Latest news with #DakotaSemler
Yahoo
15-05-2025
- Business
- Yahoo
Q1 2025 Xos Inc Earnings Call
Dakota Semler; Chairman of the Board, Chief Executive Officer; Xos Inc Giordano Sordoni; Chief Operating Officer, Director; Xos Inc Liana Pogosyan; Acting Chief Financial Officer, Vice President - Finance; Xos Inc Craig Irwin; Analyst; Roth Capital Partners, LLC Operator Good day. Welcome to the Xos Inc., first quarter of 2025 earnings call. (Operator Instructions) Please also note that this event is being recorded today. I would now like to return the conference over to [David Zlotchew], General Counsel. Please go ahead. Thank you, everyone, for joining us today. Hosting the call, with me, are Xos' Chief Executive Officer, Dakota Semler; Xos' Chief Operating Officer, Giordano Sordoni; and Xos' Acting Chief Financial Officer, Liana Pogosyan. Today, after the close of regular trading, Xos issued its first-quarter 2025 earnings press release. As you listen to today's conference calls, we encourage you to have our press release in front of you, which includes our financial results, as well as commentary on the quarter ended March 31, 2025. Management's statements today reflect management's views as of today, May 14, 2025 only; and will include forward-looking statements, including statements regarding our fiscal year 2025, management's expectations for future financial and operational performance, and other statements regarding our plans, prospects, and expectations. These statements are not promises or guarantees and are subject to risks and uncertainties, which could cause them to differ, materially, from actual results. Additional information about important factors that could cause actual results to differ, materially, include, but are not limited to, Xos' ability to access capital when needed, and continuous ongoing concern, and potential supply chain disruptions including as a result of changes to or uncertainty around trade policy and tariffs. These are included in today's press release and in our filings of the SEC, including our most recent annual report on Form 10-K, as well as subsequent filings. We undertake no obligation to update forward-looking statements, except as required by law. You should not put undue reliance on statements. Further, today's presentation includes references to non-GAAP financial measures and performance metrics. Additional information about these non-GAAP measures, including reconciliation of non-GAAP measures to comparable GAAP measures is included in the press release we issued today. Our press release and SEC filings are available on the Investor Relations section of our website, at With that, I now turn it over to our CEO, Dakota. Dakota Semler Thanks, [David]. Thank you, everyone, for joining us on the call. Q1 was the start of a really important year for Xos. Over the last few years, we have worked hard to bring our cost down and make the business more profitable, while also strengthening our relationships with current customers and building new ones to drive growth. This year, our focus was pretty simple: keep growing, protect margins, and manage liquidity with discipline. And while we're dealing with a lot of moving pieces, including new emissions rules, new tariffs, and a tough interest rate environment, we feel confident. Our customers trust us. Our trucks continue to perform reliably in the field. And we've never been more focused on running a tight, durable business. In Q1, we brought in $5.9 million in revenue and delivered 29 units. We actually shipped 60 units but due to revenue recognition rules, we couldn't recognize revenue on everything, right away. Some of that will land in future quarters. What's encouraging is that customer demand has stayed consistent. We're still seeing growing interest from national fleets. And while smaller regional operators are feeling the pinch from interest rates, they're also jumping on strong state incentive programs in places like California, Washington, New Jersey, New York, Massachusetts, and Texas. We continue to win new customers and grow the order book with existing customers. Now, let's talk about tariffs. We recently raised prices to help offset some of the cost of increases tied to the new tariff structures. Behind the scenes, we've done a deep dive into every part and commodity that's impacted. And we've mapped out exactly where we are most exposed. While there will some increases in our cost of goods sold -- anywhere from 10% to 30%, depending upon the product -- the majority of our vehicle value is still sourced and built in the USA. Over the next couple of years, we see a clear path to reduce that exposure even more through reshoring or resourcing. We're not waiting for this to become a problem. We're already planning and executing. The same goes for Powered by Xos business. Some of the components in our powertrain kits are affected by tariffs. But we're working closely with our OEM partners to help shield their customers from those increases. Even with those headwinds, we expect that business to stay on track. One of the most exciting things we've done this quarter is launch the MDXT, our new medium duty chassis-cab. This has been a long time coming. MDXT takes everything we have learned from building over 1,000 Stepvans -- including the high-voltage architecture, the software, and the supply chain -- and brings it into a more flexible platform that can serve a wider range of use cases. We showed it off for the first time at the ACT Expo in Anaheim, recently. And the response blew us away. Fleet owners say they love the design; they love the packaging; and, most importantly, they see how it fits their needs today, not five years from now. There's a real market here. The total addressable market for medium-duty chassis-cabs in the US is up to 100,000 units per year. We picked this segment because it's a natural extension of what we already do. The core vehicle architecture is familiar. The range, battery sizes, and daily duty cycles are almost identical to our Stepvans. Our team knows how build it; our suppliers already support it; and most of our customers already operate vehicles in this category. It's also a market that's been ignored. Most of the legacy players are pricing their electric chassis-cabs over $300,000, which has kept sales volumes low. Fleets are still looking for a more affordable, reliable option. And, importantly, MDXT is designed to work with the charging infrastructure that fleet already have in