Delivered first production powertrains for Blue Bird school buses
Achieved third consecutive quarter of positive operating cash flow and free cash flow, ending 2025 with
Reduced full-year operating expenses by
Fourth Quarter Highlights:
- Xos achieved positive net cash provided by operating activities and positive free cash flow of
$2.4 million in Q4, marking three straight quarters of cash-positive operations. This performance reflects meaningful improvements in the Company's operating model, including faster inventory turnover and more efficient receivables collection, which have driven stronger cash generation and improved working capital efficiency. - Operating expenses reduced by 34.6% year-over-year. Fourth quarter operating expenses decreased by
$3.8 million compared to Q4 2024, driven by continued headcount efficiency and cost discipline across the organization. - Operating loss reduced by 33.2%. The Company reported an operating loss of
$9.7 million and a non-GAAP operating loss of$4.6 million in Q4 2025, compared to an operating loss of$14.6 million and a non-GAAP operating loss of$6.4 million in Q4 2024 — a 27.1% improvement in non-GAAP operating loss. - Xos delivered 34 units and generated
$5.2 million in revenue in the fourth quarter, compared to 51 units and$11.5 million in Q4 2024 as the Company began shifting focus and allocating resources to powertrain production. - Gross margins decreased to negative 50.5%, compared to negative 32.4% in Q4 2024. Non-GAAP gross margins were 5.2%, compared to 23.2% in Q4 2024. The decrease was driven by higher inventory reserves and associated write-downs due to changes in the Company's commercialization strategy, as well as higher warranty reserves.
- EBITDA improved to a loss of
$8.5 million from a loss of$13.4 million in Q4 2024, and adjusted EBITDA improved to a loss of$7.0 million from a loss of$12.0 million in the prior year.
Full Year 2025 Highlights:
- Xos delivered 328 units in 2025, a 10% increase from 297 units in 2024. Revenue was
$46.0 million compared to$56.0 million in 2024, with the year-over-year decline in revenue per unit reflecting a strategic shift in product mix toward stripped chassis and powertrain units as opposed to complete stepvans. - Second consecutive full year of positive gross margin. The Company achieved a gross margin of 5.9% in 2025, compared to 7.1% in 2024, and non-GAAP gross margin of 8.8%, compared to 18.0% in 2024.
- Operating expenses reduced by
$14.0 million , or 28.2%. Full-year operating expenses declined to$35.8 million from$49.8 million in 2024, underscoring sustained structural cost improvement and a leaner, more efficient operating model. - Operating loss narrowed by 27.9%. The Company reported a full-year operating loss of
$33.1 million and a non-GAAP operating loss of$24.3 million , compared to an operating loss of$45.9 million and a non-GAAP operating loss of$32.1 million in 2024 — a 24.1% improvement in non-GAAP operating loss. - EBITDA loss cut by more than half. Full-year EBITDA improved to a loss of
$21.0 million from$42.2 million in 2024 — a$21.2 million improvement. Adjusted EBITDA improved to a loss of$23.5 million from$34.8 million , a 33% improvement reflecting the compounding benefits of cost discipline and operational efficiency. - Cash position strengthened to
$14.0 million . Xos ended the year with$14.0 million in cash and cash equivalents, up from$11.0 million at year-end 2024 — a 28% increase highlighting growing financial flexibility and momentum toward long-term sustainable growth. - First production powertrains delivered for Blue Bird school buses. Xos delivered its first production electric powertrains to Blue Bird Corporation, expanding beyond commercial vehicles into the school bus market and validating Xos's powertrain technology platform as a scalable OEM solution.
Platform and Product Milestones:
- Xos Hub™ energy storage proving reliability at scale. Xos Hub units deployed across customer fleets have now charged gigawatt-hours of energy in the aggregate, and the most active individual units have completed thousands of charge cycles each — proving the reliability and durability of Xos's mobile energy storage technology in demanding real-world conditions.
- Next-generation Hub variants in development. The Company began development of the Xos Hub 210 kWh, Xos Hub 420 kWh and Xos Hub 630 kWh models, which will enter production in 2026. These next-generation variants expand the addressable market for Xos Hub across a broader range of fleet sizes and charging use cases.
- Customer fleets surpass millions of cumulative miles. Subsequent to year end, multiple Xos customer fleets surpassed millions of cumulative miles driven on their respective Xos vehicles — a milestone that validates the long-term reliability, performance, and total cost of ownership advantage of the Xos platform.
- Industry's most competitive electric truck chassis — priced below
$100,000 . Subsequent to year end, Xos began offering its electric truck chassis at$99,000 , making it the most competitively priced battery-electric commercial stripped chassis on the market. This pricing positions Xos to capture accelerating demand as fleet operators evaluate electrification on pure economics, regardless of the evolving incentive landscape.
