Xos 2025 Q1 Earnings Misses Targets, Net Loss Narrows 7.4%

Xos (XOS) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company fell short of expectations, posting a quarterly loss of $1.26 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.09. Despite this, guidance remains in line as Xos projects revenue between $50.2 million and $65.8 million for 2025, with projected unit deliveries ranging from 320 to 420 units. The company remains focused on mitigating tariff-related cost pressures through strategic initiatives, including product launches.

Revenue

The total revenue of Xos decreased by 55.3% to $5.88 million in 2025 Q1, down from $13.16 million in 2024 Q1.

Earnings/Net Income

Xos narrowed losses to $1.26 per share in 2025 Q1 from a loss of $1.80 per share in 2024 Q1 (30.0% improvement). Meanwhile, the company successfully narrowed its net loss to $-10.19 million in 2025 Q1, reducing losses by 7.4% compared to the $-11 million net loss reported in 2024 Q1. The EPS indicates ongoing challenges, as it missed market expectations.

Price Action

The stock price of Xos has edged up 0.57% during the latest trading day, has tumbled 8.07% during the most recent full trading week, and has climbed 5.69% month-to-date.

Post-Earnings Price Action Review

The strategy of buying XOS when revenue beats and holding for 30 days shows promising potential, but it's crucial to consider the risks and market dynamics. Despite revenue declines, Xos managed to deliver 29 units and significantly cut operating expenses by $2.6 million, marking a 19.6% reduction compared to Q1 2024. However, following the earnings announcement, Xos's stock fell by 4.31% during regular trading and an additional 7.16% in aftermarket trading, reflecting market concerns about its short-term prospects despite positive operational changes. Holding the stock for 30 days could expose investors to volatility, as further market reactions to upcoming challenges or uncertainties remain possible. Xos is actively mitigating future tariff-related cost pressures and has launched the MDXT chassis cab, receiving positive feedback from fleet owners. These strategic moves may strengthen Xos's positioning in the long term, potentially increasing market share and profitability. Nonetheless, investors should weigh their risk tolerance and closely monitor Xos's operational progress and market reactions to new products.

CEO Commentary

Dakota Semler, Chief Executive Officer of Xos, expressed optimism regarding the company's performance despite a typical seasonal slowdown, noting that they shipped 60 vehicles in Q1. He highlighted increased momentum in Q2, with expectations for improved deliveries and cash flow performance. Semler emphasized the strong demand for Xos products and anticipated growth for the remainder of the year.

Guidance

Xos's outlook for 2025 includes projected revenue between $50.2 million to $65.8 million and a non-GAAP operating loss anticipated to range from $17.2 million to $14.0 million. The company expects unit deliveries to fall between 320 and 420 units, which encompasses stepvans, stripped chassis, and powertrain products.

Additional News

In recent non-earnings news, Xos announced the addition of its Xos Hub™ to the General Services Administration (GSA) Schedule, allowing federal agencies to streamline procurement through GSA Advantage. This move positions Xos to potentially expand its federal customer base by offering solutions for fleet electrification with rapid deployment capability. Additionally, Xos has partnered with Crown Linen Service, providing fully electric stepvans to support Crown Linen's sustainability initiatives. This partnership reflects Xos's commitment to advancing electric mobility solutions within the commercial sector. Furthermore, Xos has continued to strengthen its strategic relationships, notably with UPS and FedEx Ground, as it progresses with deliveries for these major clients.