Xos, Inc. (XOS): Business Model Canvas [Dec-2025 Updated]

You're looking at Xos, Inc. (XOS) and wondering if this is still just a truck maker, but honestly, the Q3 2025 numbers show a clear pivot to an electrification platform, and that changes the whole valuation story. They are balancing high revenue guidance for the year-between $50.2 million and $65.8 million-against a tight cash position of $14.1 million and operating expenses hitting $9.5 million in the quarter. This strategy hinges on landing major fleet deals with partners like UPS and FedEx ISPs while scaling their Tennessee plant to 3 chassis per day and pushing higher-margin powertrain sales. I've broken down the entire Business Model Canvas below so you can see precisely where the capital is going and how they plan to turn this platform strategy into real profit.

Xos, Inc. (XOS) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Xos, Inc.'s ability to scale production and manage the lifecycle of its electric commercial vehicles. These aren't just names on a slide; these are concrete agreements driving revenue and future operations.

Major Fleet Customers: UPS and FedEx ISPs

The relationships with major last-mile delivery players are central to Xos, Inc.'s volume. Fulfillment for these national accounts dictates much of the production cadence at the Tennessee plant.

For the third quarter of 2025, Xos, Inc. shipped 130 vehicles, recording $16.5 million in revenue, which included 10 stripped chassis destined for upfitters under a major customer program. The company is actively fulfilling what management called the largest single order in its history, a program exceeding 200 units.

Key customer milestones include:

• UPS commissioned Xos, Inc. to develop an electric delivery truck in August 2018.
• Xos, Inc. received its largest customer order in 2025 for 193 units from UPS, expected for delivery within 2025.
• In 2021, Xos, Inc. signed agreements with FedEx Ground operators to deliver 120 zero-emission electric trucks across 35 different Independent Service Providers (ISPs) in five states.
• FedEx Ground is estimated to have approximately 5,500 ISPs in the United States.

OEM Partner: Blue Bird Corporation

The partnership with Blue Bird Corporation focuses on integrating Xos, Inc.'s electric powertrain technology into Blue Bird's platforms, expanding Xos, Inc.'s reach beyond its own stepvan line.

As of Xos, Inc.'s third quarter 2025 earnings, the company delivered 18 powertrain systems to Blue Bird Corporation. Following that quarter end, Xos, Inc. secured nearly 80 additional powertrain orders from Blue Bird Corporation. This collaboration involves Xos, Inc.'s technology powering Blue Bird's electric stepvan prototype and commercial chassis platforms.

Strategic Investor: Aljomaih Automotive Company

Aljomaih Automotive Company is a significant strategic partner, recently restructured to be the largest shareholder of Xos, Inc. The relationship centers on a convertible promissory note, which saw recent amendments in August 2025.

Recent financial actions involving Aljomaih Automotive Company:

Supply Chain Network for Critical Components

Xos, Inc. relies on established agreements for core components to manage costs and ensure scalability. These agreements cover both the battery systems and the vehicle chassis.

The company points to three pillars supporting its margin performance, one of which is:

• Long-term supply agreements with one of the largest global Tier 1 battery cell and electronics suppliers.
• A multiyear manufacturing partnership with Metalsa for purpose-built frame rails and chassis components.
• The specialized chassis for Winnebago utilizes Xos, Inc.'s platform technology for dependable access to parts.

Cox Automotive Mobility for EV Battery Remanufacturing

A strategic collaboration exists with Cox Automotive Mobility to manage the end-of-life cycle for Xos, Inc. battery packs, supporting sustainability goals.

This partnership leverages Cox Automotive Mobility's EV battery service centers, which include capabilities from the acquired Spiers New Technologies (SNT). Xos, Inc. sends battery packs nearing end-of-life to these centers for remanufacturing and preparation for second-life use. Rob Ferber, Xos, Inc.'s CTO, noted this strategy helps reduce the company's overall carbon footprint and save on labor costs.

Finance: review Q4 2025 backlog conversion rate against the 200-plus unit order program by end of next week.