place, whether it's level 2 charging or low-powered DC fast charging. Based on our experience, charging has been consistently been the biggest bottleneck to deploying EVs. And we continue to see that as a headwind in the Class 8 space. But the Class 6 chassis-cab market doesn't face the same constraints. These vehicles don't require massive battery packs or long ranges so the infrastructure burden is far lower. That makes adoption faster and more scalable. There's a lot of attention on Class 8, right now. But not many folks are focused on making medium-duty electric trucks work. And that's where we see an opportunity. Right after the quarter closed, we started a national road tour with the MDXT. We kicked things off in California. And I have personally driven nearly 1,000 miles in the MDXT, just this week, delivering a hub to a customer in Fresno and towing another hub for demos all across Southern California. As someone who's been a fleet owner and a discerning truck user for years, I can honestly say this truck has blown me away. The ride quality, powertrain efficiency, and overall performance are on a completely different level, compared to anything else in this space. Over the next few months, we will continue taking the MDXT on the road to meet more customers face-to-face, with stops planned in New Jersey, New York, Tennessee, Texas, and Washington. We are gathering feedback, logging miles, and getting real-world validation of just how versatile and capable this platform is. Early interest has been great. And while the MDXT is still moving through safety certifications and final validation, we're targeting a production ramp by Q3 of 2026. Looking forward, our focus as a company really comes down to three things. First, growth. We're committed to growing sales and delivering quarter over quarter. Second, liquidity. We've become incredibly disciplined about how we manage cash. And we expect to continue strengthening our liquidity position, moving forward. Third, margins. We know how critical they are. As the cost impacts from tariffs become more clear and with the pricing adjustments we've made in our visibility into the unit economics of every vehicle, we are confident we can keep improving margin performance over the full year. These three pillars -- growth, liquidity, and margins -- will continue to guide how we execute, as we scale the business. Gio will now take you through some of the operational highlights from the quarter. Giordano Sordoni Thanks, Dakota. Good afternoon, everyone. Our manufacturing, supply chains, and engineering teams made significant strides in Q1, advancing our truck, mobile charging, and powertrain product lines. The factory remained busy in the first quarter, while we kicked off bills for UPS and began delivering chassis to our body upfitter for that program, demonstrating our ability to ramp production, in partnership with the marquee customer. Simultaneously, we initiated production of our electrification kits for Blue Bird school buses, putting us on track to support safe, reliable electric transportation for school districts, nationwide. I'm especially proud of the progress on our medium-duty chassis-cab offering, the MDXT, which came to life, this quarter, at our plant in Tennessee. This new product, which we recently showed off at the ACT Expo in Anaheim, leverages much of the same technology and components as our Stepvan. And we plan to build it in our Tennessee plant on the same production line as our Stepvan chassis. Bringing this product from design to demo so quickly is a testament to our team's agility and deep expertise across mechanical, electrical, and software integration. We plan to continue to test and validate this new offering, as we work to bring it closer to production. For these reasons, we expect the MDXT program launch and ramp up to be extremely capital efficient. On the cost and supply chain fronts, our teams continue to navigate an evolving tariff environment, with a two-pronged approach. First. We're working closely with customs advisors and suppliers to identify alternative sourcing strategies to reduce the impact of these tariffs. Second. Our engineering and procurement functions continue to execute multiple direct material cost reduction projects to help offset any potential tariff-related increase, as we grow and scale. We remain committed to building and growing our company at our flagship and our flagship truck and mobile charging production facility in Tennessee. Looking ahead, we remain laser-focused on operational excellence. The team is focused on scaling our chassis and kit production lines, accelerating supplier diversification and pursuing further bill of material improvements. These initiatives are designed not only to cushion us against external headwinds but, also, to drive long term margin expansion, as we enter the busy delivery season. With those updates, I'll turn the call over to Liana for an in-depth look at our financial performance. Liana Pogosyan Thank you. For Q1 2025, our revenue was $5.9 million or 29, units down from $11.5 million or 51 units in Q4 2024 and $13.2 million or 62 units in Q1 2024. While Xos only recognized revenue for 29 units this quarter, as Dakota mentioned, we actually shipped a total of 60 units, including 31 additional strip-chassis sent to upfitters. These are part of our previously announced 193 vehicle order from UPS. And we expect to deliver them to the customer and recognize the revenue, in accordance with GAAP standards, in the coming quarters of 2025. Our cost of goods sold during the quarter decreased to $4.7 million, compared to $15.2 million in Q4 2024 and $10.4 million in Q1 2024. GAAP gross margin, during the quarter, was a profit of $1.2 million or 20.6%, compared to a loss of $3.7 million or negative 32.4% in Q4 2024; and, compared to a profit of $2.8 million or 21.2% in Q1 2024. As a reminder, GAAP gross margin, during Q4 2024, was significantly impacted by changes in our inventory reserves and write-offs of inventory from our annual physical inventory count, as well as obsolete parts. Non-GAAP gross margin, during the quarter, was a profit of approximately $900,000 or 15%, compared to a profit of $2.7 million or 23.2% in the prior quarter and a profit of $1.7 million or 12.8% in Q1 2024. This quarter marked our seventh consecutive quarter of positive non-GAAP gross margin performance. We remain committed to sustaining positive GAAP growth margins, despite ongoing tariff headwinds. We've