"2025 was a defining year for this company," said
"The financial progress in 2025 speaks for itself," said
Fourth Quarter and Full Year 2025 Financial Highlights
| Quarters ended | Years ended | ||||||||||||||
| (in millions) | |||||||||||||||
| Revenues | |||||||||||||||
| Gross (loss) profit | $(2.6 | ) | $(3.7 | ) | |||||||||||
| Non-GAAP gross profit(1) | |||||||||||||||
| Net income (loss) | $(9.8 | ) | $(19.0 | ) | $(25.3 | ) | $(50.2 | ) | |||||||
| Loss from operations | $(9.7 | ) | $(7.0 | ) | $(14.6 | ) | $(33.1 | ) | $(45.9 | ) | |||||
| Non-GAAP operating loss(1) | $(4.6 | ) | $(4.8 | ) | $(6.4 | ) | $(24.3 | ) | $(32.1 | ) | |||||
| Inventories | |||||||||||||||
| Cash and cash equivalents | |||||||||||||||
________________________
(1) For further information about how we calculate Non-GAAP financial measures, such as Non-GAAP gross profit, Non-GAAP operating loss, Adjusted EBITDA, and free cash flow, see below for the reconciliations of GAAP to non-GAAP financial measures provided in the tables included in this release.
Balance Sheet and Capital Structure:
$20.7 million in estimated cash savings fromMesa facility lease termination. In 2025, Xos reached an agreement to terminate the lease on itsMesa, Arizona manufacturing facility, unlocking an estimated$20.7 million in cash savings through 2033 and focusing production resources on itsByrdstown, Tennessee operations.- Convertible note restructured with extended runway through 2028. In 2025, the Company amended its outstanding Convertible Note with
$20 million in initial principal amount, which was originally dueAugust 2025 , to spread principal payments over ten quarterly installments throughFebruary 2028 — enhancing near-term liquidity and extending financial runway. - Additional capital raised under ATM program. Xos raised
$2.4 million , net of offering costs, under its at-the-market offering program during 2025, further reinforcing near-term liquidity.
2026 Outlook:
Xos’s outlook for 2026 is as follows:
| Revenue | |
| Non-GAAP operating loss(1) | |
| Unit Deliveries (2) | 350 to 500 units |
____________________________
(1) This press release does not provide a forward-looking reconciliation from Non-GAAP operating loss to net loss, the most directly comparable GAAP measure, due to the uncertainty and the potential variability of inputs of the financial information. For the same reason, we are unable to address the probable significance of the unavailable information.
(2) Unit deliveries forecast includes our powertrain and Xos Hub products, stepvans and stripped chassis.
The outlook provided above is based on management beliefs and expectations as of the date of this press release. The results are based on assumptions that are believed to be reasonable as of this date, but may be materially affected by many factors, as discussed below in our “Cautionary Statement Regarding Forward-Looking Statements” disclaimer. Actual results may vary from the outlook above and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
Conference Call and Webcast Details
| Date / Time: | ||
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| 1-833-816-1411 | ||
| International Dial In: | 1-412-317-0507 | |
| Conference ID: | 10207279 | |
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About
Xos is a leading energy storage and fleet electrification solutions provider. The Xos Hub is a proactive, movable power source delivering high-capacity output and high-speed charging in one. Xos vehicles and fleet management software are purpose-built for medium- and heavy-duty commercial vehicles that travel on last-mile, back-to-base routes. The Company leverages its proprietary technologies to provide a diverse customer base with rapid-deployment energy storage and charging solutions and commercial fleets with battery-electric vehicles that are easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine counterparts. For more information, please visit www.xostrucks.com.
Non-GAAP Financial Measures
The financial information in this press release has been presented in accordance with
“Operating cash flow less CapEx (Free Cash Flow)” is defined as net cash provided by (used in) operating activities minus purchases of property and equipment.
“Non-GAAP operating loss” is defined as loss from operations adjusted for stock-based compensation, inventory write-downs and physical inventory and other adjustments.
“Non-GAAP gross profit” is defined as gross profit (loss) minus inventory write-downs and physical inventory and other adjustments.
“Adjusted EBITDA” is defined as EBITDA (earnings before interest, taxes, depreciation & amortization) minus change in fair value of derivatives, change in fair value of earn-out shares liability, gain on lease termination and stock based compensation.
