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Xos(XOS) - 2025 Q1 - Earnings Call Transcript
XOSXos(XOS)2025-05-14 21:30

Financial Data and Key Metrics Changes - For Q1 2025, revenue was 5.9million,downfrom5.9 million, down from 11.5 million in Q4 2024 and 13.2millioninQ12024,with29unitsrecognizedcomparedto51unitsand62unitsinthepreviousquarters[24][25]Costofgoodssolddecreasedto13.2 million in Q1 2024, with 29 units recognized compared to 51 units and 62 units in the previous quarters [24][25] - Cost of goods sold decreased to 4.7 million from 15.2millioninQ42024and15.2 million in Q4 2024 and 10.4 million in Q1 2024 [24] - GAAP gross margin was a profit of 1.2millionor20.61.2 million or 20.6%, compared to a loss of 3.7 million in Q4 2024 and a profit of 2.8millioninQ12024[25]NonGAAPgrossmarginwasapproximately2.8 million in Q1 2024 [25] - Non-GAAP gross margin was approximately 900,000 or 15%, down from 2.7millioninQ42024butupfrom2.7 million in Q4 2024 but up from 1.7 million in Q1 2024 [25][26] - Operating expenses were 10.5million,downfrom10.5 million, down from 10.9 million in Q4 2024 and 13millioninQ12024[26]OperatinglossforQ12025was13 million in Q1 2024 [26] - Operating loss for Q1 2025 was 9.3 million, improved from a loss of 14.6millioninQ42024and14.6 million in Q4 2024 and 10.2 million in Q1 2024 [27] - Cash and cash equivalents totaled 4.8million,withfreecashflownegativeat4.8 million, with free cash flow negative at 4.8 million [28][29] Business Line Data and Key Metrics Changes - The company shipped a total of 60 units in Q1 2025, including 31 additional strip chassis for UPS, but only recognized revenue for 29 units due to GAAP standards [24][7] - The MD XT, a new medium-duty chassis cab, was launched, targeting a total addressable market of up to 100,000 units per year in the U.S. [12][15] Market Data and Key Metrics Changes - Customer demand remains consistent, with growing interest from national fleets, while smaller regional operators are leveraging state incentive programs [8] - The market for conventional chassis cab products like the MD XT can sell up to 100,000 units per year, significantly larger than the strip chassis market [39] Company Strategy and Development Direction - The company aims to focus on growth, protecting margins, and managing liquidity with discipline [6][18] - Plans to reduce exposure to tariffs through reshoring and resourcing strategies [10] - The MD XT is positioned as a more affordable and reliable option compared to legacy players, which are pricing their electric chassis cabs over 300,000[14]ManagementsCommentsonOperatingEnvironmentandFutureOutlookManagementexpressedconfidenceinnavigatingchallengessuchasnewemissionsrules,tariffs,andinterestrates,emphasizingcustomertrustandreliabletruckperformance[7]Thecompanyreaffirmeditsfullyear2025guidanceforrevenuebetween300,000 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges such as new emissions rules, tariffs, and interest rates, emphasizing customer trust and reliable truck performance [7] - The company reaffirmed its full-year 2025 guidance for revenue between 50.2 million and 65.8million,withunitdeliveriesbetween320and420units[29]OtherImportantInformationThecompanyhasmadesignificantprogressincollectingreceivables,totaling65.8 million, with unit deliveries between 320 and 420 units [29] Other Important Information - The company has made significant progress in collecting receivables, totaling 10.2 million in Q1 2025 [29] - The MD XT is still undergoing safety certifications and is targeted for production ramp-up by Q3 2026 [17] Q&A Session Summary Question: Can you speak about the parts commonality between your step vans and the MD XT? - The MD XT shares over 90% of the same commodity components with the step van, reducing costs and training requirements [35][36] Question: What are potential customers saying about the MD XT? - The market for the MD XT is larger, with several sizable fleets already interested, and it is expected to take time to ramp up orders [40] Question: How should we think about revenue recognition for the UPS units? - The margin profile for large national customers is lower, but this will be offset by other products in the portfolio, with a concentration of deliveries expected in Q2 and Q3 [42][43] Question: Can you provide an update on the ChargeHub? - There is significant interest in the ChargeHub, with orders coming from outside the truck customer base, and the company is exploring additional features for future versions [46][47]