Xos (XOS) Q3 2025 earnings summary

Executive summary

• Delivered 130 vehicles and generated $16.5M in Q3 2025 revenue, with 140 units shipped including 10 chassis for future revenue recognition; major customers included UPS, FedEx ISPs, and Blue Bird, with continued fulfillment of the largest order in company history.

• Achieved a 15.3% gross margin, up from 8.8% in Q2 2025, and posted a second consecutive quarter of positive free cash flow.

• Net income for Q3 2025 was $2.1M, a significant improvement from a $10.5M net loss in Q3 2024, primarily due to a $9.4M gain from the termination of the Mesa Lease.

• Operating expenses fell 24% year-over-year, reflecting strong cost discipline and operational improvements.

• Expanded product mix with significant growth in powertrain and hub segments, including 18 powertrains delivered to Blue Bird and nearly 80 additional orders post-quarter.

Financial highlights

• Q3 2025 revenue was $16.5M on 130 units, up 4% YoY from $15.8M on 94 units, but down from $18.4M on 135 units in Q2 2025.

• Gross profit reached $2.5M, with non-GAAP gross profit at $2.6M; GAAP gross margin was 15.3%, up from 8.8% in Q2, but down from 18.1% YoY.

• Operating loss was $7M (non-GAAP $4.8M), lowest since IPO, improved from $9.7M (non-GAAP $6.6M) YoY.

• Net income for Q3 2025 was $2.1M, compared to a net loss of $10.5M in Q3 2024.

• Ended Q3 with $14.1M in cash, up from $8.8M in Q2, and positive free cash flow of $3.1M.

Outlook and guidance

• Reaffirmed full-year 2025 guidance: revenue $50.2M–$65.8M, non-GAAP operating loss $24.4M–$26.9M, unit deliveries 320–420.

• Expect Q4 to be seasonally lighter due to customer peak periods, but anticipate growth resuming in Q1 and Q2 2026.

• Margin improvement expected in 2026 due to higher mix of powertrain and hub products and reduced tariff impact.

• Management continues to seek cost reductions and capital raising opportunities to address liquidity needs.

• Substantial doubt remains about the ability to continue as a going concern over the next 12 months without additional capital or improved collections.