XOS

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterized Q2 2026 as a pivotal transition from a commercial vehicle manufacturer to a power infrastructure company, targeting the U.S. data center and AI energy build-out. Revenue and delivery shortfalls were attributed to customer readiness delays and acceptance timing, which shifted multiple orders into subsequent quarters. The launch of the PowerHub series represents a strategic entry into the battery energy storage market, designed to bypass 3-to-7-year grid interconnection delays for industrial sites. Positive non-GAAP gross margins for the 12th consecutive quarter were driven by a favorable product mix shift toward higher-margin hub and powertrain deliveries. Operational leverage improved as the company achieved its highest first-half GAAP gross margin of 31% while simultaneously narrowing operating losses. The company is leveraging a common technology platform across trucks, powertrains, and hubs to maintain a capital-efficient manufacturing footprint. Management noted that while regulatory tailwinds may have shifted, the economic incentive for electrification remains strong due to high diesel costs and significant per-mile fuel savings. Full-year 2026 guidance was revised downward to $35 million–$43 million in revenue and 250–350 units to reflect the timing of shifted orders and product mix changes. The second half of 2026 is expected to be volume-heavy, focused on converting the current demand position into deliveries for the new PowerHub and powertrain segments. Management expects to announce new rental, leasing, and deployment partners for the PowerHub in the coming quarters to accelerate market penetration. Future inventory turnover is expected to accelerate as the business mix shifts toward hubs and powertrains, which have shorter manufacturing cycles than completed step vans. Liquidity management remains a priority, with plans to continue pursuing strategic capital raising and maintaining discipline in accounts receivable collections. The company strengthened its balance sheet by raising $7.6 million through ATM and registered direct offerings, ending the quarter with $13.2 million in cash. Supply chain strategy has shifted toward domestic production, specifically partnering with Gotion for U.S.-manufactured cells to meet defense and government contract requirements. Ongoing UL certification processes for new hub variants are underway; while not currently gating deliveries, full certification for some standards may push into next year. Free cash flow was negative $4.3 million for the first half, primarily due to a smaller working capital release compared to the prior year period. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they have UL approval at the component level and expect system-level approval on one standard within a few weeks. The certification process is not currently gating customer deliveries, as many customers are willing to accept units based on current testing levels. Testing is being conducted to cover multiple variants, including both AC and DC output configurations and different enclosure sizes. Unlike competitors who offer 'DC blocks' requiring separate costly converters, Exos integrates the power conversion system and energy controller into a single AC-output unit. This integrated architecture allows for deployment in days rather than months and enables direct connection to reciprocating generators to stabilize volatile AI compute loads. The system improves generator efficiency and reduces maintenance costs by smoothing out power demand peaks. Management views Blue Bird's expansion as a potential growth opportunity for Exos to supply zero-emission powertrains for new chassis lines. Exos currently provides powertrains for Blue Bird's commercial chassis, a segment where traditional partners like Ford do not currently offer zero-emission products.

This article first appeared on GuruFocus. Revenue: $4.7 million in Q2 2026, down from $18.4 million in Q2 2025 and $11.2 million in Q1 2026. Unit Deliveries: 30 units in Q2 2026, compared to 135 units in Q2 2025 and 95 units in Q1 2026. GAAP Gross Margin: 12.1% in Q2 2026, compared to 8.9% in Q2 2025 and 38.9% in Q1 2026. Non-GAAP Gross Margin: 7.2% in Q2 2026, versus 1.5% in Q2 2025 and 38.2% in Q1 2026. Operating Loss: $7.9 million in Q2 2026, compared to $7.1 million in Q2 2025 and $4.6 million in Q1 2026. Non-GAAP Operating Loss: $6.2 million in Q2 2026, compared to $6.8 million in Q2 2025 and $2.6 million in Q1 2026. Adjusted EBITDA: Loss of $5.1 million in Q2 2026, compared to a loss of $4.9 million in Q2 2025 and a loss of $2 million in Q1 2026. Cash and Cash Equivalents: $13.2 million at end of Q2 2026, up from $9.8 million at end of Q1 2026. Hub Production: 29 hubs produced in Q2 2026, the highest quarterly production to date. Full Year 2026 Guidance: Revenue expected between $35 million and $43 million; unit deliveries between 250 and 350 units; non-GAAP operating loss between $14.7 million and $11.4 million. Warning! GuruFocus has detected 4 Warning Signs with XOS. Is XOS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Launched the Power Hub, a mobile containerized battery energy storage system, expanding into the large data center and AI infrastructure market. Achieved the highest first-half GAAP gross margin (31%) and gross profit in company history, with a 19-percentage-point improvement year-over-year. Record production of 29 hubs in Q2, with over 250 MWh of energy storage deployed across North America. Strengthened balance sheet with cash increasing 35% to $13.2 million, supported by $7.6 million in capital raises. Improved operating loss by 23% (GAAP) and 41% (non-GAAP) in the first half, reflecting cost discipline and operational efficiency. Selected as a finalist for the US Air Force Global Strike Command showcase, demonstrating defense market potential. Over 100 powertrain orders since launch, with hubs operating for major fleets like Caltrans, Duke Energy, and Waymo. Q2 revenue fell to $4.7 million, down from $18.4 million in the prior year, due to order deferrals and customer delays. Unit deliveries were lighter than planned, with multiple orders shifted to subsequent quarters, impacting near-term revenue. Revised full-year 2026 revenue guidance down to $35-43 million, reflecting lower volume expectations. Q2 GAAP gross margin declined sequentially to 12.1% from 38.9% in Q1, due to product mix and delivery timing. Free cash flow was negative $4.3 million in the first half, compared to negative $0.1 million in the prior year. Operating loss increased sequentially in Q2 to $7.9 million from $4.6 million in Q1, driven by lower volumes. UL certification for new hub variants is incomplete, with some standards not expected until next year, potentially limiting market acceptance. Q: Can you elaborate on the Power Hub's competitive differentiation, specifically versus large-scale BESS systems from suppliers like CATL or Ford, and confirm the cell supplier for this product? A: Dakota Semler (CEO) explained that traditional BESS systems are "DC blocks" requiring separate, costly inverters and controllers for grid connection. The Power Hub integrates the battery, power conversion system, and energy controller into a single AC-output unit, making it cheaper, faster to deploy, and directly connectable to conventional diesel or natural gas gensets. This is critical for volatile AI compute loads, as it allows generators to run at optimal efficiency, reducing maintenance and fuel costs. The primary cell supplier is Gotion, with domestic production in Illinois, which is a critical requirement for FEOC compliance and defense customers. Q: What caused the unit delivery shortfall in Q2, and can you provide color on where the delays occurred?A: Dakota Semler (CEO) stated that the shortfall was primarily due to delays on the powertrain side of the business, along with a few smaller truck orders that pushed back. He emphasized that these are deferrals, not cancellations, and the company anticipates fulfilling these orders over the next year, with some potentially coming through within the next couple of quarters. Q: What is the status of the UL certification process for the new hub configurations, and is it gating customer deliveries?A: Giordano Sordoni (COO) stated that they have UL approval at the component level and are pursuing system-level testing. They expect approval on one standard within the next couple of weeks, while another standard may push into next year. Crucially, this is not gating deliveries, as many customers are willing to accept the hub with the current level of certification. The testing is designed to cover multiple variants of the platform, including different sizes and AC/DC output capabilities. Q: Does Blue Bird's recent acquisition of Ford's chassis operations have any implications for Xos?A: Dakota Semler (CEO) views this as a potential complementary opportunity. Blue Bird has purchased Xos powertrains to sell into the commercial chassis space, and Ford has never built a zero-emissions product for its strip chassis lineup. The Detroit facility's capacity (upwards of 20,000 units a year) represents a very large volume opportunity, and Xos sees this as a potential growth avenue as they expand their relationship with Blue Bird. Q: What is a fair expectation for inventory liquidation over the next couple of quarters, and will it help release cash?A: Dakota Semler (CEO) confirmed that inventory reduction will continue to release cash. The shift in product mix towards hubs and powertrains accelerates inventory turnover because these products change hands immediately upon leaving the factory, unlike step vans which may sit with upfitters. The company is focused on building to order and reducing demo inventory, aiming for multiple inventory turns per year, which will be further supported by domestic production of critical components like battery cells. Q: Were the reductions in SG&A and R&D in Q2 specific cost-out actions or a function of variable expenses, and can we expect similar levels going forward?A: Liana Pogosyan (Acting CFO) stated that while some decreases were a function of revenue, a lot of the reduction came from smaller purchases of R&D materials. She guided that expenses should be expected to remain at a level similar to the first quarter of 2026. Q: Can you provide more detail on the production numbers for the Xos Hub in Q2? Were the 29 units produced also delivered?A: Giordano Sordoni (COO) clarified that the 29 units were the number produced, not all of which counted as deliveries. Some of the units have been paid for but are still in the factory awaiting pickup and final delivery to the customer. Q: How does the Power Hub address the specific challenges of powering data centers, and what is the key use case?A: Dakota Semler (CEO) detailed that the Power Hub is designed for temporary power applications where data centers face 3-7 year grid interconnection waits. Operators often use large reciprocating gensets, but AI compute loads are highly volatile, causing generator maintenance issues and poor fuel efficiency. The Power Hub allows generators to run at optimal efficiency (70-80% load), smoothing out peaks, reducing wear and tear, lowering fuel consumption, and reducing emissions, making it a critical component for sites like the xAI facility in Memphis. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