gained increased visibility into our near-term tariff exposure and have implemented mitigation strategies that we expect to take effect in the second half of the year, as Gio and Dakota discussed. Turning to expenses. Our Q1 2025 operating expenses were $10.5 million, compared to $10.9 million last quarter and $13 million in Q1 2024. The 19.6% drop from Q1 2024 reflects the impact of our strong operational discipline in managing our costs, while continuing to support key growth initiatives. Our operating profitability continues to follow a promising trajectory, with an operating loss for Q1 2025 of $9.3 million, compared to a loss of $14.6 million in Q4 2024 and $10.2 million in Q1 2024. This was driven by ongoing cost discipline and several cost-cutting measures taken last quarter, which included a reduction in our total workforce in October and temporary salary reduction for certain of our senior executives; and was partially offset by lower volume, creating the decrease in top-line revenue and gross profits, discussed earlier. According to the balance sheet, we closed Q1 2025 with cash and cash equivalents totaling $4.8 million. Operating cash flow left CapEx or free cash flow was negative $4.8 million this quarter, compared to a positive $3.3 million in Q4 2024 and negative $14.6 million in Q1 2024. Free cash flow, this quarter, was impacted by our inventory purchases to support upcoming deliveries later this year. Encouragingly, this was offset by positive working capital trends; particularly, continued progress in accounts receivable collection. Inventory increased to $38 million, this quarter, from $36.6 million at the end of both Q4 2024 and Q1 2024. Inventory increased due to our strategic purchasing to support upcoming deliveries. We are continuing to manage our liquidity position and expected to improve in the subsequent quarters, as we deliver vehicles in support of UPS and other customer orders, continue to improve accounts receivable collections, and actively explore options for enhancing our liquidity. In the past few quarters, we have made great progress in collecting receivables from customers and from organizations helping to administer state-grant programs by collecting a combined $10.2 million during the quarter, $20.9 million during Q4 2024, and $9.6 million during Q3 2024. Now, turning to our outlook, we are reaffirming a full-year 2025 guidance of revenue to fall in the range of $50.2 million to $65.8 million; unit deliveries to be within the range of 320 to 420 units; and non-GAAP operating loss to be in the range of $17.2 million to $14 million. With that, I'll turn the call back over to Dakota. Dakota Semler Thank you, Liana. As we look ahead to the rest of 2025, we remain obsessively focused on delivering growth, improving liquidity, and increasing margins. Over the past year, we've demonstrated our ability to run a lean organization, while still maintaining a competitive product portfolio. We've also managed to build a robust sales pipeline and sort through unexpected events in the international supply chain. This adaptiveness and resiliency in the face of challenge is one of our strongest skills. And we believe our customers see this resilience as essential in this dynamic marketplace, driving long-term customer loyalty. As we prepare for our biggest year yet, we remain confident in our ability to overcome challenges to build the most robust commercial electric vehicle manufacturer in our industry. With that, I'll hand it back over to the operator for questions. Operator We will now begin the question-and-answer session. (Operator Instructions) Craig Irwin, Roth Capital Partners. Craig Irwin Good evening. Thank you for taking my questions. Dakota, I wanted to ask about the MDXT. It's nice to see the broadening of the of the platform. And, obviously, a lot of thought has gone into the investment here. Can you, maybe, speak a little bit about the parts commonality between your Stepvans and the MDXT. And any potential incremental investment that has to happen in Tennessee, before you launch production later on, next year? Dakota Semler Yeah. Happy to talk about the parts commonality. Thanks for the question, Craig. First and foremost, we wanted to use as much content from our existing vehicle platforms, really, to drive the same reliability and the same durability out of this platform, as we bring it to market. That way, customers have the same level of confidence that they do in their existing trucks, when they're deploying this newer product. In addition to that, there's a lot of synergies that come from being able to tap into existing components that we're already purchasing in the hundreds of units per year. We've already cost reduced them. We've done a lot of the validation work for Federal Motor Vehicle Safety Standards or for other certification requirements that we have to meet. So it actually cuts out considerable cost. Not just from the direct material cost of these vehicles but, also, in the R&D and development process and bringing that vehicle to market. If you include the cab as a part of the assembly with our -- as compared to our strip-chassis, the MDXT, from a value standpoint, shares over 90% of the same commodity components; meaning, 90% of the cost of goods that go into that product are the same as what they are in the Stepvan. That's incredibly valuable for us. It means we have to carry fewer parts and inventory for service and aftermarket parts. It means our customers are already familiar with the platform. And it even means fewer hours of training in the aftermarket field, with our service technicians and our dealer partners, to make sure they know how to support these vehicles. So there's a lot of synergies there. To address the second part of your question, which really speaks to the ramping cost: this is also the benefit of utilizing so much of our existing product portfolio. We have very little incremental investment to make in Tennessee. We anticipate that it will be less than seven figures or even in a very low seven-figure rang to bring this product to market. So not a significant amount of incremental CapEx. And most of the R&D work has actually already been done to bring these prototypes to the stage where they're at today, which is going through those certification and testing procedures. Craig Irwin Thank you for that. Obviously, you wouldn't have developed this product unless you had substantive customer conversations and indications of interest for the