Xos (XOS) Q4 2025 earnings summary

Executive summary

• Achieved $46 million in revenue on 328 units for 2025, with positive free cash flow of $5.4 million and a $54 million improvement year-over-year.

• Delivered third consecutive quarter of positive free cash flow in Q4, ending 2025 with $14 million in cash, up 28% year-over-year.

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

• Amended convertible note repayment, extending maturity and improving liquidity.

• Shifted product mix toward powertrains and stripped chassis, impacting revenue per unit but supporting platform expansion.

Financial highlights

• Full year revenue was $46 million on 328 units, down from $56 million on 297 units in 2024 due to lower average selling price and product mix shift.

• GAAP gross margin for 2025 was $2.7 million (5.9%), down from $4 million (7.1%) in 2024; non-GAAP gross margin was $4.1 million (8.8%), down from $10 million (18%).

• Operating loss narrowed 28% to $33.1 million; adjusted EBITDA loss improved 33% to $23.5 million.

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

• Inventory declined to $25 million from $36.6 million, reflecting improved working capital management.

Outlook and guidance

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

• Anticipates continued growth in powertrain and hub segments, with step vans sustaining core customers.

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