LOS ANGELES, July 30, 2026 (GLOBE NEWSWIRE) -- Xos, Inc. (NASDAQ: XOS), a leading electric truck manufacturer and fleet services provider, today announced it will release its second quarter ended June 30, 2026 operating results on Thursday, August 13, 2026, after the close of the U.S. financial markets. Management will host a conference call and webcast to discuss these financial results at 4:30 p.m. Eastern Daylight Time / 1:30 p.m. Pacific Daylight Time on August 13, 2026. Conference Call and Webcast Details To access the call, please dial in approximately ten minutes before the start of the call. For those unable to participate in the live call, an audio replay will be available following the call through 11:59 p.m. Eastern Time on Thursday, August 27, 2026. To access the replay, please call 1-844-512-2921 or 1-412-317-6671 (International) and enter access code 10210727. A replay of the webcast will also be archived shortly after the call and can be accessed on the Company's website. About Xos, Inc.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, visit www.xostrucks.com. 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 may generally be identified by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “intend,” “likely,” “may,” “might,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “seem,” “seek,” “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, including but not limited to: (i) Xos, Inc.’s (“Xos”) 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, (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, (xi) the risk of downturns and a changing regulatory landscape in the highly competitive electric vehicle industry, (xii) macroeconomic and political conditions, and (xiii) the outcome of any legal proceedings that may be instituted against Xos. All forward-looking statements included in this press release are expressly qualified in their entirety by, and you should carefully consider, the foregoing factors and the other risks and uncertainties described under the heading “Risk Factors” included in Xos’s most recently filed Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) and any subsequent Quarterly Reports on Form 10-Q filed with the SEC, copies of which may be obtained by visiting Xos’s Investors Relations website at https://www.xostrucks.com/sec-filings or the SEC’s website at www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Xos assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Xos does not give any assurance that it will achieve its expectations. ContactsXos Investor [email protected] Xos Media [email protected]

This article first appeared on GuruFocus. Revenue: $11.2 million, nearly double from $5.9 million in Q1 2025. Units Delivered: 95 units, up from 29 units in Q1 2025. Gross Margin: 38.6%, the highest in company history, compared to 20.6% in Q1 2025. Operating Expenses: $9 million, down from $10.5 million in Q1 2025. Operating Loss: $4.7 million, the lowest since going public, compared to $9.3 million in Q1 2025. EBITDA Loss: $4.1 million, improved from $8.8 million in Q1 2025. Cash and Cash Equivalents: $9.8 million at the end of Q1 2026. Inventory: Reduced to $23.7 million from $38 million in Q1 2025. Free Cash Flow: Negative $1.6 million, improved from negative $4.8 million in Q1 2025. Full-Year 2026 Revenue Guidance: $40 million to $50 million. Warning! GuruFocus has detected 4 Warning Signs with XOS. Is XOS fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Xos Inc (NASDAQ:XOS) reported its highest gross margins in company history, driven by a strategic shift towards higher-margin products like hubs and powertrains. Revenue for Q1 2026 nearly doubled from the previous year, reaching $11.2 million, indicating strong sales performance. The company achieved a significant reduction in operating loss, marking the lowest since going public, showcasing improved operational efficiency. Xos Inc (NASDAQ:XOS) is expanding its product offerings beyond electric trucks to include mobile energy infrastructure and powertrain systems, diversifying its revenue streams. The company is experiencing strong demand for its hub product, with plans to expand production capacity and introduce new iterations to meet customer needs. Xos Inc (NASDAQ:XOS) faces potential risks from regulatory changes, such as the EPA's removal of California's CARB waiver, which could impact zero-emissions adoption. The company is still waiting for some of its sales pipeline to firm up for the second half of the year, creating uncertainty in future revenue projections. Despite improvements, Xos Inc (NASDAQ:XOS) continues to operate at a loss, with a non-GAAP operating loss of $2.6 million for the quarter. The company has a wide range of unit guidance due to variability in product mix, which could affect revenue consistency. Xos Inc (NASDAQ:XOS) is navigating challenges related to tariffs, regulatory shifts, and capital markets, which could impact future operations and profitability. Q: Can you confirm the number of hubs delivered in the first quarter? A: Dakota Semler, CEO: Approximately 22 hubs were delivered during the first quarter. Q: How should we think about the mix of shipments for the remainder of the year, given the strength in hub and powertrain sales? A: Dakota Semler, CEO: It's early to determine the exact mix for the rest of the year. Hubs generally have a higher average selling price (ASP) and margin profile, while powertrains have a lower ASP and margin profile. The wide range of unit volumes is due to some pipeline uncertainties for the second half of the year. Q: Do you see the hub becoming a primary driver of growth for Xos in the coming years? A: Dakota Semler, CEO: Absolutely. The demand for the hub is coming from new customer segments, and we have several new variations in development. The hub is expected to be a primary growth engine, addressing challenges like grid resiliency and power reliability. Q: Can you discuss the structural cost changes that have allowed Xos to achieve strong gross margins? A: Liana Pogosyan, CFO: In addition to favorable product mix, we've reduced direct material, overhead, and labor costs. Improved inventory management has also reduced reserves, contributing to the strong gross margin results. Q: How has the relationship with Blue Bird evolved, and are there opportunities to deepen this partnership? A: Dakota Semler, CEO: We've built a strong partnership with Blue Bird, a leader in alternative fuel powertrains. Our powertrains' reliability in the field has given Blue Bird confidence to grow the partnership. We are also exploring opportunities with other OEMs and on-highway operators. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Fox Factory Holding (FOXF) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +94.60%. A quarter ago, it was expected that this vehicle suspension maker would post earnings of $0.14 per share when it actually produced earnings of $0.2, delivering a surprise of +42.86%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Fox Factory Holding, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $368.66 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.47%. This compares to year-ago revenues of $355.03 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Fox Factory Holding shares have added about 6.3% since the beginning of the year versus the S&P 500's gain of 7.6%. While Fox Factory Holding has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Fox Factory Holding was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.34 on $340.78 million in revenues for the coming quarter and $1.44 on $1.38 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Domestic is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Xos, Inc. (XOS), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 14. This company is expected to post quarterly loss of $0.72 per share in its upcoming report, which represents a year-over-year change of +42.9%. The consensus EPS estimate for the quarter has been revised 4.5% lower over the last 30 days to the current level. Xos, Inc.'s revenues are expected to be $6.23 million, up 5.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report Xos, Inc. (XOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Xos, Inc. (XOS) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 14. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly loss of $0.72 per share in its upcoming report, which represents a year-over-year change of +42.9%. Revenues are expected to be $6.23 million, up 6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 4.46% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Xos, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.10%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Xos will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Xos would post a loss of$0.6 per share when it actually produced a loss of -$0.86, delivering a surprise of -43.33%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Xos doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Xos, Inc. (XOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LOS ANGELES, April 30, 2026 (GLOBE NEWSWIRE) -- Xos, Inc. (NASDAQ: XOS), a leading electric truck manufacturer and fleet services provider, today announced it will release its first quarter ended March 31, 2026 operating results on Thursday, May 14, 2026, after the close of the U.S. financial markets. Management will host a conference call and webcast to discuss these financial results at 4:30 p.m. Eastern Daylight Time / 1:30 p.m. Pacific Daylight Time on May 14, 2026. Conference Call and Webcast Details To access the call, please dial in approximately ten minutes before the start of the call. For those unable to participate in the live call, an audio replay will be available following the call through midnight Thursday, May 28, 2026. To access the replay, please call 1-833-816-1411 or 1-412-317-0507 (International) and enter access code 10208874. A replay of the webcast will also be archived shortly after the call and can be accessed on the Company's website. About Xos, Inc. Xos is a leading technology company, electric truck manufacturer, and fleet services provider for battery-electric fleets. 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 commercial fleets with battery-electric vehicles that can be easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine counterparts. For more information, visit www.xostrucks.com. 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 may generally be identified by the words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “likely,” “may,” “opportunity,” “plan,” “possible,” “potential,” “predict,” “project,” “seem,” “seek,” “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, including but not limited to: (i) Xos, Inc.’s (“Xos”) access to capital when needed and ability to continue as a going concern (ii) Xos’s ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities, (iii) Xos’s limited operating history, (iv) cost increases and supply chain shortages in the components needed for the production of Xos’s products, (v) Xos’s ability to meet production milestones and fulfill backlog orders, (vi) changes in the industries in which Xos operates, (vii) variations in operating performance across competitors, (viii) changes in laws and regulations affecting Xos’s business, (viii) Xos’s inability to implement its business plan or meet or exceed its financial projections (x) Xos’s ability to retain key personnel and hire additional personnel, (xi) the risk of downturns and a changing regulatory landscape in the highly competitive electric vehicle industry and (xii) the outcome of any legal proceedings that may be instituted against Xos. All forward-looking statements included in this press release are expressly qualified in their entirety by, and you should carefully consider the preceding factors and the other risks and uncertainties described in Xos’s filings with the Securities and Exchange Commission (the “SEC”), including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Copies of Xos’s SEC filings may be obtained by visiting Xos’s Investors Relations website at https://www.xostrucks.com/sec-filings or the SEC’s website at www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Xos assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Contacts Xos Investor Relations [email protected] Xos Media Relations [email protected]

