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MarketBeat Week in Review – 06/29 - 07/03QuantumScape NYSE: QS said it made progress in the second quarter of 2026 on automotive commercialization, new end-market expansion and pilot production of its solid-state lithium-metal battery cells, while reiterating its full-year adjusted EBITDA loss guidance.

On the company’s earnings call, Chief Executive Officer Siva Sivaram highlighted a newly announced multi-year partnership with Honda aimed at advancing QuantumScape’s solid-state lithium-metal battery technology for automotive and other applications in Honda’s product portfolio. Sivaram said the agreement followed “one of the most rigorous assessments of our technology to date” and gives QuantumScape another pathway into high-value markets.

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Burger King’s Turnaround Is Putting Restaurant Brands Back in FocusThe company also updated its ongoing collaboration and licensing arrangement with Volkswagen’s PowerCo. Sivaram said the revised scope includes milestones and payments tied to automotive cell development, larger-format cells and QuantumScape’s future technology roadmap. He added that the relationship remains strong and that the overall goal is unchanged: industrializing QuantumScape’s technology and transferring it to PowerCo for automotive commercialization.

Automotive Partnerships Remain Central to Commercialization Sivaram said QuantumScape is working with four of the top 10 global automotive original equipment manufacturers, including Volkswagen and Honda. The company also shipped cells to an additional automotive OEM customer during the quarter and continues to strengthen relationships with automakers in North America, Europe and Japan.

Slice of the Pie: Why Yum’s Deal Lifts QSRAsked about the updated PowerCo agreement, Sivaram said QuantumScape has updated the Volkswagen PowerCo agreements annually as the relationship has progressed. “There is not anything philosophically different about the objectives of the joint program,” he said, adding that the milestones are now aligned with items such as larger-format cells and future technology work.

Chief Financial Officer Kevin Hettrich said the revised PowerCo scope reduced the total possible payments under the agreement from approximately $131 million to approximately $75 million, but also lowered expected project expenses. He said QuantumScape expects a “net neutral financial impact in terms of cash” compared with the 2025 scope of work. Hettrich also said the separate $130 million royalty prepayment from PowerCo is unchanged and is tied to technical milestones and alignment on form factor.

When asked whether Volkswagen PowerCo’s previously discussed 2029 start-of-production timeline remained the target, Sivaram said QuantumScape had not announced any change from its original plans.

Company Creates Three Business Verticals QuantumScape said it is organizing around three business verticals to address automotive and non-automotive markets:

QSEV, focused on electric vehicles and automotive OEMs, including Volkswagen and Honda. QSDC, focused on AI data centers and working with original design manufacturers and data center architects. QSAS, focused on advanced solutions, including aerospace and defense applications. Sivaram said the company sees interest in its technology beyond electric vehicles, including AI data centers, aerospace, defense, consumer electronics and medical devices. He said the core QuantumScape technology platform can serve these markets, though each may require a different go-to-market strategy.

For data centers, Sivaram said the market is moving quickly and that QuantumScape is working with data center architects and ODMs on designs based on QSE-5 technology. He said the transition to 800-volt DC designs and megawatt racks creates “natural deadlines,” with deployments expected toward the end of 2028, meaning QuantumScape needs to develop and deliver integrated products ahead of that timeframe.

In advanced solutions, Sivaram said QSAS has shipped QSE-5 cells to a major American defense prime and is engaged with global customers across aerospace and defense. He said the advanced solutions business will also explore opportunities such as medical devices and consumer electronics.

Eagle Line Ramps Cell Output QuantumScape said its Eagle Line, a highly automated pilot cell production line in San Jose, California, remains a key part of its commercialization strategy. Sivaram said the line is intended to increase sample volumes for customers, accelerate process development and serve as a proving ground for scaling production.

The company said core tools on the Eagle Line are showing uptime greater than 90%, while key productivity metrics are meeting targets. QuantumScape is ramping sample volumes and shipping cells to customers. Sivaram said the company aims to further double cell output in the second half of 2026 and expects customer sample shipments to accelerate across all three verticals.

In response to a question about shipments to the defense market, Sivaram said improved Eagle Line productivity enabled the company to ship QSE-5 cells to a U.S. defense prime. He said the higher volumes also help QuantumScape learn more quickly and support eventual technology transfer to higher-volume lines.

Safety and Larger-Format Cells Highlighted Sivaram said customers have consistently identified safety as a valuable aspect of QuantumScape’s technology, in addition to energy density and power capability. He contrasted the company’s ceramic separator with next-generation approaches involving silicon or lithium-metal anodes with liquid electrolytes, which he said can pose serious safety hazards.

