Earnings call transcript: Solid Power Q2 2025 revenue exceeds expectations

Solid Power Inc. (SLDP) reported its earnings for the second quarter of 2025, revealing a stronger-than-expected revenue performance. The company posted a revenue of $7.5 million, surpassing the forecast of $5 million, marking a significant surprise of 50.8%. However, the earnings per share (EPS) matched the forecast at a loss of $0.14. Following the earnings announcement, Solid Power’s stock fell by 5.25% in after-hours trading, closing at $3.43. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with 14 key insights available to subscribers about the company’s financial health and market position.

Key Takeaways

• Solid Power’s Q2 2025 revenue of $7.5 million exceeded expectations by 50.8%.
• EPS was in line with forecasts, at a loss of $0.14 per share.
• The stock declined by 5.25% in after-hours trading.
• Partnerships with BMW and SK On continue to drive strategic growth.
• The company is expanding its production capacity for solid-state battery technology.

Company Performance

Solid Power demonstrated robust revenue growth in the second quarter of 2025, with a 25% increase from the previous quarter’s revenue of $6 million. This growth is attributed to its strategic partnerships and advancements in solid-state battery technology. The company remains focused on expanding its production capabilities and strengthening its market position in the electric vehicle battery sector.

Financial Highlights

• Revenue: $7.5 million, up from $6 million in Q1 2025.
• EPS: Loss of $0.14, consistent with forecasts.
• Operating Expenses: $33.4 million, an increase of $3.4 million.
• Year-to-date Operating Loss: $49.9 million.
• Year-to-date Net Loss: $40.5 million ($0.22 per share).
• Capital Expenditures: $5 million.
• Stock Repurchase: 3.3 million shares at an average price of $1.05, totaling ~$3.6 million.

Earnings vs. Forecast

Solid Power’s revenue for Q2 2025 significantly surpassed the forecast of $5 million, resulting in a positive surprise of 50.8%. The EPS, however, met expectations with a loss of $0.14, indicating stability in the company’s earnings performance. This revenue beat highlights Solid Power’s strong market execution and successful partnerships.

Market Reaction

Despite the revenue beat, Solid Power’s stock fell by 5.25% in after-hours trading, closing at $3.43. This decline could be attributed to investor concerns over the company’s ongoing operating losses and the unchanged EPS forecast. The stock remains within its 52-week range, with a high of $4.77 and a low of $0.68. InvestingPro data shows impressive returns of 167.97% over the past year and 159.85% over the last six months, though the stock typically trades with high volatility.

Outlook & Guidance

Solid Power continues to focus on expanding its production capacity, with plans to commission a new production line in 2026. The company is also advancing its electrolyte sampling efforts and maintaining financial discipline while investing in critical infrastructure. The forward guidance remains consistent, with EPS forecasts for the upcoming quarters and fiscal years unchanged.

Executive Commentary

CEO John VanSkoder stated, "We believe this development marks a major step in our overall strategy," highlighting the company’s commitment to innovation and growth. CFO Linda Heller emphasized fiscal discipline, stating, "We continue to be disciplined fiscally, balancing efficiency and process improvements." VanSkoder also expressed optimism about delivering strong returns for shareholders.

Risks and Challenges

• Ongoing operating losses could impact financial stability.
• Market competition in the solid-state battery sector remains intense.
• Dependence on strategic partnerships for growth and innovation.
• Potential delays in production line commissioning could affect future revenue.
• Macroeconomic pressures may influence consumer demand for electric vehicles.

Q&A

There were no specific questions recorded in the earnings call transcript.

Full transcript - Solid Power Inc (SLDP) Q2 2025:

Conference Operator: Good day, and welcome to Solid Power second quarter twenty twenty five earnings conference call. All participants will be in the listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your touch tone phone.

To withdraw your question, please press star then 2. Please note, this event is being recorded. I would now like to turn the conference over to Charlie Van Goetz, Investor Relations. Please

Charlie Van Goetz, Investor Relations, Solid Power: 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 VanSkoder 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 are based on management’s current expectations and assumptions about future events and are based on currently available information as 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.