Image source: The Motley Fool. Thursday, March 26, 2026, at 4:30 p.m. ET Chief Executive Officer — Dakota Semler Chief Operating Officer — Giordano Sordoni Chief Financial Officer — Liana Pogosyan General Counsel — David Zlotchew Operator: Good day, and welcome to the Xos, Inc. fourth quarter and full year 2025 earnings call. All participants will be in a listen-only mode. Please note this event is being recorded. I would now like to turn the call over to David Zlotchew, General Counsel. Please go ahead. David Zlotchew: Thank you, everyone, for joining us today. Hosting the call with me are Xos, Inc.’s Chief Executive Officer, Dakota Semler, Xos, Inc.’s Chief Operating Officer, Giordano Sordoni, and Xos, Inc.’s Chief Financial Officer, Liana Pogosyan. Today, after the close of regular trading, Xos, Inc. issued its fourth quarter and full year 2025 earnings press release. As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results as well as commentary on the quarter and year ended 12/31/2025. Management's statements today reflect management's views as of today, 03/26/2026 only, and will include forward-looking statements, including statements regarding our fiscal year 2026, management's expectations for future financial and operational performance, and other statements regarding our plans, prospects, goals. These statements are not promises or guarantees, and are subject to risks and uncertainties, which could cause them to differ materially from actual results. Additional information about important factors that could cause actual results to differ materially, including but not limited to, Xos, Inc.’s ability to access capital when needed, continue as a going concern, Xos, Inc.’s ability to implement business plans and identify and realize opportunities, potential supply chain disruptions and/or economic downturns as a result of trade policies and tariffs or war in Iran and shortages of access to oil, energy, and other key industrial inputs, is included in today's press release and in our filings with the SEC including our most recently filed annual report on Form 10-K, and subsequent filings. We undertake no obligation to update forward-looking statements except as required by law. You should not put undue reliance on forward-looking statements. Further, today's presentation includes references to non-GAAP financial measures and performance metrics. Additional information about these non-GAAP measures, including reconciliations of historical non-GAAP measures to the comparable GAAP measures, is included in the press release we issued today. Our press release and SEC filings are available on the Investor Relations section of our website at www.xostrucks.com/investor-overview. With that, I now turn it over to our CEO, Dakota Semler. Good afternoon, everyone. Dakota Semler: 2025 was the year Xos, Inc. proved something that many doubted was possible—that a young electric vehicle company operating with discipline, under real constraints and without the luxury of unlimited capital could deliver a full year of positive free cash flow, grow its customer base, diversify its product portfolio, and emerge stronger on the other side. That is exactly what happened, and it did not happen by accident. For the full year, Xos, Inc. generated $46 million in revenue on 328 units delivered, more units than any year in our history. Our GAAP gross margin was 5.9%, marking our second consecutive full year of positive GAAP and non-GAAP gross margins. Full year operating loss narrowed 28% to $33.1 million, the lowest since we went public, and our adjusted EBITDA loss improved 33% to $23.5 million. But the number that I am most proud of is this: we generated $5.4 million of positive free cash flow for the year, compared to negative $49.1 million in 2024. That is a $54 million swing. And in Q4, we delivered our third consecutive quarter of positive free cash flow, the fourth time we have achieved that milestone since going public. Those are not just numbers; they are proof that our model works. In Q4 specifically, we shipped strip chassis already on their way to upfitters for a major customer program. Revenue recognized in the quarter was $5.2 million on 34 units, with the balance to be recognized in coming quarters as vehicles are completed and delivered. The signal is clear. Demand is real. Customers are returning, and scale is growing. Let me step back and put this year in context, because I think the arc of 2025 tells the real story of where this company is headed. We entered 2025 with a clear mandate: grow the business, protect margins, and manage liquidity with discipline. Every quarter, we executed on that mandate. And every quarter, the results compounded. Even amidst a tumultuous environment with frequent tariff changes, and complex macroeconomic factors, we prevailed. In Q1, we set the foundation. We continued growing Hub production at our Tennessee plant. At the same time, we strengthened our balance sheet and sharpened our cost structure. Q2 was a breakthrough. Revenue hit $18.4 million, the highest quarterly revenue in our history. We delivered 135 units, secured the orders for the largest production program in company history at over 200 units, and proved that national fleets are not experimenting with Xos, Inc. anymore. They are committing to us at scale. Q3 sustained that momentum. Revenue held strong at $16.5 million on 130 units. Our operating loss dropped to $7 million, the lowest since the company went public, and we achieved our second consecutive quarter of positive free cash flow, demonstrating that this was not a one-time event but a structural shift in how the business operates. And Q4 capped the year with continued execution. While Q4 is seasonally our lightest quarter, the team kept delivering, fulfilling our 200-plus unit program, scaling Blue Bird powertrain production, and preparing the Hub platform for its next chapter. Each quarter built on the last. That is what momentum looks like when it is earned, not inherited. Much of our 2025 volume went to organizations like UPS and FedEx ISPs, fleets that do not forgive unreliability, that do not tolerate downtime, and that do not adopt new technology unless they have deep confidence in the engineering and provider's ability to deliver at scale. Their confidence in Xos, Inc. is earned. It is validated by millions of miles on the road with several customers now exceeding 1,000,000 miles across their Xos, Inc. vehicles and evidenced by repeat orders that have grown in size. Our 200-plus unit program represents the shape of the future for Xos, Inc.—deeper relationships, larger programs, repeatable volume. These large fleet agreements may compress margins in the near term, but they are the foundation of a durable industrial business. They create the volume and the credibility needed to expand margins over time. I want to personally acknowledge the Aljomaih Automotive Company, whose support of Xos, Inc. has been unwavering. Together, we amended the repayment structure of the convertible note, moving from a single August 2025 maturity to quarterly installments through February 2028. This is not just a restructuring; it is a change that allows us to operate from a position of focus rather than constraint. Aljomaih is now our largest shareholder, a strong signal of their conviction in our long-term trajectory. Our collections execution was exceptional this year. Accounts receivable came down from $26.9 million to $6 million, driven by $14 million in Q4 collections alone, including the $9.9 million from UPS. Liana will walk you through the full liquidity picture, but the takeaway is this: we ended the year with $14 million in cash, up from $11 million, while simultaneously paying down obligations and investing in growth. Even as the step van continues to drive substantial revenue, our strategy has never been limited to a single product. In 2025, we deliberately expanded into higher margin, less competitive categories, and that strategy is now delivering real results. Our powertrain business had a breakout year. We delivered 15 powertrain systems to Blue Bird Corporation in Q4 alone, and since Q2, we have received nearly 100 additional orders. School districts are electrifying, and our technology—which is modular, reliable, and highly serviceable—is becoming the backbone they trust. Gio and I attended the Blue Bird dealer meeting last year, and the engagement from dealers and districts is exciting, and we believe it will translate to a robust pipeline that we expect to convert over the next one to three years. And finally, 2025 saw the emergence of our flagship Xos, Inc. Hub product line, which we are expanding in 2026. Grid constraints are not a theory. They are the single largest friction point in North American fleet electrification. The Hub addresses this head on. It is not a prototype. It is deployed, it is working, and its impact is expanding far beyond transportation. In 2025, we deployed Hubs to utilities, fleet operators, and industrial users. We showcased the Hub at RE+, the largest renewable energy conference in North America, where it drew significant attention from energy developers and utilities looking for mobile power, resilience, and peak shaving solutions. The response confirmed what we already knew: the Hub addresses a problem almost no one else in the market is addressing effectively. We are now preparing the 2026 Hub update, offered in three size configurations ranging from 210 to 630 kilowatt hours, delivering greater power resilience, energy cost optimization, and advanced load balancing capabilities. This is not just a charging product. It is a mobile energy platform capable of serving industrial users who require temporary power, peak shaving, and resilience where grid infrastructure is delayed or nonexistent. That dramatically widens our total addressable market and positions Xos, Inc. as an energy company, not just an electric vehicle company. As we look to 2026, the opportunities in front of us are expanding. Order sizes are increasing as customers experience the real-world cost advantages of our trucks and our charging solutions. Our product pipeline—the upgraded Hub, our powertrain expansion with Blue Bird, and the continued growth of our step van business—align with secular markets that will grow regardless of political cycles, incentives, or noise. I believe 2025 was the year Xos, Inc. proved it could build a durable industrial business. 