Xos, Inc.

Good day, and welcome to the EXOS, Inc. first quarter of 2025 earnings call. All participants will be in a listen-only mode for the duration of the call. And should you need any assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touchtone phone. And to remove a question, please press star, then two. Please also note that this event is being recorded today. I would now like to turn the conference over to David Zlaciu, General Counsel. Please go ahead.

Thank you, everyone, for joining us today. Hosting the call with me are EXIS' Chief Executive Officer, Dakota Semler, EXIS' Chief Operating Officer, Giordano Sordoni, and EXIS' Acting Chief Financial Officer, Diana Pagosian. Today, after the close of regular trading, EXO's issued its first quarter 2025 earnings press release. As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results as well as commentary on the quarter ended March 31, 2025. Management statements today reflect management's views as of today, May 14, 2025 only, and will include forward-looking statements, including statements regarding our fiscal year 2025, management expectations for future financial and operational performance, and other statements regarding our plans, prospects, and expectations. These statements are not promises or guarantees and are subject to risks and uncertainties which could cause them to differ materially from actual results. Additional information about important factors that could cause actual results to differ materially include, but are not limited to, EXIS's ability to access capital when needed and continue as a going concern, and potential supply chain disruptions, including as a result of changes to or uncertainty around trade policies and tariffs. These are included in today's press release and in our filings with the SEC, including our most recent annual report on Form 10-K, as well as subsequent filings. We undertake no obligation to update forward-looking statements except as required by law. you should not put undue reliance on forward-looking statements. Further, today's presentation includes references to non-GAAP financial measures and performance metrics. Additional information about these non-GAAP measures, including reconciliations of non-GAAP measures to the comparable GAAP measures, is included in the press release we issued today. Our press release and SEC filings are available on the investor relations section of our website. at www.exostrux.com slash investor dash overview. With that, I now turn it over to our CEO, Dakota.

Thanks, David. And thank you, everyone, for joining us on the call. Q1 was the start of a really important year for Exos. Over the last few years, we have worked hard to bring our costs down and make the business more profitable. while also strengthening our relationships with current customers and building new ones to drive growth. This year, our focus is pretty simple. Keep growing, protect margins, and manage liquidity with discipline. And while we are dealing with a lot of moving pieces, including new emissions rules, new tariffs, and a tough interest rate environment, we feel confident. Our customers trust us, our trucks continue to perform reliably in the field, and we've never been more focused on running a tight, durable business. In Q1, we brought in $5.9 million in revenue and delivered 29 units. We actually shipped 60 units, but due to revenue recognition rules, we couldn't recognize revenue on everything right away. Some of that will land in future quarters. What's encouraging is that customer demand has stayed consistent. We're still seeing growing interest from national fleets, And while smaller regional operators are feeling the pinch from interest rates, they're also jumping on strong state incentive programs in places like California, Washington, New Jersey, New York, Massachusetts, and Texas. We continue to win new customers and grow the order book with existing customers. Now, let's talk about tariffs. We recently raised prices to help offset some of the costs of increases tied to the new tariff structures. Behind the scenes, we've done a deep dive into every part and commodity that's impacted, and we've mapped out exactly where we are most exposed. While there will be some increases in our cost of goods sold, anywhere from 10% to 30%, depending upon the product, the majority of our vehicle value is still sourced and built in the USA. Over the next couple of years, we see a clear path to reduce that exposure even more through reshoring or resourcing. We're not waiting for this to become a problem. We're already planning and executing. The same goes for our powered by Exos business. Some of the components in our powertrain kits are affected by tariffs, but we're working closely with our OEM partners to help shield their customers from those increases. Even with those headwinds, we expect that business to stay on track. One of the most exciting things we've done this quarter is launch the MDXT, our new medium duty chassis cab. This has been a long time coming. MDXT takes everything we have learned from building over a thousand step pans, including the high voltage architecture, the software, and the supply chain, and brings it into a more flexible platform that can serve a wider range of use cases. We showed it off for the first time at the ACT Expo in Anaheim recently, and the response blew us away. Fleet owners say they love the design, they love the packaging, and most importantly, they see how it fits their needs today, not five years from now. There's a real market here. The total addressable market for medium-duty chassis cabs in the U.S. is up to 100,000 units per year. We picked this segment because of the natural extension of what we already do. The core vehicle architecture is familiar. The range, battery sizes, and daily duty cycles are almost identical to our step pans. Our team knows how to build it, our suppliers already support it, and most of our customers already operate vehicles in this category. It's also a market that's been ignored. Most of the legacy players are pricing their electric chassis cabs over $300,000, which has kept sales volumes low. fleets are still looking for a more affordable, reliable option. And importantly, MDXD is designed to work with the charging infrastructure that fleets already have in place, whether it's level two charging or low power DC fast charging. Based on our experience, charging has been consistently been the biggest bottleneck to deploying EVs. And we continue to see that as a headwind in the Class 8 space. But the Class 6 chassis cab market doesn't face the same constraints. These vehicles don't require massive battery packs or long ranges, so the infrastructure burden is far lower. That makes adoption faster and more scalable. There's a lot of attention on Class 8 right now, but not many folks are focused on making medium-duty electric trucks work, and that's where we see an opportunity. Right after the quarter close, we started a national road tour with the MDXT, We kicked things off in California, and I have personally driven nearly 1,000 miles in the MDXT just this week, delivering a hub to a customer in Fresno and towing another hub for demos all across Southern California. As someone who's been a fleet owner and a discerning truck user for years, I can honestly say this truck has blown me away. The ride quality, powertrain efficiency, and overall performance are on a completely different level compared to anything else in this space. Over the next few months, we will continue taking the MDXT on the road to meet more customers face-to-face with stops planned in New Jersey, New York, Tennessee, Texas, and Washington. We are gathering feedback, logging miles, and getting real-world validation of just how versatile and capable this platform is. Early interest has been great, and while the MDXT is still moving through safety certifications and final validation, We're targeting a production ramp by Q3 of 2026. Looking forward, our focus as a company really comes down to three things. First, growth. We're committed to growing sales and delivering quarter over quarter. Second, liquidity. We've become incredibly disciplined about how we manage cash and we expect to continue strengthening our liquidity position moving forward. Third, margins. We know how critical they are. As the cost impacts from tariffs become more clear and with the pricing adjustments we've made and our visibility into the unit economics of every vehicle, we are confident we can keep improving margin performance over the full year. These three pillars, growth, liquidity, and margins, will continue to guide how we execute as we scale the business. Gio will now take you through some of the operational highlights from the quarter.