product, right? Customers that want that flexibility of a vehicle that's, maybe, easier to charge and eligible for local subsidies and other incentives that make it a credible product. Can you, maybe, describe, for us, the market development around this? What are potential customers saying? And what do you think a fair timeline is for us to expect news of initial orders? Dakota Semler Yeah. Absolutely. I'll start and just address the actual market size. When you look at our strip-chassis product, that market segment can sell up to about 25,000 units in a strong year. It's a relatively niche market in the overall 800,000 to 900,000 commercial vehicles sold every year in the United States. Obviously, it's a very concentrated market, with a lot of those large fleet customers like UPS and FedEx that already buy our products. But it is still a niche market. When you start to look into conventional chassis-cab products, like the MDXT, that market can sell up to 100,000 units per year in just classes 5 and 6. And so, it's a much larger market to start with. There are not as many concentrated fleets that have populations of tens of thousands of vehicles like the FedExes and UPSs. But there are still some very sizable fleets, several of which we've already announced as customers in the past, including Southern Wine & Spirits, RNDC, and many others that run thousands of box trucks in their fleets, every day, in the US. We'll talk about more customers, as we continue our demo schedule and get this vehicle out there on the road. But we anticipate that it will take some time to bring this pipeline and ramp it to the level of size that the Stepvan is at today. But we do believe that, eventually, it could actually surpass the volumes of the Stepvan, as it's a much more broadly applicable product and much more versatile in the types of vocations and use cases that the product can service and cater to. Craig Irwin Thank you. My next question is about the 31 units for UPS that were shipped but not recognized as revenue, right? The strip-chassis for the bodybuilder and, then, to UPS. As we look at this, how do we approximate the revenue for Xos? What would you suggest we pay attention to? I know there's pricing changes and that you're proactively managing your expenses here. The ASPs this last quarter, I'm sure, were impacted by charge hubs and other shipments. So how should we think about the relative contribution? And is this something that we should expect to be evenly spread in the second through fourth quarters? Or is it possibly lumpy? Any additional color on the revenue recognition here? Dakota Semler Yeah. Absolutely. As we've shared in previous calls, with our large national customers that continue to place recurring orders in high volumes of tens or hundreds of units, we really afford them the most favorable pricing structures and agreements. And those are at the lower end of our margin guidance range. In some cases, we'll even go down into single-digit margins because we really value the relationship opportunity and the ability to work with some of the most discerning fleets in this industry that have thousands of vehicles to convert, ultimately, over to electric vehicles. So we're really working to earn that business. We don't provide specific margin level guidance or detail around certain customers but as we endeavor to deliver some of these large volume orders, you can expect that margin, profile to reduce quite a bit. But a lot of that will be offset by other products in the portfolio, whether that's our mobile charging products; some of our other Stepvan configurations, specialty configurations. And I think, as we look at delivering some of these large orders, there's going to be a heavy concentration in Q2 and Q3; and then, Q4 will round out with more of those smaller orders that are generally at the higher range of our margin guidance range. Craig Irwin Understood. My last question is about the charge hub, specifically. You had a prominently it displayed at ACT Expo. And I saw a number of interesting customers come over and talk to your sales people at different points in the show. Can you, maybe, update us on the tempo of activity around the charge hub? You had talked about a production schedule, that was pretty impressive. Is this product tracking with expectations, at this point? I know it solves a bottleneck, a problem for a lot of the other electric vehicle OEMs out there and the eager customers that many of them have. Any update on charge hub for us to help Understand the contributions? Giordano Sordoni Yeah. Thanks for the question. This is Gio. We are really excited about the progress on the hub. I think we've mentioned this on previous calls but we were delightfully surprised that we've had a lot of interest and, even, orders for the hub, outside of just our own truck customers. Of course, we built it to solve the charging problem that a lot of our customers experience; where they want to buy trucks but struggle to get chargers installed, whether it's permitting issues or site-related issues. And the hub really solves that by adding four DC fast chargers, with very minimal impacts to the grid or very minimal impact requirements. It acts like a buffer between our trucks and grid power. So a lot of interest and orders, outside of just Xos customers. Not only have we continued delivering hubs, we are also doing demos that could lead to larger orders, later on this year and into next year. So we're still going full speed ahead of the hub and things are going well. We're also looking at taking feedback from customers about other features they'd want to see in the hub, going forward. And we're starting to architect what a version 2 of the hub could be or what an additional or modified version of the hub could be that would allow it to appeal to a larger an even larger audience (inaudible) experience but Xos truck customers, utilities, transit authorities, and government fleets -- even autonomous car fleets -- around the country. Craig Irwin Excellent. Well, thank you for the update. And congratulations on the commercial progress. Giordano Sordoni Thanks so much. Operator (Operator Instructions) This will conclude our question-and-answer session, in addition to the call, for today. Thank you for attending today's presentation. 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Yahoo
15-05-2025
- Business
- Yahoo
Xos Inc (XOS) Q1 2025 Earnings Call Highlights: Navigating Revenue Decline and Operational ...
