified AmEx's contribution at roughly 5% of partner units over the last 12 months. Reigersman also clarified that TCMS is an add-on product for dealers already on the core platform and has been instrumental in fostering more strategic, senior-level conversations with dealer groups.

Chris Pierce of Needham & Company, LLC asked if Blue Bird's recent pricing action was a competitive move or an industry-wide trend. He also inquired if the new commercial chassis is additive to margins in the long-term outlook and whether future EPA funding would be additive to total units or just a mix shift.

Answer

CFO Razvan Radulescu stated that competitors had matched initial tariff-related price increases, but Blue Bird's latest move to ensure stability through March was recent and its competitive impact was still being assessed. He confirmed the new commercial chassis is a profitable growth driver that is additive to both revenue and margins. Regarding EPA funds, he explained it would be a mix shift in the medium term but could be additive to total volume in the long term once the new plant expands capacity.

Christopher Pierce asked about the levers that led to the reopening of EPA funding portals for rounds 2 and 3, whether the company has pricing power on EVs if new subsidies flow through, and how investors should think about the remaining share buyback program.

Answer

CFO Razvan Radulescu explained they were confident rounds 2 and 3 would proceed due to the legal obligations associated with the awards already being made, which differs from the unawarded round 4. He noted it's too early to discuss pricing for future rounds given the uncertainty. Regarding capital allocation, he highlighted the recent acceleration of the buyback to $20 million in Q2 and said the company would provide updates on future plans in the next call.

Christopher Pierce asked about the existence of an industry working group to engage with Washington on EPA funding, sought clarification on whether the 1,000 EV unit figure was a backlog or the full-year guide, and questioned why the company isn't more aggressive with its share buyback program.

Answer

CEO Phil Horlock confirmed that Blue Bird is part of an influential consortium with competitors and customers that is actively engaging with lawmakers and has received strong bipartisan support for the Clean School Bus Program. CFO Razvan Radulescu clarified that the 1,000 EV units represent the total sold in Q1 plus the current backlog, which constitutes the full-year forecast. Regarding the buyback, Horlock explained the company follows a board-approved plan of $10 million per quarter and can only execute repurchases during open trading windows.

Christopher Pierce inquired about Blue Bird's market share gains given its growth against a declining industry forecast, the reason for pushing long-term targets from 2027 to 2028, and the status of the CEO search.

Answer

CEO Phil Horlock attributed the 2024 industry decline to a major competitor's significant production issues, which are now resolved, rather than Blue Bird taking share. CFO Razvan Radulescu explained the long-term targets were moved to 2028 to align with the new plant's capacity becoming fully available after its 2027 launch and ramp-up. Regarding the CEO search, Mr. Horlock confirmed a board committee is actively engaged in the process to ensure a seamless transition.

Chris Pierce of Needham & Company sought to clarify if EchoPark's focus on front-end gross is a strategic change or a temporary market condition. He also asked if new lenders are entering the market, contributing to F&I strength, and questioned the drivers behind the unchanged EchoPark unit guidance for the full year.

Answer

President Jeff Dyke explained that higher front-end gross at EchoPark is partly due to sourcing more vehicles directly from consumers, though he anticipates some margin pressure ahead. VP of IR Danny Wyland added that the guidance now focuses on total GPU because strong F&I performance provides flexibility to offset front-end volatility. Dyke clarified that F&I gains stem from renegotiating with product providers, not new lenders entering the market. Wyland attributed the implied second-half unit growth to a combination of easier prior-year comparisons and their market outlook.

Christopher Pierce of Needham & Company sought clarification on the assumptions behind the full-year used vehicle GPU guidance, which seems to imply a decline from Q1. He also asked about the EchoPark F&I per unit guidance, questioning why it also suggests a decrease from the strong Q1 result.

Answer

President Jeff Dyke explained that franchise used GPUs should remain in their historical $1,400-$1,600 range, while EchoPark's front-end margin is expected to improve due to better sourcing. CFO Heath Byrd added that seasonality impacts GPUs through the year. On F&I, Dyke conceded the guidance was likely conservative, attributing strong performance to better execution and cost management with third-party warranty providers, which he expects to continue.

Christopher Pierce asked if EchoPark's aged inventory issue was widespread, inquired about the competitive environment in mature markets like Denver, and sought an explanation for the increase in EchoPark's SG&A expenses.

Answer

President Jeff Dyke responded that the aged inventory issue stemmed from over-forecasting Q3 demand and that in mature markets like Denver, EchoPark remains #1 and stable. CEO David Smith affirmed that the oldest markets are highly profitable. VP of IR Danny Wieland clarified that the Q4 SG&A to gross profit ratio increase was primarily driven by a $200 per unit gross profit headwind, not a significant rise in underlying expenses, after adjusting for one-time items in prior periods.

