Q2 2026 Xos Inc Earnings Call Transcript
Key Points
- Launched the Power Hub, a mobile containerized battery energy storage system, expanding into the large data center and AI infrastructure market.
- Achieved the highest first-half GAAP gross margin (31%) and gross profit in company history, with a 19-percentage-point improvement year-over-year.
- Record production of 29 hubs in Q2, with over 250 MWh of energy storage deployed across North America.
- Strengthened balance sheet with cash increasing 35% to $13.2 million, supported by $7.6 million in capital raises.
- Improved operating loss by 23% (GAAP) and 41% (non-GAAP) in the first half, reflecting cost discipline and operational efficiency.
- Selected as a finalist for the US Air Force Global Strike Command showcase, demonstrating defense market potential.
- Over 100 powertrain orders since launch, with hubs operating for major fleets like Caltrans, Duke Energy, and Waymo.
- Q2 revenue fell to $4.7 million, down from $18.4 million in the prior year, due to order deferrals and customer delays.
- Unit deliveries were lighter than planned, with multiple orders shifted to subsequent quarters, impacting near-term revenue.
- Revised full-year 2026 revenue guidance down to $35-43 million, reflecting lower volume expectations.
- Q2 GAAP gross margin declined sequentially to 12.1% from 38.9% in Q1, due to product mix and delivery timing.
- Free cash flow was negative $4.3 million in the first half, compared to negative $0.1 million in the prior year.
- Operating loss increased sequentially in Q2 to $7.9 million from $4.6 million in Q1, driven by lower volumes.
- UL certification for new hub variants is incomplete, with some standards not expected until next year, potentially limiting market acceptance.
Welcome to the Xos second quarter 2026 earnings call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to David Zlotchew, General Counsel. Please go ahead.
Thank you all for joining us today. Hosting the call with me are Xos' Chief Executive Officer, Dakota Semler; Xos' Chief Operating Officer, Giordano Sordoni; and Xos' Chief Financial Officer, Liana Pogosyan. Today, after the close of regular trading, Xos issued its second quarter 2026 earnings press release. As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results as well as commentary on the quarter ended June 30, 2026.
Management's statements today reflect management's views as of today, August 13, 2026, only, and will include forward-looking statements, including statements regarding our fiscal year 2026, management's expectations for future financial and operational performance and other statements
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