Xos, Inc. (XOS) - Canvas Business Model: Key Activities

The core operational engine for Xos, Inc. centers on the design, engineering, and assembly of electric commercial vehicles and the supporting energy ecosystem.

Manufacturing electric commercial vehicles (Classes 5-8)

Xos, Inc. designs and manufactures battery-electric commercial vehicles for last-mile, back-to-base routes up to 200 miles per day, focusing on Classes 5-8. The company is a primary electric vehicle vendor for last-mile delivery fleets at UPS and FedEx Ground. The full-year 2025 revenue guidance is set between $50.2 million and $65.8 million, with unit deliveries projected to be between 320 and 420 units for the year. As of the second quarter of 2025, Xos, Inc. achieved record quarterly unit deliveries of 135 vehicles, generating $18.4 million in GAAP revenue. The third quarter of 2025 saw 130 units delivered, resulting in $16.5 million in revenue. The company has received its largest-ever order, exceeding 200-plus units, from a single customer, which is expected to be delivered throughout 2025. The engineering fleet, as of January 2024, included three HDXT tractors and two MDXT trucks.

Developing proprietary battery and vehicle architecture (X-Platform)

The development activity focuses on leveraging modularity to reduce incremental investment. The MDXT medium-duty chassis cab shares more than 90% of its parts with the existing stepvan platform. The Class 8 HDXT tractor is designed to utilize Allison Transmission e-axles alongside Xos' proprietary battery systems. The MDXT program is expected to enter broader production in Q3 2026. The company has implemented over $10 million in cost reductions across engineering and supply chain teams over the past 12 months to enhance the architecture's economics.

Production at the Tennessee plant, achieving 3 chassis per day

The manufacturing facility in Byrdstown, Tennessee, serves as the cornerstone for production, handling StepVan chassis and Xos Hub production. In the third quarter of 2025, the Tennessee plant achieved production rates of 3 chassis per day, underscoring efficient scaling. Serial production for the Class 8 HDXT tractor is scheduled to start late in 2025 at a site adjacent to the existing Tennessee step van manufacturing plant. The current capacity of the facility is 2,000 vehicles per year, with the potential to expand to 5,000 vehicles per year via layout changes and a second shift. The table below summarizes recent unit delivery performance:

Developing and deploying mobile charging solutions (Xos Hub)

Xos Energy Solutions™ develops and deploys mobile and stationary charging infrastructure, headlined by the Xos Hub™. The company delivered 34 Hubs in the year ended December 31, 2024. The Xos Hub is a rapidly deployable unit that features 282 kWh of onboard energy storage and four integrated DC fast chargers. In February 2025, the Xos Hub was officially added to the Federal GSA Schedule, positioning Xos in the $5+ billion federal fleet electrification market. A major incentive for adoption is the eligibility of the Xos Hub for a $110,000 voucher under California's CORE program, which can reduce the net cost below $100,000, compared to traditional systems often costing over $200,000. The company received its largest Hub order for 19 units from Caltrans.

Fleet management software development and maintenance (Xosphere)

The Xosphere™ Fleet Management software is a key activity, integrating vehicle operation and charging data for real-time monitoring, cost reduction, and maintenance management. This proprietary software is developed and maintained in-house to enhance the total ownership experience for fleet operators. While specific 2025 development and maintenance cost figures aren't public, the software is a core component of the end-to-end electrification offering.

Xos, Inc. (XOS) - Canvas Business Model: Key Resources

You're looking at the tangible and intangible assets Xos, Inc. relies on to execute its business strategy as of late 2025. These are the core things the company owns or controls that make the value proposition possible.

The foundation of Xos, Inc.'s offering rests heavily on its proprietary X-Platform battery and vehicle technology. This is described as a modular OEM powertrain architecture that underpins their purpose-built battery and powertrain systems, integrated vehicle software, and controls. This vertical integration, particularly around the battery, is key for controlling cost and supply chain robustness.

