Xos, Inc.

What they do

Xos designs and manufactures electric commercial vehicles, powertrains, and energy storage systems. Its product lines include electric trucks, the Xos Hub stationary storage, and the newly launched Power Hub, a containerized battery energy storage unit. The company generates revenue from vehicle sales and leases, and from energy storage deployment and services.

Revenue drivers

• Chassis and powertrain sales — The company's primary revenue source is selling Class 3-8 electric trucks and powertrains to fleet customers. In Q2 2026, 30 units were delivered, generating $4.7 million in revenue.
• Leasing and rentals — Xos offers vehicle leasing and rental options, which contribute to revenue and are included in unit deliveries. The exact split between sales and leases is not disclosed.
• Energy storage and Power Hub — The Xos Hub and the newly launched Power Hub provide mobile, containerized battery storage for applications like data centers and industrial sites. The company has over 250 MWh of energy storage deployed across North America; revenue from this segment is not separately reported.

Recent performance

For Q2 2026, Xos reported revenue of $4.7 million, down from $18.4 million in Q2 2025, and delivered 30 units versus 135 in the prior year. Gross margin improved to 12.1% (non-GAAP 7.2%) from 8.9% (non-GAAP 1.5%) in Q2 2025. Operating loss widened to $7.9 million from $7.1 million, but non-GAAP operating loss improved 9.5% year-over-year to $6.2 million. For the first half of 2026, revenue was $16.0 million, gross margin expanded to 31.0% (non-GAAP 29.0%), and operating loss narrowed 22.8% to $12.6 million. The company had $13.2 million in cash and equivalents as of June 30, 2026.

Strategy

Management is deliberately shifting production mix toward powertrains and energy storage hubs, which has improved gross margin despite lower vehicle unit sales. The company is investing in the Power Hub to target data centers and industrial sites facing grid interconnection delays, and is expanding defense and public-sector engagements. Xos is also focusing on operational efficiency, reducing operating expenses 8.6% year-over-year in the first half of 2026. Liquidity is being supported through at-the-market and registered direct offerings.

Risks

• Going concern — The company's auditors have raised substantial doubt about its ability to continue as a going concern for the next 12 months.
• Revenue decline — Quarterly revenue fell sharply from $18.4 million in Q2 2025 to $4.7 million in Q2 2026, reflecting lower unit deliveries and strategic focus shifts.
• Dependence on capital markets — Xos has relied on equity offerings (raising $2.2 million and $5.4 million in Q2 2026) to fund operations, and future access to capital is uncertain.
• Limited operating history — The company has a limited operating history and has incurred net losses every year except 2021, with accumulated deficit of $228.7 million as of December 31, 2025.

Outlook

Management expects the Power Hub to drive new revenue through rental, leasing, and deployment partners, which they anticipate announcing in coming quarters. The company is continuing its strategic focus on powertrain and hub production, which should sustain margin improvements. However, given the sharp revenue decline and liquidity constraints, near-term growth depends on successful execution of these initiatives and additional capital raising.