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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% in October to 3,800 shares. However, the company's Q3 earnings beat estimates, with quarterly earnings of $0.22 per share, surpassing the Zacks Consensus Estimate of a loss of $0.73 per share. The company's electric truck manufacturer and fleet services business is likely to benefit from the revival of the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) in California.

1.c. Company Highlights

2. Xos' Q3 2025 Earnings: A Strong Quarter with Growing Momentum

Xos reported revenue of $16.5 million in Q3 2025, generated from shipping 130 vehicles, while actually shipping 140 vehicles, including 10 strip chassis to a major customer program. The GAAP gross margin was 15.3%, reflecting a complex reality with a diverse mix of customers and long-term structured pricing with national accounts. The company's operating loss for the quarter hit a record low since going public at $7 million, down from $7.1 million in the second quarter this year and down from $9.7 million in 2024. Earnings per share (EPS) came out at -$0.22 relative to estimates at -$0.73.

Publication Date: Nov -26

📋 Highlights
  • Vehicle Shipments & Revenue:: Shipped 140 vehicles (130 recognized revenue, $16.5M) in Q3 2025, driven by 10 strip chassis to major customers including UPS and FedEx ISPs.
  • GAAP Gross Margin:: 15.3% margin reflects structured pricing with national accounts and tariffs, balancing short-term margin compression with long-term scalability.
  • Liquidity & Debt Restructuring:: Amended convertible note to quarterly payments from Nov 2025–Feb 2028, improving cash flow flexibility with $14.1M in cash at quarter-end.
  • Powertrain Expansion:: Delivered 18 powertrains to Bluebird and secured 80+ follow-on orders, shifting toward higher-margin energy infrastructure markets.
  • Xos Hub Growth:: Deployed mobile energy platform with demos at RE+ and growing interest from utilities; projected double-digit EV charging market growth in 2026.

Financial Performance

The company's financial performance was strong, with a significant improvement in liquidity, boosted by the successful launch of its ATM program, strategic inventory management, and strong collections from customers. Xos ended the quarter with $14.1 million in cash and cash equivalents, up from $8.8 million at the end of the last quarter. Operating expenses were $9.5 million in the third quarter, up $800,000 or 9% from the second quarter this year and down $3 million or 24% from 2024.

Operational Highlights

Xos' Tennessee plant remained the cornerstone of its success, running efficiently and producing at a consistent cadence for major fleet customers. The company delivered 18 powertrain systems to Bluebird Corporation this quarter, and since quarter-end, received nearly 80 additional powertrain orders. The Xos Hub, a mobile energy platform, is deployed and working, expanding its impact far beyond transportation.

Guidance and Outlook

Xos reaffirmed its full-year 2025 guidance for revenue and unit deliveries and previously revised non-GAAP operating loss guidance. For 2026, the company expects to accelerate growth, reinforce liquidity, and continue expanding margins with precision and discipline. Analysts estimate next year's revenue growth at 30.0%.

Valuation

With a P/S Ratio of 0.37 and an EV/EBITDA of -0.55, the market seems to be pricing in a relatively modest growth trajectory. However, with the company's strong momentum and expected revenue growth of 30.0% next year, there may be upside potential. The company's ROE and ROIC are negative, but this is not unusual for a growth company. The Free Cash Flow Yield is 50.1%, indicating a potentially attractive return for investors.

3. NewsRoom

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XOS (NASDAQ:XOS) Shares Down 1.3% – Here’s What Happened

Nov -29

Source: defenseworld.net

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Xos, Inc. (XOS) Q3 2025 Earnings Call Transcript

Nov -14

Source: seekingalpha.com

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Xos, Inc. (XOS) Q3 Earnings Top Estimates

Nov -13

Source: zacks.com

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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

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

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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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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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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

2.25$

Current Price

2.25$

Potential

-0.00%

Expected Cash-Flows