Another critical intangible asset is the Xosphere fleet management and telematics software. This proprietary system helps fleet operators manage their electric vehicles by integrating operational and charging data. Furthermore, Xos, Inc. is using this platform to create new revenue streams by partnering with companies like Leap to enroll customers in grid services programs, such as California's Demand Side Grid Support (DSGS) program, allowing fleets to automatically shift charging during grid emergencies and generate revenue.

On the physical side, the manufacturing facility and scalable production lines in Tennessee are central. The COO confirmed in Q3 2025 that the Tennessee plant remained the cornerstone of success, achieving production rates of 3 chassis per day during the quarter. While the initial facility in Byrdstown was reported in early 2024 to have a capacity of 2,000 vehicles per year, with potential expansion to 5,000 vehicles per year through layout changes and a second shift, the late 2025 focus appears to be on maximizing current throughput while preparing for the serial production start of the HDXT tractor at an adjacent site.

Financial resources are also a key component, though subject to change quarter-to-quarter. As of the end of Q3 2025, Xos, Inc. reported cash and equivalents of $14.1 million. This liquidity position was bolstered by generating positive free cash flow of $3.1 million in Q3 2025, marking the third positive free cash flow quarter since going public. The company also raised $2.4 million, net of offering costs, through its at-the-market offering program during that quarter.

The company's competitive moat is further protected by its intellectual property and patents for electric powertrains. This IP covers the proprietary battery systems, power distribution, management componentry, battery management systems, system controls, inverters, and electric traction motors that make up their powertrain offerings.

Here's a quick look at some of the key operational and financial metrics underpinning these resources as of Q3 2025:

You should note the strategic importance of the Xosphere software in enabling new revenue streams:

• Integration with Leap's platform for Virtual Power Plants (VPPs).
• Enables enrollment in California's DSGS grid services program.
• Allows automatic shifting of charging during emergency grid events.
• Helps reduce the total product cost for customers via energy savings.

Also, the proprietary powertrain technology is designed to deliver a lower Total Cost of Ownership (TCO) compared to diesel alternatives, with payback times for most fleets estimated at less than 5 years before incentives.

Finance: draft 13-week cash view by Friday.

Xos, Inc. (XOS) - Canvas Business Model: Value Propositions

You're looking at Xos, Inc. (XOS) and trying to map out the tangible value they deliver to their customers right now, late in 2025. It's not just about selling trucks; it's about selling a complete operational shift, and the numbers back up the claims on TCO and infrastructure flexibility.

Zero-emission medium- and heavy-duty commercial vehicles

Xos, Inc. provides purpose-built battery-electric commercial vehicles, focusing on the medium- and heavy-duty segments for last-mile operations. The core offering is designed to meet increasing emissions regulations while serving fleets that operate up to about 200 miles per day, based on their platform design for the last-mile sector. You can see the commitment to this segment in their 2025 guidance, which projects total unit deliveries between 320 and 420 units for the full fiscal year, generating revenue between $50.2 million and $65.8 million.

The company's product line includes commercial stepvans and Class 5-6 Medium Duty Rolling Chassis. The execution on this is visible in their Q3 2025 results, where they shipped 130 vehicles, plus an additional 10 stripped chassis going to upfitters for a major customer program.

Lower Total Cost of Ownership (TCO) for fleet operators

The financial argument for switching to Xos, Inc. centers on optimizing the Total Cost of Ownership (TCO) compared to internal combustion engine (ICE) alternatives. The finance team actively helps customers find advantageous grants and incentives to make the initial switch more affordable. The company's strategy is explicitly about making the electric transition easy and cost-effective on a TCO basis.

The operational improvements are starting to show in the margins, which directly impacts the long-term cost structure. For the third quarter of 2025, Xos, Inc. achieved a GAAP Gross Profit Margin of 15.3%. This focus on margin, even while navigating tariffs, is key to realizing the TCO benefits for the fleet operator over the vehicle's life.

