Executive Summary

Q1 2025 revenue of $5.9M on 29 delivered units, with 60 units shipped (31 stripped chassis to UPS upfitter), setting up revenue recognition in subsequent quarters; GAAP gross margin improved to 20.6% from negative 32.4% in Q4 as inventory-related charges subsided .
Management reaffirmed full-year 2025 guidance: revenue $50.2–$65.8M, unit deliveries 320–420, non-GAAP operating loss $17.2–$14.0M; emphasis on tariff mitigation, pricing actions, and state incentives to support margins and deliveries through 2H25 .
Liquidity was tight ($4.8M cash and equivalents) due to planned inventory build for UPS and other orders; management expects improvement with deliveries and AR collections, noting free cash flow of $(4.8)M in Q1 after a positive $3.3M in Q4 2024 .
Near-term stock catalysts: revenue recognition of shipped UPS units (weighted to Q2–Q3), incremental Hub sales, and MDXT customer roadshow traction; watch tariff pass-through and AR collections pace for working-capital relief .

What Went Well and What Went Wrong

What Went Well
- Margin inflection: GAAP gross margin of 20.6% versus negative 32.4% in Q4; seventh consecutive quarter of positive non-GAAP gross profit, driven by lower COGS and absence of large Q4 inventory charges .
- Pipeline execution: 60 units shipped in Q1 (29 recognized), including 31 chassis for the 193-unit UPS order—revenue recognition expected over next quarters; Q2 deliveries and cash flow expected to improve .
- Product momentum: Launch of MDXT chassis-cab targeting a larger TAM (~100k units/year) with >90% component commonality to stepvans, enabling low incremental CapEx; production ramp targeted by Q3 2026 .
What Went Wrong
- Volume softness: Q1 seasonality and infrastructure delays drove revenue down 49% QoQ and 55% YoY; unit deliveries fell to 29 (recognized) from 51 in Q4 and 62 in Q1 2024 .
- Liquidity strain: Cash fell to $4.8M on inventory build for upcoming deliveries; free cash flow of $(4.8)M after Q4’s positive $3.3M; inventory climbed to $38.0M .
- Tariff headwinds: Management flagged 10–30% COGS increases on certain products; prices were raised, and mitigation plans are in motion but remain a 2H25 risk .

Financial Results

P&L summary (USD millions except per-share; oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue	$15.790	$11.474	$5.879
GAAP Gross Profit (Loss)	$2.864	$(3.717)	$1.211
GAAP Gross Margin %	18.1%	(32.4%)	20.6%
Non-GAAP Gross Profit	$3.665	$2.667	$0.881
Operating Expenses	$12.555	$10.855	$10.480
Operating Loss (GAAP)	$(9.691)	$(14.572)	$(9.269)
Non-GAAP Operating Loss	$(6.643)	$(6.365)	$(8.076)
Net Loss	$(10.512)	$(18.981)	$(10.186)
EPS (Basic)	$(1.32)	$(2.36)	$(1.26)

Operating KPIs and balance sheet (oldest → newest)

KPI / Balance Sheet	Q3 2024	Q4 2024	Q1 2025
Units Delivered (recognized)	94	51	29
Units Shipped (total)	n/a	n/a	60
Cash & Equivalents	$8.432	$10.996	$4.758
Accounts Receivable (net)	$36.441	$26.870	$22.210
Inventories	$42.398	$36.567	$38.006
Free Cash Flow	$(11.665)	$3.298	$(4.756)

Estimate comparison (S&P Global)

Consensus estimates for Q1 2025 revenue/EPS were unavailable via S&P Global; no target price or EPS/Revenue estimate count available. Values unavailable from S&P Global for this period.

Guidance Changes

Metric	Period	Previous Guidance (as of Mar 28, 2025)	Current Guidance (as of May 14, 2025)	Change
Revenue	FY 2025	$50.2–$65.8M	$50.2–$65.8M	Maintained
Non-GAAP Operating Loss	FY 2025	$(17.2)–$(14.0)M	$(17.2)–$(14.0)M	Maintained
Unit Deliveries	FY 2025	320–420 units	320–420 units	Maintained

Management reaffirmed guidance on the Q1 call .

