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Sep 30
XOS Inc Q3 2025 Earnings Report
Xos reported its Q3 2025 results, achieving profitability and positive free cash flow with improved margins and disciplined cost management.
Key Takeaways
Xos delivered a strong Q3 2025, posting $2.1M in net income and generating positive free cash flow of $3.1M. Gross margin rose to 15.3%, and revenue reached $16.5M on 130 units delivered, reflecting operational efficiency and disciplined cost management.
Generated $2.1M in net income, a turnaround from a $10.5M loss in Q3 2024
Free cash flow of $3.1M marked the second consecutive quarter of positive cash flow
Delivered 130 units and recognized $16.5M in revenue
Gross margin improved sequentially to 15.3% from 8.8% in Q2 2025
XOS Inc
XOS Inc
Forward Guidance
Xos reaffirmed its 2025 guidance, projecting revenue between $50.2M and $65.8M, unit deliveries of 320–420, and a non-GAAP operating loss of $26.9M to $24.4M.
Positive Outlook
- Maintained full-year revenue guidance despite Q3 revenue decline
- Reaffirmed delivery targets, reflecting strong order momentum
- Improved inventory turnover contributing to better cash flow
- Balance sheet strengthened with lease termination and ATM proceeds
- Continued focus on cost control and efficiency improvements
Challenges Ahead
- Sequential revenue decline from Q2 2025 ($18.4M to $16.5M)
- Gross profit lower YoY due to product mix and tariffs
- Operating loss persists despite improvement
- Revenue recognition delayed for 10 additional units shipped
- Convertible debt remains a balance sheet concern despite restructuring