Xos (XOS) investor relations material

Executive summary

• Q2 2026 marked a pivotal quarter with the launch of the Power Hub, expanding into power infrastructure and energy storage for data centers and the AI economy, with a strategic focus on powertrain and hub production.

• Delivered 30 units generating $4.7M in revenue, down from 135 units and $18.4M in Q2 2025, reflecting a shift in product mix.

• Achieved second consecutive quarter of positive gross margin, with 12 consecutive quarters of positive non-GAAP gross margins.

• Net loss for Q2 2026 was $6.9M, an improvement from $7.5M in Q2 2025, driven by lower operating expenses and improved other income.

• The company continues to face substantial doubt about its ability to continue as a going concern due to ongoing losses, negative cash flows, and limited liquidity.

Financial highlights

• Q2 2026 revenue was $4.7M on 30 units, down from $18.4M on 135 units in Q2 2025; first half 2026 revenue was $16.0M on 125 units, down from $24.3M on 164 units in H1 2025.

• Q2 2026 gross profit was $0.6M (12.1% margin), non-GAAP $0.3M (7.2%); first half 2026 GAAP gross profit was $4.9M (31%), non-GAAP $4.6M (29%).

• Q2 2026 operating loss was $7.9M; non-GAAP operating loss improved to $6.2M year-over-year.

• Q2 2026 net loss was $6.9M; first half net loss was $11.8M, improved from $17.6M year-over-year.

• Ended Q2 2026 with $13.2M in cash, up from $9.8M in Q1 2026.

Outlook and guidance

• Revised full-year 2026 revenue guidance to $35–43M, with unit deliveries of 250–350 and non-GAAP operating loss of $14.7–11.4M.

• Majority of 2026 deliveries expected in the second half, weighted toward higher-margin products.

• Management expects continued volatility in unit sales and revenue due to lack of a robust order backlog and ongoing supply chain and tariff disruptions.

• The company is actively seeking additional capital through equity and debt offerings but warns that access to capital is not assured.

• If unable to secure funding or extend debt maturities, the company may be forced to seek bankruptcy protection.