Xos(XOS) - 2025 Q3 - Quarterly Results

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]