Complete fleet electrification solution (vehicle, charging, software)

Xos, Inc. offers more than just the truck; they provide the necessary energy infrastructure and management software to support a full fleet transition. This integrated approach is designed to remove the common bottlenecks of EV adoption.

The value proposition here is delivered through a suite of products and services, including the vehicles, charging infrastructure, and fleet management tools like Xosphere®.

• Vehicle maintenance and purchase financing support.
• Proprietary battery system, the X-Pack.
• Modular chassis, the X-Platform.

Xos Hub mobile energy for temporary power and peak shaving

The Xos Hub™ is a rapidly deployable, mobile charging solution that addresses infrastructure delays. It's a versatile unit capable of serving as stopgap charging, remote power, or backup during grid outages. The company is actively creating new value streams by integrating this technology with energy markets.

The Hub's specifications and financial incentives make it an accessible solution for immediate deployment:

Through a partnership with Leap, Xos Hub customers in California can enroll in the Demand Side Grid Support (DSGS) program, allowing them to automatically shift charging to stored battery power during emergency grid events, which generates revenue for the fleet operator.

Proven powertrain technology with millions of on-road miles

Xos, Inc. supports its vehicle sales with powertrain solutions for specialty vehicles, including school buses, through partnerships with manufacturers like Blue Bird Corporation. The technology has been in commercial fleet use since 2018, demonstrating operational history.

The traction in this segment is growing, showing customer confidence in the technology beyond the core stepvan. In Q3 2025, Xos delivered 18 powertrain systems to Blue Bird Corporation. Furthermore, since that quarter ended, the company reported receiving nearly 80 additional powertrain orders, with most expected to ship in 2026.

Xos, Inc. (XOS) - Canvas Business Model: Customer Relationships

You're looking at how Xos, Inc. manages its relationships with its commercial fleet customers, and honestly, the data shows a clear focus on securing large, committed partners rather than chasing many small orders. This approach is necessary when you're dealing with high-value assets like electric trucks.

Direct sales and long-term structured pricing with national accounts

The relationship structure is heavily weighted toward direct engagement with major fleet operators. This is where the bulk of the committed revenue lies, often under long-term structured pricing agreements that factor in things like tariffs, which management noted impacted the Q3 2025 GAAP gross margin of 15.3%.

The commitment from national accounts is significant. For instance, Xos, Inc. is fulfilling what CEO Dakota Semler called the largest single order in the company's history, a program involving 200-plus units. Major customers like UPS and FedEx Independent Service Providers (ISPs) drive this volume. The company shipped 140 units in Q3 2025, including 10 stripped chassis for a major customer program, though revenue recognition for those chassis will occur in later quarters.

Here's a look at the recent sales volume that defines these relationships:

Dedicated after-sales support, service, and parts supply

While specific revenue figures for service and parts are not broken out, the strategy is clearly tied to supporting the vehicles sold. The company is expanding its product offerings beyond the core stepvan platform, which suggests an expanding base for future service revenue. For example, in Q3 2025, Xos, Inc. delivered 18 powertrain systems to Blue Bird Corporation, and since that quarter end, they secured nearly 80 additional powertrain orders. These powertrain sales represent a key area for ongoing service and parts attachment, helping to build a more diversified, recurring revenue base over the vehicle's lifecycle.

High-touch relationship management for large fleet transitions

Managing the transition for large fleets requires intensive, high-touch engagement. The operational cadence at the Tennessee plant, achieving rates of 3 chassis per day in Q3 2025, is a direct result of this focused management, ensuring consistent production for major fleet customers. The company's focus on disciplined cost management and achieving its second consecutive quarter of positive free cash flow ($3.1 million in Q3 2025) is also a critical part of maintaining trust with these large partners who require financial stability from their suppliers.

Key elements of this high-touch approach include:

• Fulfilling the largest-ever order of 200-plus units.
• Maintaining consistent production rates at the Tennessee plant.
• Extending financial runway via note amendment, pushing payments on a $20 million convertible note to February 2028.
• Focusing on Total Cost of Ownership (TCO) benefits to secure fleet buy-in.

