Xos 2025 Q2 Earnings 26.0% Reduction in Loss Per Share

Xos (XOS) delivered its Q2 2025 earnings on August 13, 2025, reporting an 18.4% year-over-year revenue increase to $18.39 million. Despite sustained losses, the company narrowed its per-share loss by 26.0% to $0.91 from $1.23 in the prior-year period. The company reaffirmed its full-year 2025 revenue guidance and revised non-GAAP operating loss expectations, emphasizing disciplined growth and liquidity management.

Revenue
Xos reported total revenue of $18.39 million for Q2 2025, reflecting an 18.4% increase compared to $15.54 million in Q2 2024. This growth underscores the rising demand from key customers like UPS and FedEx.

Earnings/Net Income
The company narrowed its net loss to $-7.50 million in Q2 2025, a 22.3% reduction compared to the $-9.66 million net loss in Q2 2024. Earnings per share (EPS) improved by 26.0% to $-0.91 from $-1.23 per share in the prior year. While the narrowing losses indicate progress, the ongoing losses for five consecutive years demonstrate continued financial challenges.

Price Action
Following the earnings report, Xos’s stock price rose 5.44% on the latest trading day, climbed 14.05% for the week, and gained 2.26% month-to-date, showing short-term investor optimism.

Post-Earnings Price Action Review
A post-earnings investment strategy of buying XOS shares after a revenue increase and holding for 30 days performed poorly over the past three years, returning -92.54% versus a 46.32% benchmark. The strategy showed a maximum drawdown of 0.00% and a Sharpe ratio of -0.60, indicating high risk with negative returns relative to the benchmark.

CEO Commentary
Dakota Semler, Xos’s CEO and Chairman, highlighted the company’s record Q2 performance with $18.4 million in revenue and 135 unit deliveries. He emphasized efforts to improve margins, manage liquidity, and pursue economies of scale through higher-margin products like powertrains and charging infrastructure. Additionally, Semler mentioned a strategic restructuring with Aljomaih to enhance liquidity and diversify revenue streams, aiming to reduce customer concentration and expand into energy management solutions.

Guidance
Xos reaffirmed its 2025 revenue guidance of $50.2–$65.8 million and unit deliveries of 320–420 units. It revised non-GAAP operating loss guidance to $24.4–$26.9 million, attributing the adjustment to product mix and tariff impacts.

Additional News
Recent news includes a strategic restructuring with Aljomaih to improve liquidity and diversify revenue streams. Xos is focusing on expanding into higher-margin products and energy management solutions. Additionally, the company is working to reduce customer concentration and enhance operational efficiency. These strategic shifts are part of a broader effort to strengthen long-term profitability and adapt to market challenges.