2026 will be the year we scale it. And while some may perceive a pullback in the U.S. EV market, Xos, Inc. keeps pulling forward. We are not just enabling cleaner delivery vans carrying packages. Xos, Inc. also provides cleaner and more efficient transportation of school children through Blue Bird's powertrains, enables unloading of cargo vessels in ports with Wiggins, and charges fleets of autonomous rideshare vehicles. There is even a Xos, Inc. ice cream truck in Sacramento. The breadth and variety of our deployments underscore the foundational strength of our technology and the enormous opportunity that lies ahead. With that, I will turn it over to Gio to walk through the operational highlights of the quarter and the full year. Giordano Sordoni: Thanks, Dakota. 2025 was a year defined by focused execution, operational discipline, and continued progress towards scalable production. I will walk through our fourth quarter performance and then zoom out to highlight our full year operational achievements across manufacturing, engineering, and the supply chain. In the fourth quarter, we continued to demonstrate consistent production execution across our core product lines at the factory in Tennessee, while also executing on the launch of new powertrain kit variants for Blue Bird, and preparing for the launch of new mobile charging Hub variants. At our Byrdstown, Tennessee facility, the team continued building and delivering against our over 200-unit UPS program, maintaining a steady production cadence and reinforcing our ability to execute on large fleet commitments. We expanded our manufacturing capabilities by adding a dedicated production line within our facility for Blue Bird kit development, which began producing kits in the second quarter of last year. This expansion of our kit production line marks an important step in scaling our powertrain systems business and supporting external OEM partners like Blue Bird. We also initiated the development of a more robust production line for the next generation of our mobile charging Hub. We are now offering it in three size configurations, ranging from 210 kilowatt hours all the way up to 630 kilowatt hours. This new line layout allows for scaled production at the higher volumes in 2026, while producing several variants on the same production line. From an engineering perspective, our team was focused on developing new powertrain variants for Blue Bird, as well as improved versions of our charging Hubs and improvements on our chassis. At the same time, our supply chain organization remained focused on navigating tariff dynamics while continuing to drive direct material cost impacts where possible. We resourced some components, localized others, and negotiated with our supply base to share in the cost of the new tariff impacts that we saw in 2025. Stepping back to the full year, 2025 marked a meaningful step in building a more efficient, scalable, and margin-focused operating platform. Our engineering, supply chain, and manufacturing groups worked together to build and deliver over 328 units while reducing operational and direct material costs throughout the year. We also engineered and launched new product variants while improving on existing products, all the while contributing to reductions in overall operating expenses of 28% that Dakota mentioned. In 2025, the engineering team enhanced our vehicle product offering, introducing improvements like galvanized frame rails, which improve long-term corrosion resistance and durability for our fleet customers. These types of targeted upgrades reflect our focus on delivering higher quality, longer-life vehicles. The engineering and supply chain groups collaborated to reduce the bill of material costs of the strip chassis by making changes to our design and sourcing strategy. We expanded our engineering and product capabilities, including the development of five distinct powertrain kits to support Blue Bird’s school buses. This work further establishes Xos, Inc. as a flexible electrification partner for OEMs looking to benefit from battle-tested powertrains that have driven millions of real-world miles by our fleet customers. At the plant in Tennessee, our manufacturing team established a production line for powertrain kits and expanded our Hub production line. The team built vehicles more efficiently than ever before, reducing the labor hours per vehicle while building at a rate of three units per day at certain points throughout the year. Building at these volumes for UPS is evidence of Xos, Inc.’s ability to ramp up our supply chain and manufacturing capability to meet high volumes for large national fleet customers. We were also able to negotiate the termination of the Mesa, Arizona lease that we inherited from our merger with ElectraMeccanica, which resulted in a total cash savings of $20.7 million. From a supply chain perspective, 2025 was defined by disciplined execution in a volatile environment. The team successfully navigated tariff uncertainty through a combination of strategic stockpiling, cost restructuring, and proactive planning, while also implementing shared-risk supplier agreements to help absorb tariff impacts and protect margins. At the same time, we strengthened our battery sourcing strategy by onboarding a top-tier global supplier for our Hub programs and locking in pre-tariff pricing through 2025–2026. This approach gives us both cost stability and supply continuity as we scale production. We also made meaningful progress in how we manage working capital and inventory. The team introduced a more robust annual procurement and inventory planning process, improving forecast accuracy and better aligning spend with our production needs without compromising supply reliability. In parallel, we advanced our supplier strategy by expanding dual sourcing and geographic diversification across critical components, reducing dependency risks while increasing supplier competitiveness and flexibility across the supply base. Importantly, these initiatives translated directly into financial performance. The supply chain team delivered meaningful material cost reductions across key components, contributing to the company achieving positive gross margins. During the year, we were able to maintain or reduce direct material costs despite headwinds from tariffs. At the same time, we maintained strong supply continuity despite variability in schedules and ongoing supplier constraints, proactively managing lead times, inventory levels, and delivery commitments to keep production running smoothly. Overall, 2025 was a year where we improved our product, strengthened our cost structure, and laid the foundation for scalable growth across trucks, powertrains, and our Hub platform. We maintained positive gross margins despite changes in product mix, reserves, and write-downs in 2025. We achieved a 28% cost reduction in operating expenses. We improved our cash position with faster inventory turns. As we look ahead, our focus remains on continuing to drive cost discipline and seek margin expansion, scaling efficient production across our core multiple product lines, and preparing our operations to support increased demand in 2026 and beyond. With that, I will turn it over to Liana to walk through the financial results. Liana Pogosyan: Thanks, Gio. Before getting into the details, I want to take a moment to highlight the meaningful progress we made in 2025. This was a year of execution and important milestones across the business—from achieving positive free cash flow for the full year and improving liquidity to driving substantial reductions in operating losses and expenses. At the same time, we took decisive actions to strengthen our balance sheet, optimize working capital, and position the company for more sustainable, long-term growth. For the full year of 2025, revenue totaled $46 million on 328 units compared to $56 million on 297 units last year. We delivered more units year over year, reflecting strong demand, though the shift in product mix, driven largely by our strip chassis product and powertrains, resulted in a lower average selling price and a decline in total revenues. For the fourth quarter 2025, revenue was $5.2 million on 34 units, down from $16.5 million on 130 units last quarter and $11.5 million on 51 units a year ago. Revenue is down as a result of our reduced deliveries during a slower time of the year as the company began shifting focus and allocating resources to powertrain and Hub production. This quarter's deliveries were mainly driven by our Hub and powertrain product lines, including 100 units between the 2025 and the 2026. Turning to gross margin, we continue to make meaningful progress in building a more sustainable and scalable business. For the full year, GAAP gross margin was $2.7 million or 5.9%, compared to $4 million or 7.1% in 2024. Performance for the year reflects product mix, including a higher volume of low-margin strip chassis units under the UPS order, as well as certain inventory write-downs associated with our commercialization strategy. Tariffs, reflected in cost of goods sold, were a meaningful headwind to margins this year. Non-GAAP gross margin for the year was $4.1 million or 8.8%, compared to $10 million or 18% in the prior year, driven by the same mix dynamics and normalization of inventory-related adjustments. Importantly, this marks our second consecutive full year of positive GAAP and non-GAAP gross margins, underscoring the structural progress we have made and our clear path towards margin expansion over time. For the fourth quarter, GAAP gross margin was a loss of $2.6 million, primarily driven by discrete items, including additional inventory reserves and write-offs due to a shift in the commercialization strategy and warranty reserve updates. Excluding these items, non-GAAP gross margin was a profit of $300,000 or 5.2%. While down sequentially, this marks our tenth consecutive quarter of positive non-GAAP gross margin, reinforcing the consistency of our underlying performance and the strength of our margin foundation as we continue to scale. Turning to expenses, our full year 2025 operating expenses were $35.8 million, down $14 million or 28% from $49.8 million last year. These sustained reductions reflect the structural impact of actions we have taken and underscore our disciplined approach to managing the business. Fourth quarter operating expenses were $7.1 million, representing a $2.4 million or 25% reduction from prior quarter and a $3.8 million or 35% decrease from the fourth quarter of last year. Fourth quarter operating expenses benefited from $1.7 million of nonrecurring favorable adjustments related to a settlement of finance equipment leases and certain vendor payables. Excluding these items, operating expenses would have been $8.8 million, reflecting continued sequential improvement from the third quarter and a more normalized run rate. We made strong progress on operating performance in 2025, with operating loss narrowing by approximately 28% to $33.1 million from $45.9 million last year. Non-GAAP operating loss improved by approximately 24% to $24.3 million, reflecting continued momentum towards profitability. Operating loss for the quarter was $9.7 million, higher than the third quarter mainly due to discrete items mentioned, but significantly improved from $14.6 million in 2024. Non-GAAP operating loss improved to $4.6 million, compared to $4.8 million in the third quarter and $6.4 million in the fourth quarter of last year. Our full year EBITDA loss was cut by more than half, improving to a loss of $21 million from $42.2 million in 2024. 