Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) _______________________________________________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-39598 XO ...

Xos, Inc. (XOS) came out with a quarterly loss of $1.26 per share versus the Zacks Consensus Estimate of a loss of $1.09. This compares to loss of $1.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -15.60%. A quarter ago, it was expected that this company would post a loss of $1.13 per share when it actually produced a loss of $2.36, delivering a surprise of -108.85%.Over the last four quarters, the company has surpassed co ...

Xos (XOS) Q1 2025 Earnings Call May 14, 2025 04:30 PM ET Speaker0 Good day and welcome to the Exos Inc. First Quarter of twenty twenty five Earnings Call. All participants will be in a listen only mode for the duration of the call. And should you need any assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch tone phone. Please also not ...

Exhibit 99.1 Xos Delivers First Quarter Results, Highlighting GAAP Margin Gains Achieved positive gross margin of approximately 20%, for the first quarter 2025 LOS ANGELES, CA – May 14, 2025 – Xos, Inc. (NASDAQ: XOS) ("Xos" or the "Company"), a leading electric truck manufacturer and fleet services provider, today reported financial results for the first quarter ended March 31, 2025. First Quarter 2025 Highlights: Xos began 2025 with continued momentum despite a seasonal slowdown in the first quarter, as fl ...

Achieved positive gross margin of approximately 20%, for the first quarter 2025LOS ANGELES, May 14, 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 first quarter ended March 31, 2025. First Quarter 2025 Highlights: Delivered 29 units and generated $5.9 million in revenue during the first quarter of 2025, compared to 62 units and $13.2 million in revenue in the first quarter ...

LOS ANGELES, May 09, 2025 (GLOBE NEWSWIRE) -- Xos, Inc. (NASDAQ: XOS), a leading electric truck manufacturer and fleet services provider, announced it is scheduling the release of its first quarter 2025 operating results on Wednesday, May 14, 2025 after the close of the U.S. financial markets. Management will host a conference call to discuss these financial results at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time that same day. Conference Call and Webcast Details Date / Time:Wednesday, May 14, 2025, at 4 ...

Core Viewpoint - Xos, Inc. (XOS) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Xos, the recent upgrade reflects an improvement in the company's underlying business, suggesting that investor sentiment may lead to increased stock prices [5][10]. Earnings Estimate Revisions - Xos is projected to earn -$3.97 per share for the fiscal year ending December 2025, representing a year-over-year change of 40.7% [8]. - Over the past three months, the Zacks Consensus Estimate for Xos has increased by 5%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - The upgrade of Xos to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable position for potential price increases in the near term [10].

Acquisition and Partnerships - Xos completed the acquisition of ElectraMeccanica, converting each share into 0.0143739 of a share of Common Stock, totaling 1,766,388 shares[30]. - The acquisition of ElectraMeccanica is expected to enhance capital position and provide growth opportunities, but realization of these benefits is uncertain[208]. - The company is actively pursuing partnerships with OEMs to supply powertrain kits for various commercial vehicles[51]. - The company has entered into MOUs with key manufacturers and suppliers to form strategic alliances, but there is no guarantee these will lead to successful relationships[125]. Product and Technology Development - The next-generation Xos Hub™ offers 280kWh of energy storage capacity and charging rates up to 320kW, allowing simultaneous charging of up to four electric vehicles[40]. - The X-Platform chassis is designed for medium-duty commercial vehicles, focusing on durability and reliability for last-mile applications[44]. - Xos utilizes lithium iron phosphate (LFP) battery packs, which are known for their long cycle life and reduced reliance on rare earth minerals[46]. - The company plans to release refreshed versions of its vehicles as battery technology evolves, which may affect the adoption of existing products[121]. Financial Performance and Risks - The company incurred an operating loss of $45.9 million for the year ended December 31, 2024[174]. - Negative cash flow from operating activities was $48.8 million for the year ended December 31, 2024[178]. - The company faces substantial doubt about its ability to continue as a going concern for the next 12 months due to uncertainties regarding capital access and operational funding[102][108]. - The company may face significant capital needs and may need to raise additional capital, which could dilute stockholders[180]. - The company is dependent on the adoption of electric vehicles by last-mile delivery fleets, and any failure in market development could materially impact its business[120]. Customer and Revenue Concentration - Three customers accounted for 34% of the Company's revenue during the year ended December 31, 2024, with individual contributions of 13%, 11%, and 10%[52]. - The company relies heavily on a small number of customers for revenue, and any loss or reduction in purchases from these customers could adversely affect financial performance[110]. Regulatory and Compliance Challenges - The company is subject to fluctuating raw material prices and potential supply chain risks, with key suppliers including CATL and Dana[60]. - The company is exposed to fluctuations in material costs, which could impact margins if not recouped through sales[146]. - The company faces regulatory risks related to U.S. trade policies and tariffs, which could adversely affect costs and demand for products[212][213]. - Compliance with substantial regulations is necessary for the company and its suppliers, and failure to comply could harm business operations[219]. Operational and Manufacturing Challenges - The company has experienced delays in battery production, resulting in a manufacturing backlog in the vehicle assembly line[128]. - The company has no experience in high-volume manufacturing, which raises concerns about meeting quality and production standards[133]. - The company relies on third-party suppliers for key components, and any delays from these suppliers could impact delivery timelines[128]. - Delays in providing sufficient charging solutions have resulted in postponed vehicle deliveries, impacting customer demand[151]. Workforce and Organizational Changes - The company has 109 full-time employees and 21 contractors as of December 31, 2024, down from 161 full-time employees and 25 contractors the previous year[96]. - The company initiated a workforce reduction of approximately 26% to cut future operating expenses and improve cash flows[172]. - The company has plans to strategically hire more personnel[159]. Intellectual Property and Innovation - As of December 31, 2024, Xos had eight awarded U.S. patents and 23 pending or approved U.S. trademark applications, reflecting its commitment to intellectual property protection[84]. Environmental and Market Considerations - Xos customers may be eligible for up to $40,000 in federal tax credits per vehicle under the Inflation Reduction Act, effective through 2032[66]. - The company is leveraging incentive programs from various states to encourage the installation of charging infrastructure for electric vehicles[69]. - The automotive industry typically experiences higher revenue in spring and summer months, with a peak season for commercial vehicle sales between Thanksgiving and Christmas[82]. Cybersecurity and IT Risks - Cybersecurity threats, including ransomware attacks, are increasingly prevalent and can lead to significant operational disruptions and reputational harm[226]. - The company relies on third-party service providers for critical business systems, and any security incidents with these providers could result in adverse consequences[229]. - The complexity of the company's IT systems and the need for periodic remote updates pose inherent risks, including potential software bugs and security vulnerabilities[231].

