Financial Performance - Revenues for Q1 2025 were $5,879,000, a decrease of 55.4% compared to $13,162,000 in Q1 2024[24]. - Gross profit for Q1 2025 was $1,211,000, down 56.5% from $2,788,000 in Q1 2024[24]. - Net loss for Q1 2025 was $10,186,000, compared to a net loss of $11,003,000 in Q1 2024, representing a 7.4% improvement[24]. - Operating expenses for Q1 2025 totaled $10,480,000, down 19.5% from $13,031,000 in Q1 2024[24]. - The company reported a basic net loss per share of $1.26 for Q1 2025, an improvement from $1.80 in Q1 2024[24]. - Total revenues for the three months ended March 31, 2025, were $5,879,000, a decrease of 55% compared to $13,162,000 for the same period in 2024[69]. - Vehicle sales accounted for $3,600,000 (61% of total revenue) in Q1 2025, down from $11,600,000 (88% of total revenue) in Q1 2024, reflecting a significant decline in deliveries[162]. - The company delivered 22 vehicles in Q1 2025, compared to 60 vehicles in Q1 2024, primarily due to delays in executing sales orders[162]. - The net loss for Q1 2025 was $10.2 million, compared to a net loss of $11.0 million in Q1 2024, reflecting a decrease of $0.8 million or 7%[189]. - Revenues decreased by $7.3 million, or 55%, from $13.2 million in Q1 2024 to $5.9 million in Q1 2025, primarily due to a decrease in unit sales and average selling price[190]. Assets and Liabilities - Total current assets decreased to $73,089,000 as of March 31, 2025, from $82,301,000 as of December 31, 2024, a decline of 11.1%[21]. - Total liabilities decreased to $62,874,000 as of March 31, 2025, from $64,723,000 as of December 31, 2024, a reduction of 2.6%[21]. - Cash and cash equivalents at the end of Q1 2025 were $4,758,000, down from $10,996,000 at the end of Q4 2024, a decrease of 56.7%[21]. - As of March 31, 2025, accounts receivable totaled $22.2 million, net of an allowance of $0.3 million[61]. - Inventory as of March 31, 2025, was $38,006,000, an increase from $36,567,000 as of December 31, 2024[81]. - Other current liabilities increased to $18,878,000 as of March 31, 2025, compared to $17,768,000 as of December 31, 2024[88]. - As of March 31, 2025, total other non-current liabilities amounted to $17.325 million, a decrease from $17.933 million as of December 31, 2024, reflecting a reduction of approximately 3.4%[91]. Cash Flow - The Company reported negative cash flow from operating activities of $4.8 million for the three months ended March 31, 2025, compared to $14.6 million for the same period in 2024[42]. - The net cash used in operating activities was $4.8 million for Q1 2025, compared to $14.6 million for Q1 2024[209]. - Net cash provided by investing activities was $0 for Q1 2025, down from $51.3 million in Q1 2024 due to the acquisition of ElectraMeccanica[213]. - Net cash used in financing activities was $1.5 million for Q1 2025, primarily related to short-term insurance financing and equipment lease principal payments[214]. Acquisitions and Investments - The Company acquired ElectraMeccanica Vehicles Corp. on March 26, 2024, converting each ElectraMeccanica Share into 0.0143739 of a share of the Company's Common Stock, totaling 1,766,388 shares[36]. - As of March 31, 2025, the Company's cash and cash equivalents totaled $4.8 million, reflecting the acquisition of ElectraMeccanica[42]. - The total identifiable assets acquired from ElectraMeccanica amounted to $54,630,000, while total liabilities assumed were $19,042,000, resulting in net assets acquired of $35,588,000[73]. - The acquisition of ElectraMeccanica on March 26, 2024, involved the issuance of 1,766,388 shares of Xos Common Stock, resulting in Xos stockholders owning approximately 79% of the combined entity[72]. Operational Challenges - The Company is experiencing ongoing supply chain disruptions, particularly in power electronics and harnesses, impacting its ability to source inventory[49]. - The Company has significant reliance on single-source suppliers, which poses a risk to its operations and financial condition[62]. - The company is subject to ongoing supply chain disruptions and is actively working with vendors to find alternative solutions[173]. - The company is continuing efforts to find more cost-effective vendors and sources of parts to lower overall production costs[183]. Future Outlook and Strategies - The company is focused on expanding its fleet electrification solutions and charging infrastructure to support electric vehicle fleets[33]. - The company expects future revenue growth to be