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Core Insights - Xos, Inc. reported quarterly earnings of $0.22 per share, significantly beating the Zacks Consensus Estimate of a loss of $0.73 per share, marking an earnings surprise of +130.14% [1] - The company posted revenues of $16.5 million for the quarter ended September 2025, which was 13.09% below the Zacks Consensus Estimate, but an increase from $15.79 million year-over-year [2] - Xos shares have underperformed the market, losing about 23.2% since the beginning of the year compared to the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.76 on revenues of $14.3 million, and for the current fiscal year, it is -$3.60 on revenues of $57.56 million [7] - The estimate revisions trend for Xos was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Automotive - Domestic industry, to which Xos belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Financial Data and Key Metrics Changes - In Q3 2025, revenue was $16.5 million from 130 units shipped, down from $18.4 million from 135 units in the previous quarter, but up from $15.8 million from 94 units a year ago [18] - GAAP gross margin was 15.3%, an increase from 8.8% in Q2 2025 but a decrease from 18.1% in Q3 2024 [19] - Operating loss for the quarter was $7 million, the lowest since going public, down from $7.1 million in Q2 2025 and $9.7 million in Q3 2024 [20] - Non-GAAP operating loss was $4.8 million, also a record low, compared to $6.9 million in Q2 2025 and $6.6 million in Q3 2024 [21] Business Line Data and Key Metrics Changes - The company shipped 130 vehicles in Q3 2025, including 10 strip chassis for a major customer program, with revenue from these expected in future quarters [5] - The company delivered 18 powertrain systems to Bluebird Corporation in Q3 2025, with nearly 80 additional powertrain orders received since the quarter-end [9][10] Market Data and Key Metrics Changes - The company noted strong demand from major customers like UPS and FedEx ISPs, indicating a growing scale and returning customer confidence [5] - The Xos Hub, a mobile energy platform, is gaining traction in various segments, including electric trucks and school buses, with deployments accelerating in Q3 2025 [11] Company Strategy and Development Direction - The company is expanding into higher-margin, lower-concentration categories, including powertrains and energy infrastructure, to diversify its product offerings [9] - The focus is on building deeper relationships with customers and larger programs to create repeatable volume, which is seen as foundational for long-term growth [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to improve margins over time as production scales and cost reduction initiatives are executed [20] - The company anticipates significant opportunities in 2026, with expectations of increased order sizes and a growing product pipeline [12] Other Important Information - The company amended its $20 million convertible note to enhance liquidity, allowing for quarterly principal payments starting in Q4 2025 [23] - Positive free cash flow of $3.1 million was generated in Q3 2025, marking the third time the company has been free cash flow positive since going public [24] Q&A Session Summary Question: What is the expanded opportunity for the hub platform? - Management expects double-digit growth in the EV charging segment, with significant opportunities in power resiliency and backup power applications [30][32] Question: Can you discuss the accelerated growth in chassis deliveries to Bluebird? - The partnership with Bluebird is strengthening, with positive customer feedback and additional orders expected as new powertrain configurations are developed [33][35] Question: What are the expectations for unit deliveries in Q4? - Seasonal delays are anticipated in Q4 due to peak delivery volumes for major customers, but the company expects to remain within its guidance range [36] Question: How is the company managing tariff impacts? - A multi-step approach is being taken to mitigate tariff volatility, including reshoring and working closely with suppliers and customers to share costs [43][45] Question: What are the expectations for margin improvement in 2026? - While specific guidance for 2026 has not been provided, management believes there will be a noticeable improvement in margins due to a favorable mix shift towards higher-margin products [59][61]

