Solid Power, Inc. (SLDP)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 total revenue and grant income was $7.54M, up 25.3% QoQ and 48.6% YoY, driven primarily by completion of SK On pilot line factory acceptance testing milestones; EPS was $(0.14), worse than Q1 $(0.08) but slightly better than Q2 2024 $(0.13) .
• Operating expenses rose to $33.4M (+11.2% QoQ) due to $6.7M costs to complete SK On factory acceptance testing; operating loss was $(25.9)M .
• Liquidity remained strong at $279.8M as of June 30, 2025; H1 operating cash use was $40.7M and capex was $5.0M, with Q2 capex $2.6M focused on the continuous electrolyte pilot line .
• BMW introduced an i7 test vehicle powered by Solid Power cells—an external validation milestone—and SK On’s line advanced to site acceptance later in 2025, reinforcing the customer roadmap; management reiterated commissioning of the continuous electrolyte pilot line in 2026 .
• Wall Street consensus estimates (S&P Global) for revenue and EPS were unavailable; no explicit revenue or margin guidance was provided. Consensus values unavailable via S&P Global.

What Went Well and What Went Wrong

What Went Well

• Significant validation: BMW introduced an i7 test vehicle powered by Solid Power’s cells, showcasing real-world progress in solid-state technology and customer engagement .
• SK On pilot line milestone: Completed factory acceptance testing; site acceptance testing targeted for later this year, supporting partner scale-up on Solid Power’s electrolyte .
• Liquidity and capital return: Maintained $279.8M total liquidity; repurchased ~3.3M shares at ~$1.05 for ~$3.6M, signaling confidence while preserving cash discipline .

What Went Wrong

• Higher operating costs: OpEx rose to $33.4M (+$3.4M QoQ), including $6.7M tied to SK On FAT completion, pressuring operating loss to $(25.9)M and EPS to $(0.14) .
• Limited revenue mix diversity: Q2 revenue growth was milestone-driven (SK On) rather than broad-based commercial electrolyte orders; sampling remains active but early-stage .
• No quantitative guidance: Management reiterated operational objectives but provided no explicit revenue or margin guidance, leaving limited near-term visibility; Street consensus not available via S&P Global .

Financial Results

Notes: Consensus estimates unavailable via S&P Global for SLDP.

Segment breakdown: Not applicable (no reportable segments disclosed) .

KPIs

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We are pleased with our progress on our 2025 operational goals, and we are energized by continued customer demand for our electrolyte.” — John Van Scoter, CEO .
• “We have begun working towards site acceptance testing of the [SK On] line… which we expect to complete later this year.” — CEO on SK On milestones .
• “We finished ordering long-lead equipment… [for] a continuous manufacturing pilot line… expected to expand our production capacity to 75 metric tons… commissioning remains on track for 2026.” — CEO on scale-up path .
• “We repurchased 3.3 million shares during Q2 at an average share price of $1.05 totaling approximately $3.6 million.” — CFO on capital return .
• “Total liquidity as of June 30, 2025, was $279.8 million.” — Press release .

Q&A Highlights

• Q2 2025: The published transcript contained limited/no detailed Q&A content beyond closing remarks .
• Prior quarter context (Q1 2025):
  • Revenue in 2025 dominated by collaborative arrangements (SK On) and government contracts; electrolyte sampling revenues remain small relative to potential per-vehicle economics .
  • Revenue trajectory beyond 2025 linked to customers’ early-stage cell development cycles; significant electrolyte revenue timing varies widely (some 2027–2028, bulk ~2030+) .
  • DOE grant clarified as non-loan; $1.5M funds received in Q1 under the grant .

Estimates Context

• Wall Street consensus estimates for Q2 2025 revenue and EPS via S&P Global were unavailable for SLDP at the time of review; therefore, no beat/miss assessment versus consensus can be made. Values retrieved from S&P Global.

Key Takeaways for Investors

• Execution milestone: SK On FAT completion and upcoming SAT are tangible steps toward partner scale-up on SLDP’s electrolyte, underpinning Q2 revenue growth and near-term operational catalysts .
• External validation: BMW’s i7 solid-state test vehicle is a noteworthy proof point, potentially improving stakeholder confidence and strategic optionality with OEMs .
• Cash discipline with optionality: $279.8M liquidity and modest Q2 capex ($2.6M) support the 2026 commissioning of the continuous electrolyte pilot line while enabling selective capital returns (3.3M shares repurchased) .
• Near-term P&L pressure: Elevated Q2 OpEx (including $6.7M to complete SK On FAT) weighed on EPS; expect quarterly variability tied to milestone timing until commercial electrolyte orders scale .
• Revenue quality: Q2 growth was milestone-driven rather than broad commercial demand; continue to monitor conversion of sampling into firm orders and the cadence of partner/government milestones .
• Watch the 2026 line commissioning: Successful commissioning and ramp of continuous electrolyte production (target 75 metric tons) is pivotal for commercial readiness and customer program support .
• Estimates visibility: With no explicit revenue/margin guidance and unavailable S&P Global consensus, expect higher narrative-driven stock moves around partner milestones and OEM validations; monitoring SK On SAT and further OEM test vehicle announcements is key .