Business/Financial Results (Form 8-K)

Xos Delivers Third Consecutive Quarter of Positive Operating and Free Cash Flow, Accelerates Platform Expansion Across Vehicles, Powertrains, and Energy Storage

Delivered first production powertrains for Blue Bird school buses

Achieved third consecutive quarter of positive operating cash flow and free cash flow, ending 2025 with $14.0 million in cash - up 28% year-over-year

Reduced full-year operating expenses by $14.0 million (28.2% YoY) and cut full-year EBITDA loss by more than half - from $42.2 million to $21.0 million

LOS ANGELES, CA - March 26, 2026 - Xos, Inc. (NASDAQ: XOS) ("Xos" or the "Company"), a leading energy storage and fleet electrification solutions provider, today reported financial results for the fourth quarter and full year ended December 31, 2025. Building on a year of disciplined execution and consistent operational improvement, Xos closed 2025 with its third consecutive quarter of positive operating cash flow and positive free cash flow, reinforcing the durability of its operating model and the strength of its multi-product platform spanning vehicles, powertrains, and energy storage.

Fourth Quarter Highlights:

•Xos achieved positive net cash provided by operating activities and positive free cash flow of $2.4 million in Q4, marking three straight quarters of cash-positive operations. This performance reflects meaningful improvements in the Company's operating model, including faster inventory turnover and more efficient receivables collection, which have driven stronger cash generation and improved working capital efficiency.

•Operating expenses reduced by 34.6% year-over-year. Fourth quarter operating expenses decreased by $3.8 million compared to Q4 2024, driven by continued headcount efficiency and cost discipline across the organization.

•Operating loss reduced by 33.2%. The Company reported an operating loss of $9.7 million and a non-GAAP operating loss of $4.6 million in Q4 2025, compared to an operating loss of $14.6 million and a non-GAAP operating loss of $6.4 million in Q4 2024 - a 27.1% improvement in non-GAAP operating loss.

•Xos delivered 34 units and generated $5.2 million in revenue in the fourth quarter, compared to 51 units and $11.5 million in Q4 2024 as the Company began shifting focus and allocating resources to powertrain production as opposed to stepvans and chassis.

•Gross margins decreased to negative 50.5%, compared to negative 32.4% in Q4 2024. Non-GAAP gross margins were 5.2%, compared to 23.2% in Q4 2024. The decrease was driven by higher

inventory reserves and associated write-downs due to changes in the Company's commercialization strategy, as well as higher warranty reserves.

•EBITDA improved to a loss of $8.5 million from a loss of $13.4 million in Q4 2024, and adjusted EBITDA improved to a loss of $7.0 million from a loss of $12.0 million in the prior year.

Full Year 2025 Highlights:

•Xos delivered 328 units in 2025, a 10% increase from 297 units in 2024. Revenue was $46.0 million compared to $56.0 million in 2024, with the year-over-year decline in revenue per unit reflecting a strategic shift in product mix toward stripped chassis and powertrain units as opposed to complete stepvans.

•Second consecutive full year of positive gross margin. The Company achieved a gross margin of 5.9% in 2025, compared to 7.1% in 2024, and non-GAAP gross margin of 8.8%, compared to 18.0% in 2024.

•Operating expenses reduced by $14.0 million, or 28.2%. Full-year operating expenses declined to $35.8 million from $49.8 million in 2024, underscoring sustained structural cost improvement and a leaner, more efficient operating model.

•Operating loss narrowed by 27.9%. The Company reported a full-year operating loss of $33.1 million and a non-GAAP operating loss of $24.3 million, compared to an operating loss of $45.9 million and a non-GAAP operating loss of $32.1 million in 2024 - a 24.1% improvement in non-GAAP operating loss.

•EBITDA loss cut by more than half. Full-year EBITDA improved to a loss of $21.0 million from $42.2 million in 2024 - a $21.2 million improvement. Adjusted EBITDA improved to a loss of $23.5 million from $34.8 million, a 33% improvement reflecting the compounding benefits of cost discipline and operational efficiency.

