XOSWWHIGH SIGNALFINANCIAL10-K

Xos significantly reduced net losses while experiencing substantial asset base contraction and major declines in receivables and inventory levels.

The company shows meaningful progress toward profitability with net losses cut roughly in half, suggesting improved operational efficiency or cost management. However, the dramatic reduction in assets, particularly the sharp drop in accounts receivable and inventory, could signal either improved working capital management or concerning revenue challenges that warrant close monitoring.

Comparing 2026-03-30 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

Xos demonstrated notable improvement in profitability metrics with net losses substantially reduced and operating losses moderately improved year-over-year. However, the company experienced significant asset base contraction, with total assets declining 38.6% driven by major reductions in accounts receivable and inventory levels. The simultaneous decrease in liabilities helped partially offset the asset decline, though stockholders' equity still contracted meaningfully, reflecting the overall downsizing of the business footprint.

FINANCIAL STATEMENT CHANGES
Accounts Receivable
Balance Sheet
-77.5%
$26.9M→$6.0M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Net Income
P&L
+49.5%
-$50.2M→-$25.3M

Net income grew 49.5% — bottom-line growth signals improving overall business health.

Current Liabilities
Balance Sheet
-49.3%
$46.7M→$23.7M

Current liabilities reduced — improved short-term financial position and working capital health.

Total Liabilities
Balance Sheet
-42.7%
$64.7M→$37.1M

Liabilities reduced 42.7% — deleveraging improves balance sheet strength and financial flexibility.

Current Assets
Balance Sheet
-39.4%
$82.3M→$49.9M

Current assets declined 39.4% — monitor working capital adequacy and short-term liquidity.

Total Assets
Balance Sheet
-38.6%
$98.3M→$60.4M

Total assets contracted 38.6% — asset sales, write-downs, or balance sheet optimization underway.

Inventory
Balance Sheet
-31.7%
$36.6M→$25.0M

Inventory drawn down 31.7% — strong sell-through or deliberate destocking; watch for supply constraints.

Gross Profit
P&L
-31.3%
$4.0M→$2.7M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Stockholders Equity
Balance Sheet
-30.7%
$33.6M→$23.3M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Operating Income
P&L
+27.9%
-$45.9M→-$33.1M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

LANGUAGE CHANGES
NEW — 2026-03-30
PRIOR — 2025-03-31
ADDED
As of March 26, 2026, there were approximately 11,982,627 shares of the registrant's common stock outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 53 Item 7A.
Changes in and Disagreement With Accountants on Accounting and Financial Disclosure 107 Item 9A.
Glossary of Terms Unless otherwise stated in this Report or the context otherwise requires, reference to: Business Combination means the Domestication, the Merger and the other transactions contemplated by the Merger Agreement, collectively; Closing means the closing of the Business Combination; Common Stock means the shares of common stock, par value $0.0001 per share, of Xos; Convertible Note means the convertible promissory note issued on August 11, 2022 and amended and restated to date, in an initial principal amount of $20.0 million.
Our mix of offerings is novel in the industry and has yet to be tested in the long term.
Our ability to generate or maintain positive cash flow is uncertain.
We have incurred substantial debt, including $17.0 million principal amount of Convertible Note as of March 26, 2026, together with accrued interest thereon, which is due in quarterly installments from May 11, 2026 through February 11, 2028, which could impair our flexibility and access to capital and adversely affect our financial position, and our business would be adversely affected if we are unable to service our debt obligations and are subject to default.
7 Our business and prospects depend significantly on our ability to build our brands.
We may not successfully establish, maintain and strengthen the Xos brand or any other brands, and our brands and reputation could be harmed by negative publicity regarding Xos or our products.
We cannot predict the amount, timing or pricing of any further sales of Common Stock pursuant to the ATM Offering (as defined below), if any.
REMOVED
As of March 26, 2025, th ere were approximately 8,102,993 shares of the registrant's common stock outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 51 Item 7A.
Changes i n and Disagreement With Accountants on Accounting and Financial Disclosure 106 Item 9A.
Glossary of Terms Unless otherwise stated in this Report or the context otherwise requires, reference to: Business Combination means the Domestication, the Merger and the other transactions contemplated by the Merger Agreement, collectively; Closing means the closing of the Business Combination; Common Stock means the shares of common stock, par value $0.0001 per share, of Xos; Convertible Note means the convertible promissory note issued on August 11, 2022 and amended and restated on September 28, 2022, with a principal amount of $20.0 million and a maturity date of August 11, 2025.
Our mix of offerings, such as the Xos Hub and Xosphere , is novel in the industry and has yet to be tested in the long term.
We have yet to achieve positive operating cash flow for a full year and, given our projected funding needs, our ability to generate or maintain positive cash flow is uncertain.
We have incurred substantial debt, including $20 million principal amount of Convertible Note, together with accrued interest thereon, which is due August 11, 2025, which could impair our flexibility and access to capital and adversely affect our financial position, and our business would be adversely affected if we are unable to service our debt obligations and are subject to default.
Our business and prospects depend significantly on our ability to build the Xos brand.
We may not successfully establish, maintain and strengthen the Xos brand, and our brand and reputation could be harmed by negative publicity regarding Xos or our products.
We have been and may continue to be impacted by macroeconomic conditions, including health crises, inflation, uncertain credit and global financial market, including potential bank failures, labor discord, supply chain disruption trade policies and tariffs, and geopolitical events, such as the ongoing conflicts between Russia and Ukraine and in the Middle East and political tensions with China.
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