Revenue: $5.9 million for Q1 2025, down from $11.5 million in Q4 2024 and $13.2 million in Q1 2024. Units Delivered: 29 units recognized in Q1 2025, with 60 units shipped. Cost of Goods Sold: $4.7 million in Q1 2025, compared to $15.2 million in Q4 2024 and $10.4 million in Q1 2024. GAAP Gross Margin: Profit of $1.2 million or 20.6% in Q1 2025. Non-GAAP Gross Margin: Profit of approximately $900,000 or 15% in Q1 2025. Operating Expenses: $10.5 million in Q1 2025, down from $13 million in Q1 2024. Operating Loss: $9.3 million in Q1 2025, compared to $10.2 million in Q1 2024. Cash and Cash Equivalents: $4.8 million at the end of Q1 2025. Free Cash Flow: Negative $4.8 million in Q1 2025. Inventory: Increased to $38 million in Q1 2025. Full-Year 2025 Revenue Guidance: $50.2 million to $65.8 million. Full-Year 2025 Unit Deliveries Guidance: 320 to 420 units. Full-Year 2025 Non-GAAP Operating Loss Guidance: $17.2 million to $14 million. Warning! GuruFocus has detected 5 Warning Signs with XOS. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Xos Inc (NASDAQ:XOS) reported $5.9 million in revenue for Q1 2025, with 29 units recognized, and an additional 31 units shipped but not yet recognized, indicating future revenue potential. The company launched the MDXT, a new medium-duty chassis-cab, which has received positive feedback and is expected to tap into a larger market segment of up to 100,000 units per year. Xos Inc (NASDAQ:XOS) achieved a positive GAAP gross margin of $1.2 million or 20.6%, marking a significant improvement from previous quarters. The company has maintained seven consecutive quarters of positive non-GAAP gross margin performance, demonstrating consistent financial discipline. Xos Inc (NASDAQ:XOS) is actively managing tariff impacts by exploring alternative sourcing strategies and implementing cost reduction projects, which are expected to mitigate cost increases in the second half of the year. Revenue for Q1 2025 decreased compared to both Q4 2024 and Q1 2024, reflecting a decline in unit deliveries and revenue recognition challenges. Operating expenses remain high at $10.5 million, although they have decreased from previous quarters, indicating ongoing cost management challenges. The company reported an operating loss of $9.3 million for Q1 2025, highlighting the need for further improvements in operational efficiency. Free cash flow was negative $4.8 million in Q1 2025, impacted by inventory purchases and indicating liquidity management challenges. Xos Inc (NASDAQ:XOS) faces ongoing supply chain challenges and tariff headwinds, which could impact future cost structures and profitability. Q: Can you speak about the parts commonality between your Stepvans and the MDXT, and any potential incremental investment needed in Tennessee before launching production next year? A: Dakota Semler, CEO: We aimed to use as much content from our existing vehicle platforms to ensure reliability and durability. The MDXT shares over 90% of the same commodity components with the Stepvan, which reduces costs and simplifies inventory and training. The incremental investment in Tennessee is minimal, expected to be in a low seven-figure range, as most R&D work is already completed. Q: Can you describe the market development for the MDXT and the timeline for initial orders? A: Dakota Semler, CEO: The MDXT targets a larger market than our strip-chassis product, with potential sales of up to 100,000 units per year in classes 5 and 6. While it will take time to build the pipeline, we believe it could eventually surpass Stepvan volumes due to its broader applicability and versatility. Q: How should we think about the revenue recognition for the 31 units shipped to UPS but not recognized as revenue? A: Dakota Semler, CEO: We offer favorable pricing to large national customers, which may result in lower margins. Revenue recognition will be concentrated in Q2 and Q3, with smaller, higher-margin orders rounding out Q4. Q: Can you update us on the progress and market interest in the charge hub? A: Giordano Sordoni, COO: We have received significant interest and orders for the charge hub, even beyond our truck customers. The hub solves charging issues with minimal grid impact. We are delivering hubs and conducting demos that could lead to larger orders. We are also considering customer feedback for future versions. Q: What are the financial highlights for Q1 2025? A: Liana Pogosyan, Acting CFO: Revenue was $5.9 million for 29 units, with a GAAP gross margin profit of $1.2 million. Operating expenses were $10.5 million, and the operating loss was $9.3 million. We closed Q1 with $4.8 million in cash and reaffirmed full-year 2025 guidance with revenue expected between $50.2 million and $65.8 million. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
28-03-2025
