Xos, Inc. Q2 FY2025 earnings call

Pillars of Focus - Disciplined growth, improving gross margins, and ensuring liquidity are the primary focuses. - Record deliveries: 135 vehicles in Q2 2025, generating $18.4 million in revenue, the highest quarterly revenue and unit deliveries. - Customer confidence: Deliveries to UPS, FedEx ISP, and fulfillment of a 200-plus unit order, the largest in company history. - Gross margin: GAAP gross margin for Q2 was 8.8%, impacted by product mix and tariffs but large orders create repeat business. - Cost control: Achieved lowest operating loss since going public at approximately $7.1 million. - Aljomaih note amendment: Repayment structure for convertible note amended to free up capital. - Product strategy: Powertrain systems and Xos Hub are higher-margin offerings; hub product expanded deployments and will have updates for 2026 with enhanced features.

In the second quarter of 2025, Xos generated $18.4 million in revenue from delivering 135 vehicles, which is the highest quarterly revenue and unit deliveries in the company's history. A significant portion of these deliveries went to UPS and FedEx ISP customers. The Stepvan platform remains a significant revenue contributor, but the company is expanding into higher-margin products like powertrain systems and charging infrastructure. For example, deliveries to Blue Bird Corporation for electric school buses and the Xos Hub for fleet electrification, which has attracted interest from various industries.

Forward-Looking - Reaffirmed full year 2025 guidance for revenue between $50.2 million and $65.8 million and unit deliveries between 320 and 420 units. - Revised non-GAAP operating loss guidance to a range of $24.4 million to $26.9 million, reflecting changes in product mix and increased tariff costs in the second half of the year.

Risks - Tariffs and supply chain disruptions: Potential impact on product costs and availability. - Ability to access capital: Uncertainty around the company's ability to secure funding for future operations and continue as a going concern.

Q: Congratulations on the strong progress this quarter. Can you frame the approach allowing divergent performance versus the rest of the industry?

A: Factors include an incredible team, building customer trust through reliable products and cost savings, and adaptability to tariffs and supply chain changes.

Q: Update on the MDXT vehicle status and customer feedback?

A: Continues to see strong customer interest from national and regional fleets, demos scheduled, and potential orders from municipalities and private fleets with various vocational applications.