LOS ANGELES, Oct. 27, 2025 (GLOBE NEWSWIRE) -- Xos, Inc. (NASDAQ: XOS), a leading electric truck manufacturer and fleet services provider, announced it is scheduling the release of its third quarter 2025 operating results on Thursday, November 13, 2025 after the close of the U.S. financial markets. Management will host a conference call to discuss these financial results at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time that same day. Conference Call and Webcast Details Date / Time:Thursday, November 13, 2 ...

Industry Overview - The Zacks Domestic Auto industry encompasses companies involved in designing, manufacturing, and retailing various types of vehicles, including passenger cars, trucks, and electric vehicles [3] - The industry is highly consumer cyclic and is undergoing significant transformation due to technological advancements and rapid digitization [3] Key Themes Shaping the Industry - New vehicle sales remained strong in August, with a seasonally adjusted annual rate exceeding 16 million, but rising vehicle prices and tariffs may slow momentum as affordability weakens [4] - The Federal Reserve's recent interest rate cut may not significantly alleviate high auto loan costs, with meaningful relief not expected until 2026 or later [5] - Electric vehicle sales surged to a record 146,332 units in August, driven by the impending expiration of the $7,500 EV tax credit, but demand may sharply decline once the incentives are removed [6] Industry Performance - The Zacks Automotive – Domestic industry currently holds a Zacks Industry Rank of 147, placing it in the bottom 40% of approximately 250 Zacks industries, indicating a negative earnings outlook [7][8] - Despite the overall weakness, the Domestic Auto industry has outperformed the Zacks S&P 500 composite and sector over the past year, gaining 31% compared to 24% for the sector and 18% for the S&P 500 [10] Current Valuation - The industry is trading at an EV/EBITDA ratio of 45.27X, significantly higher than the S&P 500's 18.34X and the sector's 22.83X, reflecting the debt-laden nature of automotive companies [13] Company Highlights Blue Bird Corporation (BLBD) - Blue Bird is a leader in low- and zero-emission school buses, with over 20,000 vehicles in operation and a strong demand for its products [17] - The company delivered a record 271 electric buses in the last quarter and raised its full-year adjusted EBITDA guidance to $205-$215 million, indicating a margin of approximately 14.5% [18] - The Zacks Consensus Estimate for BLBD's fiscal 2025 and 2026 sales implies year-over-year growth of 8% each, with bottom-line estimates suggesting improvements of 17% and 3% respectively [19] Xos, Inc. (XOS) - Xos specializes in fully electric, zero-emission medium- and heavy-duty trucks, with a growing customer base including major operators like UPS and FedEx [23] - The company reported a 50% year-over-year increase in deliveries, with revenues climbing 18.7% to $18.4 million, and generated positive free cash flow of $4.6 million [24] - The Zacks Consensus Estimate for XOS's 2025 and 2026 sales implies year-over-year growth of 3% and 25.5% respectively, with bottom-line estimates suggesting improvements of 46% and 27% [25]

Core Insights - The Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) is reopening, providing significant funding opportunities for California fleets to acquire electric trucks [1][2] - Incentives range from $85,000 to $160,000 per Class 6 vehicle, depending on fleet size, with a maximum of 20 vouchers available per fleet [1][7] - The program operates on a first-come, first-served basis, emphasizing the urgency for fleets to apply early to secure funding [4][6] Program Highlights - HVIP is a crucial tool for California fleets to reduce the upfront costs associated with electrification, making the transition to electric vehicles financially attractive [4] - The program's funding is limited, and vouchers will be assigned based on the order of submission, highlighting the need for timely applications [4][6] Key Program Requirements - Fleets must ensure their vouchers remain active and aligned with delivery schedules, which includes regular check-ins and monitoring of vehicle usage [5][8] - Xos provides support to simplify the HVIP process, allowing fleets to focus on operations rather than administrative tasks [5][8] - Vouchers can be renewed up to 540 days, providing flexibility for fleets to coordinate charging infrastructure and vehicle deployments [8]

