QS — QuantumScape Corporation

QuantumScape Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• GAAP Operating Expenses: $106.1 million
• GAAP Net Loss: $98.2 million
• Adjusted EBITDA Loss: $64.2 million, consistent with expectations.
• Customer Billings: $10.8 million for Q2, totaling $21.8 million for the first half of 2026, surpassing the full-year 2025 billings of $19.5 million.
• Liquidity: $859 million at the end of Q2.
• Capital Expenditures: $4.6 million in Q2; full-year guidance lowered to $27 million - $37 million.

2. Strategic Updates and Business Highlights

• Partnerships: Announced a multiyear agreement with Honda to advance solid-state lithium metal battery technology. Updated collaboration with Volkswagen PowerCo, focusing on automotive sales development and technology milestones.
• Business Verticals: Established three verticals: QS EV (electric vehicles), QS DC (AI data centers), and QSAS (advanced solutions for aerospace and defense).
• Eagle Line Production: The highly automated pilot cell production line in San Jose is ramping up, with productivity metrics exceeding 90%. Plans to double cell output in the second half of 2026.
• Technology Advancements: Positive customer feedback on safety features of their technology. Demonstrated larger format cells and improved safety testing results compared to conventional lithium-ion cells.

3. Forward Guidance and Outlook

• Adjusted EBITDA Loss Guidance: Reiterated for the full year 2026 to be between $250 million and $275 million.
• Customer Billings Goal: Set a public goal to exceed 2025 customer billings, which has already been achieved in the first half of 2026.
• Production Goals: Aim to double cell output in the second half of 2026 and continue to improve process stability and control.

4. Bad News, Challenges, or Points of Concern

• Operating Losses: Continued significant operating losses may raise concerns about long-term profitability.
• PowerCo Agreement Changes: The updated agreement with Volkswagen PowerCo reduced potential payments from $131 million to $75 million, which could reflect a shift in expectations regarding project milestones and timelines.
• Market Competition: The competitive landscape for battery technology remains intense, particularly with advancements in alternative battery technologies.
• Execution Risks: The transition from pilot production to commercial-scale manufacturing poses inherent risks, especially with new technology.

5. Notable Q&A Insights

• Eagle Line Production: Progress on the Eagle line is critical for technology transfer to automotive partners, with expectations to double output in the latter half of 2026.
• PowerCo Relationship: The updated agreement reflects ongoing collaboration and alignment on technology milestones, with no philosophical changes in objectives.
• Market Expansion: Interest in the new business verticals (data centers and advanced solutions) is strong, with plans to explore additional opportunities beyond automotive.
• Customer Demand: The urgency in the data center market for high-quality power delivery aligns well with QuantumScape's technology, potentially accelerating commercialization timelines.

Overall, QuantumScape's Q2 2026 results reflect a mix of strategic advancements and ongoing challenges, with a strong focus on scaling production and expanding into new markets while managing significant operational losses.