GET DAILY SIGNALSXos (XOS) Posts Positive Net Income in Q3 2025 on Record Deliveries
Key Takeaways
- Xos, Inc. reported third-quarter 2025 revenue of $16.5 million on 130 recognized units, while shipping a record 140 vehicles during the period.
- Net income swung to a positive $2.12 million, versus a net loss of $10.51 million a year earlier; earnings per share (EPS) came in at $0.22 versus a loss of $1.32 per share.
- GAAP (Generally Accepted Accounting Principles) gross margin reached 15.3%, with non-GAAP gross margin of 16% marking a ninth consecutive quarter of positive non-GAAP margins.
- Operating loss narrowed to $7.0 million — the lowest since going public — while non-GAAP operating loss hit a record-low $4.8 million.
- The company generated positive free cash flow of $3.1 million and ended the quarter with $14.1 million in cash and cash equivalents, up from $8.8 million.
- Full-year 2025 guidance calls for revenue between $50.2 million and $65.8 million, with 320 to 420 unit deliveries.
- For more on Xos, explore its Major News, Today's Price Move, Price Targets, and Forecast pages.
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Why This Quarter Matters
Xos, Inc. designs and manufactures electric commercial vehicles, mobile charging systems, and electrification powertrains for fleet operators and original equipment manufacturers. For investors, this quarterly earnings update matters because it tests whether the company can pair rising delivery volumes with meaningful progress toward profitability. Xos has spent recent quarters narrowing its losses while fulfilling large fleet orders, including a program with UPS and powertrain shipments to Blue Bird. With electric-vehicle adoption facing tariff pressures and shifting incentives, the results offer a direct read on Xos's cost discipline, liquidity runway, and ability to convert its expanding order book into durable, higher-margin revenue.
Breaking Down the Q3 Numbers
Xos reported third-quarter 2025 revenue of $16.5 million on 130 recognized units, up from $15.8 million a year earlier but down from $18.4 million in the prior quarter on a shift in product mix. The company actually shipped 140 vehicles during the quarter, with the additional 10 strip chassis expected to be recognized in future periods. Revenue came in slightly below the consensus estimate of roughly $17.3 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
On the bottom line, the company swung to net income of $2.12 million, compared with a net loss of $10.51 million in the year-ago period. Basic and diluted EPS from continuing operations were $0.22, versus a loss of $1.32 per share a year earlier, exceeding consensus expectations that had called for a loss of roughly $0.73 to $0.80 per share. It is worth noting that the positive net income was supported in part by non-recurring items, while the company's core operating loss still totaled $7.0 million.
Gross margin improved to 15.3% on a GAAP basis and 16% on a non-GAAP basis, up from 8.8% (GAAP) in the second quarter. Operating expenses rose 9% sequentially to $9.5 million, though they fell 24% from the prior year. Management reaffirmed full-year 2025 revenue guidance of $50.2 million to $65.8 million, unit delivery guidance of 320 to 420 vehicles, and non-GAAP operating loss guidance of $24.4 million to $26.9 million.
Market Reaction and Investor Sentiment
The market's response to Xos's third-quarter report reflects a mix of optimism over improving profitability and caution around softer-than-expected revenue. The record-low operating loss, positive free cash flow, and strengthened cash position signaled better operational discipline, while the sequential revenue decline and consensus revenue miss highlighted ongoing product-mix and tariff pressures. Sentiment has also been shaped by the company's expanding powertrain business, which delivered 18 systems to Blue Bird and received nearly 80 additional orders, and by the Xos Hub's broadening use cases in mobile charging and power resiliency. Investors are weighing these growth signals against near-term margin compression tied to large fleet agreements and fourth-quarter seasonal delivery delays.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will watch whether Xos can sustain its profitability trajectory while scaling deliveries across its three business pillars: trucks, powertrains, and charging infrastructure. Management has signaled that full-year results are expected to land within the guidance range for revenue, unit deliveries, and non-GAAP operating loss, even as the fourth quarter typically brings seasonal delays from major parcel-delivery customers.
Several factors deserve close attention. First, margin mix is expected to shift toward higher-margin products such as hubs and powertrains, which could support gradual gross-margin expansion. Second, tariff volatility remains a live risk, and the company is pursuing reshoring, domestic-content increases, and supplier cost-sharing to mitigate exposure.
Third, liquidity will be a key focus: Xos ended the quarter with $14.1 million in cash and faces a $2.8 million obligation over the next 18 months tied to the termination of its Mesa facility lease. Finally, the evolution of the Xos Hub into a broader mobile energy platform — including power resiliency and backup-power functions expected in 2026 — represents a potential expansion of the company's total addressable market. Investors will monitor execution on these initiatives alongside any additional updates to 2026 guidance.
Using AI Tools to Refine My Research
One thing that stands out when reviewing results like these is how tools such as Tickeron’s AI Screener can help surface comparable names and track technical patterns alongside the fundamentals. I find it useful for quickly filtering opportunities in the commercial EV space and monitoring how peers are responding to similar pressures. From what I see, combining that data with the quarterly details gives a clearer picture of where Xos sits relative to the broader group.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
XOS in downward trend: price dove below 50-day moving average on October 16, 2026
XOS moved below its 50-day moving average on October 16, 2026 date and that indicates a change from an upward trend to a downward trend. In 42 of 45 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on XOS as a result. In 71 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 88%.
The Moving Average Convergence Divergence Histogram (MACD) for XOS turned negative on October 15, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In 37 of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at 88%.
The 10-day moving average for XOS crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 82%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XOS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 90%.
The Aroon Indicator for XOS entered a downward trend on November 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where XOS's RSI Indicator exited the oversold zone, 34 of 43 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 79%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +3.44% 3-day Advance, the price is estimated to grow further. Considering data from situations where XOS advanced for three days, in 171 of 227 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
XOS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 29 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.512) is normal, around the industry mean (2.277). P/E Ratio (-1.588) is within average values for comparable stocks, (3.106). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.745). Dividend Yield (0.000) settles around the average of (0.017) among similar stocks. P/S Ratio (0.762) is also within normal values, averaging (1.169).
The Tickeron PE Growth Rating for this company is 60 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating fairly steady price growth. XOS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 98 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. XOS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
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