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. As we have said, our focus this year has been on execution, financial discipline, and strengthening the foundation for sustained growth, and in 2025, we made meaningful progress across each of these areas. We took a series of strategic actions to strengthen our balance sheet and extend our financial runway, ending the year with $14 million in cash and cash equivalents, up from $11 million at the end of last year. This improvement in liquidity was driven by several key factors. First, accounts receivable declined significantly to $6 million at year end from $26.9 million last year. This was driven by another year of very strong collections—approximately $66 million of collections from customers and state grant program administrators. Second, we successfully launched our ATM program during 2025, generating $2.4 million in net cash proceeds during the year. Third, we continued to execute on strategic inventory management, with inventory declining to $25 million from $36.6 million last year. This reflects strong unit sales outpacing production, as we moved more units from existing inventory while positioning ourselves to support upcoming deliveries. Fourth, we amended our $20 million convertible loan note, extending principal payments to begin quarterly in Q4 2025 through Q1 2028, enhancing liquidity and providing greater financial flexibility. Lastly, in Q3 2025, we reached an agreement to terminate our Mesa facility lease we had assumed as part of the EMV acquisition. This action is expected to generate approximately $21 million in cash savings through 2023. While the agreement requires 18 monthly payments through March 2027, totaling about $2.8 million, it significantly reduces our long-term obligation. As part of the termination, we also recognized a $9.9 million gain in nonoperating income along with related GAAP adjustments, including the removal of the associated operating lease liabilities. We continue to actively manage our liquidity position throughout the fourth quarter while advancing additional opportunities to further strengthen it. Together, these actions reflect our disciplined approach to capital management and reinforce our commitment to enhancing financial flexibility and positioning Xos, Inc. for long-term stability and growth. Beyond the balance sheet, we continue to execute well. We generated positive free cash flow of $5.4 million for the year, a significant improvement from negative $49.1 million last year. Fourth quarter free cash flow was $2.4 million, compared to $3.1 million last quarter and $3.3 million in the same period last year. This marks our third consecutive quarter of positive free cash flow and the fourth time we have achieved positive free cash flow since going public. This consistent performance highlights the strength of our execution and the durability of our operating model. We are building a business that is increasingly self-sustaining, with disciplined capital deployment and a clear path to continued improvement in cash generation. Finally, turning to the guidance for 2026, we anticipate revenue to fall within the range of $40 million to $50 million, unit deliveries to be within the range of 350 to 500, and non-GAAP operating loss to be in the range of $11.9 million to $13.3 million. With that, I will turn the call back over to Dakota. Dakota Semler: Thank you, Liana. To close, I want to step back to what 2025 really represented for Xos, Inc. A year ago, the question many had was whether a company like ours could sustain itself—whether we could grow, manage costs, and generate cash in a market that was still sorting itself out. The answer is in the results: positive free cash flow for the year, our lowest full year operating loss since going public, our second consecutive year of positive gross margins, a product portfolio that is broader, stronger, and more relevant than at any point in our history. None of this happened by accident. It happened because this team questioned assumptions, executed with discipline, and refused to accept that building an industrial company from scratch required cutting corners on quality, on service, or on the ambition of what Xos, Inc. can become. Stepping into 2026, our priorities remain clear: accelerate growth, reinforce liquidity, and continue expanding margins. The foundation is built. Now it is the time to scale. With that, I will hand it back over to the operator for questions. Operator: We will now begin the question and answer session. If you are using a speakerphone, please pick up your handset before pressing the keys. Please press star then 2. Our first question comes from Craig Irwin with ROTH Capital. Please go ahead. Craig Irwin: Hey, guys. It is Andrew on for Craig. Congrats on the progress, and thanks for taking my questions. The first one for me is on the new Hub products you guys announced you are starting to develop in 2026. Can you kind of talk about the opportunities, especially these larger products have with customers outside of the typical EV charging opportunity? Dakota Semler: Yeah. Thanks for the question, Andrew, and I appreciate you joining. I think there is a little bit of background noise coming from your line, so if it is possible, maybe just to mute, that would be helpful. But in regards to the question on the Hub, we really have been focusing on listening to customers over the last year and a half to two years since we rolled out our first units. And what we learned is that there are a variety of different use cases that people have been using them as. Some have been using them as a direct replacement for large DC charging infrastructure sites. Like our autonomous car fleet, they charge sometimes up to 80 vehicles a day with a single Hub unit. So very high throughput, power discharge and charge application. Some folks have been using them for remote power. One of our utility customers, a big water utility in Southern California, utilizes it for when they do, like, pipeline shutdowns. They will roll out a Hub, and all of their EV equipment can charge out in the field when they have a few-day kind of pipeline shutdown. Then we have got other utilities using them for disaster preparedness. When hurricanes come or storms come, they will roll one out into the field for customers, and it dramatically expands their existing DC charging infrastructure when people are looking to evacuate a specific zone within their territory. So a ton of different use cases, different sizes of vehicles being charged, and different kinds of applications where some are remaining plugged into the grid, some are completely off grid, some are using mobile gensets to power them. And so the next iteration was really designed to address those different use cases. The first attribute or the first element that we have incorporated is these new energy storage capacities. So we started with a slightly smaller energy storage capacity for really light-duty class one, class two pickup trucks—fleets that are not going to see a ton of throughput on a Hub—to be able to offer a more competitive price point, and that product can really be used in lieu of traditional DC fast chargers. We have a lot of customers that are deploying them in fixed applications, because it is much more cost-effective than deploying conventional DC fast chargers with their energy storage systems. We have our new kind of mid-tier, what we are going to be calling our flagship variant, which is our 420 kilowatt-hour version, and that is going to replace the last version, which was 280 kilowatt hours. Competitively priced, in the same territory as our previous unit, but you are getting basically another 30, almost 40% additional energy storage capacity on that unit. And you are still able to keep that unit sub 10,000 pounds. So you do not need a CDL to drive it around. It can be rapidly deployed with a pickup truck—just basically building better capabilities, more energy capacity for our customers, but doing it at the same price point. And then that third largest variant, the 630 kilowatt-hour configuration, is really designed for our larger battery capacity operators—customers that are running medium-duty or heavy-duty trucks that need rapid power deployment. And that is really going to be for your medium-duty trucks, class five, six trucks like ours, as well as getting into class seven and eight electric zero-emission vehicles and off-highway products. We actually have a customer now building a large data center in Indiana, and they have inquired about some of their zero-emissions construction products utilizing this larger capacity unit. So it is a perfect application for both on-highway traditional applications that we have been serving for the last year and a half or so, but also a lot of new off-highway construction, agricultural-type applications too. And that is just the first variant and first kind of product launch that we announced earlier this year. We have got several more announcements and several more upgrades to the Hub product that are really exciting about the capabilities and configuration that we are going to be talking about probably in Q2 and Q3. The end user markets that these new versions will address, which are going to be potentially even larger than the markets that we are serving today. Craig Irwin: Great. Well, I appreciate the detail. I am looking forward to those announcements later in the year. Second one from me, kind of a similar question. You were talking about exploring new designs for your powertrain product. Can you kind of just talk about how that may expand the opportunity set as you ramp that business unit? Dakota Semler: Yeah. And specifically in regards to the powertrain products? Craig Irwin: Talking about looking at new designs for the powertrain products. Dakota Semler: Yeah. So one of the things we have been able to do over the years is take all the learnings from deploying thousands of our own vehicles on the road and apply that to