Xos (XOS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $15.5 million, up 18% sequentially and 227% year-over-year, with 90 units delivered and the fourth consecutive quarter of positive gross margin.

• Net loss narrowed to $9.7 million from $23.6 million year-over-year, reflecting improved gross profit and lower operating expenses.

• Major deliveries included step vans for large fleet customers, with additional powertrain and Hub sales to new customers.

• Strategic partnerships, notably with Blue Bird and Winnebago, expanded presence in the EV market and enhanced the sales pipeline.

• Substantial doubt remains about ability to continue as a going concern due to ongoing losses and liquidity constraints.

Financial highlights

• Q2 2024 revenue: $15.5 million (Q1: $13.2 million; Q2 2023: $4.8 million); cost of goods sold: $13.5 million.

• Q2 2024 gross profit: $2.0 million (gross margin 13.1%), up from a gross loss of $3.7 million in Q2 2023.

• Q2 2024 net loss: $(9.7) million, improved from $(23.6) million in Q2 2023.

• Cash and cash equivalents at June 30, 2024: $19.7 million; inventories: $41.4 million.

• Free cash flow for Q2 2024: $(26.1) million.

Outlook and guidance

• Reaffirmed 2024 guidance: revenue $66.7M–$100.4M, non-GAAP operating loss $43.7M–$48.7M, 400–600 units delivered.

• Expect sequential revenue growth in Q3 and Q4, with higher deliveries and improved working capital.

• Management expects further improvement in the second half of 2024 as delivery volumes increase.

• Company expects to continue incurring net losses and negative cash flows as it scales operations.

• Access to additional capital is critical; current liquidity may not be sufficient for the next 12 months.