10-Q: Solid Power Reports Q2 2026 Results, Revenue Declines

Solid Power, Inc. announced its Q2 2026 financial results, showing a significant year-over-year revenue decrease and continued operating losses, while highlighting progress in its solid-state battery technology development and a robust liquidity position.

Summary

• Solid Power reported a net loss of $23.8 million for the three months ended June 30, 2026, and $36.8 million for the six months ended June 30, 2026.
• Total revenue and grant income for the three months ended June 30, 2026, was a net loss of $0.3 million, a significant decrease from $7.5 million in the prior year period.
• For the six months ended June 30, 2026, total revenue and grant income was $2.8 million, down from $13.6 million in the same period last year.
• Operating expenses for the three months ended June 30, 2026, were $30.0 million, a decrease from $33.4 million in the prior year.
• Research and development expenses remained relatively stable at $19.4 million for the three months ended June 30, 2026, compared to $18.3 million in the prior year.
• Selling, general, and administrative expenses increased to $8.5 million for the three months ended June 30, 2026, from $6.6 million in the prior year.
• The company's total liquidity, including cash and available-for-sale securities, was $419.3 million as of June 30, 2026.
• The company is focused on advancing its solid-state battery technology, including the construction of a continuous electrolyte production pilot line.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a cautiously neutral to slightly negative sentiment due to continued net losses, a significant decrease in revenue compared to the prior year, and ongoing substantial operating expenses, despite progress in development and a strong liquidity position.

Positives

• Continued progress in solid-state battery technology development and manufacturing processes.
• Completion of the line installation agreement with SK On and receipt of a milestone payment in May 2026.
• Advancement in discussions for a potential joint venture for commercial-scale electrolyte production in South Korea.
• Stage 1 audit for ISO 9001 certification completed.
• Shipments of electrolyte provided under Joint Evaluation Agreements with Samsung SDI and BMW AG.
• Total liquidity of $419.3 million as of June 30, 2026, providing a strong financial cushion.
• Anticipated sufficiency of cash, cash equivalents, and available-for-sale securities to meet operating needs for at least the next 12 months.
• No debt on the balance sheet.

Negatives

• Significant decrease in revenue, with a net loss of $1.0 million for the three months ended June 30, 2026, compared to $6.5 million in the prior year.
• Total revenue and grant income decreased by 104% for the three months and 79% for the six months ended June 30, 2026, compared to the prior year.
• Continued substantial operating losses, with an operating loss of $30.3 million for the three months ended June 30, 2026.
• Increase in selling, general, and administrative expenses by 29% for the three months ended June 30, 2026.
• A $1.2 million reversal of previously recognized non-government revenue due to a change in assumptions related to milestone payments.
• Net loss attributable to common stockholders of $23.8 million for the three months ended June 30, 2026.
• The company is still in a research and development stage with no commercial operations, incurring significant expenses and continuing losses.

Risks

• Uncertainty of success in research and development efforts, including achieving technological objectives and commercializing technology ahead of competitors.
• History of financial losses and expectation of continued significant expenses and losses for the foreseeable future.
• Non-exclusive nature of partnerships and the ability to secure new business relationships.
• Ability to negotiate and enter into potential joint venture arrangements and new or amended collaboration agreements on commercially reasonable terms.
• Broad market adoption of EVs and other technologies where the company's technology can be deployed.
• Ability to protect and maintain intellectual property.
• Delays in the construction and operation of facilities.
• Changes in applicable laws or regulations, including tariffs.

Future Outlook

For the remainder of 2026, revenue recognition is expected to continue to decrease relative to prior year periods as the company focuses on constructing its continuous electrolyte production pilot line and supplying electrolyte to partners and customers. The company anticipates cash used in operating activities to remain consistent quarterly. Capital expenditures for the remainder of the year are expected to increase due to the ongoing construction of the pilot line and improvements to cell development capabilities. The company believes its current liquidity is sufficient for at least the next 12 months, but may require additional financing for long-term needs or if business conditions change.

