Overview

* Xos Q3 revenue declined from Q2 and missed analyst expectations

* Company achieved positive net income of $2.1 mln for Q3 2025

* Operating expenses decreased 24% yr/yr, reflecting strong cost discipline

Outlook

* Xos maintains 2025 revenue outlook at $50.2 mln to $65.8 mln

* Company expects 2025 unit deliveries between 320 and 420 units

* Xos forecasts 2025 non-GAAP operating loss of $26.9 mln to $24.4 mln

Result Drivers

* GROSS MARGIN IMPROVEMENT - Xos expanded gross margins to 15.3% from 8.8% in Q2, attributed to a diverse customer mix

* COST DISCIPLINE - Operating expenses decreased 24% yr/yr, reflecting strong execution and focus on operational performance

* CASH FLOW POSITIVE - Achieved positive free cash flow for the second consecutive quarter, driven by faster inventory turnover and efficient receivables collection

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $16.50 $17.33

Revenue mln mln (3

Analysts

)

Q3 Net $2.10

Income mln

Q3 -$4.80

Adjusted mln

Operatin

g Income

Q3 -$7 mln

Income

From

Operatio

ns

Q3 $9.53

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the auto & truck manufacturers peer group is "buy"

* Wall Street's median 12-month price target for Xos Inc ( XOS ) is $6.50, about 61.7% above its November 12 closing price of $2.49

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)