- Automotive
- Yahoo
Xos, Inc. Reports Record-Breaking 2024 with Growing Unit Deliveries and Highest-Ever Gross Profit
Achieved $3.3 million of net cash provided by operating activities, and our first quarter of positive Free Cash Flow of $3.3 million Achieved positive gross margins of approximately 7% and approximately 18% non-GAAP gross margins, for the full year 2024 Exceeded 25% revenue growth year-over-year from 2023 to 2024 LOS ANGELES, March 28, 2025 (GLOBE NEWSWIRE) -- Xos, Inc. (NASDAQ: XOS) ('Xos' or the 'Company'), a leading electric truck manufacturer and fleet services provider, today reported financial results for the fourth quarter and year ended December 31, 2024. Fourth Quarter and Full Year 2024 Highlights: 2024 revenue increased to $56.0 million, up from $44.5 million in 2023 Delivered 297 units, up from 283 units in 2023 Improved GAAP gross margins from a negative 2.9% in 2023 to positive 7.1% in 2024 and non-GAAP gross margins (adjusted for physical inventory write-offs and reserves) from negative 5.2% in 2023 to positive 18% in 2024. Reduced operating expenses by $13.8 million, or 21.7%, compared to 2023 Received our largest customer order in 2025 for 193 units from UPS which is expected to be delivered in 2025 Launched next-generation Xos Hub, and received our largest hub order for 19 units sold to Caltrans. Dakota Semler, Chief Executive Officer of Xos, commented, "2024 was a breakout year for Xos. We delivered our most profitable year ever, expanded our customer base, and continued to innovate across multiple fronts. We're thrilled about our progress with Blue Bird, where we've built an incredible all-electric powertrain for both their school bus and commercial chassis platforms. We also launched and delivered our first Winnebago units into a mobile medical fleet, an important step into specialized vehicle markets. We're especially proud to now be a primary electric vehicle vendor for last-mile delivery fleets at UPS and FedEx Ground. And the new generation of our Xos Hub is already seeing adoption by utility and public sector leaders, including ABM, FP&L, Xcel, and Caltrans, helping them deploy electric vehicles faster and more reliably than ever before." Fourth Quarter and Full Year 2024 Financial Highlights Quarters ended Years ended (in millions) 31 Dec 2024 30 Sep 2024 31 Dec 2024 31 Dec 2023 Revenues $11.5 $15.8 $56.0 $44.5 Gross (loss) profit ($3.7) $2.9 $4.0 $(1.3) Non-GAAP gross profit (loss)(1) $2.7 $3.7 $10.0 $(2.3) Net loss $(19.0) $(10.5) $(50.2) $(75.8) Loss from operations $(14.6) $(9.7) $(45.9) $(65.0) Non-GAAP operating loss(1) $(6.4) $(6.6) $(32.1) $(58.1) Inventories $36.6 $42.4 $36.6 $37.8 Cash and cash equivalents and restricted cash(2) $11.0 $9.2 $11.0 $11.6 ____________________________(1) For further information about how we calculate Non-GAAP gross profit (loss) and Non-GAAP operating loss, see below for the reconciliations of GAAP to non-GAAP financial measures provided in the tables included in this release.(2) Includes cash and cash equivalents and restricted cash. Xos had no restricted cash at December 31, 2024 and 2023. 2025 Outlook: Xos's outlook for 2025 is as follows: Revenue $50.2 to $65.8 million Non-GAAP operating loss $17.2 to $14.0 million Unit Deliveries (1) 320 to 420 units ____________________________(1) Unit deliveries forecast includes stepvans and our powertrain and Xos Hub products. Liana Pogosyan, Acting Chief Financial Officer of Xos, added, 'This year, we continued to increase our revenues, delivered the first full year GAAP positive gross margins and reduced total operating expenses. This quarter, we also achieved significant net cash provided by operating activities and our first ever positive Free Cash Flow.' The outlook provided above is based on management beliefs and expectations as of the date of this press release. The results are based on assumptions that are believed to be reasonable as of this date, but may be materially affected by many factors, as discussed below in our 'Cautionary Statement Regarding Forward-Looking Statements' disclaimer. Actual results may vary from the outlook above and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law. Conference Call and Webcast Details Date / Time: Friday, March 28, 2025, at 4:30 p.m. EDT / 1:30 p.m. PDT Webcast: U.S. Toll-Free Dial In: 1-833-816-1411 International Dial In: 1-412-317-0507 Conference ID: 9502065 To access the call, please dial in approximately ten minutes before the start of the call. For those unable to participate in the live call, an audio replay will be available following the call through midnight Friday, March 28, 2025. To access the replay, please call 1-844-512-2921 or 1-412-317-6671 (International) and enter access code 10197245. A replay of the webcast will also be archived