Xos(XOS) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Release Performance Highlights & Management Commentary 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][4] - 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][4] - Generated the highest-ever positive free cash flow and net cash from operating activities of $4.6 million[1][4] - Management emphasized a "fleet-first" growth strategy and diversification into a complete electrification platform, including powertrain systems and mobile charging Hubs[3][5] Financial Results Q2 2025 Financial Performance 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] 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 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 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][8] Non-GAAP Financial Measures & Reconciliations 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][15] 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 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] - Xos positions itself as a technology company, electric truck manufacturer, and fleet services provider for last-mile, back-to-base commercial vehicles[12] - 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][18]