Financial Data and Key Metrics Changes - For the full year of 2024, revenue increased to $56 million from $44.5 million in 2023, while cost of goods sold rose to $52 million from $45.8 million [40] - GAAP gross margin for 2024 was a profit of $4 million or 7.1%, compared to a loss of $1.3 million or negative 2.9% in 2023 [40] - Non-GAAP gross margin for 2024 was a profit of $10 million or 18%, compared to a loss of $2.3 million or negative 5.2% in 2023 [40] - In Q4, revenue was $11.5 million, down from $15.8 million in Q3, with cost of goods sold increasing to $15.2 million from $12.9 million in Q3 [41][42] - Q4 GAAP gross margin was a loss of $3.7 million or negative 32.4%, significantly impacted by inventory reserves and write-offs [42] Business Line Data and Key Metrics Changes - In Q4, the company delivered 51 units, reflecting a 27.3% decline in top-line revenue compared to Q3 due to seasonal delays in the parcel delivery segment [11][16] - The step-van business is expected to shift positively towards strip chassis deliveries, which can reduce inventory turnover by two to three months [17] - The powertrain business made significant progress, with the first powertrain product delivered for a Bluebird electric school bus [18] Market Data and Key Metrics Changes - The company has secured major commercial orders, including nearly 200 strip chassis for UPS and 20 hub units for Caltrans, indicating strong demand across various sectors [14] - The hub product has seen increased demand, with customers including Waymo and Duke Energy, and production rates reached approximately two hub units per week [20][32] Company Strategy and Development Direction - The company aims to continue growing revenue, improving liquidity, and expanding margins while adapting to regulatory changes and infrastructure challenges in the EV market [50] - There is a focus on American manufacturing, with significant investments in the Tennessee facility to support operations [38] - The company is exploring alternative sourcing strategies to mitigate potential tariff impacts and enhance its supply chain [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand pipeline despite challenges from seasonal delays and potential tariff impacts [11][10] - The outlook for 2025 anticipates revenue between $50.2 million and $65.8 million, with unit deliveries expected to range from 320 to 420 units [48] - Management remains focused on achieving positive gross margins and improving working capital efficiency [72] Other Important Information - The company closed a significant transaction that added over $40 million in liquidity to its balance sheet [15] - Inventory decreased to $36.6 million from $42.6 million last quarter, reflecting improved inventory management practices [47] Q&A Session Summary Question: Gross margin performance despite lower volume - Management attributed strong margins to a shifting product mix, particularly with specialty products like the XS Hub [56] Question: Hub business outlook and production capacity - Management indicated plans to increase hub capabilities and production capacity based on customer demand [60][62] Question: FMVSS certification for powertrain business - The powertrain business requires deep partnerships for engineering validation and testing, with production units expected to be shipped to end-user customers [68] Question: Balance sheet and working capital improvements - Management emphasized the goal of improving working capital usage and reducing inventory levels through strategic partnerships and delivery shifts [72][75] Question: Margin growth expectations for 2025 - Management anticipates continued positive gross margins and year-over-year growth on an adjusted basis [80] Question: Environmental credit revenue in Q4 - No environmental credit revenue was reported in Q4, contrasting with the previous quarter [89] Question: Unit mix and guidance for 2025 - An increased mix of hubs, which have higher average selling prices, was noted, with expectations for continued demand in 2025 [92] Question: CapEx expectations for 2025 - Management does not anticipate significant CapEx beyond maintenance and minor investments, given the current capacity of the Tennessee plant [94]

Company Performance - Xos, Inc. reported a quarterly loss of $2.36 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.13, representing an earnings surprise of -108.85% [1] - The company posted revenues of $11.47 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 35.49%, and down from $18.38 million a year ago [2] - Over the last four quarters, Xos has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Outlook - Xos shares have increased by approximately 9.9% since the beginning of the year, contrasting with the S&P 500's decline of -3.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$1.14 on revenues of $17.8 million, and for the current fiscal year, it is -$4.18 on revenues of $102.46 million [7] Industry Context - The Automotive - Domestic industry, to which Xos belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Xos's stock performance [5]