QuantumScape (QS) is surging higher in premarket trading on Thursday because the company posted a smaller-than-expected loss for the third quarter and offered improved full-year adjusted EBITDA guidance, helping restore investor confidence.
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The solid-state battery developer reported a loss of $0.18 per share, beating analyst expectations of a $0.20 loss. The company’s adjusted EBITDA loss was $61.4 million, which aligned with its earlier projections.
Meanwhile, QuantumScape also narrowed its full-year adjusted EBITDA loss forecast to $245 million–$260 million, down from the prior range of $250 million–$270 million, reflecting continued improvements in cost control and efficiency. Management credited the stronger outlook to operational discipline and progress on its capital-light licensing model, which aims to generate more revenue with less spending.
Customer Billings and Cost Cuts Show Solid Progress
The third quarter was a key period for the company, with customer billings topping $12 million, showing early success from its licensing and partnership model. Also, operating expenses dropped to $115 million from $130.2 million a year earlier, as the company kept a close eye on costs.
Meanwhile, capital spending came in at $9.6 million, mainly for Eagle Line facilities and equipment. To remain focused on cost control, QuantumScape lowered its full-year capital spending forecast to $30 million–$40 million.
Strong Cash Position Extends Runway
QuantumScape ended the quarter with $1.0 billion in cash, giving it a stronger buffer to fund its projects and growth plans. The company now expects its cash to last through the end of the decade, about a year longer than its earlier estimate, which had projected funds lasting only until 2029.
Is QuantumScape Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on QuantumScape stock based on one Buy, two Holds, and one Sell assigned in the past three months. At $9.00, the average QS stock price target implies a 33.73% downside potential.
