Xos Achieves Record Revenue and Deliveries in Q2 2025, Exceeding Full-Year Guidance

Xos Inc. reported record revenue of $18.4 million in Q2 2025, up 18.7% YoY, and highest quarterly deliveries with 135 units, a 50% increase from Q2 2024. The company achieved positive operating cash flow of $4.6 million, marking the highest in its history. Despite a contraction in gross margins to 8.8%, Xos maintains its full-year 2025 revenue guidance of $50.2 million to $65.8 million and expects to deliver between 320 and 420 units.

Xos Inc. (XOS) reported a significant milestone in its financial performance for the second quarter of 2025. The company recorded a record revenue of $18.4 million, representing an 18.7% year-over-year (YoY) increase, and delivered 135 units, a 50% increase compared to the same period last year. This quarter's performance underscores Xos's growing market presence and customer demand.

Key financial highlights include a positive operating cash flow of $4.6 million, the highest in the company's history. Despite a contraction in gross margins to 8.8%, Xos maintains its full-year 2025 revenue guidance of $50.2 million to $65.8 million and expects to deliver between 320 and 420 units. These figures reflect the company's commitment to disciplined growth and cost control.

The company's CEO, Dakota Semler, attributed the growth to strong demand and increased liquidity. Xos has expanded its delivery network and expects continued growth in the future. The company also secured a significant order of over 200 units from a single customer, the largest in its history, indicating strong customer relationships and demand.

However, challenges remain. The company's gross margin declined to 8.8% from 20.6% in the previous quarter, impacted by tariffs and structured pricing for large orders. The non-GAAP gross margin decreased to 1.4% in the second quarter, down from 15% in the first quarter, reflecting challenges in inventory management and tariff costs. Operating expenses, although reduced, still amounted to $8.7 million, highlighting ongoing financial pressures.

Xos continues to face supply chain challenges and tariff uncertainties, which could impact future profitability and operational performance. The company has revised its non-GAAP operating loss guidance to a range of $24.4 million to $26.9 million due to changes in product mix and increased tariff-related costs.

Despite these challenges, Xos remains optimistic about its future. The company plans to maintain its lean and agile operations while expanding its product offerings. With a strong sales pipeline and adaptability to market changes, Xos aims to make 2025 its biggest year yet, solidifying its position as a leading commercial electric vehicle manufacturer.

References:
[1] https://finance.yahoo.com/news/xos-inc-xos-q2-2025-071344751.html
[2] https://www.ainvest.com/news/xos-exceeds-revenue-target-q2-2025-expands-deliveries-liquidity-2508/