Earnings Call Themes & Trends

Topic	Q3 2024	Q4 2024	Q1 2025	Trend
Tariffs / macro cost headwinds	Monitoring potential tariff increases; mitigating via supply chain and cost programs	Estimated $5–$20k per vehicle headwind depending on config; pursuing reshoring and offsets	10–30% COGS impact on some products; price increases and mitigation in 2H25	Intensifying focus on mitigation
Charging infrastructure bottlenecks	Hub product positioned to bridge delays; growing demos	Ramping Hub capacity (~2/week) and feature expansion roadmap	Ongoing hub momentum; interest beyond Xos truck customers	Broadening adoption
Working capital / AR collections	Incentive AR >$25M; process improvements begun	Positive FCF in Q4; dealer partnerships aid collections	Expect liquidity improvement as deliveries/collections accelerate; FCF negative in Q1 due to inventory build	Improving processes; quarterly variability
Product roadmap	Hub in low-volume series production	Longer wheelbase stepvan; expanding Hub capabilities	MDXT launch and national roadshow; Q3’26 ramp target	Expanding portfolio
Powered by Xos (Blue Bird, Winnebago)	First Blue Bird powertrain delivered; new applications	Early 2025 production deliveries; growth expected	Tariff exposure managed with OEM partners; business on track	Steady growth

Management Commentary

“Q1…we brought in $5.9 million in revenue and delivered 29 units. We actually shipped 60 units, but due to revenue recognition rules…Some of that will land in future quarters.” — CEO, Dakota Semler .
“We recently raised prices to help offset…new tariff structures…there will be some increases in our cost of goods sold, anywhere from 10% to 30% depending upon the product.” — CEO .
“Non-GAAP gross margin…approximately $900,000 or 15%…This quarter marks our seventh consecutive quarter of positive non-GAAP gross margin performance.” — Acting CFO, Liana Pogosyan .
“MDXT…shares over 90% of the same commodity components [value basis]…We anticipate…less than 7 figures or very low 7 figures [incremental Tennessee investment].” — CEO .
“We are reaffirming our full year 2025 guidance of revenue…$50.2 million to $65.8 million…unit deliveries…320 to 420…non-GAAP operating loss…$17.2 million to $14 million.” — Acting CFO .

Q&A Highlights

UPS revenue timing/margins: Large national accounts come at lower margin; concentration of UPS deliveries expected in Q2–Q3; smaller, higher-margin orders likely in Q4 .
Hub trajectory: Demand from non-Xos customers; ongoing deliveries and demos; roadmap for a v2 to broaden addressable market .
MDXT investment/commonality: >90% shared commodity content with stepvans; minimal incremental CapEx in TN; targeted Q3’26 ramp .
Tariff impact/playbook: Tariff-driven COGS headwinds (10–30% on some products); pricing actions, supplier diversification, and reshoring underway .
Liquidity and FCF cadence: Q1 FCF negative on inventory build for orders; management expects improvement as deliveries and AR collections progress .

Estimates Context

S&P Global consensus for Q1 2025 revenue and EPS was unavailable at the time of review; as a result, we cannot quantify a beat/miss versus Street for the quarter. Management did not provide intra-quarter estimate comparisons, and no target price consensus was retrievable. Consensus estimates unavailable via S&P Global for this period.

Key Takeaways for Investors

Revenue recognition is poised to accelerate in Q2–Q3 as shipped UPS chassis convert to delivered units; expect lumpiness but clearer visibility into backlog monetization .
Margin trajectory remains constructive: GAAP gross margin rebounded to 20.6% with non-GAAP positive again; pricing plus cost actions aim to offset tariff headwinds in 2H25 .
Liquidity is the swing factor near term: $4.8M cash and a $(4.8)M Q1 FCF burn underscore reliance on timely deliveries and incentive AR collections; watch inventories and AR trends .
The Hub is gaining cross-industry traction, creating diversification beyond vehicles and potentially supporting blended margins; monitor order flow and v2 feature rollout .
MDXT could expand the TAM meaningfully with low incremental CapEx; validation underway through demos, with a Q3’26 ramp target—an emerging medium-term growth vector .
Guidance maintained: FY25 revenue $50.2–$65.8M, 320–420 units, non-GAAP op loss $(17.2)–$(14.0)M; execution against deliveries and tariff mitigation will dictate range positioning .
Trading setup: Near-term catalysts include UPS revenue timing, Hub wins, and liquidity milestones; risks skew to supply chain/tariff cost pass-through and incentive collection timing .

Appendix: Source Documents Reviewed

Q1 2025 8-K and press release: May 14, 2025 .
Q1 2025 earnings call transcript: May 14, 2025 .
Q4 2024 8-K and press release: Mar 28, 2025 .
Q4 2024 earnings call transcript: Mar 28, 2025 .
Q3 2024 8-K and press release: Nov 13, 2024 .
Q3 2024 earnings call transcript: Nov 13, 2024 .

Other press releases related to Q1 cadence:

Earnings date announcement (May 9, 2025) .

All financial and qualitative claims above cite the referenced documents.

Xos, Inc. (XOS)·Q1 2025 Earnings Summary