Core Insights - Windrose is partnering with Xos to enhance mobile charging solutions for electric Class 8 trucks, aiming to facilitate fleet electrification across the U.S. and international markets [1][5][7] Company Overview - Windrose manufactures one of the lightest and longest-range electric Class 8 trucks, designed for global deployment across six markets: North America, Europe, South America, Oceania, Asia, and the Middle East [2][10] - The Class 8 electric truck offers up to 420 miles of loaded range, featuring a lightweight chassis and high-efficiency drivetrain [2] Partnership Details - The partnership with Xos provides Windrose fleet customers access to the latest generation of the Xos Hub, a mobile charging solution that allows for rapid scaling without traditional infrastructure delays [3][5] - The Xos Hub includes a 630 kilowatt-hour onboard battery and integrated DC fast chargers, capable of delivering up to 150 kilowatts per port, or 300 kilowatts in series operation [4] Operational Benefits - The Xos Hub enables fleets to bypass utility delays, allowing for quick deployment and operation, which can significantly reduce capital expenses and operating costs associated with traditional infrastructure [6][9] - This mobile charging solution supports dual-shift operations, allowing drivers to recharge quickly and return to the road for a second shift [4][6] Market Impact - The collaboration aims to remove barriers to fleet electrification, enabling large fleets to deploy trucks and charging solutions in days rather than years, thus accelerating the adoption of zero-emission freight [5][7]

Core Insights - Xos, Inc. has appointed John F Smith to its Board of Directors, increasing the board size from eight to nine members [1] - Mr. Smith will serve as a Class I director until the 2028 annual meeting of stockholders and has also joined the Audit Committee [1] - His extensive experience in OEM strategy and supply-chain leadership is expected to support Xos's growth and operational scaling [3] Company Overview - Xos, Inc. is a manufacturer of medium-duty battery-electric vehicles and mobile energy solutions, aimed at helping fleets transition to zero-emission operations [4] - The company designs and builds commercial vehicles, including the Xos MDXT chassis cab and Xos Step Van, and offers charging solutions like the Xos Hub [4] - Founded in 2015 and headquartered in Los Angeles, Xos has production operations in Tennessee and serves various sectors including parcel delivery and government [4] Leadership Background - John F Smith is the Principal of Eagle Advisors LLC, a consultancy he founded in 2011, and has held various board positions in companies such as TI Fluid Systems and American Axle & Manufacturing [2][7] - He retired from General Motors after over 42 years, where he served as Group Vice President of Corporate Planning and Alliances [2][7]

Core Insights - Xos, Inc. has received approval for its Xos Hub™ under California's CORE Voucher Incentive Project, making it eligible for a $110,000 incentive, thus reducing its price to under $100,000, significantly lower than many equivalent DC fast charging systems [2][5] - The Xos Hub features 282 kWh of onboard energy storage and four integrated DC fast chargers, providing a flexible and transportable charging solution that can be deployed without permanent infrastructure [3][6] - Major fleets and utilities, including Caltrans and Duke Energy, are already utilizing the Xos Hub for clean and cost-effective charging solutions [4] Company Overview - Xos, Inc. is a technology company specializing in Class 5 and 6 battery electric commercial vehicles, powertrains, and advanced charging equipment, offering a comprehensive suite of solutions to support fleet electrification [7] - The Xos Hub is designed for various applications, including depots without existing infrastructure, event-based operations, and remote job sites, facilitating faster and more affordable transitions to electric vehicles [6][7] - Xos products are tailored for last-mile, back-to-base routes of up to 250 miles per day, providing a lower total cost of ownership compared to internal combustion engine vehicles [8]

Core Viewpoint - Xos Inc. has released its second quarter 2025 earnings results, which will be discussed in the conference call led by key executives [2][3]. Group 1: Company Overview - The conference call features Xos' CEO Dakota Semler, COO Giordano Sordoni, and Acting CFO Liana Pogosyan, indicating a strong leadership presence during the earnings discussion [2]. - The earnings press release includes financial results and commentary for the quarter and the six months ending June 30, 2025, highlighting the company's performance [3]. Group 2: Financial Performance - Management's statements during the call will reflect their views as of August 13, 2025, and will include forward-looking statements regarding fiscal year 2025 and expectations for future performance [3].

