QuantumScape to end San Jose lease early with $2.3 million in termination fees

Published 09/07/2025, 21:42
QuantumScape to end San Jose lease early with $2.3 million in termination fees

QuantumScape Corporation (NYSE:QS) announced Tuesday that its subsidiary, QuantumScape Battery, Inc., has entered into a lease termination agreement with MLC V SC – Automation, LLC. The agreement ends the company’s lease for approximately 80,641 rentable square feet in San Jose, California, effective August 1, 2025. The lease was originally set to expire on September 30, 2032.

Under the terms of the termination agreement, QuantumScape and its parent company will have no further obligations to the landlord after the termination date, provided that QuantumScape pays a lease termination fee of $1.1 million and a brokerage fee of $1.2 million. The company is also required to surrender the premises as part of the agreement. According to InvestingPro data, QuantumScape maintains a strong liquidity position with a current ratio of 16.66, indicating robust short-term financial health despite being pre-revenue.

QuantumScape stated that the early termination will relieve it of about $18.7 million in future minimum lease payments. The company continues to lease other properties from an affiliate of the landlord. InvestingPro analysis reveals 14 additional key insights about QuantumScape’s financial position and market performance, available in the comprehensive Pro Research Report.

The information in this article is based on a statement in the company’s filing with the Securities and Exchange Commission.

In other recent news, QuantumScape Corporation reported its Q1 2025 financial results, posting an earnings per share of -$0.21, which aligned with market expectations. The company recorded a net loss of $114.4 million, maintaining strong liquidity with $860.3 million in cash reserves. QuantumScape has integrated its Cobra separator process into baseline cell production, a significant advancement in its manufacturing capabilities. This new process offers a 25-fold improvement in heat treatment speed compared to the previous Raptor process and requires less physical space. The company held its 2025 Annual Meeting of Stockholders, where shareholders approved the election of ten directors and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm. William Blair reiterated its Market Perform rating on QuantumScape, noting that recent stock surges were due to known milestones. The firm expressed interest in more information about QuantumScape’s potential launch customer and unit economics for future evaluation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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