Xos believes that the use of operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss, non-GAAP gross profit, and Adjusted EBITDA reflects additional means for management and investors to use when evaluating Xos's ongoing operating results and trends. The presentation of these measures should not be construed as an inference that Xos's future results will be unaffected by unusual or non-recurring items. It is important to note Xos's computation of operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss, non-GAAP gross profit, and Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies, because not all companies may calculate operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss, non-GAAP gross profit, and Adjusted EBITDA in the same fashion. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under GAAP when understanding Xos's operating performance. A reconciliation between historical GAAP and non-GAAP financial information is provided in this press release.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding projected financial and performance information; expectations and timing related to product deliveries and customer demand; business model effectiveness; product reliability; ability to compete effectively regardless of government incentives; sufficiency of existing cash reserves and near-term liquidity; customer acquisition and order metrics; ability to access additional capital and Xos’s long-term strategy and future growth. These forward-looking statements may be identified by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “intend,” “likely,” “may,” “might,” “opportunity,” “plan,” “possible,” “project,” “potential,” “predict,” “seek,” “seem,” “should,” “strategy,” “target,” “will,” “would,” and similar expressions and any other statements that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) Xos’s liquidity and access to capital when needed, including its ability to service its indebtedness; (ii) Xos’s ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; (iii) cost increases and delays in production due to supply chain shortages in the components needed for the production of Xos's products; (iv) Xos's ability to meet production milestones and fulfill backlog orders; (v) changes in the industries in which Xos operates; (vi) variations in operating performance across competitors; (vii) changes in laws and regulations affecting Xos's business, including changes to tax incentive policies; (viii) Xos's ability to implement its business plan or meet or exceed its financial projections; (ix) Xos's limited operating history; (x) Xos's ability to retain key personnel and hire additional personnel, particularly in light of current and potential labor shortages; (xi) the risk of downturns and a changing regulatory landscape in the highly competitive electric vehicle industry; (xii) macroeconomic and political conditions, including the potential for economic downturns as a result of the war in
Contacts
Xos Investor Relations
Xos Media Relations
| Consolidated Balance Sheets | ||||||
| Unaudited | ||||||
2025 | 2024 | |||||
| (in thousands, except par value per share) | ||||||
| Assets | ||||||
| Cash and cash equivalents | $ | 14,040 | $ | 10,996 | ||
| Accounts receivable, net | 6,035 | 26,870 | ||||
| Inventories | 24,961 | 36,567 | ||||
| Prepaid expenses and other current assets | 4,841 | 7,868 | ||||
| Total current assets | 49,877 | 82,301 | ||||
| Property and equipment, net | 4,320 | 6,111 | ||||
| Operating lease right-of-use assets, net | 1,534 | 3,193 | ||||
| Other non-current assets | 4,632 | 6,728 | ||||
| Total assets | $ | 60,363 | $ | 98,333 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Accounts payable | $ | 2,473 | $ | 8,931 | ||
| Convertible debt, current | 6,500 | 19,970 | ||||
| Other current liabilities | 14,685 | 17,768 | ||||
| Total current liabilities | 23,658 | 46,669 | ||||
| Common stock warrant liability | 73 | 121 | ||||
| Other non-current liabilities | 1,345 | 17,933 | ||||
| Convertible debt, non-current | 12,000 | - | ||||
| Total liabilities | 37,076 | 64,723 | ||||
| Stockholders’ Equity | ||||||
| Common stock | 1 | 1 | ||||
| Preferred stock | - | - | ||||
| Additional paid-in capital | 252,026 | 237,029 | ||||
| Accumulated deficit | (228,740 | ) | (203,420 | ) | ||
| Total stockholders’ equity | 23,287 | 33,610 | ||||
| Total liabilities and stockholders’ equity | $ | 60,363 | $ | 98,333 | ||
| Consolidated Statements of Operations | ||||||||||||||||
| Unaudited | ||||||||||||||||