our other segments, including the Hub product and the powertrain product. So we are not starting from scratch. We are building upon a foundation of engineering that we have invested in over the last ten years. And now those variations that we are selling are being sold into a wider variety of products. So we talked a lot about our school bus partnership and relationship. We are developing several configurations there, addressing the traditional type C school buses, which is the largest part of the market and represents anywhere from 70 to 85% of the market on an annual basis. But we are also developing a rear-engine configuration that we are in production with now for traditional type D bus, which is in use in places like California and some other markets. And we have really done a lot to focus on commonizing our platforms to drive reliability and service performance in the aftermarket. These buses and trucks are expected to run ten, fifteen years in most cases, but also driving cost competitiveness, and that is a key attribute that our customers are interested in. They do not want another premium product that is entirely dependent upon incentives. Everybody wants to be able to scale without being reliant on incentives, and so the focus is driving cost competitiveness to eventually achieve parity with diesel, and by commonizing components, commonizing parts, building supply chain synergies across our product portfolios, we are able to achieve scale even in segments that might be considered niche. So a lot of work has been done by our engineering team to achieve that and particularly our supply chain team to realize those synergies. And that work is continuing this year. We have got a couple new variants that we are working on that will—and I am sure we will continue into subsequent years too—hopefully ship into production by probably Q4. Craig Irwin: Thanks for taking my questions, and I will jump back in the queue. Operator: Our next question comes from Ted Jackson with Northland Securities. Please go ahead. Ted Jackson: Hey, thanks for taking my questions. First, just out of curiosity, are you going to file your K as stated? Liana Pogosyan: We are. Ted Jackson: Okay. Good. Oh, sorry. Sorry. Not the K. We filed the 8-K. The K is going to be filed likely on Monday. Liana Pogosyan: Okay. So there is no—I will not have a cash flow statement from you until Monday? Basically. Ted Jackson: No. You will—well, you will be able to reconcile it on Monday. Liana Pogosyan: Yeah. Okay. Then—and then there is a bunch of data in there that typically, you know, obviously, not available. But I want to get into—maybe dance around it unless you want to tell me, because I wanted to bring it forth into 2026. So, you know, typically, you break out kind of, you know, the revenue within or units within kind of step vans and powertrain and other. Can you talk with regards to what that mix was in the fourth quarter? And then when we think about that mix in 2026, how would we think about it? I would assume that there is going to be a shift, if you would, to a greater number of units coming from powertrains and Hubs given what is going on with Blue Bird and all the effort you are making with Hubs, but maybe a little discussion about how you see your unit mix evolving from what we have seen, you know, the fourth quarter—you know, really, I guess, 2025. That is my first question. Thanks. Liana Pogosyan: Thanks for the question. The unit mix will be disclosed—the details of the unit mix will be disclosed in our 10-Ks that we are planning to file on Monday. But I would say directionally for 2025, the majority of the units were predominantly step vans, and Hubs and powertrains made up the remainder of the mix for the full year. For the fourth quarter, powertrain and Hubs drove the significant volume with step vans being less significant. Ted Jackson: And then when we think about 2026, whether it is the—you know, given the focus of the company, we should see—yeah—we should expect to see a pronounced shift to more powertrains and Hubs relative to that. Dakota Semler: I appreciate the question, Ted. And when we are talking about 2026, we do not guide to the ranges. However, the rate of growth that we are seeing in both the Hub business and the powertrain business is high double digits and could easily exceed, you know, triple digits this year. And so the relative rate of growth is increasing significantly as compared to step vans. We still anticipate step vans will grow and sustain a lot of our core customers. But overall, we expect the other two to grow proportionately or to grow increasingly. So I think we do not want to put too rough of a number on it, but I think there is a general consensus that we are seeing a lot of demand, particularly with the new variants of the Hub that we have released, and then also a lot of demand with the school bus powertrains that we are building today. Ted Jackson: And then those are—you know, we talked about this last quarter too in the call, but those are your higher margin products, and you did kind of a lead in terms of your discussion of that last quarter that you are making strides. You will—you just to kind of share some of the tariff costs with your customers. You know what I mean? You know, on those higher margin products, you will not be—pay—it will not show up, per se, you know, like, 100% through to you. But can you talk a little bit about, you know, like, how you would see—you know what I mean? Because if you look at, like, say, gross margin this quarter, and I am the only one to talk GAAP because it is what I have in front of me. But, you know, your gross margin for the year was down. I mean, would we see a pronounced improvement with regards to gross margin because of the mix? I mean, could you get yourself north of what you did in 2024, or is that too much? Dakota Semler: Yeah. So that is a great question. So we did have some one-time impacts to gross margins that hit last year that we do not anticipate will be recurring. In regards to gross margins across the portfolio, I would say the Hub is probably the strongest margin one. The powertrains are comparable to what we see in the step van realm. The reason for that is there is a lot of engineering effort and investment that goes into development for those new platforms. A lot of that gets amortized over the overall revenue that we generate into that segment—from that segment. But comparable to step vans, Hubs definitely—and powertrains and step vans—we do an annual pricing exercise where we try to realign pricing with all of the factors from the previous year taken into consideration. And I do not want to communicate what is going to happen with tariff strategy or tariff policy in the next twelve months, but I think things have slowed down and have become a bit more stable in terms of tariff volatility and tariff changes. So we anticipate that our 2026 pricing, which factored in a lot of the tariff impacts that we were aware of from last year, will allow us to achieve those target margin ranges without having to go back to the customer or go back to the customer and have them make concessions or share in any additional tariff exposure. And the way we see it, we are very transparent with these customers around the tariff exposure and the tariff cost structure, because it is not benefiting either of us, right? It is increasing your cost basis for the products that we are both building together. And so a high degree of transparency shared with those customers, and I think that level of transparency creates appreciation for them in order to, you know, be able to share in some of that exposure and that cost. But our 2026 pricing does have it factored in. Ted Jackson: Shifting over to the UPS program. So the 200-unit program, you know, you have been putting units out to it. Can you give us some kind of sense in terms of, you know, of that program? Like, how many units have you shipped and how many are left in the time frame form? Dakota Semler: Yeah. The vast majority of them have shipped. There are only a few units that will hit this quarter that we will be recognizing revenue for, which they have actually already been delivered, but, you know, we still have to meet all of the other revenue recognition criteria. And most of those units are on the road and operating every day delivering packages. You probably cannot tell that they are a Xos, Inc. truck. There are no markings or logos on them. But if it says “electric vehicle” on the side, very high likelihood that it is a Xos, Inc. truck. And they are running, you know, in California and Texas and Pennsylvania, New York, New Jersey, all over the place. And so it is probably very likely that if you are in one of those major states or cities, you will see them on the roads. Ted Jackson: Well, that is exciting. I will not see them up here in Minnesota, but maybe someday. How about on powertrain? So, you know, you shipped 15 to Blue Bird, you said this quarter. I think it was 10 last quarter. You had orders of 100 since second quarter. You mean, like—so is it fair to assume that, you know, three quarters of the volume that you have gotten from Blue Bird is, you know, on the come, if you will? Dakota Semler: Yeah. It is a good question. We do a lot of close work with their production planning team and coordinating and organizing to ensure that we are meeting their demand forecast. But they are also selling a number of other buses, and they are all fuel powertrains. So it does vary and fluctuate quarter to quarter, and it really comes down to their build schedule. We do anticipate that business will grow, as I was saying before, probably double digits, if not triple digits, in terms of percentage this year. And we have already started to see that demand come in with that order of 100 units since our last Q. And the great thing about that business is there is still very, very strong interest in that market. School buses are an ideal application to go electric. They do very short routes, generally driving twice a day. Even for some of the longer-range vehicles, they are doing field trips and other activities. They are not long-range vehicles. And we also announced in Q1 actually an accomplishment that the newer vehicles will actually have V2G capability on them, which is becoming critical for achieving or obtaining funding and public incentive funding for procuring or acquiring these vehicles for school districts. So really, for us, we see that application continuing to grow over time. And we have been very fortunate to have such an incredible partner like Blue Bird that has invested in us, continued to grow with us, and continues to share in several of these opportunities, because I think they see the reliability, the durability that our platform has brought to them, and they see the cost competitiveness versus some of the other solutions that are out there in the market. Ted Jackson: So you provided a good segue into—it was the next question, but I am going to make it my next question—which is, you know, on the two-way charging capabilities that you announced in the quarter. What—I mean, given that a battery system has so many cycles