Core Insights - Xos, Inc. reported a quarterly loss of $0.91 per share, better than the Zacks Consensus Estimate of a loss of $1.06, and an improvement from a loss of $1.23 per share a year ago, resulting in an earnings surprise of +14.15% [1] - The company generated revenues of $18.39 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 40.51%, compared to $15.53 million in the same quarter last year [2] - Xos shares have increased approximately 4% year-to-date, while the S&P 500 has gained 9.6% [3] Earnings Outlook - The future performance of Xos stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is -$0.94 on revenues of $18.04 million, and for the current fiscal year, it is -$4.10 on revenues of $56.21 million [7] Industry Context - The Automotive - Domestic industry, to which Xos belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - The company achieved record revenue of $18.4 million in Q2 2025, with 135 vehicle deliveries, marking the highest quarterly revenue and unit deliveries in its history [7][20] - GAAP gross margin for Q2 was 8.8%, down from 20.6% in Q1 2025 and 13.1% in Q2 2024, primarily due to a shift in product mix and unexpected tariff impacts [21] - Operating loss for Q2 was approximately $7.1 million, the lowest since going public, improving from $9.3 million in Q1 2025 [9][23] - Positive free cash flow of $4.6 million was reported, the highest in company history, compared to negative $4.8 million in Q1 2025 [25] Business Line Data and Key Metrics Changes - The Step Van platform remains a significant revenue contributor, while the company is diversifying into higher-margin products like powertrain systems and charging infrastructure [12] - Deliveries to Bluebird Corporation for electric school buses are increasing, with nearly 20 powertrain units ordered since the quarter ended [12] Market Data and Key Metrics Changes - The company is experiencing strong demand from national carriers like UPS and FedEx, which underscores confidence in its products [7] - The Hub product has attracted interest from various industries facing grid constraints, indicating a growing market for fleet electrification solutions [13] Company Strategy and Development Direction - The company focuses on disciplined growth, improving gross margins, and ensuring liquidity as its strategic pillars [6] - Plans to enhance margins and reduce customer concentration through a diversified product portfolio are in place, with ongoing development of the Hub product and power resiliency solutions [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving gross margins over time as production scales and cost reduction initiatives are executed [21] - The company remains optimistic about its long-term vision and future, emphasizing adaptability in navigating supply chain challenges and tariff impacts [34][49] Other Important Information - The company amended the repayment structure for a convertible note, allowing for principal repayment in installments, which enhances liquidity [11] - The company is actively exploring options for enhancing liquidity and has maintained positive non-GAAP gross margins for eight consecutive quarters [10][21] Q&A Session Summary Question: Performance compared to competitors - Management highlighted the strength of their team, customer trust built over years, and adaptability in operations as key factors for outperforming competitors [30][32][34] Question: Update on MDXT truck - Management reported strong customer interest and ongoing demonstrations, indicating a solid potential order backlog for the MDXT truck [36][38][40] Question: Impact of tariffs - Management quantified the tariff impact on average selling prices, noting it varies by product and customer, and emphasized their approach to share tariff costs with customers [41][43][44]

Part I - Financial Information [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements) This section details forward-looking statements and risks, including substantial doubt about the company's going concern ability, historical losses, and material internal control weaknesses - The company explicitly states there is **substantial doubt about its ability to continue as a going concern** for the next 12 months[9](index=9&type=chunk) - Xos has a **history of losses**, has **not achieved positive operating cash flow**, and **requires significant additional capital** to fund its business plans[9](index=9&type=chunk) - The company has identified **material weaknesses in its internal control over financial reporting**, which could lead to misstatements in financial reports[9](index=9&type=chunk) - A significant portion of revenue is derived from a small