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1. Company Snapshot

1.a. Company Description

Xos, Inc., a mobility solutions company, manufactures and sells battery-electric commercial vehicles.It offers a range of services to facilitate the transition of fleets to electric vehicles, including charging infrastructure, vehicle maintenance, financing, and service.The company was founded in 2020 and is headquartered in Los Angeles, California.

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1.b. Last Insights on XOS

Xos, Inc.'s recent performance was negatively impacted by a significant growth in short interest, which rose 192.3% to 3,800 shares as of October 15th. This uptick in short interest may indicate bearish sentiment among investors. Additionally, the company's third-quarter 2025 earnings release and conference call, scheduled for November 13, 2025, may be a key event that could influence investor sentiment. Despite achieving record unit volumes and posting its highest revenue in Q2 2025, concerns may persist.

1.c. Company Highlights

2. Xos Inc.: Revenue Growth Fuels Optimism, Margins Remain a Challenge

Xos Inc. delivered a record-breaking second quarter of 2025, achieving $18.4 million in revenue and 135 vehicle deliveries. This impressive performance reflects strong customer demand from established players like UPS and FedEx ISP. However, the company's GAAP gross margin contracted to 8.8% due to a shift in product mix towards long-term structured pricing contracts with national accounts and the impact of unexpected tariffs. While non-GAAP gross margin improved to 1.4%, this eighth consecutive quarter of positive non-GAAP profitability is encouraging but still faces headwinds. Operating expenses decreased to $8.7 million, resulting in a record low operating loss of $7.1 million, demonstrating the company's commitment to cost management.

Publication Date: Aug -17

📋 Highlights
  • Record Revenue and Deliveries:: Achieved $18.4M revenue and 135 vehicles delivered Q2 2025, driven by UPS and FedEx ISP demand.
  • Gross Margin Dynamics:: GAAP gross margin fell to 8.8% due to product mix and tariffs, but non-GAAP rose to 1.4% with inventory efficiency.
  • Operating Efficiency:: Operating expenses dropped to $8.7M, yielding a record low $7.1M operating loss post-IPO.
  • Liquidity and Cash Flow:: Cash reserves grew to $8.8M (+$4M QoQ) with $4.6M in positive free cash flow, a company high.
  • Product and Guidance Outlook:: New chassis cab truck in testing; 2025 guidance reaffirmed at $50.2M-$65.8M revenue but revised $24.4M-$26.9M non-GAAP loss due to tariffs.

Cash Flow and Guidance

Xos ended the quarter with $8.8 million in cash and cash equivalents, a significant increase from the previous quarter's $4.8 million. The company also achieved positive free cash flow of $4.6 million, the highest in its history. Looking ahead, despite reaffirming full-year revenue guidance of $50.2 million to $65.8 million and unit delivery guidance of 320 to 420 units, non-GAAP operating loss guidance was revised to a range of $24.4 million to $26.9 million due to product mix changes and increased tariff-related costs.

New Product and Market Expansion

Xos is generating significant excitement for its new chassis cab truck, which is undergoing real-world testing and scheduled for demos in Southern California next week. This versatile truck, already approved by the California Department of General Services, is expected to be included in joint procurement authority schedules, opening doors for diverse vocational applications including dump bodies and municipal services. Xos anticipates a substantial backlog for the first year of production, highlighting its potential for future growth.

Tariffs and Pricing Strategies

Tariffs continue to pose a challenge, impacting the company's average selling prices (ASPs) by 5% to 15% depending on the product and components. However, Xos has adopted a strategic approach by sharing these costs with customers through preferential pricing, mitigating the negative impact on sales.

