Xos Extends Gross Profit Streak, Highlighting Operational Efficiency

Dakota Semler, Chief Executive Officer of Xos

“Customers facing years-long waits for grid power need energy they can deploy now, and that is what Xos is building. During the quarter, the Xos Hub powered a hyperscaler’s data center construction project, another proof point that mobile storage solves a problem the grid cannot solve fast enough. We also began producing higher-capacity Hubs in Byrdstown and improved non-GAAP gross margin to 34.4%. Going into the fourth quarter, our priorities are clear: convert pipeline into deliveries, bring PowerHub rental and deployment partners online, and keep winning on reliability and economics”

Liana Pogosyan, Chief Financial Officer of Xos

“The first nine months of 2026 demonstrate the impact of the financial discipline we have embedded across Xos. Year-over-year, we expanded GAAP gross margin to 26.9% from 13.3%, reduced operating expenses by 10.0%, narrowed operating loss by 13.9%, and improved adjusted EBITDA by 26.9%.”

Liana Pogosyan, Chief Financial Officer of Xos

“We also continued to strengthen our balance sheet this year. Since year-end, we’ve reduced convertible debt by $4.5 million, or 24%, and brought inventory down by $3.1 million as we convert working capital to cash. In the third quarter, we raised $2.8 million through our at-the-market program and ended the quarter with $12.1 million in cash. Together with our lower operating expenses, that gives us a leaner cost base and a cleaner balance sheet as we execute against our revised full-year outlook.”