number of customers, posing a **concentration risk**[10](index=10&type=chunk) - The company holds a **$20.0 million convertible note**, which had a maturity date of August 11, 2025, but was subsequently modified to be paid in quarterly installments from November 2025 through February 2028[9](index=9&type=chunk) [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q2 2025 financial statements reveal decreased cash and assets, mixed revenue, continued net losses, and significant liquidity issues raising going concern doubts [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Selected Balance Sheet Data (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $8,785 | $10,996 | ($2,211) | | Accounts receivable, net | $18,089 | $26,870 | ($8,781) | | Inventories | $31,012 | $36,567 | ($5,555) | | Total current assets | $66,634 | $82,301 | ($15,667) | | Total assets | $80,349 | $98,333 | ($17,984) | | Convertible debt, current | $4,494 | $19,970 | ($15,476) | | Convertible debt, non-current | $15,500 | $0 | $15,500 | | Total liabilities | $62,021 | $64,723 | ($2,702) | | Total stockholders' equity | $18,328 | $33,610 | ($15,282) | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Operating Results Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | $18,393 | $15,535 | +18.4% | $24,272 | $28,697 | -15.4% | | Gross Profit | $1,619 | $2,030 | -20.2% | $2,830 | $4,818 | -41.3% | | Loss from operations | ($7,081) | ($11,368) | +37.7% | ($16,350) | ($21,611) | +24.3% | | Net loss | ($7,505) | ($9,663) | +22.3% | ($17,691) | ($20,666) | +14.4% | | Net loss per share (basic) | ($0.91) | ($1.23) | +26.0% | ($2.16) | ($2.96) | +27.0% | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | ($111) | ($40,576) | $40,465 | | Net cash provided by investing activities | $0 | $51,199 | ($51,199) | | Net cash used in financing activities | ($2,100) | ($1,577) | ($523) | | Net (decrease) increase in cash | ($2,211) | $9,046 | ($11,257) | - Cash used in operating activities decreased dramatically to **$0.1 million** in H1 2025 from **$40.6 million** in H1 2024, primarily due to favorable changes in working capital, including a **significant decrease in accounts receivable**[33](index=33&type=chunk)[228](index=228&type=chunk) - Investing activities in H1 2024 included **$51.4 million** in net cash acquired from the ElectraMeccanica acquisition, with no similar activity in H1 2025[33](index=33&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business context, the ElectraMeccanica acquisition, and significant risks, highlighting liquidity issues, going concern doubts, revenue sources, debt, and a convertible note amendment - On March 26, 2024, the company acquired ElectraMeccanica, which supplemented liquidity by approximately **$50.2 million** in cash, accounted for as an asset acquisition[40](index=40&type=chunk)[76](index=76&type=chunk) - Management concluded it is not probable that available funds and strategies will provide sufficient liquidity for the next twelve months, resulting in **substantial doubt about the company's ability to continue as a going concern**[47](index=47&type=chunk)[51](index=51&type=chunk) - **Customer concentration risk is high**: for Q2 2025, one customer accounted for **70% of revenues**, and two customers accounted for **48% and 11% of accounts receivable**[66](index=66&type=chunk)[67](index=67&type=chunk) Disaggregated Revenues by Major Source (in thousands) | Revenue Source | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Stepvans & vehicle incentives | $17,087 | $13,146 | $20,671 | $24,731 | | Powertrains & hubs | $930 | $1,423 | $2,522 | $1,845 | | Other product revenue | $152 | $642 | $619 | $1,270 | | Ancillary revenue | $224 | $324 | $460 | $851 | | **Total revenues** | **$18,393** | **$15,535** | **$24,272** | **$28,697** | - Subsequent to the quarter end, on August 8, 2025, the company amended its **$20.0 million convertible note**, changing the repayment schedule from a single maturity to ten quarterly installments from November 2025 to February 2028, with approximately **$6.0 million** in accrued interest to be converted into common stock[159](index=159&type=chunk)[161](index=161&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 revenue growth and H1 decline, significant operating expense reductions, and reiterates severe liquidity constraints and going concern doubts requiring additional capital [Overview](index=37&type=section&id=Overview) Unit Deliveries by Period | Period | Vehicles | Hubs | Powertrains | | :--- | :--- | :--- | :--- | | **Q2 2025** | 128 | 3 | 4 | | **Q2 2024** | 78 | 4 | 8 | | **H1 2025** | 150 | 8 | 6 | | **H1 2024** | 138 | 4 | 10 | - The company's