Xos, Inc. Reports 74% Revenue Decline in Q2 2026 Amid Vehicle Sales Drop

Xos, Inc. reported a significant decline in financial performance for the second quarter of 2026, with revenues falling to $4.74 million, a 74% decrease from $18.39 million in the same period last year. For the first half of 2026, total revenues were $15.97 million, down 34% from $24.27 million in the first half of 2025. The company attributed this decline primarily to a reduction in vehicle sales, delivering only six vehicles and 24 powertrains and hubs in the second quarter, compared to 128 vehicles and seven powertrains and hubs in the prior year. The gross profit for the quarter was $573,000, down from $1.64 million a year earlier, while the net loss for the quarter was $6.89 million, slightly improved from a loss of $7.49 million in the previous year.

In terms of operational changes, Xos has been focusing on enhancing its product offerings and expanding its market presence. The company recently entered into a dealer agreement with Windrose Technology, Inc. to sell electric long-haul trucks, which is expected to diversify its product line and address customer demand for heavy-duty electric vehicles. Additionally, Xos has been working on improving its supply chain management to mitigate the impacts of ongoing global economic conditions and tariff fluctuations, which have affected the availability and cost of critical components.

The company’s financial position as of June 30, 2026, showed total assets of $54.45 million, a decrease from $60.36 million at the end of 2025. Cash and cash equivalents stood at $13.24 million, down from $14.04 million. Xos reported total liabilities of $31.59 million, with a notable portion attributed to convertible debt, which amounted to $15.5 million. The company has been actively seeking additional capital to support its operations and growth initiatives, as it continues to face substantial doubt about its ability to continue as a going concern over the next 12 months.

Looking ahead, Xos plans to implement various strategies to secure funding, including potential equity and debt financing. The company has also expressed intentions to enhance its internal controls and financial reporting processes, addressing previously identified material weaknesses. Management remains optimistic about the long-term growth potential driven by the increasing demand for electric vehicles, particularly in the commercial sector, as regulatory and consumer interest in sustainability continues to rise. However, the company acknowledges the challenges posed by market conditions and the need for effective execution of its strategic initiatives to achieve its objectives.