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. $(XOS)$ ("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 $11.0 million at
year-end 2024 -- a 28% increase highlighting growing financial
flexibility and momentum toward long-term sustainable growth.
-- First production powertrains delivered for Blue Bird school buses. Xos
delivered its first production electric powertrains to Blue Bird
Corporation, expanding beyond commercial vehicles into the school bus
market and validating Xos's powertrain technology platform as a scalable
OEM solution.
Platform and Product Milestones:
-- Xos Hub$(TM)$ 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
Quarters ended Years ended
-------------- ------------------------ ------------------
31
Dec 30 Sep 31 Dec 31 Dec 31 Dec
(in millions) 2025 2025 2024 2025 2024
-------------- ----- ------ ------ ------ ------
Revenues $5.2 $16.5 $11.5 $46.0 $56.0
-------------- ----- ------ ------ ------ ------
Gross (loss)
profit $(2.6) $2.5 $(3.7) $2.7 $4.0
-------------- ----- ------ ------ ------ ------
Non-GAAP gross
profit(1() $0.3 $2.6 $2.7 $4.1 $10.0
-------------- ----- ------ ------ ------ ------
Net income
(loss) $(9.8) $2.1 $(19.0) $(25.3) $(50.2)
-------------- ----- ------ ------ ------ ------
Loss from
operations $(9.7) $(7.0) $(14.6) $(33.1) $(45.9)
-------------- ----- ------ ------ ------ ------
Non-GAAP
operating
loss(1) $(4.6) $(4.8) $(6.4) $(24.3) $(32.1)
-------------- ----- ------ ------ ------ ------
Inventories $25.0 $25.2 $36.6 $25.0 $36.6
-------------- ----- ------ ------ ------ ------
Cash and cash
equivalents $14.0 $14.1 $11.0 $14.0 $11.0
-------------- ----- ------ ------ ------ ------
________________________
(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:
Revenue $40.0 to $50.0 million -------------------------- ------------------------ Non-GAAP operating loss(1) $11.9 to $13.3 million -------------------------- ------------------------ Unit Deliveries (2) 350 to 500 units
____________________________
(1) This press release does not provide a forward-looking reconciliation from Non-GAAP operating loss to net loss, the most directly comparable GAAP measure, due to the uncertainty and the potential variability of inputs of the financial information. For the same reason, we are unable to address the probable significance of the unavailable information.
(2) Unit deliveries forecast includes our powertrain and Xos Hub products, stepvans and stripped chassis.
The outlook provided above is based on management beliefs and expectations as of the date of this press release. The results are based on assumptions that are believed to be reasonable as of this date, but may be materially affected by many factors, as discussed below in our "Cautionary Statement Regarding Forward-Looking Statements" disclaimer. Actual results may vary from the outlook above and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
Conference Call and Webcast Details
Thursday, March 26, 2026, at 4:30 p.m. EDT / 1:30
Date / Time: p.m. PDT
https://viavid.webcasts.com/starthere.j
Webcast: sp?ei=1755990&tp_key=c94b49acd 2
U.S. Toll-Free Dial In: 1-833-816-1411
International Dial In: 1-412-317-0507
Conference ID: 10207279
To access the call, please dial in approximately ten minutes before the start of the call. Alternatively, guests may be connected to the call through ViaVid's Call me(TM) feature by navigating to:
https://callme.viavid.com/?$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
investors@xostrucks.com
Xos Media Relations
press@xostrucks.com
Xos, Inc. and Subsidiaries
Consolidated Balance Sheets
Unaudited
December 31, December 31,
(in thousands, except par value per share) 2025 2024
------------------------------------------ -------------- ----------------
Assets
------------------------------------------ ---------- ------------
Cash and cash equivalents $ 14,040 $ 10,996
------------------------------------------ --------- ---------
Accounts receivable, net 6,035 26,870
------------------------------------------ --------- ---------
Inventories 24,961 36,567
------------------------------------------ --------- ---------
Prepaid expenses and other current assets 4,841 7,868
------------------------------------------ --------- ---------
Total current assets 49,877 82,301
------------------------------------------ --------- ---------
Property and equipment, net 4,320 6,111
------------------------------------------ --------- ---------
Operating lease right-of-use assets, net 1,534 3,193
------------------------------------------ --------- ---------
Other non-current assets 4,632 6,728
------------------------------------------ --------- ---------
Total assets $ 60,363 $ 98,333
------------------------------------------ --------- ---------
Liabilities and Stockholders' Equity
------------------------------------------ ---------- ------------
Accounts payable $ 2,473 $ 8,931
------------------------------------------ --------- ---------
Convertible debt, current 6,500 19,970
------------------------------------------ --------- ---------
Other current liabilities 14,685 17,768
------------------------------------------ --------- ---------
Total current liabilities 23,658 46,669
------------------------------------------ --------- ---------
Common stock warrant liability 73 121
------------------------------------------ --------- ---------
Other non-current liabilities 1,345 17,933
------------------------------------------ --------- ---------
Convertible debt, non-current 12,000 -
------------------------------------------ --------- ---------
