Xos (XOS) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $18.4 million and delivered up to 135 vehicles, the highest in company history, with major shipments to UPS and FedEx ISP customers.

• Net loss for Q2 2025 was $7.5 million, an improvement from $9.7 million in Q2 2024, reflecting cost reductions and improved gross margin.

• Generated positive free cash flow of $4.6 million, marking a major financial milestone and operating nearly cash flow neutral in the first half of 2025.

• Operating expenses decreased 35% year-over-year, mainly due to lower headcount, reduced professional fees, and cost controls.

• The company continues to face substantial doubt about its ability to continue as a going concern due to ongoing losses and liquidity constraints.

Financial highlights

• Q2 2025 revenue reached $18.4 million on up to 135 units, up from $15.5 million on 90 units a year ago.

• Gross margin for Q2 2025 was 8.8%, down from 13.1% in Q2 2024 and 20.6% in Q1 2025, impacted by product mix and tariffs.

• Operating loss improved to $7.1 million, the lowest since going public, from $11.4 million in Q2 2024.

• Cash and equivalents stood at $8.8 million as of June 30, 2025, up from $4.8 million at March 31, 2025.

• Free cash flow was $4.6 million in Q2 2025, compared to negative $26.1 million in Q2 2024.

Outlook and guidance

• Reaffirmed full-year 2025 guidance: revenue between $50.2 million and $65.8 million, unit deliveries between 320 and 420.

• Non-GAAP operating loss guidance revised to $24.4 million–$26.9 million due to product mix and increased tariff costs.

• Management expects continued pressure on operating losses in the second half of 2025 due to product mix and tariffs.

• The company is actively seeking additional capital through debt, equity, and asset-based financing, but access to the Standby Equity Purchase Agreement is currently unavailable.

• If unable to secure new capital or collect receivables, the company may need to consider bankruptcy protection or liquidation.