QuantumScape Corporation
10/22/2025 | Press release | Distributed by Public on 10/22/2025 14:18
Customer Launch Event (Form 8-K)
Customer Launch Event
On September 8, at IAA Mobility in Munich, Germany, we unveiled our launch program with the VW Group: the Ducati V21L race motorcycle, developed as a collaboration among Ducati, Audi, PowerCo and QS. The Ducati V21L is a first-of-its-kind vehicle demonstration planned as a showcase for the exceptional performance of our no-compromise next-generation battery technology.
As a launch program, the Ducati V21L is ideal: it is a low-volume but high-visibility demonstration that allows us to put QSE-5 technology into a demanding real-world application. Track motorcycles require both extremely high power capability and high energy density simultaneously. Moreover, a motorcycle represents a rigorous test platform to demonstrate our differentiated solid-state battery technology, as the pack is not large enough to accommodate exotic thermal management or pressure application mechanisms. The next step for the Ducati program is field testing.
|
The Ducati V21L powered by QS technology debuted at IAA Mobility in Munich, Germany |
Annual Goals and Commercial Engagement
We are pleased to report that during Q3 we began shipping Cobra-based QSE-5 B1 samples, completing another of our key annual goals for 2025. These cells are part of the Ducati launch program and were featured on stage at the IAA Mobility conference. Our remaining operational goal for the year is to install higher-volume cell production equipment for our highly automated pilot line in San Jose, named the Eagle Line. Equipment for certain key assembly steps has already been installed on the Eagle Line, and this goal remains on track.
Another important goal for 2025 has been to expand our commercial engagement, including deepening relationships with existing customers, engaging new customers, and bringing additional partners into our growing QS technology ecosystem. In Q3, we made substantial progress on all three aspects.
With respect to existing customers, the successful launch event with Ducati, Audi and PowerCo at IAA Mobility was a major milestone in our long collaboration with the VW Group. Last quarter we also announced a new joint development agreement (JDA) with an existing customer, and we are continuing to work closely with them as we progress through the first phase of the development and commercialization engagement. We are also in an active engagement with a new Top-10 global automotive OEM in addition to our existing customers.
|
With regard to QS ecosystem development, we continue to add world-class partners: on September 30 we announced an agreement with Corning to jointly develop ceramic separator manufacturing capabilities based on our Cobra process. Corning is a global leader in advanced materials, and they bring deep expertise in ceramics processing and proven manufacturing excellence to the QS ecosystem. In parallel, we successfully completed the initial phase of our collaboration with Murata Manufacturing, have signed a subsequent contract, and progressed to the next phase of that relationship. Our goal is to make QS technology the clear choice by providing our customers with a turnkey ecosystem to serve the global demand for better batteries. With Murata and Corning, we have two of the most world-renowned technical ceramics manufacturers as ecosystem partners, and we will continue to grow our ecosystem further. |
Financial Outlook
GAAP operating expenses and GAAP net loss in Q3 were $115.0M and $105.8M, respectively. Adjusted EBITDA loss was $61.4M in Q3, in line with expectations. A table reconciling GAAP net loss and Adjusted EBITDA is available in the financial statement at the end of this shareholder letter. We continue to drive operational efficiency consistent with our capital-light licensing focus and improve our full-year guidance for Adjusted EBITDA loss to $245M - $260M.
Capital expenditures in the third quarter were $9.6M. Q3 capex primarily supported facilities and equipment purchases for the Eagle Line. As a result of efficiency gains and process improvements, including from the Cobra process, as well as a change in timing of certain equipment ordering, we revise the range of our full-year capex guidance to $30M - $40M.
We ended Q3 with $1.0B in liquidity and now project that our cash runway extends through the end of the decade, a 12-month extension from our previous guidance of into 2029. We completed our at-the-market equity program before our shelf registration statement expired on August 10. Going forward, we plan to move away from providing updates on cash runway and will begin providing updates on customer billings.
Customer billings represent the total value of all invoices issued by QS to our customers and partners in the period, regardless of accounting treatment. "Customer billings" is a key operational metric meant to give insight into customer activity and future cash inflows. The metric is not a substitute for revenue under U.S. GAAP. Customer billings in Q3 were $12.8M.
