QuantumScape (QS) Pulls Back on EPS Miss – Extends Cash Runway, Reaffirms Commercial Goals

QuantumScape's stock price (NYSE:QS) fell back yesterday, down 7.03% in what was a volatile trading session following the release of its Q2 2025 earnings and an announcement of an expanded collaboration with PowerCo.

While the company highlighted progress towards commercialization and extended its cash runway, the stock is currently at $12.30 in the pre-market, down 4.13% on the day, reflecting ongoing uncertainty.

The stock's pullback has followed a period of dramatic gains. Over the past months, QS remains more than 196% in the green. This rally was fueled by optimism surrounding the company's solid-state battery technology and its potential to revolutionize the electric vehicle (EV) market. However, the recent downturn underscores the speculative nature of the stock, which remains sensitive to news flow and market sentiment.

QuantumScape reported a Q2 2025 EPS loss of $0.20, slightly wider than the consensus estimate of a loss of $0.18. The adjusted EBITDA loss of $63.0 million was in line with expectations. The company's key achievement was ending the quarter with $797.5 million in liquidity, extending its cash runway into 2029. This extended runway allows QuantumScape to continue its development efforts and pursue commercialization without immediate concerns about funding.

Management emphasized the “inflection point” reached this quarter, highlighting the expanded deal with PowerCo, Volkswagen Group's battery subsidiary.

The revised agreement will see PowerCo provide up to $131 million in new payments to QuantumScape over the next two years, contingent on achieving specific milestones. These funds are in addition to the previously announced $130 million and provide PowerCo the rights to produce up to an additional 5 GWh of QSE-5 based cells annually, even for customers outside Volkswagen.

“This quarter is a major inflection point in our journey, and we are now firmly in the commercialization phase of our company,” stated QuantumScape CEO Dr. Siva Sivaram. “We believe this expanded deal with PowerCo is an unambiguous demonstration of both the economic value of our solid-state platform and the power of our capital-light business model.”

The company continues to guide for a full-year adjusted EBITDA loss between $250 million and $280 million. Capital expenditure guidance was narrowed to between $45 million and $65 million. Management also alluded to ongoing discussions with additional potential partners, suggesting further licensing deals could be on the horizon.