Xos, Inc. ( (XOS) ) has released its Q1 earnings. Here is a breakdown of the information Xos, Inc. presented to its investors.
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Xos, Inc. is a technology company specializing in the manufacturing of electric trucks and providing fleet services for battery-electric fleets, focusing on medium- and heavy-duty commercial vehicles. In its latest earnings report for the first quarter of 2025, Xos reported a positive gross margin of approximately 20%, a significant achievement for the company. Despite a seasonal slowdown, Xos delivered 29 units and generated $5.9 million in revenue, a decrease from the previous year’s first quarter. However, the company shipped a total of 60 units, including 31 stripped chassis for a large order from UPS, indicating potential revenue recognition in future quarters.
Key financial highlights include a substantial reduction in operating expenses by $2.6 million, reflecting strong operational discipline. The company also faced a reduction in cash flow due to a planned inventory buildup to meet future orders. Despite these challenges, Xos continues to see momentum, with expectations of increased deliveries and improved cash flow in the second quarter. The company is also benefiting from state-level vehicle incentives, despite uncertainties regarding federal tax credits.
Xos’s financial performance showed a net loss of $10.2 million for the quarter, with revenues declining compared to the previous year. However, the company achieved a non-GAAP gross profit of $0.9 million, demonstrating progress in cost management. The company remains focused on driving revenue growth and strengthening its gross margin while navigating tariff challenges.
Looking ahead, Xos management anticipates revenue between $50.2 million and $65.8 million for 2025, with unit deliveries projected between 320 and 420 units. The company is implementing strategies to mitigate tariff impacts and is planning for sustained positive free cash flow, indicating a cautiously optimistic outlook for the remainder of the year.