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)

[Q2 2025 Earnings Release](index=1&type=section&id=Q2%202025%20Earnings%20Release) [Performance Highlights & Management Commentary](index=1&type=section&id=Performance%20Highlights%20%26%20Management%20Commentary) The company achieved record Q2 2025 revenue and deliveries, minimized its operating loss, and generated positive free cash flow through disciplined execution and strategic partnerships - Achieved record unit deliveries of **135 units** and record revenue of **$18.4 million** in Q2 2025[1](index=1&type=chunk)[4](index=4&type=chunk) - Posted the lowest operating loss since going public at **$7.1 million**, reflecting a **$4.7 million (35%) year-over-year reduction** in operating expenses[1](index=1&type=chunk)[4](index=4&type=chunk) - Generated the highest-ever positive free cash flow and net cash from operating activities of **$4.6 million**[1](index=1&type=chunk)[4](index=4&type=chunk) - Management emphasized a **"fleet-first" growth strategy** and diversification into a complete electrification platform, including powertrain systems and mobile charging Hubs[3](index=3&type=chunk)[5](index=5&type=chunk) [Financial Results](index=2&type=section&id=Financial%20Results) [Q2 2025 Financial Performance](index=2&type=section&id=Q2%202025%20Financial%20Performance) The company reported significant Q2 2025 revenue growth to $18.4 million and narrowed its net loss to $7.5 million, despite a lower gross margin from product mix changes Q2 2025 Key Financial Metrics (in millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Revenues | $18.4 | $5.9 | $15.5 | | Gross Profit | $1.6 | $1.2 | $2.0 | | Loss from Operations | $(7.1) | $(9.3) | $(11.4) | | Net Loss | $(7.5) | $(10.2) | $(9.7) | - Gross margin for Q2 2025 was **8.8%**, a decrease from 20.6% in the previous quarter and 13.1% in Q2 2024, attributed to product mix and unfavorable inventory adjustments[4](index=4&type=chunk) Six Months Ended June 30 Financials (in thousands) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenues | $24,272 | $28,697 | | Gross Profit | $2,830 | $4,818 | | Loss from Operations | $(16,350) | $(21,611) | | Net Loss | $(17,691) | $(20,666) | [Balance Sheet](index=6&type=section&id=Balance%20Sheet) The company's balance sheet as of June 30, 2025, showed total assets of $80.3 million and cash of $8.8 million, with reductions in both assets and liabilities from year-end 2024 Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $8,785 | $10,996 | | Inventories | $31,012 | $36,567 | | Total Assets | $80,349 | $98,333 | | Total Liabilities | $62,021 | $64,723 | | Total Stockholders' Equity | $18,328 | $33,610 | [2025 Full-Year Outlook](index=2&type=section&id=2025%20Full-Year%20Outlook) The company maintained its 2025 revenue and delivery guidance but revised its Non-GAAP operating loss forecast upward due to changes in product mix and tariff costs 2025 Full-Year Guidance | Metric | Outlook | | :--- | :--- | | Revenue | $50.2 to $65.8 million | | Unit Deliveries | 320 to 420 units | | Non-GAAP operating loss | $26.9 to $24.4 million | - The Non-GAAP operating loss guidance was revised upward from a previous range of $14.0 to $17.2 million due to expected product mix changes and increased tariff-related costs[7](index=7&type=chunk)[8](index=8&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) The company's non-GAAP measures show improved operational performance, highlighted by a positive $4.6 million in Free Cash Flow and a narrowed Non-GAAP operating loss of $6.9 million - The company uses non-GAAP measures including Free Cash Flow (Operating cash flow less CapEx), Non-GAAP operating loss (adjusted for stock-based compensation and inventory items), and Non-GAAP gross profit (adjusted for inventory items)[14](index=14&type=chunk)[15](index=15&type=chunk) Reconciliation of Key Non-GAAP Measures (Q2 2025 vs Q2 2024, in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Free Cash Flow | $4,645 | $(26,113) | | Non-GAAP Operating Loss | $(6,860) | $(9,737) | | Non-GAAP Gross Profit | $266 | $2,027 | [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides details for the investor conference call, an overview of the company's business, and cautionary statements on forward-looking information - The company scheduled a conference call and webcast on August 13, 2025, to discuss the quarterly results[10](index=10&type=chunk) - Xos positions itself as a technology company, electric truck manufacturer, and fleet services provider for last-mile, back-to-base commercial vehicles[12](index=12&type=chunk) - The report includes a "Cautionary Statement Regarding Forward-Looking Statements" detailing numerous risks and uncertainties, including liquidity, supply chain issues, and industry competition, that could affect future results[17](index=17&type=chunk)[18](index=18&type=chunk)