An analyst from Needham & Company asked about the outlook for EchoPark's retail gross profit per unit, sought a deeper explanation for the Denver market's outperformance, and inquired about current inventory levels.

Answer

President Jeff Dyke explained that while Q3 front-end gross was compressed by auction prices, he expects seasonal improvements. He attributed Denver's success to market maturity and brand equity, a model they plan to replicate. CEO David Smith highlighted the significant volume capacity upside at existing stores. Jeff Dyke confirmed inventory is at the target level of 20 days on lot plus 10-12 days in the pipeline.

Christopher Pierce of Needham & Company asked about Archer's manufacturing capability for the new Anduril aircraft and the potential use cases for a longer-range hybrid VTOL in regional air travel.

Answer

CEO Adam Goldstein expressed confidence in their manufacturing ability, explaining the new hybrid aircraft is designed for dual-use and will reuse significant components from the Midnight program, allowing it to be built on the same flexible production line in Georgia. For potential use cases, Goldstein noted applications like servicing oil rigs and cargo, and suggested that for civil passenger travel, the market would likely be defined by passenger comfort on longer flights rather than the aircraft's maximum range.

Christopher Pierce of Needham & Company asked how Archer is prioritizing its order book between existing orders, new 'Launch Edition' international partners, and defense contracts, and whether the company anticipates being supply-constrained.

Answer

CEO Adam Goldstein clarified that the Launch Edition program serves as a 'precursor' to the main order book. It allows international partners to begin operations with a small number of aircraft, building out the necessary ecosystem (pilot training, maintenance, route planning) to support larger fleet deliveries in the future. He emphasized this de-risks the larger orders and that initial deliveries will be a handful of aircraft per partner, scaling from there.

Christopher Pierce inquired about the revenue outlook for 2025, the potential timing for a significant increase in electrolyte sales to customers, and the status of the Department of Energy (DOE) funding.

Answer

Linda Heller (executive) clarified that 2025 revenue is dominated by collaborative arrangements, primarily with SK On, and that electrolyte sampling revenue is still minor. John Van Scoter (executive) added that while sampling demand is increasing, significant revenue from electrolytes is not expected until 2027-2028 at the earliest, with the bulk anticipated around 2030. Heller also specified the DOE funding is a grant, not a loan, and that the company received $1.5 million in Q1.

Christopher Pierce of Needham & Company, LLC inquired about the revenue outlook for 2025, the potential timing and trajectory for significant electrolyte customer revenue beyond 2025, and the status of the Department of Energy (DOE) funding.

Answer

Executive Linda Heller clarified that 2025 revenue is dominated by collaborative arrangements, primarily with SK On, and government contracts, while electrolyte sampling revenue remains small. Executive John Van Scoter added that while sampling is increasing, significant electrolyte revenue is anticipated from 2027-2028, with the bulk of customers expected around 2030. Heller also corrected that the DOE funding is a grant, not a loan, and confirmed the company received $1.5 million in Q1.

Christopher Pierce inquired about the reasons for the slower uptake in electrolyte development and asked for clarification on the pause in A1 cell deliveries to BMW, questioning if it was a normal part of resetting the joint development agreement (JDA).

Answer

President and CEO John Van Scoter explained that the slower electrolyte uptake is due to the nascent, early-stage nature of the all-solid-state battery market, rather than broader EV sentiment. Regarding BMW, he confirmed the pause in A1 cell deliveries was a mutual decision to refocus efforts on the imminent A2 cell's performance improvements, following successful A1 module-level testing.

Christopher Pierce from Needham & Company questioned the strategy of aggressively increasing marketing spend while being production-constrained and asked how Lucid's path to positive gross margin compares to peers, considering its technological advantages.

Answer

Interim CEO Marc Winterhoff explained that the marketing push is a long-term strategy to build brand awareness ahead of the high-volume Midsize platform launch, using the Gravity as a key opportunity to reach a larger audience. SVP of Finance Gagan Dhingra addressed margins by noting that Lucid is taking steps to mitigate a potential 7-12% gross margin impact from tariffs and other factors through supply chain localization and other efforts, suggesting they are in a better position than some peers.

Christopher Pierce asked about the backward compatibility of next-generation software, the timing of the inventory drawdown relative to the new hardware launch, and the strategy behind the new Essential Cloud Plan.

Answer

Executive Richard Wilmer confirmed the new software is fully backward compatible with all prior and third-party hardware and that the new product transition will be managed to avoid obsolescence. He clarified the Essential Cloud Plan is a simplified licensing model that deducts fees from driver revenue, not a move to compete with customers by selling energy.