Strategic Outlook
|
With our achievements this quarter, our vision for commercialization of our next-generation battery technology is beginning to take shape. We are executing consistently toward our key annual goals, demonstrating our technology, engaging with partners, and building out our capital-light development and licensing business model. Everything starts with execution, and we are proud of our team's performance. This year, we have already accomplished two of our key operational goals: baselining our Cobra process and beginning shipment of Cobra-based QSE-5 cells, continuing our track record of consistent execution against our goals. Q3 also saw our first public technology demonstration with the VW Group, the Ducati V21L. It showed the determination of our customers to bring QS technology to market as soon as possible, and we continue to work together closely to achieve automotive-grade reliability, industrialization and mass production of our next-generation battery technology. We believe the economic value of our differentiated technology is clear, and we are expanding our collaboration with existing and new customers. |
From left: Peter Juris, High-Energy Battery Systems Lead, Audi; Frank Blome, CEO, PowerCo; Claudio Domenicali, CEO, Ducati; Thomas Schmall, Member of the Board of Management, Technology, VW Group, and CEO, Volkswagen Group Technology; Oliver Blume, CEO, Porsche, and CEO and Chairman of the Board of Management, VW Group; Siva Sivaram, CEO, QS |
We have also expanded our global ecosystem of world-class partners, and this quarter we announced Corning as a partner and took the next step in our collaboration with Murata Manufacturing. The third quarter also marks another exciting milestone: we are beginning to show returns from our capital-light development and licensing business model, posting over $12M in customer billings in Q3.
Our ambitious targets naturally present many challenges to overcome, and there is much work left to do. Our objective is clear: revolutionize energy storage, capitalize on our enormous market opportunity and create exceptional value for shareholders. With this aim in mind, we are excited to update shareholders on our continued progress over the months and years to come.
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Dr. Siva Sivaram |
Kevin Hettrich |
QuantumScape Corporation
Condensed Consolidated Balance Sheets (Unaudited)
(In Thousands)
|
September 30, |
December 31, |
|||||||
|
2025 |
2024 |
|||||||
|
Assets |
||||||||
|
Current assets |
||||||||
|
Cash and cash equivalents |
$ |
225,826 |
$ |
140,866 |
||||
|
Marketable securities |
777,907 |
769,901 |
||||||
|
Prepaid expenses and other current assets |
11,798 |
11,519 |
||||||
|
Total current assets |
1,015,531 |
922,286 |
||||||
|
Property and equipment, net |
250,323 |
299,992 |
||||||
|
Right-of-use assets - operating lease |
35,134 |
51,472 |
||||||
|
Right-of-use assets - finance lease |
20,112 |
22,267 |
||||||
|
Other assets |
22,132 |
26,378 |
||||||
|
Total assets |
$ |
1,343,232 |
$ |
1,322,395 |
||||
|
Liabilities and stockholders' equity |
||||||||
|
Current liabilities |
||||||||
|
Accounts payable |
$ |
6,446 |
$ |
6,466 |
||||
|
Accrued liabilities |
13,994 |
17,447 |
||||||
|
Accrued compensation and benefits |
19,551 |
32,212 |
||||||
|
Operating lease liability, short-term |
4,558 |
5,526 |
||||||
|
Finance lease liability, short-term |
3,493 |
3,233 |
||||||
|
Total current liabilities |
48,042 |
64,884 |
||||||
|
Operating lease liability, long-term |
35,728 |
52,913 |
||||||
|
Finance lease liability, long-term |
29,216 |
31,865 |
||||||
|
Other liabilities |
14,498 |
14,886 |
||||||
|
Total liabilities |
127,484 |
164,548 |
||||||
|
Total stockholders' equity |
1,215,748 |
1,157,847 |
||||||
|
Total liabilities and stockholders' equity |
$ |
1,343,232 |
$ |
1,322,395 |
||||
QuantumScape Corporation
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
(In Thousands, Except per Share Amounts)
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
|
2025 |
2024 |
2025 |
2024 |
|||||||||||||
|