supported by the increasing demand for e-commerce and last-mile delivery solutions, influenced by regulatory and consumer interest in sustainability[163][164]. - The company plans to raise additional capital through various strategies, including debt financing and equity financing, to support its operations[44]. - The company plans to continue seeking opportunities to reduce costs and cash expenditures to address liquidity and working capital needs[167]. Stock and Equity - The Company issued a convertible promissory note with a principal amount of $20.0 million, maturing on August 11, 2025, bearing an interest rate of 10.0% per annum[97][98]. - The Company entered into a Standby Equity Purchase Agreement allowing it to sell up to $125.0 million of Common Stock until February 11, 2026, with $119.4 million remaining available under the agreement as of March 31, 2025[108][113]. - The Company has a contingent obligation to issue 547,000 shares of Common Stock upon achieving certain market share price milestones, with specific tranches based on the volume-weighted average closing share price[92]. - As of March 31, 2025, the Company had 18,633,301 Public Warrants and 199,997 Private Placement Warrants outstanding, with fair values of $0.2 million and $2,000, respectively[114]. Tax and Compliance - The Company recognized stock-based compensation expense totaling approximately $1.5 million for the three months ended March 31, 2025, compared to $2.0 million for the same period in 2024[132]. - The Company's effective tax rate for the three months ended March 31, 2025, was (0.12)%, lower than the statutory tax rate of 21% due to state taxes and losses not benefited[140]. - The Company reported a net asset position in deferred income taxes at March 31, 2025, primarily due to deferred tax assets from net operating losses[143]. - The company is evaluating the impact of new accounting standards effective after December 15, 2024, which will require additional income tax disclosures[67].

Financial Performance - Xos, Inc. reported a quarterly loss of $1.26 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.09, and an improvement from a loss of $1.80 per share a year ago [1] - The company posted revenues of $5.88 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 42.27%, and down from $13.16 million in the same quarter last year [2] - Over the last four quarters, Xos has surpassed consensus EPS estimates two times, but has not beaten consensus revenue estimates [2] Stock Performance - Xos shares have increased approximately 21.6% since the beginning of the year, significantly outperforming the S&P 500, which gained only 0.1% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.98 on revenues of $12.97 million, and for the current fiscal year, it is -$3.97 on revenues of $57.6 million [7] Industry Outlook - The Automotive - Domestic industry, to which Xos belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Xos stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Earnings Outlook - The estimate revisions trend for Xos is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] - Future earnings expectations and management's commentary during the earnings call will be crucial for determining the sustainability of the stock's price movement [3][4]

Financial Data and Key Metrics Changes - For Q1 2025, revenue was $5.9 million, down from $11.5 million in Q4 2024 and $13.2 million in Q1 2024, with 29 units recognized compared to 51 units and 62 units in the previous quarters [24][25] - Cost of goods sold decreased to $4.7 million from $15.2 million in Q4 2024 and $10.4 million in Q1 2024 [24] - GAAP gross margin was a profit of $1.2 million or 20.6%, compared to a loss of $3.7 million in Q4 2024 and a profit of $2.8 million in Q1 2024 [25] - Non-GAAP gross margin was approximately $900,000 or 15%, down from $2.7 million in Q4 2024 but up from $1.7 million in Q1 2024 [25][26] - Operating expenses were $10.5 million, down from $10.9 million in Q4 2024 and $13 million in Q1 2024 [26] - Operating loss for Q1 2025 was $9.3 million, improved from a loss of $14.6 million in Q4 2024 and $10.2 million in Q1 2024 [27] - Cash and cash equivalents totaled $4.8 million, with free cash flow negative at $4.8 million [28][29] Business Line Data and Key Metrics Changes - The company shipped a total of 60 units in Q1 2025, including 31 additional strip chassis for UPS, but only recognized revenue for 29 units due to GAAP standards [24][7] - The MD XT, a new medium-duty