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    XOS
    Earnings call· Jun 2026(Q2 FY26)

    Xos Q2 FY26 earnings call XOS

    Aug 13, 2026 Source

    Executive summary

    Xos Q2 FY26 — Power Hub Launch and Strategic Shift to Power Infrastructure

    Xos, Inc. reported a transformative Q2 FY26, marked by the launch of the Power Hub, signaling a strategic shift towards power infrastructure for data centers and the AI economy. Despite lower-than-anticipated unit deliveries and a revised full-year outlook due to customer delays, the company achieved its highest first-half GAAP gross margin and continued to improve operating efficiency. The focus is now on converting strong demand into volume in the second half, leveraging its expanded product portfolio and improved liquidity.

    Highlights

    5

    • Launch of the Power Hub, expanding Xos' addressable market to data centers and the AI economy.

    • Achieved 12th consecutive quarter of positive non-GAAP gross margins.

    • First half 2026 GAAP gross margin was 31%, the highest in Xos' history.

    • First half 2026 non-GAAP operating loss improved by 41% year-over-year to $8.8 million.

    • Cash and cash equivalents increased by 35% quarter-over-quarter to $13.2 million.

    Concerns

    4

    • Deliveries came in lighter than planned at 30 units in Q2 FY26, down from 135 units in Q2 FY25, due to customer delays.

    • Q2 FY26 GAAP gross profit declined to $0.6 million (12.1%) from $4.4 million (38.9%) in Q1 FY26 due to delivery timing and mix.

    • Full-year 2026 revenue guidance revised down to a range of $35 million to $43 million.

    • Full-year 2026 unit deliveries guidance revised down to a range of 250 to 350 units.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $35 million to $43 million
    high materiality
    Medium
    Full-year 2026 Unit Deliveries
    250 to 350 units
    high materiality
    Medium
    Full-year 2026 Non-GAAP Operating Loss
    $14.7 million to $11.4 million
    high materiality
    Medium
    Full-year 2026 Gross Margins
    meaningfully better than 2025
    medium materiality
    High
    Power Hub Rental, Leasing, and Deployment Partners
    Announce in coming quarters
    medium materiality
    High

    Operational metrics

    32
    Revenue
    $4.7 milliondown from $18.4 million in Q2 FY25; down sequentially from $11.2 million in Q1 FY26
    Q2 FY26

    Reflects lower deliveries due to orders shifting into subsequent quarters.

    Units delivered
    30 unitsdown from 135 units in Q2 FY25; down sequentially from 95 units in Q1 FY26
    Q2 FY26

    Deliveries came in lighter than planned due to customer delays and acceptance.

    GAAP Gross Margin
    31%up from 11.8% in H1 FY25
    H1 FY26

    Reflects a favorable shift in product mix towards higher-margin hub and powertrain deliveries, and continued savings from optimized inventory management and sourcing.

    Non-GAAP Gross Margin
    29%up from 4.9% in H1 FY25
    H1 FY26

    Reflects a favorable shift in product mix towards higher-margin hub and powertrain deliveries, and continued savings from optimized inventory management and sourcing.

    GAAP Gross Profit
    $4.9 millionup from $2.9 million in H1 FY25
    H1 FY26

    Highest first half GAAP gross profit in Xos' history.

    Non-GAAP Gross Profit
    $4.6 millionup from $1.2 million in H1 FY25
    H1 FY26

    Reflects a favorable shift in product mix towards higher-margin hub and powertrain deliveries, and continued savings from optimized inventory management and sourcing.

    GAAP Gross Margin
    12.1%compared with 8.9% in Q2 FY25 and 38.9% in Q1 FY26
    Q2 FY26

    Sequential decline reflects the timing and mix of deliveries within the year.

    Non-GAAP Gross Margin
    7.2%versus 1.5% in Q2 FY25 and 38.2% in Q1 FY26
    Q2 FY26

    Sequential decline reflects the timing and mix of deliveries within the year.

    Operating Expenses
    $17.5 milliondown from $19.2 million in H1 FY25, reduction of approximately 9%
    H1 FY26

    Reflects continued discipline in managing costs while investing.

    Operating Expenses
    $8.5 milliondown from $8.7 million in Q2 FY25 and down sequentially from $9 million in Q1 FY26
    Q2 FY26

    Reflects continued discipline in managing costs.

    GAAP Operating Loss
    $12.6 millionimproved from $16.3 million in H1 FY25, a reduction of approximately 23%
    H1 FY26

    Reflects improved operating efficiency and cost discipline.

    Non-GAAP Operating Loss
    $8.8 millionimproved from $14.9 million in H1 FY25, a reduction of approximately 41%
    H1 FY26

    Reflects continued momentum toward profitability driven by improved operating efficiency and cost discipline.

    GAAP Operating Loss
    $7.9 millioncompared with $7.1 million in Q2 FY25 and $4.6 million in Q1 FY26
    Q2 FY26

    Primarily reflects lower volumes during the quarter.