3. NewsRoom

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Xos, Inc. (NASDAQ:XOSWW) Sees Large Growth in Short Interest

Oct -30

Source: defenseworld.net

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Xos, Inc. Announces Third Quarter 2025 Earnings Release Date and Conference Call

Oct -27

Source: globenewswire.com

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2 Domestic Auto Stocks to Buy Amid EV Incentive Expiry, Industry Woes

Sep -18

Source: zacks.com

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HVIP Is Back: Here's What California Fleets Need to Know (And Why It Matters Now)

Sep -10

Source: globenewswire.com

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Xos, Inc. Appoints Automotive Veteran John Smith to its Board of Directors

Aug -22

Source: globenewswire.com

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Xos Breaks the $100K Barrier for High-Powered Mobile Charging with New Hub Approved for $110,000 CORE Incentive

Aug -18

Source: globenewswire.com

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Xos, Inc. (XOS) Q2 2025 Earnings Conference Call Transcript

Aug -14

Source: seekingalpha.com

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Xos, Inc. (XOS) Reports Q2 Loss, Beats Revenue Estimates

Aug -13

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (20.71%)

6. Segments

Stepvans & Vehicle Incentives

Expected Growth: 21.03%

Xos, Inc.'s Stepvans & Vehicle Incentives growth of 21.03% is driven by increasing adoption of electric vehicles, government incentives for eco-friendly transportation, and rising demand for last-mile delivery solutions. Additionally, Xos' innovative technology and expanding partnerships with major logistics companies contribute to the segment's rapid growth.

Fleet-as-a-Service

Expected Growth: 24.7%

Xos, Inc.'s Fleet-as-a-Service growth is driven by increasing demand for electric fleets, government incentives for sustainable transportation, and rising adoption of subscription-based services. Additionally, the company's proprietary technology and scalable business model enable efficient fleet management, further fueling growth.

Ancillary

Expected Growth: 10.27%

Xos, Inc.'s Ancillary segment growth of 10.27% is driven by increasing adoption of electric vehicles, rising demand for charging infrastructure, and growing sales of ancillary products such as battery storage and telematics solutions, which complement Xos' core electric vehicle offerings.

Powertrains

Expected Growth: 14.12%

Xos, Inc.'s 14.12% growth in Powertrains is driven by increasing adoption of electric vehicles, government incentives for sustainable transportation, and rising demand for medium- and heavy-duty electric trucks. Additionally, Xos' innovative battery technology and expanding partnerships with major fleets and OEMs contribute to its rapid growth.

7. Detailed Products

Xos Trucks

Custom-built, commercial electric trucks designed for medium- and heavy-duty applications

Xos Chargers

High-power, fast-charging systems designed for commercial electric fleets

Xos Fleet Services

Comprehensive fleet management solutions, including vehicle maintenance, repair, and optimization

Xos Energy Storage

Advanced energy storage systems for commercial and industrial applications

Xos Telematics

Advanced telematics solutions for electric fleets, providing real-time data and insights

8. Xos, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Xos, Inc. faces moderate threat from substitutes due to the availability of alternative electric vehicle charging solutions.

Bargaining Power Of Customers

Xos, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Xos, Inc. relies on a few key suppliers for its electric vehicle charging solutions, which gives them some bargaining power.

Threat Of New Entrants

The electric vehicle charging market is rapidly growing, and new entrants may pose a significant threat to Xos, Inc.'s market share.

Intensity Of Rivalry

The electric vehicle charging market is highly competitive, with several established players, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.19%
Debt Cost 3.95%
Equity Weight 61.81%
Equity Cost 13.40%
WACC 9.79%
Leverage 61.79%

11. Quality Control: Xos, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Astec Industries

A-Score: 5.1/10

Value: 5.6

Growth: 3.4

Quality: 5.7

Yield: 2.0

Momentum: 8.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Manitowoc

A-Score: 4.4/10

Value: 8.5

Growth: 4.3

Quality: 4.3

Yield: 0.0

Momentum: 5.5

Volatility: 3.7

1-Year Total Return ->

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Shyft Group

A-Score: 3.8/10

Value: 3.9

Growth: 2.7

Quality: 2.7

Yield: 3.0

Momentum: 5.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Xos

A-Score: 3.2/10

Value: 9.0

Growth: 4.9

Quality: 2.8

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

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Hydrofarm Holdings

A-Score: 2.8/10

Value: 10.0

Growth: 2.3

Quality: 2.7

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

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UrbanGro

A-Score: 2.5/10

Value: 9.0

Growth: 3.1

Quality: 2.9

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.41$

Current Price

2.41$

Potential

-0.00%

Expected Cash-Flows