Solid Power(SLDP) - 2025 Q2 - Quarterly Results

Q2 2025 Performance Overview Solid Power achieved key operational milestones and reported increased revenue in Q2 2025, despite rising operating expenses Recent Business Highlights Solid Power achieved key operational milestones in Q2 2025, including a BMW i7 test vehicle powered by its cells, completion of SK On pilot line factory acceptance testing, and progress on its continuous electrolyte production pilot line, while maintaining fiscal discipline - BMW Group introduced an i7 test vehicle powered by Solid Power's cells and solid-state battery technology[6] - Completed factory acceptance testing for the SK On pilot cell line and began working towards site acceptance testing, which remains on target for later this year[6] - Detailed design work is in process for the planned installation of the continuous electrolyte production pilot line, with long-lead equipment ordered and commissioning on track for 2026[6] - Continued demand for multiple generations of electrolyte from both existing and new customers, with active sampling to key strategic customers[6] - Remained fiscally disciplined and continued to identify opportunities to realize efficiencies and reduce operating costs while driving innovation[6] Second Quarter 2025 Financial Highlights Solid Power reported increased revenue in Q2 2025, primarily driven by a milestone achievement with SK On, though operating expenses also rose, leading to a year-to-date net loss of $40.5 million Q2 2025 Financial Highlights | Metric | Q2 2025 (Millions) | Q1 2025 (Millions) | Change (QoQ) | | :--------------------- | :----------------- | :----------------- | :------------- | | Revenue & Grant Income | $7.5 | $6.0 | +$1.5 (+25%) | | Operating Expenses | $33.4 | $30.0 | +$3.4 (+11.3%) | - First half of 2025 revenue recognized totaled $13.5 million[4] - Second quarter 2025 revenue was primarily driven by achievement of factory acceptance testing milestone under the line installation agreement with SK On Co., Ltd.[4] - Year-to-date 2025 operating loss was $49.9 million and year-to-date net loss was $40.5 million, or $0.22 per share[5] Balance Sheet and Liquidity Solid Power maintained a strong liquidity position as of June 30, 2025, despite significant cash usage for operations and capital expenditures Balance Sheet and Liquidity Overview Solid Power maintained a strong liquidity position as of June 30, 2025, with total liquidity at $279.8 million, despite significant cash usage in operating activities and capital expenditures for its pilot line Liquidity Position (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $26,248 | $25,413 | | Available-for-sale securities | $253,561 | $302,057 | | Total liquidity | $279,809 | $327,470 | - As of June 30, 2025, contract receivables were $4.6 million and total current liabilities were $12.4 million[7] Capital Expenditures and Cash Usage (in millions) | Metric | Q2 2025 | H1 2025 | | :-------------------------------------- | :------ | :------ | | Capital Expenditures | $2.6 | $5.0 | | Cash used in operating activities (YTD) | N/A | $40.7 | - Capital expenditures primarily represented costs for construction of the continuous electrolyte production pilot line[8] 2025 Outlook and Strategic Objectives Solid Power reiterated its key strategic objectives for 2025, focusing on electrolyte innovation, partner commitments, and financial discipline Key Objectives for 2025 Solid Power reiterated its commitment to key objectives for 2025, focusing on advancing electrolyte technology, fulfilling partner commitments, and maintaining financial discipline - Drive electrolyte innovation and performance through feedback from customers and internal cell development[12] - Continue to execute on the electrolyte technology development roadmap, including the start of the installation of a pilot continuous electrolyte manufacturing line[12] - Fulfill partner and customer commitments and increase electrolyte sampling, using the electrolyte innovation center (EIC) to quickly innovate driven by demand[12] - Maintain financial discipline while ensuring ongoing investments in technology development and capabilities[12] About Solid Power, Inc. Solid Power is a leading developer of solid-state battery technology, focusing on electrolyte material and a licensing-based business model Company Profile and Business Model Solid Power is a leading developer of solid-state battery technology, focusing on its electrolyte material to enable next-generation batteries for EVs and other markets, with a business model centered on selling electrolyte and licensing designs rather than manufacturing commercial batteries - Solid Power develops solid-state battery technology for EV and other markets, with its core technology being its electrolyte material[11] - The electrolyte material is believed to enable extended driving range, longer battery life, improved safety, and lower cost compared to traditional lithium-ion batteries[11] - Solid Power's business model involves selling its electrolyte to cell manufacturers and licensing its