Operating expenses: |
||||||||||||||||
|
Research and development |
$ |
92,074 |
$ |
96,994 |
$ |
288,840 |
$ |
278,587 |
||||||||
|
General and administrative |
22,919 |
33,164 |
73,314 |
117,929 |
||||||||||||
|
Total operating expenses |
114,993 |
130,158 |
362,154 |
396,516 |
||||||||||||
|
Loss from operations |
(114,993 |
) |
(130,158 |
) |
(362,154 |
) |
(396,516 |
) |
||||||||
|
Other income (expense): |
||||||||||||||||
|
Interest expense |
(503 |
) |
(550 |
) |
(1,547 |
) |
(1,684 |
) |
||||||||
|
Interest income |
9,997 |
11,347 |
28,706 |
35,428 |
||||||||||||
|
Other income (expense) |
(325 |
) |
(338 |
) |
50 |
(508 |
) |
|||||||||
|
Total other income |
9,169 |
10,459 |
27,209 |
33,236 |
||||||||||||
|
Net loss |
(105,824 |
) |
(119,699 |
) |
(334,945 |
) |
(363,280 |
) |
||||||||
|
Less: Net loss attributable to non-controlling interest, net of tax of $0 |
- |
(127 |
) |
- |
(85 |
) |
||||||||||
|
Net loss attributable to common stockholders |
$ |
(105,824 |
) |
$ |
(119,572 |
) |
$ |
(334,945 |
) |
$ |
(363,195 |
) |
||||
|
Net loss |
$ |
(105,824 |
) |
$ |
(119,699 |
) |
$ |
(334,945 |
) |
$ |
(363,280 |
) |
||||
|
Other comprehensive income (loss): |
||||||||||||||||
|
Unrealized gain on marketable securities |
656 |
1,458 |
115 |
3,816 |
||||||||||||
|
Total comprehensive loss |
(105,168 |
) |
(118,241 |
) |
(334,830 |
) |
(359,464 |
) |
||||||||
|
Less: Comprehensive loss attributable to non-controlling interest |
- |
(127 |
) |
- |
(85 |
) |
||||||||||
|
Comprehensive loss attributable to common stockholders |
$ |
(105,168 |
) |
$ |
(118,114 |
) |
$ |
(334,830 |
) |
$ |
(359,379 |
) |
||||
|
Basic and Diluted net loss per share |
$ |
(0.18 |
) |
$ |
(0.23 |
) |
$ |
(0.59 |
) |
$ |
(0.72 |
) |
||||
|
Basic and Diluted weighted-average common shares outstanding |
588,728 |
508,957 |
566,293 |
502,136 |
||||||||||||
QuantumScape Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In Thousands)
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
|
2025 |
2024 |
2025 |
2024 |
|||||||||||||
|
Operating activities |
||||||||||||||||
|
Net loss |
$ |
(105,824 |
) |
$ |
(119,699 |
) |
$ |
(334,945 |
) |
$ |
(363,280 |
) |
||||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||||||||
|
Depreciation and amortization |
14,169 |
14,943 |
51,974 |
39,795 |
||||||||||||
|
Amortization of right-of-use assets and non-cash lease expense |
1,745 |
2,013 |
5,859 |
5,980 |
||||||||||||
|
Amortization of premiums and accretion of discounts on marketable securities |
(4,583 |
) |
(7,445 |
) |
(13,696 |
) |
(23,124 |
) |
||||||||
|
Stock-based compensation expense |
29,223 |
43,359 |
96,117 |
110,471 |
||||||||||||
|
Write-off of fixed assets |
9,522 |
283 |
24,410 |
1,533 |
||||||||||||
|
Other |
(2,657 |
) |
84 |
(2,936 |
) |
186 |
||||||||||
|
Changes in operating assets and liabilities: |
||||||||||||||||
|
Prepaid expenses and other current assets and other assets |
(1,988 |
) |
21,933 |
1,120 |
(777 |
) |
||||||||||
|
Accounts payable, accrued liabilities and accrued compensation and benefits |
(2,185 |
) |
(47,335 |
) |
(9,045 |
) |
15,984 |
|||||||||
|
Operating lease liability |
(1,098 |
) |
(1,184 |
) |
(3,692 |
) |
(3,717 |
) |
||||||||
|
Other liabilities |
(58 |
) |
246 |
(1,489 |
) |
1,051 |
||||||||||
|
Net cash used in operating activities |
(63,734 |
) |
(92,802 |
) |
(186,323 |
) |
(215,898 |
) |
||||||||
|
Investing activities |
||||||||||||||||
|
Purchases of property and equipment |
(9,580 |
) |
(18,038 |
) |
(24,001 |
) |
(51,085 |
) |
||||||||
|
Proceeds from sale of property and equipment |
828 |
112 |
1,106 |
116 |
||||||||||||
|
Proceeds from maturities of marketable securities |
293,100 |
252,744 |
830,664 |
1,146,587 |
||||||||||||
|
Proceeds from sales of marketable securities |
- |
- |
- |
1,245 |
||||||||||||
|
Purchases of marketable securities |
(440,726 |
) |
(168,686 |
) |
(824,858 |
) |
(858,921 |
) |
||||||||
|
Net cash (used in) provided by investing activities |
(156,378 |
) |
66,132 |
(17,089 |
) |
237,942 |
||||||||||
|
Financing activities |
||||||||||||||||
|