chassis cab, was launched, targeting a total addressable market of up to 100,000 units per year in the U.S. [12][15] Market Data and Key Metrics Changes - Customer demand remains consistent, with growing interest from national fleets, while smaller regional operators are leveraging state incentive programs [8] - The market for conventional chassis cab products like the MD XT can sell up to 100,000 units per year, significantly larger than the strip chassis market [39] Company Strategy and Development Direction - The company aims to focus on growth, protecting margins, and managing liquidity with discipline [6][18] - Plans to reduce exposure to tariffs through reshoring and resourcing strategies [10] - The MD XT is positioned as a more affordable and reliable option compared to legacy players, which are pricing their electric chassis cabs over $300,000 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges such as new emissions rules, tariffs, and interest rates, emphasizing customer trust and reliable truck performance [7] - The company reaffirmed its full-year 2025 guidance for revenue between $50.2 million and $65.8 million, with unit deliveries between 320 and 420 units [29] Other Important Information - The company has made significant progress in collecting receivables, totaling $10.2 million in Q1 2025 [29] - The MD XT is still undergoing safety certifications and is targeted for production ramp-up by Q3 2026 [17] Q&A Session Summary Question: Can you speak about the parts commonality between your step vans and the MD XT? - The MD XT shares over 90% of the same commodity components with the step van, reducing costs and training requirements [35][36] Question: What are potential customers saying about the MD XT? - The market for the MD XT is larger, with several sizable fleets already interested, and it is expected to take time to ramp up orders [40] Question: How should we think about revenue recognition for the UPS units? - The margin profile for large national customers is lower, but this will be offset by other products in the portfolio, with a concentration of deliveries expected in Q2 and Q3 [42][43] Question: Can you provide an update on the ChargeHub? - There is significant interest in the ChargeHub, with orders coming from outside the truck customer base, and the company is exploring additional features for future versions [46][47]

Financial Performance - Revenues for Q1 2025 were $5.9 million, compared to $11.5 million in Q4 2024 and $13.2 million in Q1 2024[5]. - Revenues for Q1 2025 were $5,879,000, a decrease of 55.4% compared to $13,162,000 in Q1 2024[21]. - Gross profit for Q1 2025 was $1,211,000, down 56.5% from $2,788,000 in Q1 2024[21]. - Net loss for Q1 2025 was $10,186,000, compared to a net loss of $11,003,000 in Q1 2024, reflecting a 7.4% improvement[21]. - Non-GAAP operating loss for Q1 2025 was $8,076,000, an improvement from $9,338,000 in Q1 2024[22]. - Free cash flow for Q1 2025 was $(4,756,000), an improvement from $(14,619,000) in Q1 2024[22]. - Basic net loss per share for Q1 2025 was $(1.26), an improvement from $(1.80) in Q1 2024[21]. Unit Deliveries and Revenue Generation - Delivered 29 units generating $5.9 million in revenue, down from 62 units and $13.2 million in Q1 2024, while shipping a total of 60 units[4]. - The company expects 2025 revenue to range from $50.2 million to $65.8 million, with unit deliveries forecasted between 320 to 420 units[6]. Operating Expenses and Cost Management - Operating expenses were reduced by $2.6 million, a 19.6% decrease compared to Q1 2024[4]. - Total operating expenses in Q1 2025 were $10,480,000, a reduction of 19.6% from $13,031,000 in Q1 2024[21]. - Research and development expenses for Q1 2025 were $1,930,000, down 37.1% from $3,074,000 in Q1 2024[21]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $4.8 million from $47.3 million in Q1 2024[5]. - Xos anticipates improved cash flow performance and increased deliveries in Q2 2025[3]. Gross Margin and Revenue Growth Strategy - Xos achieved a positive gross margin of approximately 20% for Q1 2025[1]. - The company is focused on driving revenue growth and strengthening gross margin despite ongoing tariff headwinds[6]. Inventory Management - Inventory reserves for Q1 2025 were $(517,000), compared to $(803,000) in Q1 2024, indicating a reduction in inventory-related losses[22]. Market and Incentives - Xos continues to explore state-level vehicle incentives while facing federal tax credit uncertainties[3].

