Solid State (LON:SOLI) Share Price Falls 41% Over Past Year Despite Insiders Buying Stocks

Solid State (LON:SOLI) investors experienced a 41% loss in the past year, while the market returned 22%. The share price momentum is negative, with prices down 20% in thirty days. Despite a 94% EPS drop, the P/E ratio of 182.89 suggests the market sees an EPS rebound. Insiders have made significant purchases in the last year, but future earnings will be crucial for current shareholders.

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 [1].

The company's Q2 2025 revenue of $7.5 million exceeded expectations by 50.8%, indicating robust market execution and successful partnerships. Partnerships with BMW and SK On continue to drive strategic growth. Solid Power demonstrated a 25% increase in revenue from the previous quarter, driven by these strategic partnerships and advancements in solid-state battery technology [1].

Despite the revenue beat, the stock declined by 5.25% in after-hours trading, potentially due 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 [1].

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 [1].

Executive commentary highlighted the company’s commitment to innovation and growth. CEO John VanSkoder stated, "We believe this development marks a major step in our overall strategy," while CFO Linda Heller emphasized fiscal discipline [1].

Ongoing operating losses could impact financial stability, and market competition in the solid-state battery sector remains intense. Dependence on strategic partnerships for growth and innovation is a key risk. Potential delays in production line commissioning could affect future revenue, and macroeconomic pressures may influence consumer demand for electric vehicles [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-solid-power-q2-2025-revenue-exceeds-expectations-93CH-4175136