Subscription model for Xosphere software platform

The Xosphere software platform, now referred to as the Xos Hub platform, is being positioned as a significant growth vector, moving the relationship beyond just vehicle sales into energy management. The platform is a mobile energy storage system and DC fast charger. Management signaled that the EV charging segment of the Hub platform is expected to see double-digit growth. Furthermore, the Xos Hub was added to the Federal General Services Administration (GSA) Schedule in February 2025, which streamlines procurement for federal agencies, indicating a specific customer segment relationship being formalized for software and energy solutions.

The company maintains full control over the software, ensuring interoperability across OEMs, which is a key value proposition for fleets using mixed-brand vehicles. While specific subscription revenue amounts for Xosphere are not public, the strategic focus on the Hub platform suggests this is the primary vehicle for establishing a software-as-a-service or subscription-like revenue stream.

Finance: draft 13-week cash view by Friday.

Xos, Inc. (XOS) - Canvas Business Model: Channels

You're looking at how Xos, Inc. gets its electric vehicles and energy solutions into the hands of fleet operators, and the data shows a clear multi-pronged approach focusing on large customers and infrastructure integration.

The Channels block for Xos, Inc. (XOS) in late 2025 is built around direct engagement with major fleet players, strategic OEM supply, and direct sales of their energy platform.

Direct sales force to large commercial fleet operators

The sales motion heavily relies on a direct sales force engaging with large commercial fleet operators, evidenced by significant ongoing business with national carriers. As of late 2025, Xos, Inc. is a primary electric vehicle vendor for last-mile delivery fleets at UPS and FedEx Ground. This channel secured the company's largest order in history, a 200-plus unit order program currently being fulfilled. The operational scale is visible in the delivery numbers; for instance, the second quarter of 2025 saw a record 135 units delivered, generating $18.4 million in GAAP revenue. The third quarter followed with 130 units delivered, contributing $16.5 million in revenue. Management reaffirmed the full-year 2025 unit delivery guidance to be between 320 to 420 units. The overall company size supporting these sales efforts as of September 30, 2025, was 299 total employees.

The focus on large contracts is a clear strategic channel priority.

Delivery of stripped chassis to third-party upfitters

A portion of Xos, Inc.'s output is channeled through the delivery of stripped chassis directly to third-party upfitters for final integration or specific customer programs. This is a key mechanism for serving customers who require custom bodies beyond Xos, Inc.'s standard offerings. In one recent quarter, the company shipped 140 vehicles in total, which included 10 stripped chassis designated for upfitters under a major customer program. This demonstrates a flexible approach to meeting diverse fleet requirements.

OEM sales channel for powertrain systems (e.g., Blue Bird)

Xos, Inc. uses an Original Equipment Manufacturer (OEM) channel by supplying its proprietary electric powertrain systems to established vehicle manufacturers. The most notable example is the collaboration with Blue Bird Corporation to power an all-electric stepvan prototype.

• The Blue Bird electric stepvan prototype is based on a 178" wheelbase.
• The vehicle platform has a Gross Vehicle Weight Rating (GVWR) of up to 23,000 pounds.
• The integrated Xos powertrain utilizes a 140kWh Lithium-ion battery.
• This configuration provides an estimated range of up to 130 miles on a single charge.

This channel allows Xos, Inc. to embed its core technology into other manufacturers' final products, expanding reach without solely relying on its own chassis sales.

Direct deployment of Xos Hub charging infrastructure

The Xos Hub mobile charging unit is sold and deployed directly to fleets and utilities, often bypassing traditional, slower infrastructure build-out channels. This is a direct-to-customer sales motion for their energy segment. The latest version of the Xos Hub achieved a significant channel advantage by qualifying for a $110,000 CORE voucher in California, bringing the net cost to under $100,000. This is less than half the cost of many equivalent DC fast charging systems, which often exceed $200,000.