    Non-GAAP Operating Loss
    $6.2 millionimproved year-over-year to $6.8 million in Q2 FY25, but increased sequentially from $2.6 million in Q1 FY26
    Q2 FY26

    Primarily due to volume dynamics.

    EBITDA Loss
    $11.5 millionimproved from $15.3 million in H1 FY25, an improvement of approximately 25%
    H1 FY26

    Reflects continued benefits of cost discipline and operational efficiency.

    Adjusted EBITDA Loss
    $7.5 millionimproved from $12.1 million in H1 FY25, an improvement of approximately 39%
    H1 FY26

    Reflects continued benefits of cost discipline and operational efficiency.

    EBITDA Loss
    $7.4 millioncompared with $6.5 million in Q2 FY25 and $4.1 million in Q1 FY26
    Q2 FY26

    Reflects lower volumes during the quarter.

    Adjusted EBITDA Loss
    $5.1 millioncompared to $4.9 million in Q2 FY25 and $2 million in Q1 FY26
    Q2 FY26

    Reflects lower volumes during the quarter.

    Cash and cash equivalents
    $13.2 millionup from $9.8 million at Q1 FY26 end, an increase of approximately 35%
    Q2 FY26 end

    Strengthened liquidity position from capital raises.

    Capital raised (ATM offering)
    $2.2 million
    Q2 FY26

    Part of total capital raised to strengthen liquidity.

    Capital raised (Registered Direct Offering)
    $5.4 million
    Q2 FY26

    Part of total capital raised to strengthen liquidity.

    Total Capital Raised (net)
    $7.6 million
    Q2 FY26

    Total net proceeds from ATM and registered direct offerings.

    Inventory
    $23.5 milliondown from $25 million at FY25 end and $31 million at Q2 FY25 end
    Q2 FY26 end

    Reflects continued progress from inventory management initiatives and broader operational discipline.

    Accounts Receivable collected
    $7.2 million
    Q2 FY26

    Part of ongoing efforts to improve accounts receivable turnover.

    Accounts Receivable collected (past 4 quarters)
    $50 million
    LTM Q2 FY26

    Reflects continued progress in improving accounts receivable turnover.

    Accounts Receivable net
    $4.5 milliondown from $6 million at FY25 end
    Q2 FY26 end

    Reflects continued progress in improving accounts receivable turnover.

    Powertrain orders
    over 100
    Since Q2 FY25 launch

    Orders received since the launch of the business with Blue Bird.

    Hubs produced
    29
    Q2 FY26

    Reflects improvements in hub production process, throughput, and flexibility.

    Energy storage deployed
    over 250 megawatt hours
    Current

    Existing energy storage deployed across North America, providing proof points for the Power Hub.

    Xos units in operation
    more than 1,000
    Current

    Total Xos units currently in service.

    Fuel savings (electric vs diesel)
    more than 60%
    Q2 FY26

    Economic tailwind for electric fleets, independent of regulatory policy.

    Blue Bird acquired facility capacity
    20,000 units a year
    Future

    Capacity of the facility acquired by Blue Bird, representing potential large volume opportunities for Xos as an EV powertrain supplier.

    Industry KPIs

    3
    MetricValueDetails
    Capacity expansion20,000 units a yearunits/year
    Data center prime power demand3.1 megawatt hour unit delivering 1.5 megawatts of continuous powerMWh / MW
    Incremental margin operating leverageMargin expanding while operating loss narrows

    Product announcements

    1
    ProductTypeDetails
    Power Hub serieslaunch

    Deals & partnerships

    5
    Blue BirdSupply of powertrain kits, including new vehicle-to-grid capable kits.

    Xos supplies EV powertrains for Blue Bird's commercial chassis, as Ford does not have a zero-emissions offering in that space. This partnership is seen as a potential growth opportunity.

    Hyperscaler customerCharger hub support for data center construction project.

    The charger hub has already supported a large data center construction project for a hyperscaler customer, demonstrating the Power Hub's intended application for power-constrained sites with fast deployment needs.

    U.S. Air Force Global Strike CommandParticipation in Commercial Capabilities Showcase.

    Xos was selected as one of 17 finalists from a nationwide pool, running a live demonstration of the charger hub for real-time DC fast charging without grid connection or setup crew. Highlights demand from the public sector for deployable power.

    Caltrans, Duke Energy, Xcel Energy, WaymoHubs operating with these fleets.

    These fleets are operating Xos hubs, providing proof points for the ecosystem.

    UPS and FedEx ISPsVehicles in service.

    Xos vehicles are in service with UPS and FedEx ISPs.

    Risks & headwinds

    3
    Customer Delays and Order ShiftsQ2 FY26 and subsequent quarters

    30 units delivered in Q2 FY26 vs 135 units in Q2 FY25; FY26 revenue guidance revised to $35M-$43M; FY26 unit deliveries guidance revised to 250-350 units.

