XOS Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $11.2 million, nearly double from $5.9 million in Q1 2025 and up from $5.2 million in Q4 2025.

Unit Deliveries: 95 units delivered, including 63 powertrain systems for Blue Bird and 10 strip chassis for UPS.

Gross Margin: Achieved the highest gross margin in company history at 38.6%, up from 20.6% in Q1 2025 and a loss of 50.5% in Q4 2025.

Operating Loss: Reduced to $4.7 million from $9.3 million in Q1 2025 and $9.7 million in Q4 2025.

Non-GAAP Operating Loss: $2.6 million, the lowest since going public.

Cash Position: Closed the quarter with $9.8 million in cash and cash equivalents; free cash flow was negative $1.6 million.

Inventory: Decreased to $23.7 million from $25 million in Q4 2025 and $38 million in Q1 2025.

2Strategic Updates and Business Highlights

XOS is evolving from a commercial electric truck manufacturer to a broader power and infrastructure-driven business, focusing on mobile energy infrastructure (Xos Hub) and powertrain systems.

Strong demand for the Xos Hub, with ongoing investments in production capacity and engineering to expand its capabilities.

New customer deployments, including a significant project with MacAllister-Caterpillar for a data center construction project.

Engagement with municipal and federal customers is increasing, with participation in key industry events and showcases.

3Forward Guidance and Outlook

Reaffirmed full-year 2026 guidance:

Revenue between $40 million and $50 million.

Unit deliveries between 350 and 500 units.

Non-GAAP operating loss between $11.9 million and $13.3 million.

Management expects gross margins for 2026 to be significantly better than in 2025, driven by a favorable product mix and ongoing cost discipline.

4Bad News, Challenges, or Points of Concern

Regulatory headwinds: The removal of California's CARB waiver and challenges to the EPA's Endangerment Finding may impact zero-emissions adoption.

Economic factors: Rising diesel and gasoline prices are driving demand, but reliance on economic conditions poses risks.

Supply chain disruptions and potential tariffs remain a concern for future operations and cost management.

5Notable Q&A Insights

Management confirmed approximately 22 hubs were delivered in Q1 2026.

Future product mix is uncertain, but higher-margin hubs are expected to drive growth.

The hub is anticipated to be a primary growth driver over the next few years, with significant interest from new customer segments.

The relationship with Blue Bird is strengthening, with opportunities for deeper collaboration on additional product lines.

Management indicated minimal capital expenditure would be needed to scale production, leveraging existing infrastructure and capabilities. Overall, Q1 2026 marked a significant milestone for XOS, showcasing strong financial performance and strategic growth initiatives, while also highlighting potential challenges in the regulatory and economic landscape.