Xos (NASDAQ:XOS) reported lower third-quarter revenue than a year earlier and revised its 2026 outlook as some customer orders shifted into future periods. The electric truck and power equipment maker said demand for its Hub products is expanding beyond vehicle charging.
Revenue for the quarter ended Sept. 30 was $5.5 million on 33 units, down from $16.5 million on 130 units a year earlier. Revenue rose 17% from the second quarter, when Xos generated $4.7 million on 30 units. Hub and powertrain products drove most third-quarter deliveries, Chief Financial Officer Liana Pogosyan said on the Nov. 12 earnings call.
For the full year, Xos now expects revenue of $25 million to $35 million, deliveries of 185 to 250 units and a non-GAAP operating loss of $17.2 million to $20.5 million. Pogosyan said some orders expected in the fourth quarter had moved into future periods, primarily because of customer readiness and delivery timing. She described the changes as deferrals rather than cancellations and said the revised outlook also reflected changes in expected product mix.
Power Products Drive Strategy
Chief Executive Officer Dakota Semler said Hub and powertrain deliveries accounted for roughly 72% of revenue in the first nine months of 2026, the company’s highest-ever mix of non-vehicle products. Xos originally developed the Hub to help fleets charge electric trucks, but Semler said customers are finding uses for the equipment beyond the EV market.
Based on orders, the sales pipeline and demand across customer segments, Semler said he expects the power business, led by the Power Hub, to grow faster in 2027 than any product Xos has launched and become larger than both its truck and EV charging businesses.
In response to an analyst’s question, Semler identified utilities, construction and equipment rental, and fleet charging as the company’s main near-term priorities. He said Power Hubs can work alongside generators at construction sites, potentially reducing generator run time and associated fuel and maintenance costs.
Semler said Xcel Energy has placed multiple follow-on Hub orders this year, including units for new service territories. He also said an autonomous fleet operator placed a 12-unit follow-on order and took Xos Hubs into Europe. In August, Xos received its first defense contract, an agreement with the U.S. Air Force to develop and deliver a ruggedized charging system for electrified support equipment.
The company is also exploring backup power applications. Semler said school districts that initially sought charging equipment have asked about using the Power Hub to keep campuses operating during outages. Xos is working with contractors on data center projects, where customers are asking whether the equipment can support live data center loads alongside generators and grid power.
Margins Improve as Revenue Falls
Third-quarter GAAP gross margin was 15.3%, compared with 15.5% a year earlier and 12.1% in the second quarter. Non-GAAP gross margin rose to 34.4% from 16.1% a year earlier, marking the company’s 13th consecutive quarter of positive non-GAAP gross margin.
Xos posted a third-quarter operating loss of $7.5 million, compared with losses of $7 million a year earlier and $7.9 million in the second quarter. The latest quarter included a $0.5 million benefit from settling a software-related vendor contract. Adjusted EBITDA was a loss of $4.6 million, compared with losses of $4.3 million a year earlier and $5.5 million in the preceding quarter.
For the first nine months of 2026, revenue fell to $21.5 million from $40.8 million a year earlier. Pogosyan attributed the decline to lower step-van volumes, including the absence of 195 units from a UPS order recognized in 2025, as well as orders deferred pending customer readiness and acceptance. Nine-month GAAP gross margin rose to 26.9% from 13.3%, helped by a shift toward higher-margin Hub and powertrain deliveries.
Production and Liquidity
Chief Operating Officer Giordano Sordoni said the 420-kilowatt-hour Power Hub is in production after Xos built and tested initial units during the quarter. The Charger Hub completed UL 2202 and UL 2231 certification in August, while the company continues to pursue UL 9540 certification for its broader Power Hub and Charger Hub family.
Xos ended the quarter with $12.1 million in cash and cash equivalents, down from $13.2 million at the end of June. It raised $2.8 million net of offering costs through its at-the-market program and paid $1.5 million in convertible note principal, leaving $14 million outstanding. Free cash flow for the first nine months was negative $7 million, compared with positive $3 million a year earlier.
Pogosyan said the company’s priorities include managing liquidity, pursuing capital-raising opportunities and collecting receivables. General Counsel David Zlotchew noted that risks facing Xos include its ability to access capital when needed and continue as a going concern.
About XOS (NASDAQ: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.
