TLDR
- QuantumScape reports $105.8M Q3 net loss, stock drops 12.5% to $13.58
- R&D spending hits $92.1M as company scales solid-state battery production
- Company maintains $1B liquidity runway extending through 2030
- QSE-5 battery cells shipped to Ducati for field testing
- New partnerships with Corning and Murata expand commercial ecosystem
QuantumScape shares fell 12.5% to close at $13.58 following the company’s third quarter earnings release. The battery technology developer reported a net loss of $105.8 million for Q3.
The loss represented an improvement from the $119.6 million loss posted in the same quarter last year. However, investors focused on continued cash burn rather than year-over-year progress.
Total operating expenses reached $114.9 million for the quarter. This marked a decrease from $130.2 million a year earlier but remained elevated as the company works toward commercialization.
Research and development costs accounted for $92.1 million of quarterly expenses. General and administrative costs totaled $22.9 million.
The company’s adjusted EBITDA loss came in at $61.4 million for Q3. QuantumScape cited equipment investments and partnership development as key cost drivers.
Battery Technology Advances Drive Spending
QuantumScape shipped its most advanced battery cells during the quarter. The Cobra-based QSE-5 B1 cells are being tested in Ducati’s V21L racing motorcycle.
This represents a key milestone in real-world validation of the solid-state battery technology. The company is simultaneously installing the Eagle Line production facility at its San Jose headquarters.
Capital expenditures totaled $9.6 million for the quarter. Full-year capex guidance was lowered to $30-$40 million due to timeline adjustments and efficiency gains.
The company expanded its commercial ecosystem through new partnerships with Corning and Murata. These collaborations focus on ceramic separator capabilities and meeting global battery demand.
COO Luca Fasoli stated the company is working with partners to bring solid-state lithium-metal battery technology to market quickly. The partnerships are viewed as central to long-term commercialization strategy.
Balance Sheet Remains Strong Despite Losses
QuantumScape ended the quarter with $1.0 billion in liquidity. Cash and equivalents totaled $225.8 million while marketable securities reached $777.9 million.
Total current assets stood at $1.02 billion. Management says this provides a cash runway extending through 2030.
The company raised $267.6 million through equity financing before its shelf registration expired. Total financing inflows reached $285.5 million for the quarter.
Total liabilities decreased to $127.5 million from $164.5 million in the prior year. Long-term obligations declined though lease commitments remain.
For the nine-month period ending September 30, QuantumScape recorded a $334.9 million net loss. Limited revenue generation continues as the company transitions from development to commercial production.
The market reaction suggests investors are recalibrating expectations for the timeline to profitability. Operating losses remain substantial despite operational improvements and strong liquidity backing the business through the decade.
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