[8-K] QuantumScape Corporation Reports Material Event

Rhea-AI Filing Summary

QuantumScape Corporation (NYSE: QS) filed an 8-K (Item 1.02) announcing that its wholly-owned subsidiary, QuantumScape Battery, Inc., has executed a Lease Termination Agreement with MLC V SC – Automation, LLC.

The lease covered 80,641 sq ft of space in San Jose, CA, originally running from 1 Nov 2021 to 30 Sep 2032. The parties agreed to end the lease effective 1 Aug 2025.

• Termination payments: $1.1 million lease-exit fee and $1.2 million brokerage fee (total $2.3 million).
• Future obligations eliminated: approximately $18.7 million in minimum lease payments.
• Footprint reduction aligns with the company’s technology-licensing focus; QuantumScape continues leasing other sites from an affiliate of the same landlord.

QuantumScape and its parent will have no further obligations for the terminated premises once the payment and surrender conditions are met. The full agreement will be filed with the company’s Form 10-Q for the quarter ended 30 Jun 2025.

Positive

• Eliminates $18.7 million in future lease liabilities, improving cash flow and balance-sheet flexibility.
• One-time cash outlay of $2.3 million represents a favorable 8:1 cost-saving ratio.
• Footprint reduction aligns with technology-licensing strategy, suggesting disciplined capital management.

Negative

• Up-front termination and brokerage fees total $2.3 million, creating a near-term cash outflow.
• Reduced space could limit physical capacity if future production needs expand unexpectedly.

Insights

Financial Analyst

TL;DR Lease exit trades a $2.3 M cash hit for $18.7 M savings, modestly improving liquidity and aligning with strategic focus.

The net present value of eliminating $18.7 M in future lease liabilities—against a one-time $2.3 M charge—represents a roughly 8× payback and improves operating leverage. While the absolute dollar amount is not transformative for a company at QuantumScape’s scale, the move indicates disciplined capital allocation and reinforces management’s licensing-first strategy. The absence of impairment charges or penalties beyond the disclosed fees limits downside risk. Overall, the transaction marginally strengthens the balance sheet and signals tighter cost control without impacting ongoing R&D activities, as other facilities remain in use.

Real Estate Specialist

TL;DR Early exit reduces excess space, cuts liability tail, minor cash cost.

Terminating an 80 k sq ft lease seven years early at a cost equal to roughly 12% of remaining rent is commercially favorable. The brokerage fee suggests the landlord may re-let quickly, indicating a cooperative negotiation. By narrowing its footprint, QuantumScape avoids future escalation clauses and common-area maintenance risk. Provided the retained properties suffice for pilot manufacturing, the deal trims non-core overhead without materially disrupting operations.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 08, 2025

QuantumScape Corporation

(Exact name of Registrant as Specified in Its Charter)

Delaware			001-39345	85-0796578
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
1730 Technology Drive
San Jose, California				95110
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s Telephone Number, Including Area Code: 408 452-2000

n/a

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per share		QS		The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.02 Termination of a Material Definitive Agreement.

On July 8, 2025, QuantumScape Battery, Inc. (the “Company”), a wholly owned subsidiary of QuantumScape Corporation (“Parent”), and MLC V SC – Automation, LLC (the “Landlord”) entered into a Lease Termination Agreement (the “Termination Agreement”) to terminate the Company’s lease (the “Lease”) for certain premises outside of the Company’s headquarters, consisting of approximately 80,641 rentable square feet of space located in San Jose, California (the “Premises”), effective as of August 1, 2025 (the “Lease Termination Date”). The original term of the Lease commenced on November 1, 2021 and was to expire on September 30, 2032.

Pursuant to the Termination Agreement, the Company, and Parent as guarantor, will have no further obligations to the Landlord for the Premises following the Lease Termination Date, subject to the Company’s payment of a Lease termination fee of $1.1 million, a brokerage fee of $1.2 million, and the surrender of the Premises. This early termination of the Lease results in a smaller operational footprint consistent with the Company’s technology licensing focus, relieving the Company of approximately $18.7 million in future minimum payments under the Lease. The Company continues to lease other properties from an affiliate of the Landlord.

The foregoing is only a brief description of the material terms of the Termination Agreement, does not purport to be a complete description of the rights and obligations of the parties thereunder and is qualified in its entirety by reference to the Termination Agreement that will be filed as an exhibit to the Company’s quarterly report on Form 10-Q for the quarterly period ended June 30, 2025.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			QuantumScape Corporation
Date:	July 9, 2025	By:	/s/ Michael McCarthy
			Name: Michael McCarthy Title: Chief Legal Officer and Head of Corporate Development

FAQ

Why did QuantumScape (QS) terminate its San Jose lease early?

To align with its technology-licensing focus and reduce operating costs by eliminating $18.7 million in future rent obligations.

What is the effective date of the lease termination?

The lease terminates on August 1, 2025.

How much will QuantumScape pay to exit the lease?

A $1.1 million termination fee plus a $1.2 million brokerage fee, totaling $2.3 million.

How large was the leased facility being terminated?

Approximately 80,641 rentable square feet in San Jose, California.

Will QuantumScape still lease other properties from the same landlord?

Yes. The company continues to lease other facilities from an affiliate of the landlord.

Where can investors review the full Termination Agreement?

QuantumScape will file it as an exhibit to its Form 10-Q for the quarter ended June 30, 2025.