QuantumScape(US:QS)2025-10-24 20:10Financial Performance - QuantumScape Corporation reported a net loss of approximately $115.0 million and $362.2 million for the three and nine months ended September 30, 2025, respectively, with an accumulated deficit of approximately $3.7 billion since inception [118]. - The net loss attributable to common stockholders for Q3 2025 was $105.84 million, a decrease of 11% from $119.72 million in Q3 2024, and for the nine months ended September 30, 2025, the net loss was $334.9 million, a decrease of 8% from $363.1 million in the same period of 2024 [148]. - The company incurred a net loss of $334.9 million for the nine months ended September 30, 2025, compared to a net loss of $363.3 million in 2024 [165][166]. - Cash used in operating activities for the nine months ended September 30, 2025 was $334.9 million, a decrease from $363.3 million in the same period of 2024 [165][166]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $186.32 million, compared to $215.90 million for the same period in 2024 [162]. Research and Development - Research and development expenses for Q3 2025 were $92.07 million, a decrease of 5% from $96.99 million in Q3 2024, while for the nine months ended September 30, 2025, they increased by 4% to $288.84 million from $278.5 million in the same period of 2024 [148]. - Research and development expenses for the nine months ended September 30, 2025, included a $22.9 million write-off of fixed assets no longer in use [150]. - The company is working on improving the quality, consistency, and reliability of its battery cells, including the development of solid, gel, and liquid catholytes [121]. Product Development - In 2023, QuantumScape announced its first targeted commercial product, the QSE-5, with a capacity of approximately 5 amp-hours and an energy density of over 800 Wh/L, capable of fast-charging from 10% to 80% in under 15 minutes [120]. - The PowerCo Collaboration Agreement aims to industrialize the QSE-5 technology, with PowerCo contributing up to $130.7 million over the next two years, subject to milestone completions [131]. - The pilot line in San Jose, California is focused on increasing throughput and capability, targeting the initial production of QSE-5 cells and supporting technology transfer activities with PowerCo [126]. - QuantumScape's solid-state battery technology is applicable in various markets beyond automotive, including stationary storage, consumer electronics, and defense [132]. Financial Position - Cash and cash equivalents, along with marketable securities, amounted to approximately $1.0 billion as of September 30, 2025, compared to $910.8 million as of December 31, 2024 [156]. - The company expects its cash resources to last through 2029, but may require additional financing due to changes in technology development and operating costs [134]. - The company expects cash resources to last through 2029, contingent on the successful transition to a licensing arrangement with PowerCo [161]. - The company has not yet generated any revenue from its business operations and has funded its capital expenditures through equity [157]. Cash Flow and Financing - During the nine months ended September 30, 2025, the company raised approximately $264.2 million through the sale of 29.5 million shares of Class A Common Stock [159]. - Cash provided by financing activities during the nine months ended September 30, 2025 was approximately $264.3 million from the ATM offering, significantly higher than $14.0 million in 2024 [172]. - Cash provided by investing activities for the nine months ended September 30, 2025 was $830.7 million, primarily from the maturity of marketable securities, compared to $1.1 billion in 2024 [169][170]. - Cash used for the purchase of marketable securities was $824.9 million for the nine months ended September 30, 2025, compared to $858.9 million in 2024 [169][170]. - The company incurred a finance lease commitment that will result in net cash payments of $5.4 million in the next twelve months and $35.0 million thereafter [171]. Operational Challenges - Regulatory changes and environmental regulations may impact the company's operations and market opportunities, particularly in the EV sector [135]. - Interest income decreased during the three and nine months ended September 30, 2025, primarily due to a decrease in interest rates [154]. - The company reported a decrease of $9.0 million in accounts payable and accrued liabilities for the nine months ended September 30, 2025 [165].