Total liabilities 37,076 64,723
------------------------------------------ --------- ---------
Stockholders' Equity
------------------------------------------ ---------- ------------
Common stock $0.0001 par value per share,
authorized 1,000,000 shares, 11,403 and
8,046 shares issued and outstanding at
December 31, 2025 and December 31, 2024,
respectively 1 1
------------------------------------------ --------- ---------
Preferred stock $0.0001 par value per
share, authorized 10,000 shares, 0 shares
issued and outstanding at December 31,
2025 and December 31, 2024 - -
------------------------------------------ --------- ---------
Additional paid-in capital 252,026 237,029
------------------------------------------ --------- ---------
Accumulated deficit (228,740) (203,420)
------------------------------------------ --------- ---------
Total stockholders' equity 23,287 33,610
------------------------------------------ --------- ---------
Total liabilities and stockholders' equity $ 60,363 $ 98,333
------------------------------------------ --------- ---------
Xos, Inc. and Subsidiaries
Consolidated Statements of Operations
Unaudited
(in thousands,
except per Three Months Ended Twelve Months Ended
share amounts) December 31, December 31,
--------------- ------------------- ----------------------
2025 2024 2025 2024
--------------- -------- --------- --------- -----------
Revenues $ 5,220 $ 11,474 $ 45,992 $ 55,961
Cost of goods
sold 7,857 15,191 43,268 51,996
------ ------- ------- -------
Gross profit
(loss) (2,637) (3,717) 2,724 3,965
------ ------- ------- -------
Operating
expenses
General and
administrative 4,539 8,051 24,797 35,083
Research and
development 1,882 1,936 8,000 10,627
Sales and
marketing 681 868 3,010 4,129
------ ------- ------- -------
Total operating
expenses 7,102 10,855 35,807 49,839
------ ------- ------- -------
Loss from
operations (9,739) (14,572) (33,083) (45,874)
Gain on
operating lease
termination 481 - 9,875 -
Other expense,
net (641) (4,812) (2,137) (4,561)
Change in fair
value of
derivative
instruments 147 421 48 274
Change in fair
value of
earn-out shares
liability - 6 - 39
------ ------- ------- -------
Loss before
provision for
income taxes (9,752) (18,957) (25,297) (50,122)
Provision for
income taxes - 24 23 37
------ ------- ------- -------
Net loss $(9,752) $(18,981) $(25,320) $(50,159)
------ ------- ------- -------
Net loss per
share
Basic $ (0.86) $ (2.36) $ (2.71) $ (6.69)
Diluted $ (0.86) $ (2.36) $ (2.71) $ (6.69)
Weighted
average shares
outstanding
Basic 11,348 8,034 9,360 7,500
Diluted 11,348 8,034 9,360 7,500
Reconciliation of Adjusted EBITDA, Operating Cash Flow less CapEx (Free Cash Flow), Non-GAAP Operating Loss and Non-GAAP Gross Profit:
Adjusted EBITDA Reconciliation:
Three
Months
Ended
Three Months Ended Twelve Months Ended September
December 31, December 31, 30,
------------------- -------------------- -----------
(in thousands) 2025 2024 2025 2024 2025
-------- --------- --------- --------- -----------
Net income
(loss) $(9,752) $(18,981) $(25,320) $(50,159) $ 2,123
Other expense,
net 641 4,812 2,137 4,561 240
Depreciation 582 792 2,183 3,343 531
Provision for
income taxes - 24 23 37 (2)
------ ------- ------- ------- ------
EBITDA (8,529) (13,353) (20,977) (42,218) 2,892
Change in fair
value of
derivatives (147) (421) (48) (274) 39
Change in fair
value of
earn-out
shares
liability - (6) - (39) -
Gain on
operating
lease
termination (481) - (9,875) - (9,394)
------ ------- ------- ------- ------
Stock based
compensation 2,185 1,823 7,407 7,710 2,125
------ ------- ------- ------- ------
Adjusted EBITDA $(6,972) $(11,957) $(23,493) $(34,821) $(4,338)
------ ------- ------- ------- ------
Operating Cash Flow less CapEx (Free Cash Flow):
Three
Months
Three Months Twelve Months Ended
Ended December Ended December September
31, 31, 30,
---------------- ---------------- ---------
(in thousands) 2025 2024 2025 2024 2025
------ --------- ------ --------- ---------
Net cash
provided by
(used in)
operating
activities $2,399 $ 3,298 $5,365 $(48,795) $ 3,077
Purchase of
property and
equipment - - - (304) -
----- -------- ----- ------- ---------
Free-Cash Flow $2,399 $ 3,298 $5,365 $(49,099) $ 3,077
----- -------- ----- ------- ---------
Non-GAAP Operating Loss:
Three
Months
Ended
Three Months Ended Twelve Months Ended September
December 31, December 31, 30,
------------------- -------------------- -----------
(in thousands) 2025 2024 2025 2024 2025
-------- --------- --------- --------- -----------
Loss from
operations $(9,739) $(14,572) $(33,083) $(45,874) $(6,994)
Stock-based
compensation 2,185 1,823 7,407 7,710 2,125
Inventory
Reserves 1,815 3,752 (263) 2,940 128
Physical
inventory and
other
adjustments 1,096 2,632 1,593 3,141 (26)
------ ------- ------- ------- ------
Non-GAAP
Operating
Loss $(4,643) $ (6,365) $(24,346) $(32,083) $(4,767)
------ ------- ------- ------- ------
Non-GAAP Gross Profit:
Three Months
Twelve Months Ended
Three Months Ended Ended December September
December 31, 31, 30,
------------------ ------------------ -------------
(in thousands) 2025 2024 2025 2024 2025
-------- -------- ------- --------- -------------
Gross profit
(loss) $(2,637) $(3,717) $2,724 $ 3,965 $ 2,531
Inventory
Reserves 1,815 3,752 (263) 2,940 128
Physical
inventory and
other
adjustments 1,096 2,632 1,593 3,141 (26)
------ ------ ----- -------- -----
Non-GAAP Gross
Profit $ 274 $ 2,667 $4,054 $ 10,046 $ 2,633
------ ------ ----- --------
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