shortly after the call and can be accessed on the Company's website. About Xos, Inc. Xos is a leading technology company, electric truck manufacturer, and fleet services provider for battery-electric fleets. Xos vehicles and fleet management software are purpose-built for medium- and heavy-duty commercial vehicles that travel on last-mile, back-to-base routes. The company leverages its proprietary technologies to provide commercial fleets with battery-electric vehicles that are easier to maintain and more cost-efficient on a total cost of ownership (TCO) basis than their internal combustion engine counterparts. For more information, please visit Non-GAAP Financial Measures The financial information in this press release has been presented in accordance with United States generally accepted accounting principles ('GAAP') as well as on a non-GAAP basis to supplement Xos's condensed consolidated financial results. Xos's non-GAAP financial measures include operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss), which are defined below. 'Operating cash flow less CapEx (Free Cash Flow)' is defined as net cash provided by (used in) operating activities minus purchases of property and equipment. 'Non-GAAP operating loss' is defined as loss from operations adjusted for stock-based compensation, inventory write-downs and physical inventory and other adjustments. 'Non-GAAP gross profit (loss)' is defined as gross profit (loss) minus inventory write-downs and physical inventory and other adjustments. Xos believes that the use of operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss) reflects additional means of evaluating Xos's ongoing operating results and trends. The presentation of these measures should not be construed as an inference that Xos's future results will be unaffected by unusual or non-recurring items. It is important to note Xos's computation of operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss) may not be comparable to other similarly titled measures computed by other companies, because not all companies may calculate operating cash flow less CapEx (Free Cash Flow), non-GAAP operating loss and non-GAAP gross profit (loss) in the same fashion. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under GAAP when understanding Xos's operating performance. A reconciliation between historical GAAP and non-GAAP financial information is provided in this press release. Cautionary Statement Regarding Forward-Looking Statements This press release includes 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding projected financial and performance information for 2024 and 2025; expectations and timing related to product deliveries and customer demand; sufficiency of existing cash reserves; customer acquisition and order metrics; ability to access additional capital and Xos's long-term strategy and future growth. These forward-looking statements may be identified by the words 'anticipate,' 'believe,' 'continue,' 'likely,' 'plan,' 'possible,' 'project,' 'potential,' 'predict,' 'seem,' 'seek,' 'expect,' 'anticipate,' 'estimate,' 'intend,' 'strategy,' 'future,' 'target,' 'opportunity,' 'may,' 'might,' 'could,' 'should,' 'will,' 'would,' and similar expressions and any other statements that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) Xos's liquidity and access to capital when needed, including its ability to service its indebtedness; (ii) Xos's ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities, (iii) cost increases and delays in production due to supply chain shortages in the components needed for the production of Xos's vehicle chassis and battery system, (iv) Xos's ability to meet production milestones and fulfill backlog orders, (v) changes in the industries in which Xos operates, (vi) variations in operating performance across competitors, (vii) changes in laws and regulations affecting Xos's business, (viii) Xos's ability to implement its business plan or meet or exceed its financial projections, (ix) Xos's limited operating history, (x) Xos's ability to retain key personnel and hire additional personnel, particularly in light of current and potential labor shortages, (xi) the risk of downturns and a changing regulatory landscape in the highly competitive electric vehicle industry, (xii) macroeconomic and political conditions, and (xiii) the outcome of any legal proceedings that may be instituted against Xos. All forward-looking statements included in this press release are expressly qualified in their entirety by, and you should carefully consider, the foregoing factors and the other risks and uncertainties described under the heading 'Risk Factors' included in Xos's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the 'SEC') on March 29, 2024, Xos's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 