Xos, Inc. Reports 18% Revenue Growth to $18.4 Million in Q2 2025

Xos, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 18% to $18.4 million compared to $15.5 million in the same period last year. The growth was primarily driven by a rise in vehicle sales, which accounted for approximately 93% of total revenue. However, the company experienced a net loss of $7.5 million, a reduction from the $9.7 million loss reported in the prior year, indicating a 22% improvement in operational efficiency. For the first half of 2025, total revenues decreased by 15% to $24.3 million, largely due to a shift in product mix that affected average selling prices.

In terms of operational metrics, Xos delivered 128 vehicles, 3 Hubs, and 4 powertrains in the second quarter of 2025, compared to 78 vehicles, 4 Hubs, and 8 powertrains in the same quarter of 2024. The company’s cost of goods sold rose by 24% to $16.8 million in the latest quarter, reflecting increased production costs associated with higher sales volumes. Despite the increase in costs, Xos managed to reduce its total operating expenses by 35% to $8.7 million, driven by significant cuts in general and administrative, research and development, and sales and marketing expenses.

Strategically, Xos has been focusing on enhancing its product offerings and operational capabilities. The company continues to develop its proprietary fleet management software, Xosphere™, and has made strides in its charging infrastructure business, Xos Energy Solutions™, which includes the Xos Hub. Additionally, Xos is navigating supply chain challenges and tariff impacts by diversifying its supplier base and renegotiating contracts to mitigate cost fluctuations. The company also completed the acquisition of ElectraMeccanica Vehicles Corp. in March 2024, which has contributed to its liquidity position.

As of June 30, 2025, Xos reported cash and cash equivalents of $8.8 million, down from $11.0 million at the end of 2024. The company has incurred significant losses since its inception, raising concerns about its ability to continue as a going concern. Management has indicated that it will need to secure additional capital to fund operations and scale its business. The company is exploring various financing options, including a Standby Equity Purchase Agreement, which allows it to sell up to $125 million in common stock, although access to this capital is currently limited.

Looking ahead, Xos anticipates continued challenges related to market conditions, supply chain disruptions, and the need for additional funding. The company remains focused on its growth strategy, which is heavily reliant on the increasing demand for electric vehicles in the commercial sector, driven by regulatory pressures and the shift towards sustainable transportation solutions.