Xos, Inc. reported its financial results for the third quarter ended September 30, 2026, noting a significant year-over-year decline in revenue but highlighting operational efficiency and a streak of positive gross profit. The company delivered 33 units during the quarter, including leases, generating $5.5 million in revenue. This represents a 17.0% sequential increase from the $4.7 million recorded in Q2 2026, but a 66.4% decrease compared to the $16.5 million generated in the same period of the prior year.
Despite the revenue drop, Xos achieved its third consecutive quarter of positive GAAP gross profit. Gross margin improved sequentially to 15.3% in Q3 2026, up from 12.1% in the previous quarter. Non-GAAP gross margin also improved, reaching 34.4% in Q3 2026, marking the 13th consecutive quarter of positive non-GAAP gross margin. The company’s operating loss narrowed sequentially to $7.5 million, a 6.1% improvement from the $7.9 million loss in Q2 2026. Adjusted EBITDA for the quarter was $(4.6) million, an increase of $0.9 million or 15.6% sequentially.
Operating expenses for the quarter were $8.3 million, a decrease of 2.5% sequentially and 12.8% year-over-year. The company’s cash position stood at $12.1 million as of September 30, 2026, down from $13.2 million at the end of the prior quarter. During the period, Xos raised $2.8 million under its at-the-market offering program and repaid $1.5 million of principal on its convertible note, reducing outstanding debt to $14.0 million.
For the first nine months of 2026, revenue totaled $21.5 million on 158 units delivered, a decrease of 47.2% from the prior year. However, the company reported a significant expansion in gross margin, with GAAP gross margin reaching 26.9% compared to 13.3% in the first nine months of 2025. Operating expenses for the nine-month period were $25.8 million, a 10.0% reduction year-over-year, resulting in an operating loss of $20.0 million, which narrowed by 13.9% from the prior year.
Xos also provided an outlook for the full year 2026, revising its expectations based on order revisions and product mix changes. The company now expects revenue between $25 million and $35 million, non-GAAP operating loss between $(20.5) million and $(17.2) million, and unit deliveries between 185 and 250 units for the remainder of the year.