Management Comments

• We made progress on our 2026 development objectives as the solid-state battery landscape continues to evolve.
• We remained fiscally disciplined, balancing financial discipline with appropriate investments in technology developments and process improvements.
• We believe our electrolyte technology has the potential to enable a step-change improvement in battery cell performance beyond what is currently achievable in conventional lithium-ion battery cells, including improved energy density, battery life, and safety performance.
• We are optimistic, based on our electrolytes performance and cost, about continuing to work with Samsung SDI for possible use in electric vehicles and other potential applications of ASSB technologies.

Industry Context

StockSavvy.ai notes that Solid Power operates in the rapidly evolving solid-state battery sector, a critical area for next-generation electric vehicles. The company's focus on sulfide-based electrolytes positions it within a key technological pathway. However, the industry is characterized by intense R&D, significant capital requirements, and competition from established players and other emerging technologies. The reported revenue decline and continued losses highlight the challenges of scaling from R&D to commercialization in this capital-intensive industry.

Comparison to Industry Standards

• The company's revenue decline for the period is a concern when compared to industry peers who may be showing growth in their advanced battery materials segments.
• While Solid Power's liquidity position is strong, the significant cash burn rate for R&D and capital expenditures is typical for companies in the pre-commercialization phase of advanced battery technology.
• The focus on partnerships with major automotive players like BMW and Samsung SDI aligns with industry trends where collaboration is crucial for market entry and validation.

Legal Proceedings

• A putative class action lawsuit was filed on December 3, 2024, against former officers and directors of Decarbonization Plus Acquisition Corporation III (DCRC), alleging breach of fiduciary duties and unjust enrichment related to the merger with Solid Power Operating, Inc. The company, its subsidiaries, and current officers/directors (except for one) are not named defendants, but the company may be liable for legal fees, defense costs, judgments, or settlement fees incurred by the named defendants.

Related Party Transactions

• Amended joint development agreement with BMW of North America LLC for research and development license of cell manufacturing IP. Revenue from electrolyte sales to BMW was $0.092 million for the three and six months ended June 30, 2026.
• Transactions with Dahae Energy Co., Ltd. include a bond with detachable warrants, a derivative, restricted stock grants to Dahae executives, and a term loan facility. Costs incurred for services provided by Dahae were $0.914 million and $1.671 million for the three and six months ended June 30, 2026, respectively.
• The company acquired a 20% equity interest in Dahae for $0.656 million, accounted for using the equity method.

Stakeholder Impact

• Shareholders: Continued net losses and revenue decline may impact stock price negatively, while progress in technology and strong liquidity provide some optimism.
• Customers (e.g., SK On, Samsung SDI, BMW): Continued collaboration and electrolyte sampling indicate ongoing engagement and potential future business.
• Employees: R&D expenses remain high, suggesting continued investment in personnel and operations.
• Creditors: The company has no debt, indicating no direct impact on creditors.

Next Steps

• Continue construction of the continuous electrolyte production pilot line, with equipment acceptance testing planned for Q3 2026 and operational startup in Q4 2026.
• Negotiate a new collaboration agreement with SK On to replace or amend the existing R&D technology license agreement.
• Continue discussions with industry partners regarding a potential joint venture for commercial-scale electrolyte production in South Korea.
• Continue sampling electrolyte to other customers and work with Samsung SDI for possible use in electric vehicles.
• Focus on driving electrolyte product competitiveness.
• Maintain fiscal discipline while investing in technology development and process improvements.

Key Dates

Recommendation

The company shows promising technological advancements in solid-state batteries and maintains a strong liquidity position. However, the significant year-over-year revenue decline, continued operating losses, and the substantial increase in SG&A expenses are concerning. The path to commercialization remains long and capital-intensive. Therefore, a 'hold' recommendation is appropriate, pending clearer signs of revenue growth and a path to profitability.

Keywords

solid-state battery, electrolyte, lithium-ion, EV market, manufacturing, research and development, pilot line, collaboration agreements