XOS (NASDAQ:XOS) reported second-quarter 2026 revenue of $4.7 million, down from $18.4 million a year earlier and $11.2 million in the prior quarter, as several expected customer orders shifted into later periods pending customer readiness and acceptance.
The company delivered 30 units during the quarter, compared with 135 units in the second quarter of 2025 and 95 units in the first quarter. Chief Executive Officer Dakota Semler said the delayed orders were deferrals rather than cancellations and that Xos expects to fulfill them over the next year, with some potentially delivered in the coming quarters.
Margins Improve Despite Lower Quarterly Volume
Xos generated second-quarter GAAP gross profit of $0.6 million, representing a 12.1% gross margin. That compared with gross profit of $1.6 million and an 8.9% margin a year earlier. Non-GAAP gross profit was $0.3 million, or a 7.2% margin, compared with $0.3 million and a 1.5% margin in the prior-year quarter.
The quarter marked Xos’ 12th consecutive period of positive non-GAAP gross margin, according to management. However, margins declined sequentially from the first quarter, when GAAP gross margin was 38.9%, due to the timing and mix of deliveries.
For the first six months of 2026, revenue was $16 million on 125 units, compared with $24.3 million on 164 units in the first half of 2025. First-half GAAP gross profit rose to $4.9 million, or a 31% gross margin, from $2.9 million, or 11.8%, a year earlier. CFO Liana Pogosyan said the first-half margin was the highest in the company’s history.
The improvement reflected a greater contribution from higher-margin Hub and powertrain deliveries, along with inventory-management and sourcing efforts, Pogosyan said.
Operating expenses for the second quarter were $8.5 million, down from $8.7 million a year earlier. The company’s GAAP operating loss was $7.9 million, compared with a $7.1 million loss in the prior-year period, while non-GAAP operating loss improved to $6.2 million from $6.8 million. Adjusted EBITDA loss was $5.1 million, compared with a $4.9 million loss a year ago.
Power Hub Launch Targets Data Center and Industrial Demand
In June, Xos introduced its Power Hub series, a mobile, containerized battery energy-storage platform. Its flagship unit provides 3.1 megawatt-hours of storage and 1.5 megawatts of continuous power in a standard intermodal-container form factor.
Semler said the company is targeting customers facing lengthy grid-interconnection timelines, including data centers and industrial facilities. He said Xos believes the Power Hub can energize sites in days rather than the three to seven years management said some projects may wait for grid connections.
The company said it has more than 250 megawatt-hours of energy storage deployed across North America through its existing EV charger hubs. Semler said a Charger Hub has supported a large data-center construction project for a hyperscaler customer. Xos expects to announce rental, leasing and deployment partners for the Power Hub in coming quarters.
During the analyst question-and-answer session, Semler said the Power Hub integrates battery storage, power conversion and energy controls in one enclosure and outputs AC power. He said the configuration is designed for rapid deployment alongside conventional generators, particularly for volatile data-center and artificial-intelligence computing loads.
Semler also said the Power Hub will use battery packs from Gotion, citing domestic production and customer requirements related to U.S. content and foreign-entity-of-concern compliance.
Hub Production and Certification Progress
Chief Operating Officer Giordano Sordoni said Xos produced 29 hubs during the second quarter, its highest quarterly Hub production level to date. Not all of those units were counted as deliveries, he said, because some remained at the factory awaiting customer pickup despite having been paid for.
Xos has been expanding production flexibility and working on new Hub configurations, including models capable of directly providing AC power for temporary power, backup-power, industrial and data-center applications.
Sordoni said the company has obtained UL approval for many components and is completing system-level testing. He said Xos expects approval under one standard within weeks, while work under another standard could continue into 2027. He said the remaining certification work is not expected to prevent deliveries of new Hub versions or its existing Charger Hub product.
The company is also developing Hub models ranging from 210 kilowatt-hours to 630 kilowatt-hours. Sordoni said Xos has redesigned the enclosure of its approximately 400-kilowatt-hour unit to bring its weight below 10,000 pounds, a threshold intended to allow customers to move the unit with a standard pickup truck.
On the vehicle side, Xos continued producing commercial vehicles and powertrain kits for Blue Bird, including kits with vehicle-to-grid capability. The company said it has received more than 100 powertrain orders since beginning its relationship with Blue Bird in the second quarter of 2025.
Liquidity and Updated 2026 Outlook
Xos ended the second quarter with $13.2 million in cash and cash equivalents, up from $9.8 million at the end of the first quarter. During the quarter, the company raised $2.2 million through its at-the-market program and $5.4 million through a registered direct offering, for total net proceeds of $7.6 million after offering costs.
Inventory declined to $23.5 million at June 30 from $25 million at year-end and $31 million a year earlier. Accounts receivable, net, fell to $4.5 million from $6 million at year-end. The company said it collected nearly $50 million over the past four quarters from customers and state-grant administrators, including $7.2 million during the second quarter.
Free cash flow for the first half was negative $4.3 million, compared with negative $0.1 million in the prior-year period. Pogosyan attributed the change primarily to a larger working-capital release in the first half of 2025.
Xos revised its full-year 2026 outlook to reflect anticipated product mix and volume changes. The company now expects:
- Revenue of $35 million to $43 million;
- Unit deliveries of 250 to 350; and
- A non-GAAP operating loss of $11.4 million to $14.7 million.
Semler said the majority of 2026 deliveries are expected in the second half and will be weighted toward products management views as having the strongest demand and margins.
About XOS (NASDAQ:XOS)
Xos, Inc (NASDAQ: XOS) is a U.S.-based manufacturer of commercial electric vehicles, offering Class 5 through Class 8 electric trucks, chassis and proprietary battery systems. The company’s core business spans vehicle design, powertrain integration, battery management and telematics, aimed at supporting last-mile delivery, beverage distribution and vocational fleets. Xos combines modular vehicle architectures with advanced software to deliver route-optimized performance and zero-emission operation for commercial customers.
Founded in 2016 as a spin-off from a specialty vehicle division, Xos designs, engineers and assembles its electric trucks at a manufacturing facility in Morristown, Tennessee, while maintaining research and development operations in California.
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