Highlights

  • Net loss for the quarter ended June 30, 2026 narrowed to $98.2 million, or $0.16 per share, from $114.7 million.
  • Cash, cash equivalents and marketable securities were about $859.0 million at June 30, 2026, versus $970.8 million at year-end 2025.
  • A July 2026 PowerCo amendment shifts the program to milestone payments capped at $75.4 million, including amounts already paid.
  • The pre-revenue company reports a $4.0 billion accumulated deficit and says it may need additional equity or debt financing.

QuantumScape (NASDAQ:QS) shares were trading near their 52-week low at USD 4.06 on October 21, 2026, up 2.01%. The solid-state battery developer inaugurated its San Jose pilot line in February, agreed revised milestone-based terms with PowerCo in July and filed its second quarter 2026 report on Form 10-Q on July 24.

Based in San Jose, California, QuantumScape is a Delaware corporation developing solid-state lithium-metal batteries for electric vehicles and other applications. Its operating subsidiary was founded in 2010, and the company became publicly traded in 2020 through a business combination. It has one operating segment and has not yet derived revenue from its principal business activities. Its first targeted commercial product is the QSE-5, a cell of roughly 5 amp-hours. The fiscal year ends December 31.

Quarterly Loss Narrows as Operating Costs Decline

With no revenue, the quarter ended June 30, 2026 was about costs. Operating expenses fell 14% to $106.1 million from $123.6 million a year earlier, and the net loss narrowed 14% to $98.2 million, or $0.16 per basic and diluted share, against $114.7 million, or $0.20.

Research and development expense declined 18% to $82.5 million, mainly on a $13.6 million lower impairment loss and $5.6 million less depreciation and amortization, partly offset by higher materials costs. General and administrative expense rose 5% to $23.6 million. Interest income eased to $8.4 million from $8.9 million on lower interest rates.

For the six months, the net loss was $199.0 million, or $0.32 per share, versus $229.1 million, or $0.41. Cash used in operations was $116.3 million versus $122.6 million. The accumulated deficit was about $4.0 billion, and management expects significant expenses and continuing losses for the foreseeable future.

Cash, Funding Needs and Legal Matters

Cash and marketable securities were about $859.0 million at June 30, 2026, down from $970.8 million at December 31, 2025. Management believes this covers needs for at least twelve months from the report date, but cautioned that more capital could be required if talks with automakers or suppliers slip, and that any financing might carry onerous terms or force a scaling back of product development.

The business has been funded through equity. Through an at-the-market program, it sold 29.5 million Class A shares in 2025 for net proceeds of about $264.2 million and 24.9 million shares in 2024 for about $128.5 million. As of July 17, 2026, 587.2 million Class A and 31.9 million Class B shares were outstanding.

Several shareholder derivative suits, in which the company is the nominal defendant, remain stayed. A settlement in principle addressing remedial actions was reached in February 2026, with no amount set and terms subject to court approval. Two California wage-and-hour actions were settled for an immaterial amount, approved in July 2026.

PowerCo Program Revised and Development Priorities

QuantumScape and PowerCo, the battery cell company wholly owned by Volkswagen Group, signed a collaboration agreement in July 2024 and amended it in July 2025. They intend to enter a license agreement once milestones are met, under which PowerCo would pre-pay an initial royalty of $130 million, subject to a diminishing clawback on certain early terminations.

In July 2026, the parties replaced the earlier statement of work and cost-reimbursement structure with payments tied to milestones, including delivery and validation of battery cells over the next two years. The maximum PowerCo will pay is $75.4 million, inclusive of amounts already paid, compared with up to $130.7 million under the 2025 amendment. The company received $10.4 million from PowerCo in the first half, recorded as a capital contribution.

The filing contains no financial guidance. Management said the pilot line is in its initial ramp-up and described ongoing work on cathodes, separator throughput, cell design and module and pack design. It expects research and development spending to rise significantly as it invests in equipment and prototypes.