Key specifications for the Hub include:

• Onboard energy storage of 282 kWh.
• Four integrated DC fast chargers.
• Availability for federal agencies via the General Services Administration (GSA) Schedule as of February 19, 2025.

Past sales data shows direct utility adoption; for example, during 2024, Xos, Inc. sold two Hubs to Xcel Energy for an aggregate of approximately $0.5 million. The largest recorded Hub order was for 19 units sold to Caltrans in 2024.

Finance: draft 13-week cash view by Friday.

Xos, Inc. (XOS) - Canvas Business Model: Customer Segments

You're looking at Xos, Inc. (XOS) and trying to map out exactly who is buying their electric commercial vehicles and powertrain solutions as of late 2025. Honestly, the customer base is consolidating around large fleet operators, which is typical for this stage of commercial EV adoption, but the data shows a clear focus on high-volume partners.

The core of the business is clearly tied to the last-mile delivery sector. For the first three quarters of 2025, Xos, Inc. delivered a total of 294 units, generating $40.8 million in revenue. This volume is being driven by major, recurring customers, which is a good sign for future revenue predictability.

Here's a quick look at the recent delivery and revenue performance that reflects the current customer load:

The customer segments are clearly defined by the types of transactions Xos, Inc. is executing:

• Last-mile delivery and logistics companies (e.g., UPS, FedEx ISPs)
• Other Original Equipment Manufacturers (OEMs) buying powertrains
• Specialized vehicle operators needing customizable electric chassis
• Government and public sector fleets with sustainability goals

The Last-mile delivery and logistics companies (e.g., UPS, FedEx ISPs) represent the anchor for the vehicle sales. In Q3 2025, Xos, Inc. shipped a total of 140 units, which included 10 stripped chassis destined for an upfitter supporting a major customer program. This relates directly to the fulfillment of what management called the largest single order in company history, a 200-plus unit order program. You can see the direct impact of these large fleet deals on the unit volume; for instance, Q2 2025 saw 135 units delivered, a significant increase from 90 units in Q2 2024.

For the Other Original Equipment Manufacturers (OEMs) buying powertrains, the data shows a strategic diversification of revenue. In Q3 2025, Xos, Inc. delivered 18 powertrain systems to Blue Bird Corporation. Furthermore, since the end of that quarter, the company secured nearly 80 additional powertrain orders, indicating this segment is scaling up rapidly. This move away from solely selling complete vehicles to supplying core components helps improve the overall gross margin, which sequentially rose from 8.8% in Q2 2025 to 15.3% in Q3 2025.

While the data doesn't give specific unit counts for Specialized vehicle operators needing customizable electric chassis or Government and public sector fleets with sustainability goals, the mention of a diverse customer mix contributing to the Q3 2025 gross margin improvement suggests activity across these areas. The 10 stripped chassis shipped in Q3 2025 are an example of providing a chassis for an upfitter, which aligns with the specialized/customizable chassis need. The overall 2025 unit guidance of 320 to 420 units must be spread across all these buyers.

Finance: draft 13-week cash view by Friday.

Xos, Inc. (XOS) - Canvas Business Model: Cost Structure

You're looking at the cost side of Xos, Inc. (XOS) as they push to scale manufacturing and secure fleet contracts. Honestly, for a manufacturer, the cost of goods sold is always the biggest lever you need to watch, so let's break down the numbers we have as of late 2025.

High cost of revenue from manufacturing and raw materials is evident when you look at the gross margin. For the third quarter of 2025, the Cost of Sales was reported as $13.97 million, against revenue of $16.5 million. This resulted in a GAAP Gross Margin of 15.3% for the quarter. Management noted that this margin reflects a complex reality, including long-term structured pricing with national accounts and the impact of tariffs that were not originally contemplated in some large program pricing. The non-GAAP Gross Margin for Q3 2025 was 16%.

The company is actively managing costs associated with scaling production and supply chain management, with management pointing to tariff volatility as a headwind. The Tennessee plant was running efficiently, achieving rates of 3 chassis per day in Q3 2025, which underscores their ability to scale at higher volumes.