cell designs and manufacturing processes, distinguishing it from competitors planning to be commercial battery manufacturers[11] Condensed Consolidated Financial Statements This section presents the condensed consolidated balance sheets, statements of operations, and cash flows for Solid Power Condensed Consolidated Balance Sheets The balance sheet shows a decrease in total assets from $448.25 million at December 31, 2024, to $397.995 million at June 30, 2025, primarily due to a reduction in long-term investments, while current assets increased Key Balance Sheet Items (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------ | :---------------- | :--------- | | Total Assets | $397,995 | $448,250 | $(50,255) | | Total Current Assets | $239,672 | $125,236 | $114,436 | | Total Long-Term Assets | $158,323 | $323,014 | $(164,691) | | Total Liabilities | $27,224 | $37,936 | $(10,712) | | Total Stockholders' Equity | $370,631 | $410,280 | $(39,649) | - Marketable securities significantly increased from $92.784 million to $204.685 million, while investments decreased from $210.400 million to $50.710 million[16] - Total current liabilities decreased from $19.970 million to $12.399 million, driven by reductions in accounts payable, deferred revenue, and accrued compensation[16] Condensed Consolidated Statements of Operations and Comprehensive Loss For Q2 2025, Solid Power reported an increase in total revenue and grant income to $7.54 million (up from $5.075 million in Q2 2024), but also an increase in operating expenses, resulting in a net loss of $25.338 million, or $0.14 per share Key Income Statement Items (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------- | :--------- | :--------- | :--------- | :--------- | | Total Revenue and Grant Income | $7,540 | $5,075 | $13,556 | $11,028 | | Total Operating Expenses | $33,411 | $32,012 | $63,455 | $63,746 | | Operating Loss | $(25,871) | $(26,937) | $(49,899) | $(52,718) | | Total Nonoperating Income and Expense | $(137) | $5,174 | $8,811 | $9,748 | | Net Loss Attributable to Common Stockholders | $(25,338) | $(22,274) | $(40,488) | $(43,481) | | Basic and diluted loss per share | $(0.14) | $(0.13) | $(0.22) | $(0.24) | - Revenue increased by 27.8% year-over-year in Q2 2025, from $5.075 million to $6.485 million, and grant income of $1.055 million was recognized, compared to none in Q2 2024[17] - Research and development expenses remained relatively stable year-over-year for both Q2 and H1 2025, while selling, general and administrative expenses decreased[17] - The change in fair value of warrant liabilities significantly impacted nonoperating income, moving from a gain of $703 thousand in Q2 2024 to a loss of $3.216 million in Q2 2025[17] Condensed Consolidated Statements of Cash Flows For the first six months of 2025, Solid Power used $40.734 million in operating activities, a slight increase from the prior year, while investing activities provided $45.073 million, primarily due to proceeds from sales of available-for-sale securities Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Activity | H1 2025 | H1 2024 | Change | | :-------------------------------------- | :--------- | :--------- | :--------- | | Net cash used in operating activities | $(40,734) | $(40,179) | $(555) | | Net cash provided by investing activities | $45,073 | $44,811 | $262 |\ | Net cash used in financing activities | $(3,504) | $(8,531) | $5,027 | | Net increase (decrease) in cash | $835 | $(3,899) | $4,734 | | Cash and cash equivalents at end of period | $26,248 | $30,638 | $(4,390) | - Purchases of available-for-sale securities were $101.690 million, offset by proceeds from sales of $152.453 million in H1 2025[19] - Net cash used in financing activities decreased significantly from $8.531 million in H1 2024 to $3.504 million in H1 2025, largely due to reduced repurchase of common stock[19] Additional Information This section provides important disclosures regarding forward-looking statements and company contact information Forward-Looking Statements The report contains forward-looking statements regarding future financial performance, strategy, expansion plans, and market opportunities, which are subject to numerous risks and uncertainties detailed in SEC filings - Statements about future financial performance, strategy, expansion plans (including electrolyte production), market opportunity, operations, and projected costs are considered forward-looking[13] - Readers are cautioned against undue reliance on these statements, as they are subject to risks and uncertainties, many beyond Solid Power's control, including R&D success, financial losses, partnership management, market adoption, and intellectual property protection[13] - Additional risks are detailed in Solid Power's Annual Report on Form 10-K for the year ended December 31, 2024, and other SEC filings[13] Contacts Provides contact information for investor relations and press inquiries - Investor inquiries can be directed to investors@solidpowerbattery.com[14] - Press inquiries can be directed to press@solidpowerbattery.com[14]