Xos, Inc. Q1 FY2025 earnings call

• Q1 was the start of an important year with focus on growth, margins, and liquidity. - Raised prices to offset tariff costs, with plans to reduce exposure via reshoring. - Launched MDXT medium duty chassis cab, shown at ACT Expo with strong response. - Manufacturing teams advanced truck, mobile charging, and powertrain lines; ramped production for UPS and Blue Bird. - MDXT built in Tennessee plant, leveraging stepvan technology with high parts commonality, expecting capital-efficient launch by Q3 2026.

In Q1 2025, Xos generated $5.9 million in revenue from 29 units. Cost of goods sold was $4.7 million. GAAP gross margin was $1.2 million or 20.6%, compared to a loss of $3.7 million or negative 32.4% in Q4 2024. Non-GAAP gross margin was approximately $900,000 or 15%, marking the seventh consecutive quarter of positive non-GAAP gross margin. Operating expenses were $10.5 million, resulting in an operating loss of $9.3 million. Cash and cash equivalents closed at $4.8 million with free cash flow negative $4.8 million.

• Reaffirmed full year 2025 guidance: revenue range $50.2M - $65.8M, unit deliveries 320 - 420 units, non-GAAP operating loss range $17.2M - $14M. - Focus on delivering growth, improving liquidity, and increasing margins.

• Ability to access capital and continue as a going concern. - Potential supply chain disruptions, including from trade policies and tariffs.

Q: Can you speak about parts commonality between stepvans and MDXT and incremental investment in Tennessee?

A: MDXT shares over 90% commodity components with stepvans, reducing cost and R&D. Incremental investment in Tennessee is less than seven figures.

Q: Describe market development around MDXT and timeline for initial orders?

A: MDXT targets a 100,000+ unit per year market. Expect some time to ramp pipeline, but product is broadly applicable.

Q: Discuss revenue recognition for UPS units shipped but not recognized?

A: Large national customers have favorable pricing structures, margin profile may reduce with large orders, concentrated in Q2-Q3 with Q4 smaller orders.

Q: Update on charge hub activity?

A: Charge hub has significant interest and orders outside Xos customers, solving charging bottlenecks, with demos leading to larger orders, and feedback driving future versions.