Significant investment in Research and Development (R&D) is part of the ongoing product diversification strategy, though the most granular breakdown available is from the prior quarter. For the second quarter of 2025, Research and Development expenses were $4.017 million. This investment supports the expansion into higher-margin categories like powertrains and the Xos Hub energy platform.

Operating expenses of $9.5 million in Q3 2025 is a key figure showing disciplined management, even with sequential increases. This figure was up 9% from Q2 2025 but was down 24% compared to Q3 2024. For the first three quarters of 2025, total operating expenses reached $28.7 million.

Sales, General, and Administrative (SG&A) costs for market expansion are embedded within the total operating expenses. While a specific SG&A number for Q3 2025 isn't explicitly separated from R&D in the latest reports, the total operating expenses of $9.53 million for Q3 2025 compared to $10.48 million in Q1 2025 shows variability as the company executes its market strategy.

Here are the key cost and margin metrics from the Q3 2025 reporting period:

The company is also actively managing capital structure costs, having amended a convertible note in August 2025 to move principal payments to quarterly installments through February 2028. Furthermore, terminating the Mesa facility lease is expected to generate $20.7 million in cash savings through 2033, though this is offset by required payments totaling about $2.8 million over 18 months.

Xos, Inc. (XOS) - Canvas Business Model: Revenue Streams

You're looking at the revenue engine for Xos, Inc. (XOS) as of late 2025, and honestly, the story isn't just about how many trucks they sell; it's about the mix of what they sell. Management is clearly pushing hard toward higher-margin components and services, which is a defintely smart move given the capital intensity of manufacturing.

The official full-year 2025 revenue guidance remains a range between $50.2 million and $65.8 million. This range is wide, reflecting the inherent execution risk in scaling production, but the underlying unit delivery target is set between 320 and 420 units for the full year. To give you a sense of the cadence, Q3 2025 saw revenue of $16.5 million from the delivery of 130 units.

The primary revenue source is still the Sale of electric commercial vehicles (trucks and vans), which is directly tied to those unit delivery numbers. For context on the year's flow, Q1 2025 saw 29 units delivered, while Q2 2025 hit a record with 135 units shipped. The shift in mix is what you need to watch closely, as it directly impacts the gross margin, which hit 15.3% in Q3 2025, up from 8.8% in Q2 2025.

The strategic pivot is evident in the Sale of powertrain systems to other OEMs (higher-margin focus). This segment is gaining traction and is expected to drive better profitability going forward. For example, in Q3 2025, Xos, Inc. delivered 18 powertrain systems to Blue Bird Corporation. Plus, since that quarter ended, they have received nearly 80 additional powertrain orders, though most of those are slated to ship in 2026.

Here is a quick look at the known revenue components and guidance for the 2025 fiscal year:

Beyond the hardware sales, Xos, Inc. is building out its infrastructure and software revenue streams, which are key to establishing a more stable, recurring financial base. These areas are where the long-term value proposition is being cemented, even if the current revenue contribution isn't as large as the truck sales.

The infrastructure side involves the Sale and installation of Xos Hub charging infrastructure. Management noted accelerated deployments of the Xos Hub platform, which is also being positioned as a mobile energy platform for industrial users needing temporary power or resilience where grid infrastructure is lacking. While specific 2025 revenue for Hubs isn't broken out, this is a stated area of focus alongside the vehicle sales.

Finally, the software component is the Recurring revenue from Xosphere software subscriptions and service contracts. Xosphere is their proprietary fleet management software, integrating vehicle operation and charging data for monitoring and maintenance. While the 2024 10-K mentioned the software, specific 2025 recurring revenue figures aren't explicitly detailed in the latest earnings reports, but management signaled ongoing expansion in this area.

You should track these elements as leading indicators for future revenue quality:

• The mix shift toward powertrain sales, which are higher-margin.
• The growth rate of Xos Hub deployments.
• The total number of active Xosphere software subscribers.
• The duration and value of service contracts signed.