Core Insights - Xos, Inc. reported a positive gross margin of approximately 20% for Q1 2025, despite a seasonal slowdown [1] - The company experienced a reduction in cash flow due to a planned inventory buildup to fulfill current orders [3] - Xos anticipates improved liquidity in subsequent quarters as vehicle deliveries increase [3] Financial Performance - Revenues for Q1 2025 were $5.9 million, down from $13.2 million in Q1 2024, with 29 units delivered compared to 62 units in the same period last year [5][6] - Gross profit for Q1 2025 was $1.2 million, a significant improvement from a loss of $3.7 million in Q4 2024 [5] - The net loss for Q1 2025 was $10.2 million, reduced from $19.0 million in Q4 2024 [5] Operational Highlights - Xos shipped 60 vehicles in Q1 2025, including 31 stripped chassis for UPS, with revenue recognition expected in future quarters [6] - The company achieved a 19.6% reduction in operating expenses, cutting costs by $2.6 million compared to Q1 2024 [6] - Xos is focused on driving revenue growth and strengthening gross margins while managing costs effectively [9] 2025 Outlook - Xos projects revenues between $50.2 million and $65.8 million for 2025, with unit deliveries expected to range from 320 to 420 units [7] - The company aims to reduce non-GAAP operating loss to between $17.2 million and $14.0 million for the year [7] - Xos is proactively planning for 2026 and beyond to mitigate external pressures, including tariff impacts [9]

Core Viewpoint - Xos, Inc. is set to release its first quarter 2025 operating results on May 14, 2025, after U.S. market close, followed by a conference call to discuss these results [1] Group 1: Conference Call and Webcast Details - The conference call will take place on May 14, 2025, at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time [2] - Participants can access the call via a U.S. toll-free number or an international dial-in number, with instructions to join approximately ten minutes early [2] - An audio replay of the call will be available until midnight on May 14, 2025, with specific access codes provided for both U.S. and international listeners [3] Group 2: Company Overview - Xos, Inc. is a prominent technology company specializing in electric truck manufacturing and fleet services for battery-electric fleets [4] - The company focuses on medium- and heavy-duty commercial vehicles designed for last-mile and back-to-base routes, utilizing proprietary technologies for enhanced maintenance and cost-efficiency compared to internal combustion engine vehicles [4]

Core Viewpoint - Xos, Inc. (XOS) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Xos, the recent upgrade reflects an improvement in the company's underlying business, suggesting that investor sentiment may lead to increased stock prices [5][10]. Earnings Estimate Revisions - Xos is projected to earn -$3.97 per share for the fiscal year ending December 2025, representing a year-over-year change of 40.7% [8]. - Over the past three months, the Zacks Consensus Estimate for Xos has increased by 5%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - The upgrade of Xos to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable position for potential price increases in the near term [10].

