• Capital Expenditures (CapEx): $11.2 million in Q4 2024; $62.1 million for full year 2024.
• GAAP Operating Expenses: $128.7 million in Q4 2024; $525.2 million for full year 2024.
• GAAP Net Loss: $114.7 million in Q4 2024; $477.9 million for full year 2024.
• Adjusted EBITDA Loss: $4.7 million in Q4 2024; $285 million for full year 2024.
• Liquidity: $910.8 million at the end of 2024.
• 2025 CapEx Forecast: Between $45 million and $75 million.
• 2025 Adjusted EBITDA Loss Forecast: Between $250 million and $280 million.

• Warning! GuruFocus has detected 2 Warning Sign with QS.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• QuantumScape Corp (NYSE:QS) achieved its four key goals for 2024, including the shipment of Alpha-2 samples and the ramping of the Raptor separator process.
• The company began low-volume B0 production of QSE-5 cells, which boast industry-leading performance metrics such as high energy density and fast charging capabilities.
• QuantumScape Corp (NYSE:QS) released its advanced Cobra separator heat treatment equipment, setting the stage for higher volume B1 production in 2025.
• The partnership with PowerCo, Volkswagen Group's battery manufacturing company, is a cornerstone of QuantumScape's commercial licensing strategy.
• QuantumScape Corp (NYSE:QS) ended 2024 with $910.8 million in liquidity, extending its cash runway into the second half of 2028.

Negative Points

• QuantumScape Corp (NYSE:QS) reported a GAAP net loss of $114.7 million for Q4 2024 and $477.9 million for the full year.
• The company faces risks and uncertainties that could cause actual results to differ materially from projections.
• QuantumScape Corp (NYSE:QS) is still in the process of transitioning from Raptor to Cobra, which involves significant operational changes.
• The commercialization of the QSE-5 platform is still in the demonstration phase, with full-scale production targeted for 2026.
• QuantumScape Corp (NYSE:QS) is operating in a competitive environment with other companies also pursuing solid-state battery technology.

Q & A Highlights

Q: What are the plans for PowerCo and the QSE-5 launch customer? A: B1 samples will support the demonstration phase of our customer's launch program targeted for 2026. We are pursuing a capital-light licensing business model, demonstrated by our collaboration with PowerCo. We are working on a technology package for PowerCo to take our QSE-5 platform to gigawatt-hour scale production. We are also in active discussions with two automotive OEMs about licensing arrangements. (Siva Sivaram, CEO)

Q: Why is the company guiding to a flat CapEx and lower adjusted EBITDA loss in 2025 compared to 2024? A: The primary drivers are our licensing model, which requires less spending compared to a manufacturing model, collaboration with PowerCo, and the transition from Raptor to Cobra, which improves efficiency. (Kevin Hettrich, CFO)

Q: Can you share more about QuantumScape's transition from B0 to B1 sample production? A: The solid-state separator is core to our technology. We are scaling up production with Cobra equipment, which is more efficient than Raptor. Our goal for 2025 is to integrate Cobra into the baseline and produce higher-volume B1 samples for the demo phase in 2026. (Siva Sivaram, CEO)

Q: What feedback are you receiving from the two auto OEMs you are in discussions with? A: Engagement remains robust, with excitement about our technology as a long-term solution for electric vehicle adoption. Discussions involve deep technical diligence and ensuring the licensing model works for them. (Siva Sivaram, CEO)

Q: What is the focus of the joint team with PowerCo, and what are the expected deliverables? A: The joint team, approximately half from each company, focuses on industrializing the technology. PowerCo aids in manufacturing and tool development, while QuantumScape focuses on core IP and scalable Cobra assets. (Siva Sivaram, CEO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.