Xos, Inc. reported its third‑quarter 2025 results on November 13, 2025, posting earnings per share of $0.22 versus a consensus estimate of –$0.73, a $0.95 or 130% surprise. Revenue reached $16.5 million, $0.82 million or 4.7% below the $17.32 million forecast, but the figure was up 4.1% from the $15.8 million earned in the same quarter a year earlier.
The company’s gross margin improved sharply to 15.3% from 8.8% in Q2 2025, driven by a shift toward higher‑margin powertrain and Xos Hub platform sales and a more diversified customer mix. Operating loss narrowed to $7.0 million from $7.1 million in Q2 2025 and $9.7 million a year earlier, reflecting disciplined cost management and the absence of one‑time restructuring charges.
In terms of units, Xos shipped 140 vehicles in Q3 2025, including 10 stripped chassis earmarked for future revenue recognition. The company delivered 18 powertrains to Blue Bird Corporation and secured nearly 80 additional powertrain orders, underscoring momentum in its higher‑margin product lines.
Management maintained its full‑year 2025 guidance, keeping revenue expectations at $50.2 million to $65.8 million and unit deliveries at 320–420 units. The operating‑loss guidance of $24.4 million to $26.9 million was unchanged, signaling confidence that cost discipline will continue to support profitability even as revenue growth slows.
CEO Dakota Semler described the quarter as a milestone, noting that disciplined cost control and a stronger product mix enabled the EPS beat despite a revenue miss. CFO Liana Pogosyan highlighted the sequential margin improvement and the company’s ability to ship more units while keeping costs in check.
Investors responded positively to the earnings, with a modest uptick in trading activity. The reaction was tempered by the revenue miss and ongoing margin pressures from tariffs and product‑mix shifts, but the EPS beat and maintained guidance reinforced confidence in the company’s strategic focus on higher‑margin offerings.
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