Xos (XOS, Financial) reported a decrease in its first-quarter revenue, bringing in $5.88 million compared to $13.16 million during the same period last year. Despite this decline, the company managed to deliver 60 vehicles within the quarter. CEO Dakota Semler expressed optimism for the upcoming quarters, noting a typical seasonal slowdown after a robust fourth quarter, but highlighting positive trends as the second quarter unfolds. The company anticipates an increase in vehicle deliveries and expects to see improved cash flow performance. This optimism is fueled by growing demand, which the company believes will support growth throughout the rest of the year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Xos Inc (XOS, Financial) is $6.33 with a high estimate of $8.00 and a low estimate of $5.00. The average target implies an upside of 63.35% from the current price of $3.88. More detailed estimate data can be found on the Xos Inc (XOS) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Xos Inc's (XOS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Xos Inc (XOS, Financial) in one year is $15.79, suggesting a upside of 307.26% from the current price of $3.8771. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Xos Inc (XOS) Summary page.
XOS Key Business Developments
Release Date: March 28, 2025
- Revenue (Q4 2024): $11.5 million, down from $15.8 million in Q3 2024.
- Full Year Revenue (2024): $56 million, up from $44.5 million in 2023.
- GAAP Gross Margin (Full Year 2024): Profit of $4 million or 7.1%, compared to a loss of $1.3 million or negative 2.9% in 2023.
- Non-GAAP Gross Margin (Full Year 2024): Profit of $10 million or 18%, compared to a loss of $2.3 million or negative 5.2% in 2023.
- GAAP Gross Margin (Q4 2024): Loss of $3.7 million or negative 32.4%, impacted by inventory reserves and write-offs.
- Non-GAAP Gross Margin (Q4 2024): Profit of $2.7 million or 23.2%.
- Operating Expenses (Full Year 2024): $49.8 million, down from $63.7 million in 2023.
- Non-GAAP Operating Loss (Full Year 2024): $32.1 million, compared to a loss of $58.1 million in 2023.
- Operating Expenses (Q4 2024): $10.9 million, down from $12.6 million in Q3 2024.
- Cash and Cash Equivalents (End of 2024): $11 million.
- Free Cash Flow (Q4 2024): $3.3 million, compared to negative $11.7 million in Q3 2024.
- Inventory (End of 2024): $36.6 million, down from $37.8 million at the end of 2023.
- Unit Deliveries (Q4 2024): 51 units.
- 2025 Revenue Outlook: $50.2 million to $65.8 million.
- 2025 Unit Deliveries Outlook: 320 to 420 units.
- 2025 Non-GAAP Operating Loss Outlook: $17.2 million to $14 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Xos Inc (XOS, Financial) achieved significant year-over-year revenue growth in 2024, reflecting strong demand for their products.
- The company delivered its first positive full-year GAAP gross margin, marking a significant financial milestone.
- Xos Inc (XOS) expanded its product portfolio, including the successful ramp-up of its second-generation hub and powertrain business.
- The company secured major commercial orders, including nearly 200 strip chassis for UPS and 20 hub units for Caltrans.
- Xos Inc (XOS) improved its liquidity position by adding over $40 million to its balance sheet, enhancing financial flexibility.
Negative Points
- Xos Inc (XOS) experienced a 27.3% decline in top-line revenue in Q4 compared to Q3, partly due to seasonal challenges.
- The company fell short of its guided deliveries for the year, impacting overall performance.
- Potential new tariffs on imported EV components could add significant costs per vehicle, posing a financial challenge.
- The company faces uncertainties related to federal policy changes that could impact customer access to tax credits and incentives.
- Xos Inc (XOS) reported a GAAP gross margin loss in Q4 due to changes in inventory reserves and write-offs.