Acquisition and Partnerships - Xos completed the acquisition of ElectraMeccanica, converting each share into 0.0143739 of a share of Common Stock, totaling 1,766,388 shares[30]. - The acquisition of ElectraMeccanica is expected to enhance capital position and provide growth opportunities, but realization of these benefits is uncertain[208]. - The company is actively pursuing partnerships with OEMs to supply powertrain kits for various commercial vehicles[51]. - The company has entered into MOUs with key manufacturers and suppliers to form strategic alliances, but there is no guarantee these will lead to successful relationships[125]. Product and Technology Development - The next-generation Xos Hub™ offers 280kWh of energy storage capacity and charging rates up to 320kW, allowing simultaneous charging of up to four electric vehicles[40]. - The X-Platform chassis is designed for medium-duty commercial vehicles, focusing on durability and reliability for last-mile applications[44]. - Xos utilizes lithium iron phosphate (LFP) battery packs, which are known for their long cycle life and reduced reliance on rare earth minerals[46]. - The company plans to release refreshed versions of its vehicles as battery technology evolves, which may affect the adoption of existing products[121]. Financial Performance and Risks - The company incurred an operating loss of $45.9 million for the year ended December 31, 2024[174]. - Negative cash flow from operating activities was $48.8 million for the year ended December 31, 2024[178]. - The company faces substantial doubt about its ability to continue as a going concern for the next 12 months due to uncertainties regarding capital access and operational funding[102][108]. - The company may face significant capital needs and may need to raise additional capital, which could dilute stockholders[180]. - The company is dependent on the adoption of electric vehicles by last-mile delivery fleets, and any failure in market development could materially impact its business[120]. Customer and Revenue Concentration - Three customers accounted for 34% of the Company's revenue during the year ended December 31, 2024, with individual contributions of 13%, 11%, and 10%[52]. - The company relies heavily on a small number of customers for revenue, and any loss or reduction in purchases from these customers could adversely affect financial performance[110]. Regulatory and Compliance Challenges - The company is subject to fluctuating raw material prices and potential supply chain risks, with key suppliers including CATL and Dana[60]. - The company is exposed to fluctuations in material costs, which could impact margins if not recouped through sales[146]. - The company faces regulatory risks related to U.S. trade policies and tariffs, which could adversely affect costs and demand for products[212][213]. - Compliance with substantial regulations is necessary for the company and its suppliers, and failure to comply could harm business operations[219]. Operational and Manufacturing Challenges - The company has experienced delays in battery production, resulting in a manufacturing backlog in the vehicle assembly line[128]. - The company has no experience in high-volume manufacturing, which raises concerns about meeting quality and production standards[133]. - The company relies on third-party suppliers for key components, and any delays from these suppliers could impact delivery timelines[128]. - Delays in providing sufficient charging solutions have resulted in postponed vehicle deliveries, impacting customer demand[151]. Workforce and Organizational Changes - The company has 109 full-time employees and 21 contractors as of December 31, 2024, down from 161 full-time employees and 25 contractors the previous year[96]. - The company initiated a workforce reduction of approximately 26% to cut future operating expenses and improve cash flows[172]. - The company has plans to strategically hire more personnel[159]. Intellectual Property and Innovation - As of December 31, 2024, Xos had eight awarded U.S. patents and 23 pending or approved U.S. trademark applications, reflecting its commitment to intellectual property protection[84]. Environmental and Market Considerations - Xos customers may be eligible for up to $40,000 in federal tax credits per vehicle under the Inflation Reduction Act, effective through 2032[66]. - The company is leveraging incentive programs from various states to encourage the installation of charging infrastructure for electric vehicles[69]. - The automotive industry typically experiences higher revenue in spring and summer months, with a peak season for commercial vehicle sales between Thanksgiving and Christmas[82]. Cybersecurity and IT Risks - Cybersecurity threats, including ransomware attacks, are increasingly prevalent and can lead to significant operational disruptions and reputational harm[226]. - The company relies on third-party service providers for critical business systems, and any security incidents with these providers could result in adverse consequences[229]. - The complexity of the company's IT systems and the need for periodic remote updates pose inherent risks, including potential software bugs and security vulnerabilities[231].

