Xos(US:XOS)2025-08-13 21:30Financial 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]