Solid Power, Inc. (SLDP) Q3 FY2025 Earnings Call Transcript & Summary

Good day, and welcome to the Solid Power Third Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to [ Charlie Van Gother ], Investor Relations. Please go ahead.

Thank you, operator. Welcome, everyone, and thank you for joining us today. I'm joined on today's call by Solid Power's President and Chief Executive Officer, John Van Scoter; and Chief Financial Officer, Linda Heller. A copy of today's earnings release is available on the Investor Relations section of Solid Power's website, www.solidpowerbattery.com. I'd like to remind you that parts of our discussion today will include forward-looking statements as defined by U.S. securities laws. These forward-looking statements based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Solid Power disclaims any duty to update any forward-looking statements to reflect future events or circumstances. For a discussion of the risks and uncertainties that could cause actual results to differ materially from those expressed in today's forward-looking statements, please see Solid Power's most recent filings with the Securities and Exchange Commission, which can be found on the company's website at www.solidpowerbattery.com. With that, let me turn it over to John Van Scoter.

Thank you, Charlie, and thank you all for joining us today. I am pleased to provide an update on our 2025 operational goals since our last earnings call. First, we recently announced a strategic collaboration with Samsung SDI and BMW under a joint evaluation agreement. We believe this collaboration represents a vote of confidence in our technology and the potential of solid-state batteries. Under this arrangement, Solid Power will supply sulfide-based solid electrolyte to Samsung SDI, which Samsung SDI will integrate into separator and/or catholyte and use to build cells, in each case, subject to achievement of technical requirements. These cells will be evaluated based on performance parameters and requirements to be agreed between Samsung SDI and BMW Group. Ultimately, Solid Power, Samsung SDI and BMW aim to develop and supply all solid-state battery cells for integration into a next generation of evaluation vehicles. Together with Samsung SDI and BMW, we look forward to driving innovation in all solid-state battery technology. In addition, we believe this agreement underscores our electrolyte sampling efforts and our focus on identifying long-term customers. This quarter, we continued to execute on our agreements with SK On. We conducted site acceptance testing of the SK On pilot line, which remains on target for completion by the end of this year and is another key milestone under our line installation agreement with SK On. During the quarter, we also made progress on our electrolyte development road map. We continue detailed design work for the planned installation continuous manufacturing pilot line for sulfide electrolyte production at SP2. We expect detailed design to be substantially complete later this year, with commissioning on track for 2026. With that, I'll turn it over to Linda to review our financial results and provide an update on our progress towards achieving our financial disciplined goal. Linda?

Thank you, John. I'll start with Q3 and year-to-date results, beginning with revenue. During the third quarter of 2025, we generated revenue of $4.6 million compared to our Q2 2025 revenue of $7.5 million. Revenue recognized this quarter was driven primarily by our SK On agreement as well as our government contracts. This brings revenue year-to-date to $18.1 million, an increase of $2.4 million over the same period in 2024. Operating expenses for the third quarter were $29 million, a decrease of $4.4 million compared to our second quarter of 2025 at $33.4 million. The reduction in expenses for the third quarter was primarily due to the nature of the work performed under our SK On agreement. The third quarter was labor focused in preparation for site acceptance testing whereas the second quarter included significant equipment purchases for factory acceptance testing. Operating loss year-to-date was $74.3 million and year-to-date net loss was $66.4 million or $0.37 per share. Capital expenditures totaled $0.6 million, primarily representing costs for the construction of our continuous electrolyte production pilot line. Turning to our balance sheet and liquidity. During the quarter, our cash used for operations and capital expenditures was $14.9 million. This brings our total year-to-date cash investment to $61.2 million. Total liquidity increased to $300.4 million as of September 30, 2025. This was primarily driven by proceeds from our at-the-market offering program as well as cash received from our government contracts. In addition, contract assets and contract receivables totaled $7.2 million and total current liabilities were $16.6 million. During Q3, we remained fiscally disciplined focused on realizing efficiencies and reducing operating costs while driving technology development and innovation. As a result of these efforts, we are revising our expected cash investment to $85 million to $95 million in 2025. I will now turn it back to John for some final thoughts.

Thank you, Linda. In closing, we're making progress towards our strategic objectives, and I'm excited about the potential of all solid-state battery technology. I want to sincerely thank our employees, partners and stakeholders for their continued dedication and support. We will now take your questions. Operator?

[Operator Instructions] This concludes our question-and-answer session. I would like to turn the conference back over to John Van Scoter for any closing remarks.

Thank you for joining the call today and for your interest in Solid Power. We look forward to updating you again next quarter.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.