Xos, Inc. Q4 FY2025 earnings call

• 2025 was a year of execution with positive free cash flow, growing customer base, diversifying product portfolio. • Q1 set foundation, Q2 had breakthrough with highest quarterly revenue, Q3 sustained momentum, Q4 capped the year. • Worked with Aldermay Automotive Company to amend convertible note repayment. • Powertrain business had breakout year with orders from Blue Bird. • Hub product line emerged, expanding into new markets. • At Tennessee plant, continued production execution, expanded manufacturing capabilities for Blue Bird powertrain and hub. • Supply chain navigated tariff dynamics, reduced operating expenses, improved working capital and inventory management.

For the full year 2025, Xos, Inc. generated $46 million in revenue on 328 units delivered. GAAP gross margin was 5.9%, non-GAAP gross margin was 8.8%. Full year operating loss narrowed 28% to $33.1 million, adjusted EBITDA loss improved 33% to $23.5 million. For Q4 2025, revenue was $5.2 million on 34 units. GAAP gross margin was a loss of $2.6 million, non-GAAP gross margin was a profit of $300,000. Operating expenses for full year 2025 were $35.8 million, down 28% from 2024. Fourth quarter operating expenses were $7.1 million. Free cash flow for full year 2025 was $5.4 million, Q4 was $2.4 million.

Anticipates revenue for 2026 to fall within $40 to $50 million, unit deliveries within 350 to 500, non-GAAP operating loss in range of $11.9 to $13.3 million. Growth in hub and powertrain business expected to be high double digits or more.

Factors like ability to access capital, continue as going concern, implement business plans, supply chain disruptions, economic downturns due to trade policies, tariffs, war in Iran, shortages of energy and industrial inputs are risks.

Q: Talk about new hub products and opportunities outside typical EV charging.

A: Hubs have various use cases like autonomous car fleet charging, remote power for utilities, disaster preparedness. New variants have different energy storage capacities for different applications.

Q: On powertrain product new designs and opportunity set.

A: Build on engineering learnings, developing configurations for school buses, focusing on commonizing platforms for reliability and cost competitiveness.

Q: Mix of units in fourth quarter and evolution in 2026.

A: Fourth quarter powertrain and hubs drove volume, 2026 expected shift to more powertrains and hubs with high growth.

Q: UPS program status.

A: Vast majority of 200-unit program shipped, units on road in various states.

Q: Powertrain orders from Blue Bird.

A: Shipped 15 to Blue Bird in Q4, with orders since Q2, growth expected.

Q: Two-way charging capabilities impact on infrastructure lifespan.

A: V2G charge rate is lower than fast charging, factored into warranty.

Q: Blue Bird as hub distribution partner.

A: Blue Bird has dealer network, relationships with dealers to socialize hub product.

Q: New hubs availability.

A: First 420 kilowatt-hour variant shipped this quarter, others to follow.

Q: Working capital and cash generation in 2026.

A: Focus on optimizing inventory, considering ATM usage selectively, reducing OpEx, growth in new segments to improve working capital.

Q: Hub positioning for power and resiliency.

A: Focus on niche segment of power reliability and resiliency for industrial power users.

Q: Other customers for powertrains.

A: Few other customers, working on diversifying.