QuantumScape said increased Eagle Line output is enabling larger-scale safety testing, including nail penetration, external short circuit and thermal stability testing up to 300 degrees Celsius. Sivaram said the results continue to show QSE-5 as “a significantly safer cell design” compared with conventional and next-generation lithium-ion cells.

The company also said it has demonstrated that its Cobra process can produce larger-area separators for higher-capacity cell designs. Sivaram said larger-format cells can improve packing efficiency and potentially increase cell-level energy density.

Financial Results and Outlook For the second quarter, QuantumScape reported GAAP operating expenses of $106.1 million and a GAAP net loss of $98.2 million. Adjusted EBITDA loss was $64.2 million, which Hettrich said was in line with expectations.

The company reiterated its full-year 2026 adjusted EBITDA loss guidance of $250 million to $275 million. QuantumScape lowered its full-year capital expenditure guidance to a range of $27 million to $37 million, citing capital discipline and cost savings on specific projects. Second-quarter capital expenditures were $4.6 million, primarily related to technology roadmap investment and associated facility spending.

Hettrich said customer billings in the second quarter were $10.8 million, bringing total customer billings through the first half of 2026 to $21.8 million. That exceeded full-year 2025 customer billings of $19.5 million, meeting the company’s public goal for 2026. He noted that customer billings represent invoices issued to customers and partners regardless of accounting treatment and are not a substitute for revenue under U.S. GAAP.

QuantumScape ended the quarter with $859 million in liquidity. Hettrich said the company will remain prudent with its balance sheet as it invests in commercialization, new markets and technology development.

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.

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QuantumScape stock NASDAQ:QS faces a potentially sharp earnings reaction on Wednesday as investors test whether the solid-state battery developer can turn technical progress into a credible manufacturing and commercialisation plan.

Options traders are pricing a move of roughly 12% to 15% in either direction after the second-quarter report, reflecting the uncertainty surrounding a company that still generates little conventional revenue.

QuantumScape ended Friday at $5.86 and will release results after the market closes on July 22, followed by a call at 5 pm ET.

Options-market data suggests QuantumScape shares could move roughly 12% to 15% in either direction after the earnings release, with the estimate shifting alongside the stock price and option premiums.

The difference reflects changing share prices and option premiums, rather than conflicting directional forecasts.

An implied move does not mean traders expect QuantumScape to rally.

Stronger manufacturing disclosures could lift the stock sharply, while delays, vague targets or rising spending could produce a similar decline.

The first-quarter reaction showed that sensitivity. Shares initially surged 23% after the April update before surrendering most gains and closing only 1.4% higher.

MarketWatch noted that heavy short interest and a large retail following may amplify price swings.

Evercore ISI analyst Chris McNally said that QuantumScape had not announced the “completion of any goals”, although it showed progress across several areas.

He had also highlighted a previous “dearth of new headlines”, increasing the importance of each quarterly update.

The central question is whether the Eagle Line pilot facility is becoming a reliable manufacturing operation.

QuantumScape said in April that installation had been completed and start-up activities had begun, with initial QSE-5 cells being produced.

Management planned to increase output during the second quarter while improving equipment uptime, throughput, process stability and cell reliability.

The line is the bridge between successful laboratory cells and batteries that can be reproduced consistently enough for automotive testing and eventual mass production.

Investors will therefore want measurable disclosures on cell output, yields, equipment availability, customer shipments and testing results.

Broad assurances may not be enough as QuantumScape’s valuation rests largely on future commercialisation, making operational milestones more useful than conventional earnings comparisons.

Customer validation offers the clearest bullish catalyst.

QuantumScape signed a multi-year research agreement with Honda R&D in June after the Japanese group completed a technical evaluation and benchmarking programme.

Updates showing that Honda, Volkswagen’s PowerCo or other carmakers are advancing towards broader testing or firmer commitments would strengthen confidence.

The company recorded $11 million of customer billings in the first quarter and ended March with $905 million of liquidity.

It maintained full-year guidance for an adjusted EBITDA loss of $250 million to $275 million and capital expenditure of $40 million to $60 million.

Any increase could revive concerns about how much funding commercialisation will require.

UBS analyst Joseph Spak wrote in comments reported by MarketWatch that QuantumScape’s “2026 goals seem more ambiguous than last year”, making completion difficult to judge.

He also questioned whether expansion into data centres and robotics could dilute management’s automotive focus.