XOS (NASDAQ:XOS) Posts Quarterly Earnings Results, Misses Expectations By $0.07 EPS

XOS (NASDAQ:XOS) released its earnings results on Thursday. The company reported ($0.52) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.45) by ($0.07), FiscalAI reports. The business had revenue of $5.55 million for the quarter, compared to analysts’ expectations of $14.65 million. XOS had a negative return on equity of 80.31% and a negative net margin of 51.68%.

Here are the key takeaways from XOS’s conference call:

• Xos says the Power Hub is gaining traction beyond EV charging, with interest from utilities, construction, schools, defense, and data-center projects. Management expects the power business to grow faster in 2027 than any product launch in the company’s history and become its largest business line.
• Third-quarter revenue was $5.5 million on 33 deliveries, down from $16.5 million and 130 units a year earlier, but up sequentially from $4.7 million. The non-GAAP gross margin improved to 34.4% from 7.2% in Q2, marking the 13th consecutive quarter of positive non-GAAP gross margin.
• Xos lowered its 2026 outlook to revenue of $25 million–$35 million, 185–250 unit deliveries, and a non-GAAP operating loss of $17.2 million–$20.5 million. Management attributed the revision to customer delivery-readiness and timing delays and said the affected orders were deferred, not canceled.
• Liquidity remains a concern: quarter-end cash was $12.1 million, nine-month free cash flow was negative $7 million, and convertible debt stood at $14 million. Xos raised $2.8 million net through its ATM program during the quarter while paying down $1.5 million of note principal.

XOS Price Performance

XOS stock traded down $0.11 during mid-day trading on Thursday, hitting $2.29. The company had a trading volume of 97,007 shares, compared to its average volume of 1,666,215. The company has a 50-day moving average price of $2.80 and a 200 day moving average price of $2.52. XOS has a 12-month low of $1.60 and a 12-month high of $8.27. The company has a market capitalization of $32.56 million, a price-to-earnings ratio of -1.41 and a beta of 1.74. The company has a quick ratio of 0.95, a current ratio of 2.00 and a debt-to-equity ratio of 0.35.

Insider Activity

In other news, Director Dietmar Ostermann sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $3.02, for a total transaction of $30,200.00. Following the completion of the transaction, the director owned 95,226 shares in the company, valued at $287,582.52. This trade represents a 9.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Stuart Bernstein sold 30,000 shares of XOS stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $4.19, for a total value of $125,700.00. Following the completion of the sale, the director directly owned 112,642 shares in the company, valued at $471,969.98. This trade represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 109,370 shares of company stock worth $416,027 over the last 90 days. Corporate insiders own 20.70% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Weiss Ratings downgraded XOS from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Wednesday. Wall Street Zen lowered shares of XOS from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Finally, Zacks Research cut shares of XOS from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce”.

About XOS

Xos, Inc. is a commercial electric vehicle company that designs and manufactures battery-electric vehicles for commercial and fleet applications. Its product portfolio has focused on medium- and heavy-duty vehicles, including step vans and other purpose-built platforms used for last-mile delivery, logistics, service, and other urban transportation needs. The company also provides related fleet solutions, including vehicle software and charging or energy-management tools intended to help commercial operators monitor vehicle performance, manage fleets, and support the transition from internal-combustion vehicles to electric transportation.