| (in thousands, except per share amounts) | Three Months Ended | Twelve Months Ended | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues | $ | 5,220 | $ | 11,474 | $ | 45,992 | $ | 55,961 | ||||||||
| Cost of goods sold | 7,857 | 15,191 | 43,268 | 51,996 | ||||||||||||
| Gross profit (loss) | (2,637 | ) | (3,717 | ) | 2,724 | 3,965 | ||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 4,539 | 8,051 | 24,797 | 35,083 | ||||||||||||
| Research and development | 1,882 | 1,936 | 8,000 | 10,627 | ||||||||||||
| Sales and marketing | 681 | 868 | 3,010 | 4,129 | ||||||||||||
| Total operating expenses | 7,102 | 10,855 | 35,807 | 49,839 | ||||||||||||
| Loss from operations | (9,739 | ) | (14,572 | ) | (33,083 | ) | (45,874 | ) | ||||||||
| Gain on operating lease termination | 481 | - | 9,875 | - | ||||||||||||
| Other expense, net | (641 | ) | (4,812 | ) | (2,137 | ) | (4,561 | ) | ||||||||
| Change in fair value of derivative instruments | 147 | 421 | 48 | 274 | ||||||||||||
| Change in fair value of earn-out shares liability | - | 6 | - | 39 | ||||||||||||
| Loss before provision for income taxes | (9,752 | ) | (18,957 | ) | (25,297 | ) | (50,122 | ) | ||||||||
| Provision for income taxes | - | 24 | 23 | 37 | ||||||||||||
| Net loss | $ | (9,752 | ) | $ | (18,981 | ) | $ | (25,320 | ) | $ | (50,159 | ) | ||||
| Net loss per share | ||||||||||||||||
| Basic | $ | (0.86 | ) | $ | (2.36 | ) | $ | (2.71 | ) | $ | (6.69 | ) | ||||
| Diluted | $ | (0.86 | ) | $ | (2.36 | ) | $ | (2.71 | ) | $ | (6.69 | ) | ||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 11,348 | 8,034 | 9,360 | 7,500 | ||||||||||||
| Diluted | 11,348 | 8,034 | 9,360 | 7,500 | ||||||||||||
Reconciliation of Adjusted EBITDA, Operating Cash Flow less CapEx (Free Cash Flow), Non-GAAP Operating Loss and Non-GAAP Gross Profit:
Adjusted EBITDA Reconciliation:
| Three Months Ended | Twelve Months Ended | Three Months Ended | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| Net income (loss) | $ | (9,752 | ) | $ | (18,981 | ) | $ | (25,320 | ) | $ | (50,159 | ) | $ | 2,123 | |||||
| Other expense, net | 641 | 4,812 | 2,137 | 4,561 | 240 | ||||||||||||||
| Depreciation | 582 | 792 | 2,183 | 3,343 | 531 | ||||||||||||||
| Provision for income taxes | - | 24 | 23 | 37 | (2 | ) | |||||||||||||
| EBITDA | (8,529 | ) | (13,353 | ) | (20,977 | ) | (42,218 | ) | 2,892 | ||||||||||
| Change in fair value of derivatives | (147 | ) | (421 | ) | (48 | ) | (274 | ) | 39 | ||||||||||
| Change in fair value of earn-out shares liability | - | (6 | ) | - | (39 | ) | - | ||||||||||||
| Gain on operating lease termination | (481 | ) | - | (9,875 | ) | - | (9,394 | ) | |||||||||||
| Stock based compensation | 2,185 | 1,823 | 7,407 | 7,710 | 2,125 | ||||||||||||||
| Adjusted EBITDA | $ | (6,972 | ) | $ | (11,957 | ) | $ | (23,493 | ) | $ | (34,821 | ) | $ | (4,338 | ) | ||||
Operating Cash Flow less CapEx (Free Cash Flow):
| Three Months Ended | Twelve Months Ended | Three Months Ended | |||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | 2025 | ||||||||||
| Net cash provided by (used in) operating activities | $ | 2,399 | $ | 3,298 | $ | 5,365 | $ | (48,795 | ) | $ | 3,077 | ||||
| Purchase of property and equipment | - | - | - | (304 | ) | - | |||||||||
| Free-Cash Flow | $ | 2,399 | $ | 3,298 | $ | 5,365 | $ | (49,099 | ) | $ | 3,077 | ||||
Non-GAAP Operating Loss:
| Three Months Ended | Twelve Months Ended | Three Months Ended | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | 2025 | ||||||||||||||
| Loss from operations | $ | (9,739 | ) | $ | (14,572 | ) | $ | (33,083 | ) | $ | (45,874 | ) | $ | (6,994 | ) | ||||
| Stock-based compensation | 2,185 | 1,823 | 7,407 | 7,710 | 2,125 | ||||||||||||||
| Inventory Reserves | 1,815 | 3,752 | (263 | ) | 2,940 | 128 | |||||||||||||
| Physical inventory and other adjustments | 1,096 | 2,632 | 1,593 | 3,141 | (26 | ) | |||||||||||||
| Non-GAAP Operating Loss | $ | (4,643 | ) | $ | (6,365 | ) | $ | (24,346 | ) | $ | (32,083 | ) | $ | (4,767 | ) | ||||
Non-GAAP Gross Profit:
| Three Months Ended | Twelve Months Ended | Three Months Ended | ||||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | 2025 | |||||||||||||
| Gross profit (loss) | $ | (2,637 | ) | $ | (3,717 | ) | $ | 2,724 | $ | 3,965 | $ | 2,531 | ||||||
| Inventory Reserves | 1,815 | 3,752 | (263 | ) | 2,940 | 128 | ||||||||||||
| Physical inventory and other adjustments | 1,096 | 2,632 | 1,593 | 3,141 | (26 | ) | ||||||||||||
| Non-GAAP Gross Profit | $ | 274 | $ | 2,667 | $ | 4,054 | $ | 10,046 | $ | 2,633 | ||||||||