14, 2024, and Xos's other filings with the SEC, copies of which may be obtained by visiting Xos's Investors Relations website at or the SEC's website at These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Xos assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Xos does not give any assurance that it will achieve its expectations. Contacts Xos Investor Relations investors@ Xos Media Relations press@ Inc. and Subsidiaries Condensed Consolidated Balance Sheets Unaudited (in thousands, except par value) December 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 10,996 $ 11,640 Accounts receivable, net 26,870 15,142 Inventories 36,567 37,843 Prepaid expenses and other current assets 7,868 7,070 Total current assets 82,301 71,695 Property and equipment, net 6,111 14,660 Operating lease right-of-use assets, net 3,193 4,991 Other non-current assets 6,728 2,338 Total assets $ 98,333 $ 93,684 Liabilities and Stockholders' Equity Accounts payable $ 8,931 $ 2,756 Convertible debt, current 19,970 - Other current liabilities 17,768 16,817 Total current liabilities 46,669 19,573 Convertible debt, non-current - 19,920 Earn-out shares liability - 39 Common stock warrant liability 121 395 Other non-current liabilities 17,933 8,561 Total liabilities 64,723 48,488 Stockholders' Equity Common Stock $0.0001 par value per share, authorized 1,000,000 shares, 8,046 and 5,941 shares issued and outstanding at December 31, 2024 and 2023, respectively 1 1 Preferred Stock $0.0001 par value per share, authorized 10,000 shares, 0 shares issued and outstanding at December 31, 2024 and 2023 - - Additional paid-in capital 237,029 198,456 Accumulated deficit (203,420 ) (153,261 ) Total stockholders' equity 33,610 45,196 Total liabilities and stockholders' equity $ 98,333 $ 93,684 Xos, Inc. and Subsidiaries Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (in thousands, except per share amounts) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Revenues $ 11,474 $ 18,376 $ 55,961 $ 44,523 Cost of goods sold 15,191 17,049 51,966 45,813 Gross (loss) profit (3,717 ) 1,327 3,965 (1,290 ) Operating expenses General and administrative 8,051 7,737 35,083 37,698 Research and development 1,936 4,143 10,627 19,589 Sales and marketing 868 1,275 4,129 6,388 Total operating expenses 10,855 13,155 49,839 63,675 Loss from operations (14,572 ) (11,828 ) (45,874 ) (64,965 ) Other expense, net (4,812 ) (2,207 ) (4,561 ) (12,047 ) Change in fair value of derivative instruments 421 146 274 671 Change in fair value of earn-out shares liability 6 76 39 519 Loss before provision for income taxes (18,957 ) (13,813 ) (50,122 ) (75,822 ) Provision for income taxes 24 14 37 21 Net loss $ (18,981 ) $ (13,827 ) $ (50,159 ) $ (75,843 ) Other comprehensive income (loss) Marketable debt securities, available-for-sale Change in net unrealized gain, net of tax of $0, for the three and twelve months ended December 31, 2024 and 2023 - - - 739 Total comprehensive loss $ (18,981 ) $ (13,827 ) $ (50,159 ) $ (75,104 ) Net loss per share (1) Basic $ (2.36 ) $ (2.33 ) $ (6.69 ) $ (13.11 ) Diluted $ (2.36 ) $ (2.33 ) $ (6.69 ) $ (13.11 ) Weighted average shares outstanding (1) Basic 8,034 5,933 7,500 5,787 Diluted 8,034 5,933 7,500 5,787 (1) Shares have been retrospectively adjusted for the 1-for-30 reverse stock split that occurred on December 6, 2023. Reconciliation of Operating Cash Flow less CapEx (Free Cash Flow), Non-GAAP Operating Loss and Non-GAAP Gross Profit (Loss): Operating Cash Flow less CapEx (Free Cash Flow): Three Months EndedDecember 31, Twelve Months EndedDecember 31, Three Months EndedSeptember 30, (in thousands) 2024 2023 2024 2023 2024 Net cash provided by (used in) operating activities $ 3,298 $ (631 ) $ (48,795 ) $ (39,286 ) $ (11,517 ) Purchase of property and equipment - (221 ) (304 ) (1,385 ) (148 ) Free-Cash Flow $ 3,298 $ (852 ) $ (49,099 ) $ (40,671 ) $ (11,665 ) Non-GAAP Operating Loss: Three Months Ended December 31, Twelve Months Ended December 31, Three Months Ended September 30, (in thousands) 2024 2023 2024 2023 2024 Loss from operations $ (14,572 ) $ (11,828 ) $ (45,874 ) $ (64,965 ) $ (9,691 ) Stock-based compensation 1,823 1,598 7,710 7,906 2,247 Inventory reserves 3,752 (721 ) 2,940 (1,876 ) 424 Physical inventory and other adjustments 2,632 25 3,141 864 377 Non-GAAP Operating Loss $ (6,365 ) $ (10,926 ) $ (32,083 ) $ (58,071 ) $ (6,643 ) Non-GAAP Gross Profit (Loss): Three Months Ended December 31, Twelve Months Ended December 31, Three Months Ended September 30, (in thousands) 2024 2023 2024 2023 2024 Gross (loss) profit $ (3,717 ) $ 1,327 $ 3,965 $ (1,290 ) $ 2,864 Inventory reserves 3,752 (721 ) 2,940 (1,876 ) 424 Physical inventory and other adjustments 2,632 25 3,141 864 377 Non-GAAP Gross Profit (Loss) $ 2,667 $ 631 $ 10,046 $ (2,302 ) $ 3,665