ability to access capital is critical, and **failure to raise additional funds could force it to delay or eliminate programs, or potentially dissolve and liquidate under bankruptcy laws**[181](index=181&type=chunk)[182](index=182&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) - Q2 2025 revenue increased **18% YoY to $18.4 million**, driven by a higher volume of vehicle sales (**128 vs. 78**), partially offset by a lower average selling price due to product mix[199](index=199&type=chunk) - H1 2025 revenue decreased **15% YoY to $24.3 million**, primarily due to a change in product mix resulting in a lower average selling price, despite a slight increase in vehicle deliveries (**150 vs. 138**)[200](index=200&type=chunk) - Total operating expenses for Q2 2025 decreased by **35% YoY to $8.7 million**, reflecting significant cost reductions in **G&A (-36%)**, **R&D (-30%)**, and **S&M (-42%)**, mainly due to lower headcount and personnel costs[198](index=198&type=chunk)[206](index=206&type=chunk)[208](index=208&type=chunk)[210](index=210&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had **$8.8 million** in cash and cash equivalents and an accumulated deficit of **$221.1 million**[219](index=219&type=chunk) - Management's analysis concludes there is **substantial doubt about the company's ability to continue as a going concern** through the next 12 months due to recurring losses, cash outflows, and the need for significant additional capital[220](index=220&type=chunk)[221](index=221&type=chunk) - Access to the **$119.4 million** remaining under the Standby Equity Purchase Agreement (SEPA) is not currently available and requires a post-effective amendment to its registration statement to be filed and declared effective[222](index=222&type=chunk)[225](index=225&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Xos is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Xos is **exempt** from the requirement to provide information for this item[240](index=240&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective as of June 30, 2025, due to material weaknesses in inventory, revenue, and IT controls, stemming from turnover and insufficient resources - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were **not effective** as of June 30, 2025[242](index=242&type=chunk) - **Material weaknesses** were identified in three areas: inventory management, revenue recognition, and information technology (IT) general controls[246](index=246&type=chunk) - The root cause of the weaknesses is attributed to **turnover in key positions** and a **lack of sufficient personnel** with the appropriate knowledge and experience due to cost-reduction efforts[246](index=246&type=chunk) - **Remediation efforts are underway**, including adding qualified resources, improving training, and partnering with external consultants, with a target to remediate the weaknesses during the year ending December 31, 2025[249](index=249&type=chunk)[251](index=251&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings that would materially impact its business or financial condition - As of the filing date, the company is **not involved in any material legal proceedings**[252](index=252&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the December 31, 2024, Annual Report on Form 10-K filing - **No material changes** to risk factors were reported for the quarter[253](index=253&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued unregistered common stock and cash on August 1, 2025, to settle approximately $348,000 in debt owed to The Bancorp Bank, N.A - On August 1, 2025, the company issued **64,043 unregistered shares of common stock** as part of a settlement agreement with The Bancorp, Inc. to resolve approximately **$348,000 in debt**[254](index=254&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) This section details post-quarter events, including the amendment of a $20 million convertible note with Aljomaih and the formal appointment of Liana Pogosyan as CFO and Treasurer - On August 8, 2025, the company **amended its convertible note with Aljomaih**, changing the principal repayment from a lump sum on August 11, 2025, to **ten quarterly installments** ending February 11, 2028[257](index=257&type=chunk)[258](index=258&type=chunk) - As part of the note amendment, approximately **$6.0 million of interest** accrued through August 11, 2025, will be converted into shares of the company's common stock[257](index=257&type=chunk) - Effective August 10, 2025, **Liana Pogosyan was appointed as the company's Chief Financial Officer and Treasurer**, having served as Acting CFO since May 2023[260](index=260&type=chunk)