v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 3 — Revenue Recognition

Disaggregated revenues by major source for the three and six months ended June 30, 2026 and 2025 consisted of the following (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Product and service revenue

 

 

 

 

 

 

 

 

 

 

 

 

Stepvans & vehicle incentives(1)

 

$

581

 

 

$

17,087

 

 

$

2,201

 

 

$

20,671

 

Powertrains & hubs(1)

 

 

3,468

 

 

 

930

 

 

 

12,584

 

 

 

2,522

 

Other product revenue(2)

 

 

525

 

 

 

152

 

 

 

817

 

 

 

619

 

Total product revenue

 

 

4,574

 

 

 

18,169

 

 

 

15,602

 

 

 

23,812

 

Ancillary revenue

 

 

166

 

 

 

224

 

 

 

363

 

 

 

460

 

Total revenues

 

$

4,740

 

 

$

18,393

 

 

$

15,965

 

 

$

24,272

 

 

(1)
Amounts are net of returns and allowances. Stepvans & vehicle incentives and powertrains & hubs include revenue generated from operating and sales-type leases.
(2)
Other product revenue for both the three and six months ended June 30, 2026 includes revenue related to non-recurring powertrain engineering services of $0.1 million and revenue related to software services of $0.1 million. The remaining performance obligations for non-recurring engineering services total $8,000 as of June 30, 2026 and are expected to be satisfied in 2026. The remaining performance obligations for software services total $0.5 million as of June 30, 2026 and $0.2 million are expected to be satisfied in 2026 with the remaining $0.3 million expected to be satisfied in 2027 and beyond.

 

The Company leases stepvans and hubs to customers under operating leases with terms ranging from 24 to 36 months. At the end of the lease term, customers are required to return the vehicles to Xos. During the three months ended June 30, 2026 and 2025, the Company recorded operating lease revenue of $0 and $4,000, respectively, on a straight-line basis over the contractual terms of the respective leases as part of stepvans & vehicle incentives, above. During the six months ended June 30, 2026 and 2025, the Company recorded operating lease revenue of $0 and $11,000, respectively, on a straight-line basis over the contractual terms of the respective leases as part of stepvans & vehicle incentives, above. During the three months ended June 30, 2026 and 2025, the Company recorded operating lease revenue of $80,000 and $11,000, respectively, on a straight-line basis over the contractual terms of the respective leases as part of powertrains & hubs, above.