Proceeds from exercise of stock options and employee stock purchase plan |
7,986 |
7,398 |
23,645 |
13,968 |
||||||||||||
|
Proceeds from issuance of common stock |
267,621 |
- |
268,654 |
- |
||||||||||||
|
Common stock issuance costs paid |
(4,160 |
) |
- |
(4,387 |
) |
- |
||||||||||
|
Principal payment for finance lease |
(808 |
) |
(726 |
) |
(2,388 |
) |
(2,146 |
) |
||||||||
|
Dissolution of joint venture |
- |
(1,685 |
) |
- |
(1,685 |
) |
||||||||||
|
Net cash provided by financing activities |
270,639 |
4,987 |
285,524 |
10,137 |
||||||||||||
|
Net increase in cash, cash equivalents and restricted cash |
50,527 |
(21,683 |
) |
82,112 |
32,181 |
|||||||||||
|
Cash, cash equivalents and restricted cash at beginning of period |
190,499 |
214,436 |
158,914 |
160,572 |
||||||||||||
|
Cash, cash equivalents and restricted cash at end of period |
$ |
241,026 |
$ |
192,753 |
$ |
241,026 |
$ |
192,753 |
||||||||
|
Supplemental disclosure |
||||||||||||||||
|
Cash paid for interest |
$ |
503 |
$ |
550 |
$ |
1,547 |
$ |
1,684 |
||||||||
|
Purchases of property and equipment, not yet paid |
$ |
4,862 |
$ |
4,702 |
$ |
4,862 |
$ |
4,702 |
||||||||
|
Common stock issuance costs, not yet paid |
$ |
101 |
$ |
- |
$ |
101 |
$ |
- |
||||||||
Net Loss to Adjusted EBITDA
Adjusted EBITDA is a non-GAAP supplemental measure of operating performance that does not represent and should not be considered an alternative to operating loss or cash flow from operations, as determined by GAAP. Adjusted EBITDA is defined as net income (loss) before interest expense, non-controlling interest, revaluations, impairments, stock-based compensation, depreciation and amortization expense, and other non-recurring charges. We use Adjusted EBITDA to measure the operating performance of our business, excluding specifically identified items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations. Adjusted EBITDA may not be comparable to similarly titled measures provided by other companies due to potential differences in methods of calculations. A reconciliation of Adjusted EBITDA to net loss is as follows:
|
($ in Thousands) |
Three Months Ended |
Three Months Ended |
||||||||||||||
|
2025 |
2024 |
2025 |
2024 |
|||||||||||||
|
GAAP net loss attributable to Common Stockholders |
$ |
(105,824 |
) |
$ |
(119,572 |
) |
$ |
(334,945 |
) |
$ |
(363,195 |
) |
||||
|
Interest expense (income), net |
(9,494 |
) |
(10,797 |
) |
(27,159 |
) |
(33,744 |
) |
||||||||
|
Other expense (income), net |
325 |
338 |
(50 |
) |
508 |
|||||||||||
|
Net gain (loss) attributable to non-controlling interests |
- |
(127 |
) |
- |
(85 |
) |
||||||||||
|
Stock-based compensation |
29,223 |
43,359 |
96,117 |
110,471 |
||||||||||||
|
Lease termination loss |
652 |
- |
652 |
- |
||||||||||||
|
Litigation settlement accrual and legal fees, net |
- |
- |
- |
24,455 |
||||||||||||
|
Non-GAAP operating loss |
$ |
(85,118 |
) |
$ |
(86,799 |
) |
$ |
(265,385 |
) |
$ |
(261,590 |
) |
||||
|
Depreciation and amortization expense (1) |
23,691 |
15,226 |
76,384 |
41,328 |
||||||||||||
|
Adjusted EBITDA |
$ |
(61,427 |
) |
$ |
(71,573 |
) |
$ |
(189,001 |
) |
$ |
(220,262 |
) |
||||
(1) Depreciation and amortization expense includes accelerated depreciation and write-off of property and equipment no longer in use of approximately $9.5 million and $24.4 million, respectively, for the three and nine months ended September 30, 2025, and approximately $0.3 million and $1.5 million, respectively, for the three and nine months ended September 30, 2024.
Management's Use of Non-GAAP Financial Measures
This letter includes certain non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We urge you to review the reconciliations of our non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures set forth in this letter, and not to rely on any single financial measure to evaluate our business.
QuantumScape Corporation published this content on October 22, 2025, and is solely responsible for the information contained herein. Distributed via EDGAR on October 22, 2025 at 20:18 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]