Xos, Inc. Q3 FY2025 earnings call

• CEO Dakota Semler noted Q3 showed momentum with 130 vehicle shipments, $16.5M revenue, and lowest operating loss since going public. They amended the convertible note with Alger Mae, making them a large shareholder. Expanded into higher margin categories like powertrains and energy infrastructure, delivered 18 powertrains to Bluebird and received nearly 80 additional orders since quarter end. The Xos Hub is deployed, with deployments and demonstrations accelerating, and work on 2026 update to enhance capabilities.
• COO Giordano Sordoni highlighted the Tennessee plant's efficiency, producing 3 chassis per day for UPS, engineering and production teams responding to customer requests for product improvements. Production of the Xos Hub continued, with engineering team developing new variants. Expanded powertrain production capabilities for Blue Bird School Bus Company, and preparing for 2026 by expanding factory areas for hubs and powertrains.

In Q3 2025, Xos shipped 130 vehicles generating $16,500,000 in revenue. They actually shipped 140 units including 10 strip chassis for a major customer program. For 2025, total revenue was $40,800,000 on 294 units, down from the prior year due to product mix shift. GAAP gross margin was 15.3%, non-GAAP gross margin was 16%, marking the ninth consecutive quarter of positive non-GAAP gross margin. Operating expenses in Q3 were $9,500,000, operating loss was $7,000,000, a record low since going public. Cash and cash equivalents ended the quarter at $14,100,000, up from the previous quarter.

Reaffirming full-year 2025 guidance: revenue between $50,200,000 and $65,800,000, non-GAAP operating loss between $24,400,000 to $26,900,000, and unit deliveries between 320 and 420 units. Q4 expected to have lighter deliveries from key customers but will be rounded out by powertrain, hub deliveries, and other customers, with growth expected in Q1 and Q2 2026.

• Xos' ability to access capital when needed and continue as a going concern. - Ability to implement business plans and identify additional opportunities. - Potential supply chain disruptions including as a result of changes to or uncertainty around trade policies and tariffs.

Q: Ted Jackson asked about peers' raise and its impact on Xos' relationship with FedEx.

A: Dakota Semler said it's a positive indicator for the industry and Xos' access to capital, viewed FedEx as a strategic partner, and mentioned large fleets don't sole source, seeing another company's announcement as validation of industry growth and Xos' position as a key supplier to FedEx contractors.