Xos (XOS) Q4 2025 earnings summary

Executive summary

• Achieved positive free cash flow of $5.4 million for 2025, a $54 million improvement year-over-year, and delivered 328 units, the highest in company history, with three consecutive quarters of positive operating and free cash flow, ending 2025 with $14 million in cash, up 28% year-over-year.

• Revenue for 2025 was $46 million, with a GAAP gross margin of 5.9%, marking the second consecutive year of positive gross margins.

• Operating loss narrowed by 28% to $33.1 million, and adjusted EBITDA loss improved by 33% to $23.5 million year-over-year.

• Expanded product portfolio with significant growth in powertrain and hub businesses, including major programs with UPS and Blue Bird, and delivered first production powertrains for Blue Bird school buses.

• Strengthened balance sheet, improved liquidity, and executed strategic capital management actions.

Financial highlights

• Full year revenue: $46 million on 328 units (down from $56 million on 297 units in 2024).

• Q4 revenue: $5.2 million on 34 units (down from $16.5 million on 130 units in Q3 and $11.5 million on 51 units in Q4 2024).

• Full year GAAP gross margin: $2.7 million (5.9%), down from $4 million (7.1%) in 2024; non-GAAP gross margin: $4.1 million (8.8%), down from $10 million (18%).

• Operating expenses reduced by 28% to $35.8 million; Q4 OpEx down 25% sequentially and 35% year-over-year.

• Adjusted EBITDA loss improved to $23.5 million from $34.8 million; full year EBITDA loss improved to $21 million from $42.2 million.

• Ended 2025 with $14 million in cash, up from $11 million, and accounts receivable reduced to $6 million from $26.9 million.

Outlook and guidance

• 2026 revenue guidance: $40 million–$50 million; unit deliveries: 350–500; non-GAAP operating loss: $11.9 million–$13.3 million.

• Anticipates significant growth in powertrain and hub segments, with step vans remaining stable.

• Focus on accelerating growth, reinforcing liquidity, and expanding margins in 2026.