Financial Performance - Revenues for Q3 2025 were $16,500,000, a 4.5% increase from $15,790,000 in Q3 2024[23] - Gross profit for Q3 2025 was $2,531,000, down 11.6% from $2,864,000 in Q3 2024[23] - Net income for Q3 2025 was $2,123,000, compared to a net loss of $10,512,000 in Q3 2024[23] - Operating expenses for Q3 2025 were $9,525,000, a reduction of 24.2% from $12,555,000 in Q3 2024[23] - The company reported a loss from operations of $6,994,000 for Q3 2025, an improvement from a loss of $9,691,000 in Q3 2024[23] - For the nine months ended September 30, 2025, the company reported a net loss of $15.6 million, an improvement from a net loss of $31.2 million in the same period of 2024, representing a 50% reduction in losses[30] - Total revenues for the three months ended September 30, 2025, were $16,500,000, a 4.5% increase from $15,790,000 in 2024[78] - Product revenue for the three months ended September 30, 2025, was $16,435,000, up 9.3% from $15,042,000 in 2024[78] - The segment net income for the three months ended September 30, 2025, was $2.12 million, compared to a net loss of $10.51 million in the same period of 2024[159] Assets and Liabilities - Total current assets decreased to $62,526,000 as of September 30, 2025, from $82,301,000 at the end of 2024, representing a 24.1% decline[20] - Total liabilities decreased to $42,750,000 as of September 30, 2025, down 33.9% from $64,723,000 at the end of 2024[20] - The accumulated deficit increased to $218,988,000 as of September 30, 2025, from $203,420,000 at the end of 2024[20] - The company’s total stockholders' equity decreased to $31,060,000 as of September 30, 2025, down from $33,610,000 at the end of 2024[20] - Cash and cash equivalents increased to $14,066,000 as of September 30, 2025, up from $10,996,000 at the end of 2024, a 27.5% increase[20] - Accounts receivable totaled $15.4 million as of September 30, 2025, with one customer representing 64% of this amount[64] - Total inventories decreased to $25,224,000 from $36,567,000 as of December 31, 2024, representing a 30.9% decline[86] Cash Flow and Financing - The company generated net cash provided by operating activities of $3.0 million for the nine months ended September 30, 2025, compared to net cash used in operating activities of $52.1 million for the same period in 2024[30] - The company plans to raise additional capital through various strategies, including debt financing and equity financing, to support its operations and growth[44] - The company has incurred net losses and cash outflows since inception, with a total net cash used in operating activities of $48.8 million for the year ended December 31, 2024[42] - The company faces substantial doubt about its ability to continue as a going concern due to ongoing liquidity challenges and reliance on future capital raises[43] - The Company entered into a Standby Equity Purchase Agreement with Yorkville, allowing it to sell up to $125.0 million of Common Stock until February 11, 2026[115] - As of September 30, 2025, the Company had $119.4 million remaining commitment available under the SEPA, but access to capital is currently limited due to registration statement requirements[119] Operational Challenges - The company faces substantial doubt about its ability to continue as a going concern due to ongoing liquidity challenges and reliance on future capital raises[43] - The company’s operations may be adversely affected by global economic conditions, supply chain disruptions, and geopolitical events, which could impact its financial performance[37] - The Company is experiencing ongoing supply chain disruptions, particularly in power electronics and harnesses, due to global economic conditions and expects these effects to continue[49] - The company has undertaken measures to mitigate tariff impacts, including diversifying the supply base and renegotiating pricing and delivery terms[182] Customer Concentration - One customer accounted for 72% of the Company's revenues during the three months ended September 30, 2025, compared to two customers accounting for 28% and 21% in the same period of 2024[63] - As of September 30, 2025, one vendor accounted for 39% of the Company's accounts payable, indicating a concentration risk[66] Stock and Equity - The company recognized stock-based compensation expense of approximately $2.1 million and $5.2 million for the three and nine months ended September 30, 2025, respectively[140] - The total fair value of RSUs that vested was $1.1 million and $2.9 million during the three and nine months ended September 30, 2025, respectively[141] - The Company has 1,211 Options outstanding under the 2018 Stock Plan, which generally vest over four years[130] - The 2021 Equity Plan was approved to grant various forms of awards, with an increase of 3,100,000 shares reserved for issuance approved on June 24, 2025[137] Cost Management - The company plans to continue seeking opportunities to reduce costs and cash expenditures to address liquidity and working capital needs[167] - General and administrative expenses decreased by 27% from $8.897 million in Q3 2024 to $6.456 million in Q3 2025[203] - Research and development expenses decreased by 20% from $2.619 million in Q3 2024 to $2.101 million in Q3 2025[203] - Sales and marketing expenses for the nine months ended September 30, 2025, decreased by $1.0 million, or 29%, to $2.3 million, primarily due to lower personnel costs[215]