of charge and discharge. When you put something like that in place, does it change—I assume it would change—kind of the lifespan, if you would, of that infrastructure. Is there much of an impact for that? And is there any kind of, you know, resistance because of it? Dakota Semler: Yeah. That is a great question. And any use of the battery or any component in the powertrain is going to have an impact on the overall lifespan. In the context of V2G, the discharge rate for most V2G chargers and V2G vehicles is not nearly the most intense use of the battery pack. The most intense use is often fast charging. So if you are doing 1C charging on the vehicle—that is 1C or 2C charging depending upon the battery system. So when you are doing V2G charging, for instance, a typical bus battery for us might be around 200 kilowatt hours. A typical V2G power connection is usually only about 60 kilowatts. So it is equivalent to, like, a 0.3C charge rate. And without getting too much into the technical specifics, it is a much lower charge demand. So it still does create some degradation, and it is utilizing the pack, but it is not a very intense use case like you would have with fast charging. And all of that is factored into our long-term warranty. So we warrant on usage as well as on duration of when the vehicle is deployed. So we have warranty programs depending upon what the customer wants and what our suppliers want that will extend that. And we have done a ton of work in qualifying the batteries and characterizing them to make sure that we can hit those warranty periods, and really, that is largely in part due to the newer battery chemistry that we have been using for the past four years or so, which is our lithium iron phosphate battery pack, that enables us to achieve those higher extended life cycles. Ted Jackson: Is there an ability for you to retrofit any of your installed base with that capability? I would imagine you would be interested if you could. Dakota Semler: Yeah. So for some of our later-generation vehicles that we have recently delivered, we have explored the potential to install the V2G capability. It is a pretty simple hardware change and a software change. We have not determined whether it is enough of an opportunity to pursue and commercialize and offer it to customers. But from a technical feasibility standpoint, it is something that we have evaluated and feel that we could do that. Ted Jackson: Let me ask one more, and then I will get out of line. But I do have more behind in case there is no more. I am going to cycle back in. But my next question is, just going back into Blue Bird and the Hub. You know, when you had to think about the opportunity that you have with Blue Bird and, you know, the strategic nature of it, you know, it is a really—you are going to—you know, it is going to be a big fleet of, you know, Xos, Inc. technology, let us just call it. Are they interested in the Hub? Is there any chance that you have them as a distribution partner for you for the Hub? Or do they bring you in for sales and such? Because it seems like a logical place for the Hub to go. Dakota Semler: Yeah. It is a great question. So Blue Bird itself have obviously been very interested in the product. But they have an incredibly robust dealer network that they partner with, which is crucial in their distribution of their products. And we have actually already started building relationships with several of their dealers who have been delivering the buses with Xos, Inc. powertrains in them. And those folks have been a great touch point to socialize the product for the end school district fleets. So we have already had several of those conversations. We do think there is a tremendous opportunity in those school bus fleets. Oftentimes, they do not have the adequate power in their yards because they have not had EVs in their fleet before—just like most of our customers. So the Hub is a perfect application. And generally, a lot of these sales—the average sale of a school bus transaction—it is not in the 50 to 100 or 200 units. Very low volume. So it can be single-digit units. So the Hub really is a perfect partner or a perfect product to be able to support those smaller deployments that do not currently have infrastructure in place. And we are looking to expand that distribution kind of segment with our existing Hubs commercial team. Ted Jackson: And so you would be going into that distribution network with the blessing of Blue Bird. Blue Bird would not be, like, OEM reselling your product into it themselves. Dakota Semler: That is correct. Ted Jackson: Okay. I mean, I have a couple more questions, but I feel like I have been hogging time. So I am going to step out, and if no one else comes back in, I will be back in and ask her to give me more time to go to— Dakota Semler: I think in the queue, nobody is asking right now, so I think you can keep going if you— Ted Jackson: Yeah. Okay. Then, a couple more for you. Just, again, going back in on the new Hubs, you were—your remarks—you said that they would start becoming available in April, which is next month. Is that still on track? Dakota Semler: Yeah. Actually, the first 420 kilowatt-hour variant shipped this quarter. So we have a couple units that are going out. And everything after this will be all of the new options. Ted Jackson: Well, that is exciting. Liana Pogosyan: Thanks. Ted Jackson: This is a working capital question. I mean—and, you know, it is a negative question. But, I mean, honestly, it is a negative because you have had so much positive. You know, the improvement in working capital that you guys have done in 2025 is unbelievable. Amazing. But, you know—and it has been a huge source of your operating cash flow. But if I look at, you know, the balance sheet in the fourth quarter, and I see what kind of your receivables and everything are, I mean, I am hard pressed to see that there is much more improvement that you can get. I mean, you know, when you think about 2026 and, you know, your ability to generate cash, is there more cash you think you can get off the balance sheet, or is it going to be more based on, you know, access of the ATM and, you know, let us call it revenue growth and margin improvement? So you can kind of— Dakota Semler: Yeah. It is a great question. So the first thing I would start with is on the working capital utilization standpoint. We still have about $25 million in inventory. And not all of that—a very small portion of that—is finished goods. But that usable inventory is the primary means of generating more cash for working capital in the year. And we are continuing to focus on the longest segments of our inventory conversion process to optimize and cut those down to make sure that we can turn that inventory. And we want to be really, really lean. We want to get to multiple inventory cycles per year, which we still have yet to do. I think the first thing we are working on is optimizing that inventory, turning it over quicker, building to order, delivering products faster, delivering more strip chassis as opposed to step vans, and delivering more Hubs, which is a complete assembly that we build. Same with powertrains. It is a completed assembly, so we recognize revenue as soon as it is delivered. So the product mix will favor that and help that, as well as just our improved processes internally to order, spec, and get vehicles delivered. We do hope to be able to utilize the ATM in the year ahead. We are going to, you know, figure out when there is an optimal time to be able to do that. That is why we have that facility outstanding. We are going to be selective about it, and we do not want to overly dilute the cap table and impact investors, particularly where the stock is today. And then I think there are other things that we can continue to do and improve. We have taken a pretty hard look at OpEx, and we do not believe OpEx is going to be restructured that heavily in 2026. But there are some expenses that will continue to reduce and burn down through the year, which will be favorable for working capital. And then I would say, lastly, is growth in new segments—like having products such as the Hub and the powertrains—that we do not ever have to deliver a partially assembled vehicle where it is sitting in somebody else's hands, which could be for months on end, will dramatically enable us to reduce that inventory count, that inventory value, over time and speed up our inventory turns. Liana Pogosyan: That is a good point. Ted Jackson: Then just going—jumping back over in the Hub, and I think I have one more after this, you know, I think it was last quarter you talked about, you know—or in the press release, maybe—going into, you know, some new avenues with the Hub, you know, like power and resiliency. And, you know, you had mentioned that you would be able to provide some more color on—can you—maybe a little update on what is going on? It is a pretty exciting market. You know, what is going on with regards to your efforts to position the Hub for that and, you know, kind of penetrate— Dakota Semler: Yeah. It is actually a big area of focus for the engineering team, as well as our sales and business development team right now. We think that there is a niche that is not being serviced right now in the power reliability and power resiliency markets, not just for mobile applications, but also for fixed applications. And I can talk about it at a high level, but with the influx of data center demand creating huge demands on the grid for power, every industrial power user is now competing with the likes of those customers, which are willing to pay premiums for power delivery, and they are willing to pay premiums for power reliability and resiliency. And so now folks that operated a 3PL warehouse or a cold storage facility or any other kind of industrial power consumer—they are going to be competing with the likes of Google and Facebook and many of these other larger companies that are incredibly well capitalized looking to buy power or even establish behind-the-meter infrastructure. So our focus is on solving really the niche segment, which is going to be power reliability, power resiliency, and being able to provide those industrial power users that are focused on keeping their operations going and continuing to grow. Data centers is one application, but we believe that is one segment of many that will need power reliability in this kind of current industrial grid environment that we are in today. Liana Pogosyan: Okay. Ted Jackson: And then my last one, it is just more for clarity. Thing for me, and I should know this. But, you know, when we talk about powertrains, it is kind of almost interchangeable—powertrain business and Blue Bird. You talked last quarter about 10 of shipments to Blue Bird, this quarter 15. Is there—is there other customers other than Blue Bird that are taking powertrains, or is Blue Bird right now kind of the only thing and something you want to build off of in terms of, you know— Dakota Semler: There are a few other customers. The customer diversity is not nearly what it is in the vehicles business. But it is something that we are working on diversifying and building up new customers there. And I think with our latest powertrain platforms that we have been developing, we should have a lot more interest coming from some other off-highway customers and other segments that we have not really gotten the best penetration in previous years. Ted Jackson: Okay. Alright. That is it for me. Thanks for all the time. I appreciate it. Dakota Semler: Thanks, Ted. Yeah. I appreciate all the questions. Operator: This concludes our question and answer session. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Xos, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Xos wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $497,659!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,095,404!* Now, it’s worth noting Stock Advisor’s total average return is 912% — a market-crushing outperformance compared to 185% for the S&P 500. 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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 $14.0 million in cash — up 28% year-over-year Reduced full-year operating expenses by $14.0 million (28.2% YoY) and cut full-year EBITDA loss by more than half — from $42.2 million to $21.0 million LOS ANGELES, March 26, 2026 (GLOBE NEWSWIRE) -- Xos, Inc. (NASDAQ: XOS) ("Xos" or the "Company"), a leading energy storage and fleet electrification solutions provider, today reported financial results for the fourth quarter and full year ended December 31, 2025. Building on a year of disciplined execution and consistent operational improvement, Xos closed 2025 with its third consecutive quarter of positive operating cash flow and positive free cash flow, reinforcing the durability of its operating model and the strength of its multi-product platform spanning vehicles, powertrains, and energy storage. 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 Dakota Semler, Chief Executive Officer of Xos. "Our flagship energy-storage solution, the Xos Hubs, have now charged gigawatt-hours of energy across thousands of cycles. We shipped our first production powertrains to Blue Bird. Our customers have driven millions of miles on Xos vehicles. And we're now offering the most competitively priced electric truck chassis in the industry — below $100,000. Three consecutive quarters of positive free cash flow proved the model works. But what excites me most is what this team is building: a multi-product platform that wins on reliability, wins on economics, and wins regardless of where the incentive landscape goes. The companies that thrive in this next chapter will be the ones whose products stand on their own — and that's exactly what we've built." "The financial progress in 2025 speaks for itself," said Liana Pogosyan, Chief Financial Officer of Xos. "Three consecutive quarters of positive free cash flow, EBITDA loss cut by more than half, a 28% reduction in full-year operating expenses, and $14 million in cash to start 2026. We restructured our balance sheet, extended our financial runway and unlocked over $20 million in long-term savings — all while this team continued to execute. The discipline is structural, not situational, and it positions us well for the year ahead." Fourth Quarter and Full Year 2025 Financial Highlights ________________________ (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 from Mesa facility lease termination. In 2025, Xos reached an agreement to terminate the lease on its Mesa, Arizona manufacturing facility, unlocking an estimated $20.7 million in cash savings through 2033 and focusing production resources on its Byrdstown, 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 due August 2025, to spread principal payments over ten quarterly installments through February 2028 — enhancing near-term liquidity and extending financial runway. Additional capital raised under ATM program. Xos raised $2.4 million, net of offering costs, under its at-the-market offering program during 2025, further reinforcing near-term liquidity. 2026 Outlook: Xos’s outlook for 2026 is as follows: ____________________________ (1) This press release does not provide a forward-looking reconciliation from Non-GAAP operating loss to net loss, the most directly comparable GAAP measure, due to the uncertainty and the potential variability of inputs of the financial information. For the same reason, we are unable to address the probable significance of the unavailable information. (2) Unit deliveries forecast includes our powertrain and Xos Hub products, stepvans and stripped chassis. The outlook provided above is based on management beliefs and expectations as of the date of this press release. The results are based on assumptions that are believed to be reasonable as of this date, but may be materially affected by many factors, as discussed below in our “Cautionary Statement Regarding Forward-Looking Statements” disclaimer. Actual results may vary from the outlook above and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law. Conference Call and Webcast Details To access the call, please dial in approximately ten minutes before the start of the call. Alternatively, guests may be connected to the call through ViaVid's Call me™ feature by navigating to: https://callme.viavid.com/?$Y2FsbG1lPXRydWUmcGFzc2NvZGU9JmluZm89Y29tcGFueSZyPXRydWUmYj0xNg== and using the Passcode 2622531. For those unable to participate in the live call, an audio replay will be available following the call through midnight Thursday, April 9, 2026. To access the replay, please call 1-844-512-2921 or 1-412-317-6671 (International) and enter access code 10207279. A replay of the webcast will also be archived shortly after the call and can be accessed on the Company's website. About Xos, Inc. 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 United States generally accepted accounting principles (“GAAP”) as well as on a non-GAAP basis to supplement Xos's unaudited condensed consolidated interim financial results. Xos's non-GAAP financial measures include operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss, non-GAAP gross profit and Adjusted EBITDA, which are defined below. “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 Iran and shortages of access to oil, energy and other key industrial inputs; and (xiii) the outcome of any legal proceedings that may be instituted against Xos. All forward-looking statements included in this press release are expressly qualified in their entirety by, and you should carefully consider, the foregoing factors and the other risks and uncertainties described under the heading “Risk Factors” included in Xos's most recently filed Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) and any subsequent Quarterly Reports on Form 10-Q filed with the SEC, copies of which may be obtained by visiting Xos's Investors Relations website at https://www.xostrucks.com/sec-filings or the SEC's website at www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Xos assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Xos does not give any assurance that it will achieve its expectations. Contacts Xos Investor Relations [email protected] Xos Media Relations [email protected] Reconciliation of Adjusted EBITDA, Operating Cash Flow less CapEx (Free Cash Flow), Non-GAAP Operating Loss and Non-GAAP Gross Profit: Adjusted EBITDA Reconciliation: Operating Cash Flow less CapEx (Free Cash Flow): Non-GAAP Operating Loss: Non-GAAP Gross Profit:

Achieved a $54 million swing to positive free cash flow for the full year 2025, driven by a transition from capital-intensive vehicle manufacturing to a leaner, diversified industrial model. Performance was anchored by the delivery of 328 units, the highest in company history, despite a shift in product mix toward lower-ASP strip chassis and powertrains. Strategic expansion into the powertrain and mobile energy (Hub) sectors is targeting higher-margin, less competitive categories to mitigate grid constraints and infrastructure delays. The Blue Bird partnership validated the powertrain technology at scale, with nearly 100 additional orders received since Q2 2025 for school bus electrification. Operational efficiency improved through a 28% reduction in operating expenses and the termination of a legacy lease, resulting in $20.7 million in total cash savings. Management attributes the successful navigation of 2025's volatile tariff environment to proactive supply chain restructuring and shared-risk agreements with suppliers. 2026 guidance anticipates 350 to 500 unit deliveries and revenue between $40 million and $50 million, assuming continued growth in powertrain and Hub segments. The company expects high double-digit to triple-digit growth in the Hub and powertrain business lines, which are projected to outpace the growth rate of the core step van segment. Management plans to leverage the new 2026 Hub variants (210 to 630 kWh) to enter non-transportation markets, including data centers, construction, and disaster preparedness. Pricing for 2026 has been adjusted to factor in known tariff impacts, aiming to achieve target margins without further concessions from customers. Inventory management remains a primary lever for liquidity, with a goal to increase inventory turns and move toward a build-to-order model for completed assemblies. Amended the Aldermay convertible note from a single August 2025 maturity to quarterly installments through February 2028, significantly easing near-term liquidity pressure. Accounts receivable were reduced from $26.9 million to $6 million, largely due to exceptional collection execution, including a $9.9 million payment from UPS. Q4 GAAP gross margins were impacted by one-time inventory write-downs and warranty reserve updates associated with a shift in commercialization strategy. The company maintains an At-The-Market (ATM) facility but intends to be selective about its use to avoid excessive shareholder dilution at current valuation levels. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management identified new applications including remote power for utilities during pipeline shutdowns and disaster relief for hurricane-affected zones. The 630 kWh variant is specifically targeting heavy-duty off-highway equipment and power-hungry data center construction sites. While Blue Bird remains the primary partner, Xos is developing new variants for Type C and Type D buses to achieve cost parity with diesel through component commonization. The company is exploring expansion into other off-highway segments to diversify the powertrain customer base beyond school buses. Management clarified that V2G discharge rates (typically 0.3C) are less intense than fast charging, resulting in manageable degradation factored into long-term warranties. The use of lithium iron phosphate (LFP) chemistry is cited as the key enabler for the high cycle life required for grid-interactive applications. Xos aims to unlock cash from its remaining $25 million inventory by focusing on products with faster revenue recognition, such as Hubs and powertrain kits. The shift toward 'completed assemblies' reduces the time capital is tied up in partially assembled vehicles held at third-party upfitters. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.