QuantumScape (NYSE:QS) used its fourth-quarter and full-year 2025 earnings call to highlight progress on its solid-state battery commercialization roadmap, emphasizing the rollout of its Cobra manufacturing process, pilot-line buildout for QSE-5 cells, and expansion of its partner and customer base. Management also provided 2026 guidance for adjusted EBITDA loss and capital spending while reiterating a “capital-light” licensing strategy.
2025 milestones: Cobra baseline, customer expansion, and first billings
CEO Dr. Siva Sivaram said the company set “aggressive goals” at the start of 2025 and reported it achieved all four: baselining the Cobra process, shipping Cobra-based QSE-5 cells, installing equipment for the Eagle Line, and expanding commercial engagements.
On the commercial front, management said QuantumScape expanded its collaboration and licensing agreement with PowerCo, Volkswagen Group’s battery manufacturer, and added two major global automotive OEMs through new joint development and technology evaluation agreements. Sivaram also noted the company issued its first customer billings in 2025.
The company also added partners to its manufacturing ecosystem, naming Murata Manufacturing and Corning as ceramic production experts brought into its network during 2025. QuantumScape held its second annual Solid-State Battery Symposium in Kyoto, which Sivaram said convened ecosystem partners, automotive OEM customers, and government officials.
QSE-5 sampling and the Eagle Line’s role in commercialization
Management pointed to multiple 2025 technology milestones tied to QSE-5. Sivaram said Cobra-based QSE-5 cells were shipped to the Volkswagen Group, and he referenced a September demonstration in which the Ducati V21L race bike powered by QSE-5 cells appeared at IAA Mobility in Munich, describing it as the “world debut” of the technology in a real-world electric vehicle.
A key focus of the call was QuantumScape’s pilot cell production line, the Eagle Line. The company held an inauguration event on February 4, 2026, with attendance from customers, partners, and government officials. Sivaram said the Eagle Line incorporates the Cobra process and is intended as a “blueprint for production of QSE-5 technology.”
In Q&A, Sivaram said QuantumScape moved from a stable but more manual cell-making process used to support the Munich demonstration to a “much more highly automated line” better aligned with Cobra’s productivity. He said the company designed, built, installed, qualified, and baselined the Eagle Line equipment over roughly 10 months.
Sivaram emphasized that success on the Eagle Line will be measured through pilot-production metrics such as uptime, yields, reliability, quality, cycle time, and cost, with the goal of demonstrating a scalable, transferrable manufacturing blueprint for licensing partners.
2026 priorities: scale, automotive commercialization, new markets, and “beyond QSE-5”
Sivaram outlined four goals for 2026:
- Demonstrate scalable production on the Eagle Line through improving cell output efficiency, while producing QSE-5 cells for sampling, testing, and demonstrations.
- Advance automotive commercialization by moving customers through QuantumScape’s development and licensing model, tailoring product solutions for vehicle programs and supporting field testing and industrialization strategies.
- Expand into new high-value markets beyond automotive, which management said could include applications such as data centers, robotics, aviation, and defense.
- Go beyond QSE-5 with continued performance improvements and roadmap progress, even as the company ramps its current platform.
Management said automotive remains the company’s “core focus,” but described its solid-state lithium-metal design as having characteristics that could be valuable in other markets, including safety and performance across a wide temperature range, and the ability to combine high power and high energy density. Sivaram and CFO Kevin Hettrich also cited the architecture’s ability to work with different cathode chemistries as a source of versatility.
When asked about cell size and customer form factors, Sivaram said QSE-5 has a specific aspect ratio, with “about 5.6 Ah and about 21 Wh” per cell, and acknowledged that Volkswagen’s Unified Cell is a larger form factor. He said the Eagle Line is intended to serve as an adaptable baseline so the company can adjust dimensions and formats for different customer needs.
Addressing concerns about reports of Volkswagen funding reductions, Sivaram said QuantumScape’s work with PowerCo was “continuing on unchanged,” adding that the scope of work agreed in July remained intact. Management also reiterated that the company is engaging additional customers and recently added two global automotive OEMs.
Financial results, 2026 guidance, and liquidity
Hettrich reported that fourth-quarter 2025 GAAP operating expenses were $110.5 million and GAAP net loss was $100.1 million. For full-year 2025, GAAP operating expenses were $472.6 million and GAAP net loss was $435.1 million.
Adjusted EBITDA loss was $63.3 million in Q4 and $252.3 million for full-year 2025, which management said was within guidance. Hettrich said the company achieved an approximately 10% year-over-year improvement in adjusted EBITDA loss, narrowing from $285 million to about $252 million, attributing the change to cost-effectiveness efforts including value engineering on the Eagle Line and optimizing the company’s real estate footprint.
For 2026, QuantumScape guided to an adjusted EBITDA loss of $250 million to $275 million. Capital expenditures were $12.3 million in Q4 and $36.3 million for full-year 2025. For 2026, the company expects CapEx of $40 million to $60 million, with Hettrich saying the “bulk” is planned for the goal of going beyond QSE-5. He added that spending related to market expansion and customer-specific work is expected to be more incremental, such as cathode choices or form factor adjustments.
Customer billings for full-year 2025 were $19.5 million, and Hettrich said the company received $19.5 million in cash during the quarter related to those billings. Management cautioned that billings can be lumpy quarter to quarter and are not a substitute for U.S. GAAP revenue. Hettrich also noted that due to related-party accounting requirements, the cash from 2025 customer billings was reported directly to shareholders’ equity once certain requirements were met.
QuantumScape ended 2025 with $970.8 million in liquidity, and Hettrich said the company intends to remain prudent with its balance sheet.
Separately, management said it would continue to drive efficiency through value engineering, higher equipment uptime and throughput, and improvements in yield and reliability, and said it is “well along” in deploying machine learning and AI tools to accelerate development cycles and improve engineering productivity. Hettrich added that the company expects customer billings in 2026 to increase relative to 2025 as engagements deepen and expand.
In closing remarks, Sivaram thanked employees and shareholders and noted that Professor Dr. Fritz Prinz, a QuantumScape co-founder, is retiring from the company’s board after more than 15 years of service.
About QuantumScape (NYSE:QS)
QuantumScape Corporation is a development-stage company specializing in the research and commercialization of next-generation solid-state lithium-metal batteries for electric vehicles. The company’s core technology replaces the traditional liquid electrolyte with a solid ceramic separator, aiming to deliver higher energy density, faster charging times and enhanced safety compared to conventional lithium-ion cells. QuantumScape’s product roadmap focuses on enabling electric vehicle manufacturers to extend driving range and reduce charging downtime, addressing key barriers to widespread EV adoption.
Founded in 2010 and headquartered in San Jose, California, QuantumScape has attracted significant strategic investment and formed partnerships with leading automotive OEMs.