Financial Performance - Xos delivered 130 units in Q3 2025, generating $16.5 million in revenue, compared to 135 units and $18.4 million in Q2 2025[2] - Total revenues for Q3 2025 were $16,500,000, a 4.5% increase from $15,790,000 in Q3 2024[21] - Gross profit for Q3 2025 was $2,531,000, down 11.6% from $2,864,000 in Q3 2024[21] - The net income for Q3 2025 was $2,123,000, compared to a net loss of $10,512,000 in Q3 2024[21] - Free cash flow for Q3 2025 was $3,077,000, a significant improvement from a negative free cash flow of $11,665,000 in Q3 2024[22] Cost Management - Operating expenses decreased by $3.0 million, or 24% year-over-year, highlighting cost discipline[2] - Operating expenses decreased to $9,525,000 in Q3 2025 from $12,555,000 in Q3 2024, a reduction of 24.2%[21] - The strategic termination of the Mesa, Arizona manufacturing facility lease is expected to save $20.7 million through 2033[6] Liquidity and Cash Flow - Positive free cash flow of $3.1 million was achieved, marking the second consecutive quarter of positive free cash flow[2] - Cash and cash equivalents increased to $14.1 million in Q3 2025, up from $8.8 million in Q2 2025[3] - Xos amended its $20 million Convertible Note to enhance liquidity and extend financial runway[6] - The company raised $2.4 million under its at-the-market offering program, reinforcing liquidity[6] Operational Losses - Operating loss was $7.0 million in Q3 2025, slightly improved from a loss of $7.1 million in Q2 2025[2] - The company reported a loss from operations of $6,994,000 in Q3 2025, an improvement from a loss of $9,691,000 in Q3 2024[21] - Non-GAAP operating loss for Q3 2025 was $4,767,000, compared to $6,643,000 in Q3 2024, reflecting a 28.2% improvement[22] Balance Sheet - Total assets decreased to $73,810,000 as of September 30, 2025, down from $98,333,000 at December 31, 2024[20] - Total liabilities decreased to $42,750,000 as of September 30, 2025, down from $64,723,000 at December 31, 2024[20] - Stockholders' equity decreased to $31,060,000 as of September 30, 2025, compared to $33,610,000 at December 31, 2024[20] Future Outlook - Xos maintains its 2025 revenue outlook of $50.2 to $65.8 million and unit delivery forecast of 320 to 420 units[7] - Gross margin improved to 15.3% in Q3 2025, up from 8.8% in Q2 2025, despite a decrease from 18.1% in Q3 2024[2]

Core Insights - Xos, Inc. reported a profitable third quarter with $16.5 million in revenue from 130 units delivered, achieving a gross margin of 15.3% and positive free cash flow for the second consecutive quarter [1][5][9] Financial Performance - Revenue for Q3 2025 was $16.5 million, down from $18.4 million in Q2 2025 but up from $15.8 million in Q3 2024 [5][6] - Gross margin improved to 15.3%, up from 8.8% in Q2 2025, although it decreased from 18.1% in Q3 2024 due to product mix and tariff impacts [5][6] - Operating loss was $7.0 million, slightly improved from a loss of $7.1 million in Q2 2025 and a loss of $9.7 million in Q3 2024 [5][6] - Operating expenses decreased by 24% year-over-year, reflecting strong cost discipline [5][6] Cash Flow and Liquidity - Positive free cash flow of $3.1 million was achieved, marking the second consecutive quarter of positive cash flow [5][9] - Cash and cash equivalents increased to $14.1 million from $8.8 million in Q2 2025, indicating improved financial flexibility [5][6] Strategic Moves - The company amended its $20 million Convertible Note to spread principal payments over ten quarterly installments, enhancing liquidity and extending financial runway [5][6] - Xos raised $2.4 million under its at-the-market offering program, further reinforcing liquidity [5][9] - An agreement to terminate the lease of its Mesa, Arizona manufacturing facility is expected to save approximately $20.7 million through 2033 [5][6] Outlook - Xos maintains its revenue outlook for 2025, projecting revenues between $50.2 million and $65.8 million, with unit deliveries expected to range from 320 to 420 units [7][8]

Core Insights - Xos, Inc. is set to release its third quarter 2025 operating results on November 13, 2025, after U.S. market close, followed by a conference call at 4:30 p.m. ET [1] - The company specializes in electric truck manufacturing and fleet services, focusing on battery-electric vehicles for medium- and heavy-duty commercial applications [2] Financial Results Announcement - The operating results will be discussed in a conference call scheduled for November 13, 2025, at 4:30 p.m. ET [1] - An audio replay of the call will be available until midnight on the same day, with access codes provided for both U.S. and international callers [1] Company Overview - Xos, Inc. is recognized as a leading technology company in the electric truck sector, providing fleet management software and battery-electric vehicles [2] - The vehicles are designed for last-mile and back-to-base routes, emphasizing lower maintenance and total cost of ownership compared to traditional internal combustion engine vehicles [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]