Financial Data and Key Metrics Changes - For the full year of 2024, revenue increased to $56 million from $44.5 million in 2023, while cost of goods sold rose to $52 million from $45.8 million [40] - GAAP gross margin for 2024 was a profit of $4 million or 7.1%, compared to a loss of $1.3 million or negative 2.9% in 2023 [40] - Non-GAAP gross margin for 2024 was a profit of $10 million or 18%, compared to a loss of $2.3 million or negative 5.2% in 2023 [40] - In Q4, revenue was $11.5 million, down from $15.8 million in Q3, with cost of goods sold increasing to $15.2 million from $12.9 million in Q3 [41][42] - Q4 GAAP gross margin was a loss of $3.7 million or negative 32.4%, significantly impacted by inventory reserves and write-offs [42] Business Line Data and Key Metrics Changes - In Q4, the company delivered 51 units, reflecting a 27.3% decline in top-line revenue compared to Q3 due to seasonal delays in the parcel delivery segment [11][16] - The step-van business is expected to shift positively towards strip chassis deliveries, which can reduce inventory turnover by two to three months [17] - The powertrain business made significant progress, with the first powertrain product delivered for a Bluebird electric school bus [18] Market Data and Key Metrics Changes - The company has secured major commercial orders, including nearly 200 strip chassis for UPS and 20 hub units for Caltrans, indicating strong demand across various sectors [14] - The hub product has seen increased demand, with customers including Waymo and Duke Energy, and production rates reached approximately two hub units per week [20][32] Company Strategy and Development Direction - The company aims to continue growing revenue, improving liquidity, and expanding margins while adapting to regulatory changes and infrastructure challenges in the EV market [50] - There is a focus on American manufacturing, with significant investments in the Tennessee facility to support operations [38] - The company is exploring alternative sourcing strategies to mitigate potential tariff impacts and enhance its supply chain [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand pipeline despite challenges from seasonal delays and potential tariff impacts [11][10] - The outlook for 2025 anticipates revenue between $50.2 million and $65.8 million, with unit deliveries expected to range from 320 to 420 units [48] - Management remains focused on achieving positive gross margins and improving working capital efficiency [72] Other Important Information - The company closed a significant transaction that added over $40 million in liquidity to its balance sheet [15] - Inventory decreased to $36.6 million from $42.6 million last quarter, reflecting improved inventory management practices [47] Q&A Session Summary Question: Gross margin performance despite lower volume - Management attributed strong margins to a shifting product mix, particularly with specialty products like the XS Hub [56] Question: Hub business outlook and production capacity - Management indicated plans to increase hub capabilities and production capacity based on customer demand [60][62] Question: FMVSS certification for powertrain business - The powertrain business requires deep partnerships for engineering validation and testing, with production units expected to be shipped to end-user customers [68] Question: Balance sheet and working capital improvements - Management emphasized the goal of improving working capital usage and reducing inventory levels through strategic partnerships and delivery shifts [72][75] Question: Margin growth expectations for 2025 - Management anticipates continued positive gross margins and year-over-year growth on an adjusted basis [80] Question: Environmental credit revenue in Q4 - No environmental credit revenue was reported in Q4, contrasting with the previous quarter [89] Question: Unit mix and guidance for 2025 - An increased mix of hubs, which have higher average selling prices, was noted, with expectations for continued demand in 2025 [92] Question: CapEx expectations for 2025 - Management does not anticipate significant CapEx beyond maintenance and minor investments, given the current capacity of the Tennessee plant [94]

Company Performance - Xos, Inc. reported a quarterly loss of $2.36 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.13, representing an earnings surprise of -108.85% [1] - The company posted revenues of $11.47 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 35.49%, and down from $18.38 million a year ago [2] - Over the last four quarters, Xos has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Outlook - Xos shares have increased by approximately 9.9% since the beginning of the year, contrasting with the S&P 500's decline of -3.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$1.14 on revenues of $17.8 million, and for the current fiscal year, it is -$4.18 on revenues of $102.46 million [7] Industry Context - The Automotive - Domestic industry, to which Xos belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Xos's stock performance [5]