Xos (XOS) investor relations material

Executive summary

• Q2 2026 marked a pivotal quarter with the launch of the Power Hub, expanding into power infrastructure and energy storage for data centers and the AI economy, and a strategic shift from commercial vehicles to broader solutions.

• Delivered 30 units and generated $4.7M in Q2 2026, down from 135 units and $18.4M in Q2 2025, reflecting a focus on powertrain and hub production.

• Achieved second consecutive quarter of positive gross margin, with 12 consecutive quarters of positive non-GAAP gross margins, highlighting operational efficiency and cost discipline.

• Multiple orders were deferred to future quarters due to customer delays, but underlying demand remains strong.

• The company continues to face substantial doubt about its ability to continue as a going concern due to ongoing losses, negative cash flows, and limited liquidity.

Financial highlights

• Q2 2026 revenue was $4.7M on 30 units, down from $18.4M on 135 units in Q2 2025, and down sequentially from $11.2M on 95 units; H1 2026 revenue was $16.0M on 125 units, down from $24.3M on 164 units in H1 2025.

• Q2 2026 gross profit was $0.6M (12% margin), H1 2026 GAAP gross profit was $4.9M (31% margin), and non-GAAP gross profit was $4.6M (29%).

• Q2 2026 operating loss was $7.9M, compared to $7.1M in Q2 2025 and $4.6M in Q1 2026; H1 2026 operating loss was $12.6M, improved by 22.8% YoY.

• Q2 2026 net loss was $6.9M, improved from $7.5M in Q2 2025; H1 2026 net loss was $11.8M, improved from $17.6M YoY.

• Q2 2026 cash and equivalents: $13.2M, up 35% from Q1; net cash used in operating activities for H1 2026: $4.3M.

Outlook and guidance

• Full-year 2026 revenue guidance revised to $35–43M, with unit deliveries expected between 250 and 350, focused on higher-margin products.

• Non-GAAP operating loss for 2026 projected between $14.7M and $11.4M.

• Management expects continued volatility in unit sales and revenue due to lack of a robust order backlog and ongoing supply chain and tariff disruptions.

• The company is actively seeking additional capital through equity and debt offerings but warns that access to capital is not assured; failure to secure funding may result in bankruptcy protection.