Xos posts higher gross margins but lower revenue in Q2 2026

Xos, Inc. (NASDAQ: XOS) reported second-quarter 2026 financial results showing improved gross margins alongside a significant decline in revenue and unit deliveries compared to the prior-year period, according to a company press release.

Revenue for the quarter ended June 30, 2026 fell to $4.7 million from $18.4 million in Q2 2025, as the company delivered 30 units compared to 135 units a year earlier. Xos attributed the decline to a strategic shift toward powertrain and hub production. GAAP gross margin improved to 12.1% from 8.9% in Q2 2025, while non-GAAP gross margin rose to 7.2% from 1.5%.

Operating loss widened to $7.9 million from $7.1 million in the year-ago period, though non-GAAP operating loss narrowed 9.5% to $6.2 million. Operating expenses fell 2.1% year-over-year to $8.5 million. The company reported a net loss of $6.9 million, compared with $7.5 million in Q2 2025. Cash and cash equivalents stood at $13.2 million at quarter end.

For the first half of 2026, revenue totaled $16.0 million versus $24.3 million in the same period of 2025. GAAP gross margin expanded to 31.0% from 11.8%, and the GAAP operating loss narrowed 22.8% to $12.6 million. Adjusted EBITDA improved 38.6% year-over-year.

During the quarter, Xos raised $7.6 million net of offering costs through at-the-market and registered direct offerings. The company also launched its Power Hub product, a mobile battery energy storage unit with a 3.1 MWh capacity, and began production of higher-capacity Hub configurations at its Byrdstown, Tennessee facility.

Xos revised its full-year 2026 outlook, now projecting revenue of $35 million to $43 million, unit deliveries of 250 to 350, and a non-GAAP operating loss of $11.4 million to $14.7 million.

"Second-quarter deliveries shifted into later quarters — deferrals, not cancellations — yet we posted our strongest first-half gross margin ever," said Dakota Semler, Chief Executive Officer of Xos.

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