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]

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 - 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]