Lease Receivable

9 Months Ended

Sep. 30, 2025

For deferred equipment agreements that contain embedded operating leases, upon lease commencement, the Company defers and records the equipment cost of operating lease assets within property and equipment, net of accumulated depreciation. These operating lease assets are subsequently amortized to cost of goods sold over the lease term on a straight-line basis.

For deferred equipment agreements that contain embedded sales-type leases, the Company recognizes lease revenue and costs, as well as a lease receivable, at the time the lease commences. Costs related to embedded leases within the Company’s deferred equipment agreements are included in cost of goods sold in the accompanying unaudited condensed consolidated statement of operations and comprehensive income (loss). Interest on the lease receivable was immaterial to the unaudited condensed consolidated financial statements for both the three and nine months ended September 30, 2025 and 2024.


(in thousands)	Balance Sheet Location	September 30, 2025		December 31, 2024
Lease receivable		$	1,949	$	2,528
Allowance for expected credit losses		(719)		(719)
Lease receivable, net		1,230		1,809
Less: current portion of lease receivable	Prepaid expenses and other current assets	(990)		(1,264)
Lease receivable, non-current	Other non-current assets	$	240	$	545

As of September 30, 2025, estimated future maturities of customer sales-type lease receivable and operating lease payments for each of the following fiscal years are as follows:


	Future Lease Receivables/Payments (in thousands)
Fiscal year	Sales-Type Leases		Operating Leases
Remainder of 2025	$	617	$	58
2026	544		74
2027	42		—
2028	27		—
Thereafter	—		—
Total lease payments	$	1,230	$	132

Lease Receivable


(in thousands)	Balance Sheet Location	September 30, 2025		December 31, 2024
Lease receivable		$	1,949	$	2,528
Allowance for expected credit losses		(719)		(719)
Lease receivable, net		1,230		1,809
Less: current portion of lease receivable	Prepaid expenses and other current assets	(990)		(1,264)
Lease receivable, non-current	Other non-current assets	$	240	$	545

As of September 30, 2025, estimated future maturities of customer sales-type lease receivable and operating lease payments for each of the following fiscal years are as follows:


	Future Lease Receivables/Payments (in thousands)
Fiscal year	Sales-Type Leases		Operating Leases
Remainder of 2025	$	617	$	58
2026	544		74
2027	42		—
2028	27		—
Thereafter	—		—
Total lease payments	$	1,230	$	132

Xos, Inc. 10-Q