•Cash position strengthened to $14.0 million. Xos ended the year with $14.0 million in cash and cash equivalents, up from $11.0 million at year-end 2024 - a 28% increase highlighting growing financial flexibility and momentum toward long-term sustainable growth.

•First production powertrains delivered for Blue Bird school buses. Xos delivered its first production electric powertrains to Blue Bird Corporation, expanding beyond commercial vehicles into the school bus market and validating Xos's powertrain technology platform as a scalable OEM solution.

Platform and Product Milestones:

•Xos Hub™ energy storage proving reliability at scale. Xos Hub units deployed across customer fleets have now charged gigawatt-hours of energy in the aggregate, and the most active individual units have completed thousands of charge cycles each - proving the reliability and durability of Xos's mobile energy storage technology in demanding real-world conditions.

•Next-generation Hub variants in development. The Company began development of the Xos Hub 210 kWh, Xos Hub 420 kWh and Xos Hub 630 kWh models, which will enter production in 2026. These next-generation variants expand the addressable market for Xos Hub across a broader range of fleet sizes and charging use cases.

•Customer fleets surpass millions of cumulative miles. Subsequent to year end, multiple Xos customer fleets surpassed millions of cumulative miles driven on their respective Xos vehicles - a milestone that validates the long-term reliability, performance, and total cost of ownership advantage of the Xos platform.

•Industry's most competitive electric truck chassis - priced below $100,000. Subsequent to year end, Xos began offering its electric truck chassis at $99,000, making it the most competitively priced battery-electric commercial stripped chassis on the market. This pricing positions Xos to capture accelerating demand as fleet operators evaluate electrification on pure economics, regardless of the evolving incentive landscape.

"2025 was a defining year for this company," said Dakota Semler, Chief Executive Officer of Xos. "Our flagship energy-storage solution, the Xos Hubs, have now charged gigawatt-hours of energy across thousands of cycles. We shipped our first production powertrains to Blue Bird. Our customers have driven millions of miles on Xos vehicles. And we're now offering the most competitively priced electric truck chassis in the industry - below $100,000. Three consecutive quarters of positive free cash flow proved the model works. But what excites me most is what this team is building: a multi-product platform that wins on reliability, wins on economics, and wins regardless of where the incentive landscape goes. The companies that thrive in this next chapter will be the ones whose products stand on their own - and that's exactly what we've built."

"The financial progress in 2025 speaks for itself," said Liana Pogosyan, Chief Financial Officer of Xos. "Three consecutive quarters of positive free cash flow, EBITDA loss cut by more than half, a 28% reduction in full-year operating expenses, and $14 million in cash to start 2026. We restructured our balance sheet, extended our financial runway and unlocked over $20 million in long-term savings - all while this team continued to execute. The discipline is structural, not situational, and it positions us well for the year ahead."

Fourth Quarter and Full Year 2025 Financial Highlights

			Quarters ended									Years ended
(in millions)			31 Dec 2025			30 Sep 2025			31 Dec 2024			31 Dec 2025			31 Dec 2024
Revenues			$5.2			$16.5			$11.5			$46.0			$56.0
Gross (loss) profit			$(2.6)			$2.5			$(3.7)			$2.7			$4.0
Non-GAAP gross profit(1)			$0.3			$2.6			$2.7			$4.1			$10.0
Net income (loss)			$(9.8)			$2.1			$(19.0)			$(25.3)			$(50.2)
Loss from operations			$(9.7)			$(7.0)			$(14.6)			$(33.1)			$(45.9)
Non-GAAP operating loss(1)			$(4.6)			$(4.8)			$(6.4)			$(24.3)			$(32.1)
Inventories			$25.0			$25.2			$36.6			$25.0			$36.6
Cash and cash equivalents			$14.0			$14.1			$11.0			$14.0			$11.0

____________________________

(1)