Xos (XOS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $5.9 million with 29 units recognized, down from both Q4 2024 and Q1 2024, but 60 units were shipped, with some revenue deferred to future quarters.

• Achieved first-ever positive gross margin of approximately 20% in Q1 2025, despite a seasonal slowdown and lower unit deliveries compared to Q1 2024.

• Operating expenses reduced by $2.6M (19.6% year-over-year), reflecting strong cost discipline.

• The MDXT medium-duty chassis cab was launched, targeting a larger addressable market and leveraging high parts commonality with existing products.

• The company completed the acquisition of ElectraMeccanica in March 2024, adding $50.2 million in cash but assuming $19 million in liabilities.

Financial highlights

• Q1 2025 revenue: $5.9M (29 units), down from $11.5M (51 units) in Q4 2024 and $13.2M (62 units) in Q1 2024.

• GAAP gross margin: $1.2M (20.6%), improved from a loss of $3.7M (-32.4%) in Q4 2024, but down from $2.8M (21.2%) in Q1 2024.

• Net loss for Q1 2025 was $10.2M, improved from $11.0M in Q1 2024 and $19.0M in Q4 2024.

• Cash and equivalents at March 31, 2025: $4.8M, down from $11.0M at December 31, 2024.

• Inventory increased to $38M, reflecting strategic purchasing for upcoming deliveries.

Outlook and guidance

• 2025 revenue guidance: $50.2M–$65.8M; unit deliveries: 320–420; non-GAAP operating loss: $17.2M–$14M.

• Management expects improved cash flow and increased deliveries in Q2 and beyond, with growth anticipated for the remainder of the year.

• MDXT production ramp targeted for Q3 2026.

• Tariff headwinds expected to persist, but mitigation strategies are in place for H2 2025.

• Additional capital is needed to fund operations and growth; access to the $119.4M Standby Equity Purchase Agreement is currently unavailable pending regulatory requirements.