John VanSkoder, President and Chief Executive Officer, Solid Power: With that, let me turn it over to John VanSkoder. Thank you, Charlie, and thank you all for joining us. I’m pleased to provide an update on our 2025 operational goals since our last earnings call. As announced this quarter, we reached a significant achievement in our partnership with BMW, who introduced their i7 test vehicle powered by our cells and solid state battery technology. We believe this development marks a major step in our overall strategy as it underscores the potential of our electrolyte and cell technologies.

It also highlights our 2025 corporate objective to drive electrolyte innovation and performance through feedback from cell development and customers. We’re excited and proud to continue our partnership with BMW. This quarter, we completed factory acceptance testing of the SK On pilot line, which is a key milestone under our line installation agreement. Our collaboration with SK On supports their efforts to develop solid state cells based on our technology and operate a solid state pilot line that we designed to use our electrolyte. We have begun working towards site acceptance testing of the line at SK On’s facilities, which we expect to complete later this year.

We’re making progress on our electrolyte development roadmap. During the quarter, we finished ordering long lead equipment and began detailed design for our planned installation of a continuous manufacturing pilot line for sulfide electrolyte production at SP2. The line is expected to expand our production capacity to 75 metric tons and enable us to support anticipated small volume programs of current and future customers. As of June 30, we have received $3,300,000 in reimbursements under our agreement with the U. S.

Department of Energy for this project. We remain on track for commissioning of the line in 2026. Finally, we are working to ramp electrolyte sampling and identify long term customers. During the first half of the year, we continued to see demand for multiple generations of our electrolyte from customers,

Linda Heller, Chief Financial Officer, Solid Power: including both existing and new customers. We’ve engaged in active sampling to key strategic customers so far this year, and we remain encouraged by our customer engagement and electrolyte sampling activities. I’ll now turn it over to Linda to discuss our financial results and progress towards achieving our financial discipline goal. Linda? Thank you, John.

I’ll start with Q2 and year to date results, beginning with revenue. During the 2025, we generated revenue of $7,500,000 compared to our Q1 twenty twenty five revenue of $6,000,000 This brings revenue year to date to $13,500,000 Revenue recognized this quarter was driven primarily by the achievement of the factory acceptance testing milestone under our line installation agreement with SK On. Operating expenses for the second quarter were $33,400,000 an increase of $3,400,000 compared to our 2025 at $30,000,000 This increase is driven by costs incurred to support the achievement of factory acceptance testing, which was $6,700,000 of our operating costs for the quarter. Operating loss year to date was $49,900,000 and year to date net loss was $40,500,000 or $0.22 per share. Capital expenditures totaled $5,000,000 primarily representing costs for the construction of our continuous electrolyte production pilot line.

We repurchased 3,300,000.0 shares during Q2 at an average share price of $1.05 totaling approximately $3,600,000 under our stock repurchase program. Thanks to a strong balance sheet, we were able to return this capital to shareholders and maximize long term shareholder value. Turning to our balance sheet and liquidity. During the quarter, we invested $14,400,000 into operations and $2,600,000 into CapEx. This brings our total year to date cash investment to $45,700,000 We ended the quarter with total liquidity of $279,800,000 as of 06/30/2025.

In addition, contract receivables totaled $4,600,000 and total current liabilities were $12,400,000 We continue to be disciplined fiscally, balancing efficiency and process improvements with the strategic investments in technology developments and critical infrastructure. I will now turn it back to John for some final thoughts.

John VanSkoder, President and Chief Executive Officer, Solid Power: Thank you, Linda. In closing, we are steadily advancing towards our strategic objectives. I want to express my gratitude to our employees, partners, and stakeholders for their continued commitment and support. I remain optimistic about our potential to deliver strong returns for our shareholders. We will now take your questions.

Operator?

Conference Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your questions, please press star then 2.

At this time, we will pause momentarily to assemble our roster. Again, if you have a question, please press star then 1. This concludes our question and answer session. I would like to turn the conference back over to John VanScotter for closing remarks.

John VanSkoder, President and Chief Executive Officer, Solid Power: Thank you for joining the call today and for your interest in Solid Power. We look forward to updating you again next quarter.

Conference Operator: Thank you. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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