XOS Q4 Earnings Call Highlights

26 Mar 2026, 18:42 by Amy Steele · The Cerbat Gem

XOS (NASDAQ:XOS) used its fourth-quarter and full-year 2025 earnings call to highlight progress on cash generation, cost discipline, and a broader product strategy that now includes mobile energy storage “Hub” products and powertrain systems alongside its electric step vans.

Full-year 2025 results: positive free cash flow and narrower losses

CEO Dakota Semler said 2025 was the year the company demonstrated it could operate “with discipline under real constraints” while delivering positive free cash flow for the full year. For 2025, Xos reported revenue of $46 million on 328 units delivered, the most units in its history. GAAP gross margin was 5.9%, marking the company’s second consecutive full year of positive GAAP and non-GAAP gross margins.

Xos said its full-year operating loss narrowed 28% to $33.1 million, while adjusted EBITDA loss improved 33% to $23.5 million. The company generated $5.4 million of positive free cash flow for the year, compared with negative $49.1 million in 2024, which Semler described as a roughly $54 million swing. In the fourth quarter, the company posted its third consecutive quarter of positive free cash flow.

Fourth quarter: lower revenue, shift in mix, and margin impacts from discrete items

CFO Liana Pogosyan reported fourth-quarter revenue of $5.2 million on 34 units, down from $16.5 million on 130 units in the third quarter and $11.5 million on 51 units a year earlier. Pogosyan attributed the decline to seasonally slower deliveries and the company shifting focus and resources toward powertrain and Hub production. She added that fourth-quarter deliveries were mainly driven by the Hub and powertrain product lines, including Blue Bird powertrain kits.

On profitability, Pogosyan said fourth-quarter GAAP gross margin was a loss of $2.6 million, primarily due to “discrete items,” including additional inventory reserves and write-offs tied to a shift in commercialization strategy, along with warranty reserve updates. Excluding these items, she said non-GAAP gross margin was a profit of $0.3 million, or 5.2%, which she noted was the company’s 10th consecutive quarter of positive non-GAAP gross margin.

Operating expenses for 2025 were $35.8 million, down $14 million, or 28%, from the prior year. Fourth-quarter operating expenses were $7.1 million, down sequentially and year over year, and benefited from $1.7 million of non-recurring favorable adjustments related to settlements of finance equipment leases and certain vendor payables, Pogosyan said.

Liquidity actions: collections, inventory reduction, ATM proceeds, and debt restructuring

Management emphasized working capital improvements and balance sheet actions taken during 2025. Pogosyan said Xos ended 2025 with $14 million in cash and cash equivalents, up from $11 million at the end of 2024. Key drivers cited on the call included:

Accounts receivable: reduced to $6 million at year-end from $26.9 million, driven by approximately $66 million of collections from customers and state grant program administrators; Semler highlighted $14 million of fourth-quarter collections, including $9.9 million from UPS.
ATM program: launched during 2025, generating $2.4 million in net cash proceeds during the year.
Inventory: declined to $25 million from $36.6 million, reflecting unit sales outpacing production as the company moved more units from existing inventory.
Convertible note amendment: the $20 million convertible note’s repayment structure was amended from a single maturity to quarterly principal payments beginning in the fourth quarter of 2025 through the first quarter of 2028; Semler said partner Aljomaih Automotive Company became Xos’ largest shareholder.
Mesa, Arizona lease termination: management said it negotiated termination of a lease inherited from the ElectraMeccanica merger; Pogosyan said the action is expected to generate approximately $21 million in cash savings, while requiring 18 monthly payments through March 2027 totaling about $2.8 million. The company also recorded a $9.9 million gain in non-operating income tied to the termination.

Operational update: UPS program execution, Blue Bird powertrains, and Hub expansion

COO Giordano Sordoni said the Tennessee facility maintained a steady production cadence while building and delivering against an “over 200-unit” UPS program. Semler added that in the fourth quarter the company shipped stripped chassis that were “already on their way to upfitters,” with some revenue recognition deferred until vehicles are completed and delivered. In the Q&A, management said “the vast majority” of the UPS program units had shipped, with only a few remaining to be recognized as revenue after meeting revenue-recognition criteria.

Powertrain systems were another focus in 2025. Semler said the company delivered 15 powertrain systems to Blue Bird in the fourth quarter and that, since the second quarter, the company had received nearly 100 additional orders. Pogosyan added that Blue Bird powertrain kits generated orders for over 100 units between the second quarter of 2025 and the first quarter of 2026. Management discussed expanding configurations, including work on Type C school buses and a rear-engine configuration for Type D buses. In response to questions, executives said the company is also working to diversify powertrain customers beyond Blue Bird, though customer diversity in that segment is currently limited compared with the vehicles business.

Xos also detailed plans for a next-generation version of its mobile charging and energy storage product, the Xos Hub, which management positioned as addressing grid constraints and broader energy resilience needs. Semler said the 2026 Hub update will be offered in three configurations from 210 kWh to 630 kWh, with greater load balancing and power resilience capabilities. During Q&A, management described customer use cases including high-throughput fleet charging, remote power for utility field operations, and disaster preparedness deployments. The company also said the first 400 kWh variant shipped during the quarter, and that subsequent shipments will transition to the new options.

2026 outlook and expected mix shift

For 2026, Pogosyan guided to revenue of $40 million to $50 million, unit deliveries of 350 to 500, and non-GAAP operating loss of $11.9 million to $13.3 million. Management told analysts to expect a “pronounced shift” in mix toward powertrains and Hubs relative to step vans, citing faster growth rates in those businesses. Executives also discussed annual pricing exercises across product lines and said 2026 pricing incorporates known tariff impacts from 2025, with management describing tariff volatility as having slowed compared with the prior year.

About XOS (NASDAQ:XOS)

Xos, Inc (NASDAQ: XOS) is a U.S.-based manufacturer of commercial electric vehicles, offering Class 5 through Class 8 electric trucks, chassis and proprietary battery systems. The company’s core business spans vehicle design, powertrain integration, battery management and telematics, aimed at supporting last-mile delivery, beverage distribution and vocational fleets. Xos combines modular vehicle architectures with advanced software to deliver route-optimized performance and zero-emission operation for commercial customers.

Founded in 2016 as a spin-off from a specialty vehicle division, Xos designs, engineers and assembles its electric trucks at a manufacturing facility in Morristown, Tennessee, while maintaining research and development operations in California.