    Mitigation: Anticipate fulfilling deferred orders over the next year; focus on converting demand into deliveries in H2 FY26.

    Grid Interconnection ConstraintsCurrent and ongoing

    Data centers and industrial facilities waiting 3 to 7 years for grid interconnection.

    Mitigation: Power Hub enables energizing sites in days, bypassing traditional grid delays.

    Volatile AI Compute LoadsCurrent and ongoing

    Causes generators to run at volatile RPMs, leading to high maintenance issues, maintenance costs, and suboptimal fuel efficiency.

    Mitigation: Power Hub allows reciprocating generators to operate more efficiently, reducing maintenance, wear and tear, and fuel consumption by taking away volatile peaks.

    What to watch in Q3 FY26

    4

    Power Hub Partner Announcements

    Next quarter
    CurrentExpected to announce in coming quarters
    TargetAnnouncements made

    Why it matters

    Crucial for scaling Power Hub deployments and validating market traction for the new strategic focus on power infrastructure.

    We expect to announce rental, leasing and deployment partners for the Power Hub in the coming quarters⏳.

    Q&A highlights

    6

    Clarification on the 29 hubs produced in Q2 (whether delivered or not) and the current status and timeline for UL certification for the Power Hub.

    Giordano Sordoni clarified that 29 hubs were produced, not all delivered, but some have been paid for. For UL certification, component-level approval is in place, and system-level testing is ongoing for different standards. One standard is expected to be approved in the next couple of weeks, while others might extend into next year, but this is not gating current customer deliveries.

    “Yes, we have UL approval at the component level. As you mentioned, we're using UL approved components for the most part. We are doing system-level testing. There are a few different standards that we're going after, one of which we should have approval on in the next couple of weeks, and then we're pursuing another standard that will take a little bit longer.”

    asked by Edward Jackson · answered by Giordano Sordoni

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Shift to Power Infrastructure

    Xos launched the Power Hub series in June, a 3.1 megawatt-hour mobile containerized battery energy storage system, marking a strategic pivot towards becoming a power infrastructure company. This product addresses the critical need for deployable power for data centers and industrial facilities, which currently face 3 to 7-year grid interconnection delays. The Power Hub allows sites to be energized in days, leveraging Xos' existing 250 megawatt-hours of energy storage deployed across North America and its proven EV charger hubs.

    02

    Q2 Financial Performance Overview

    The first half of 2026 showcased significant operating leverage, with Xos achieving its highest GAAP gross margin (31%) and gross profit, alongside its lowest GAAP and non-GAAP operating loss in company history. However, Q2 revenue was $4.7 million on 30 units, a decrease from $18.4 million on 135 units in Q2 2025, primarily due to customer delays and orders shifting into subsequent quarters. This led to a sequential decline in Q2 GAAP gross profit to $0.6 million (12.1%) from $4.4 million (38.9%) in Q1 2026.

    03

    Operational Execution and Product Development

    Operations focused on enhancing hub production, resulting in 29 hubs produced in Q2, the highest to date, and expanding configurations for diverse energy storage applications. Significant progress was made in UL testing and certification for new AC export hub variants, which will enable direct AC power provision. This capability is crucial for temporary and backup power, industrial uses, and supporting energy-intensive infrastructure like data centers, building on existing battery and power electronics technology.

    04

    Vehicle and Powertrain Business

    Xos continued manufacturing commercial vehicles and delivering powertrain kits to Blue Bird, including new vehicle-to-grid capable kits that allow powertrains to feed energy back into the grid. The company has secured over 100 powertrain orders since its partnership with Blue Bird began in Q2 FY25 and currently has over 1,000 Xos units in operation. This demonstrates the flexibility of Xos' manufacturing model to support multiple product lines across various end markets.

    05

    Balance Sheet and Liquidity Management

    Xos strengthened its balance sheet, closing Q2 with $13.2 million in cash and cash equivalents, a 35% increase quarter-over-quarter, following $7.6 million net raised through ATM and registered direct offerings. Inventory declined to $23.5 million from $25 million at year-end 2025, reflecting effective inventory management. Accounts receivable net also decreased to $4.5 million, with $7.2 million collected in Q2, underscoring the company's discipline in building a self-sustaining business.

    06

    Market Demand and Economic Tailwinds

    Despite a potential shift in regulatory tailwinds, economic incentives remain strong, with heavy-duty electric fleets achieving over 60% per-mile fuel savings compared to diesel prices exceeding $7 per gallon. Demand from the public sector, including the U.S. Air Force Global Strike Command and Government Fleet Expo, is growing for quiet, deployable power solutions. The company sees significant opportunities in the electrification of the battlefield and distributed computing needs.

    AI-generated summary of the company’s earnings call. Not investment advice.