Xos(XOS -18.78%) reported second-quarter 2025 results on August 13, 2025, posting record quarterly GAAP revenue of $18.4 million on 135 units delivered and achieving its lowest operating loss as a public company at $7.1 million. The company reaffirmed its full-year 2025 guidance of $50.2 million to $65.8 million in revenue and 320 to 420 units, but raised its non-GAAP operating loss forecast for fiscal 2025 due to tariffs and product mix changes. This summary highlights Xos’s scaling deliveries, sustained margin discipline, and actions to reinforce liquidity amid a challenging competitive and macro environment.

Record deliveries cement Xos’s operational scale

The company’s Tennessee plant maintained high utilization to meet growing UPS demand, while its largest-ever 200-plus unit order demonstrates increasing customer scale. 135 vehicles were delivered, up from 29 last quarter and 90 units a year ago.

"We delivered 135 vehicles in the second quarter, generating $18.4 million in revenue, making it the highest quarterly revenue and unit deliveries in Xos' history. A significant portion of these deliveries went to UPS and FedEx ISP customers, underscoring the confidence that national carriers are placing in our products. In parallel, we reaffirmed our commitment to our existing customers by shipping additional units under previously announced agreements. During the quarter, we also began fulfilling a 200-plus unit order for a single customer, which is the largest order in our history and reflects the increasing scale of our customer relationships."
-- Dakota Semler, Chief Executive Officer

This milestone in unit volume and order size signals advancing production capability and deepening strategic ties with major delivery fleets, positioning Xos for further revenue growth within commercial electric vehicles (EVs).

Cost controls drive reduced Xos operating losses

GAAP operating expenses fell 17% quarter-over-quarter (QoQ) and 35% from 2024, resulting in the company’s lowest-ever quarterly operating loss since going public, $7.1 million. Sequential improvements in inventory and receivables also delivered positive free cash flow of $4.6 million, only the second quarter of positive free cash flow in the company’s history.

"Operating expenses (GAAP) were $8.7 million in Q2 2025, down $1.8 million or 17% from last quarter, and $4.7 million or 35% from 2024. The sequential decline reflects a $1.9 million finance lease expense recorded in the first quarter with no comparable expense this quarter. For 2025, operating expenses totaled $19.2 million, a $7.2 million or 27% improvement from $26.4 million in the same period last year. These reductions highlight the lasting benefits of last year's cost actions and our ongoing commitment to operational discipline. Operating loss for the quarter was $7.1 million, our lowest since going public, improving from $9.3 million in the first quarter and $11.4 million in 2024. Non-GAAP operating loss also hit a record low at $6.9 million, compared to $8.1 million in the first quarter and $9.7 million in 2024."
-- Liana Pogosyan, Chief Financial Officer

Disciplined expense management and targeted cost actions are improving operating leverage, strengthening short-term financial resilience, and supporting Xos’s ability to navigate volatile market conditions without sacrificing growth.

Xos enhances liquidity and diversifies customer risk

Cash and cash equivalents climbed to $8.8 million, aided by inventory declining to $31 million from $38 million last quarter, and $22.8 million in receivables was collected. A critical amendment with Aljamet Automotive Company extended convertible note repayments from November 2025 through February 2028, easing near-term liquidity pressures and solidifying Aljamet as Xos’s largest shareholder.

"Aljamet and Xos have agreed to amend the repayment structure of the convertible note, allowing us to repay the principal in quarterly installments from November 2025 through February 2028, rather than being due all at once on August 11, 2025. This approach frees up capital to focus on sustainable growth and further strengthening liquidity as demand for our products and services continues to grow. The interest accrued on the convertible note through its original maturity date will be paid in shares of common stock, as it would have been had the term not been extended, making Aljamet our largest shareholder."
-- Dakota Semler, Chief Executive Officer

Extending key debt maturities improves funding flexibility for operations and R&D, while shifting interest payments into common stock further conserves cash and could deepen strategic alignment with Aljamet.

Looking Ahead

Management reaffirmed full-year fiscal 2025 revenue guidance of $50.2 million to $65.8 million and 320 to 420 units delivered but raised its non-GAAP operating loss range to $24.4 million to $26.9 million for fiscal 2025, citing adverse product mix and new tariffs. The company expects average order sizes to increase and highlighted a product update for the Xos hub in 2026 to target power resilience and grid services. No new guidance was provided regarding MDXT launch timing or order backlog.