QuantumScape Corporation Q3 FY2025 earnings call

• Unveiled the Ducati V21L launch program with Volkswagen Group at IAA Mobility, a showcase for QS technology. • Began shipping COBRA-based QSC5 B1 samples, completing a key annual goal. • Progressed on installing higher volume cell production equipment for the Eagle Line. • Expanded commercial engagement, including deepening relationships with existing customers, engaging new customers, and expanding the QS ecosystem with partners like Corning and Murata. • Customer billings in Q3 totaled $12.8 million, including invoicing VW PowerCo under the upgraded deal announced in July.

No traditional product segment financial breakdown provided. Key areas include progress in shipping COBRA-based QSC5 B1 samples, progress on Eagle Line equipment installation, and expansion of commercial engagement and ecosystem partners. Customer billings in Q3 were $12.8 million.

• Revised full-year adjusted EBITDA loss to $245 million to $260 million. • Revised full-year CapEx guidance to $30 million to $40 million. • Cash runway extends through the end of the decade, a twelve-month extension from previous guidance. • Customer billings as a key operational metric, with Q3 at $12.8 million.

• Uncertainties posed by difficulty in predicting future outcomes as mentioned in the Safe Harbor provision. • Accounting complexities related to customer billings and related party transactions (e.g., liability creation with VW PowerCo under certain deals).

Q: Could you help understand the joint development of ceramic separators with Corning and differences/similarities with Murata, and details of the Murata agreement?

A: Siva explained that ceramic manufacturing is specialized, Murata went through an initial development phase and progressed to higher volume commitments, while Corning came into a more detailed relationship after early development. Both are part of the ecosystem to scale separator production.

Q: VW's timeline for EVs with QS technology by end of decade, remaining technical boxes, and competition with other customers?

A: Siva stated that the end of the decade is 2029, working closely with VW PowerCo, and parallel work with other customers is independent, with prioritization belonging to the customer.

Q: Status of JDA with last quarter's customer and top 10 OEM engagement, and expansion of ecosystem partnerships?

A: Siva mentioned active engagement with customers, letting OEMs make announcements, and the ecosystem expansion includes various areas with financial benefits for shareholders through collaboration work, licensing, and value sharing with partners.