XOS Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: Q2 2026 revenue was $4.7 million from 30 units delivered, down from $18.4 million on 135 units in Q2 2025 and $11.2 million on 95 units in Q1 2026.

First Half Performance: Total revenue for H1 2026 was $16 million on 125 units, compared to $24.3 million on 164 units in H1 2025.

Gross Margin: GAAP gross margin for H1 2026 was 31%, the highest in company history, with a GAAP gross profit of $4.9 million. Q2 2026 GAAP gross profit was $600,000 (12.1% margin).

Operating Loss: Q2 2026 operating loss was $7.9 million, compared to $7.1 million in Q2 2025 and $4.6 million in Q1 2026. H1 2026 operating loss improved to $12.6 million from $16.3 million in H1 2025.

Cash Position: Cash and cash equivalents increased to $13.2 million from $9.8 million at the end of Q1 2026, bolstered by $7.6 million raised through offerings.

2Strategic Updates and Business Highlights

Product Launch: The PowerHub, a mobile battery energy storage system, was launched, positioning XOS in the growing power infrastructure market.

Production Milestones: Q2 marked the highest production quarter for the Exos Hub with 29 units produced, reflecting improved manufacturing processes.

Market Demand: Strong demand remains for energy storage solutions, particularly from data centers and defense sectors, with XOS already having over 250 megawatt hours deployed.

Operational Efficiency: Continued focus on reducing inventory and improving accounts receivable turnover, with inventory down to $23.5 million.

3Forward Guidance and Outlook

Revised Guidance: Full year 2026 revenue is now expected to be between $35 million and $43 million, with unit deliveries projected between 250-350 units. Non-GAAP operating loss is expected to range from $14.7 million to $11.4 million.

Second Half Expectations: Management anticipates a strong second half of 2026 with significant order fulfillment expected.

4Bad News, Challenges, or Points of Concern

Delivery Shortfall: Deliveries were lower than anticipated due to customer delays and acceptance issues, which management acknowledged as frustrating.

Operating Losses: Despite improvements, operating losses increased sequentially in Q2 2026, highlighting ongoing challenges in scaling operations amidst changing market dynamics.

Competitive Pressures: The market for energy storage is competitive, with notable products like Ford's unit using CATL cells posing challenges in pricing and customer acquisition.

5Notable Q&A Insights

Certification Process: Management confirmed ongoing UL certification for the PowerHub, with some approvals expected soon, but additional standards may extend into next year.

Customer Readiness: Delays in customer readiness were cited as a key reason for the shortfall in deliveries, particularly affecting powertrain orders.

Bluebird Relationship: Discussions highlighted potential growth opportunities with Bluebird, particularly in the zero-emissions commercial chassis space, as they expand their operations. Overall, while XOS experienced challenges in unit deliveries and operating losses, strategic initiatives like the PowerHub launch and improved operational efficiencies signal potential for future growth in a rapidly evolving market.