Xos, Inc. Reports 55% Revenue Decline and $10.2 Million Net Loss in Q1 2025

Xos, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues totaling $5.9 million, a decrease of 55% from $13.2 million in the same period of 2024. The company attributed this drop primarily to a reduction in vehicle sales, delivering only 22 vehicles compared to 60 in the previous year. The cost of goods sold also fell by 55% to $4.7 million, reflecting the lower sales volume. Despite these reductions, Xos recorded a net loss of $10.2 million, slightly improved from a loss of $11.0 million in the prior year.

In terms of operational metrics, Xos's gross profit decreased to $1.2 million, down from $2.8 million, while total operating expenses were reduced to $10.5 million from $13.0 million. The decrease in operating expenses was driven by lower general and administrative costs, which fell by 12% to $7.9 million, and a 37% reduction in research and development expenses to $1.9 million. The company continues to face challenges in scaling its operations and managing costs effectively, particularly in light of ongoing supply chain disruptions and the need for additional capital.

Strategically, Xos completed the acquisition of ElectraMeccanica Vehicles Corp. in March 2024, which has provided a cash balance of approximately $50.2 million to support its operations. However, the company has expressed substantial doubt about its ability to continue as a going concern over the next 12 months, citing the need for additional capital to fund operations and the potential for delays in product deliveries due to insufficient charging solutions. As of March 31, 2025, Xos had cash and cash equivalents of $4.8 million, down from $11.0 million at the end of 2024.

The company is actively seeking to improve its liquidity position through various strategies, including potential equity financing under its Standby Equity Purchase Agreement, which allows for the sale of up to $125 million in common stock. However, access to this funding is contingent on meeting certain conditions, and the company has noted that its ability to raise capital may be limited by current market conditions and investor confidence. Xos's management is focused on reducing costs and enhancing operational efficiency to navigate these challenges.

Looking ahead, Xos aims to capitalize on the growing demand for electric vehicles, particularly in the last-mile delivery segment, as e-commerce continues to expand. The company believes that regulatory support for reducing greenhouse gas emissions will further drive demand for its products. However, the successful commercialization of its offerings and the ability to secure necessary funding remain critical to its future growth and sustainability.