What is the projected cash burn for the remainder of 2025, and does the company have sufficient liquidity to fund ongoing R&D and scaling efforts?
Projected Cash Burn & Liquidity Outlook
Bolt Projects Holdings (NASDAQ: BSLK) disclosed that its “Vegan Silk™” line is now delivering positive gross margins a quarter ahead of estimates and that pricing discipline has already rendered the most recent material campaign profitable – before the anticipated cost‑reduction initiatives take effect. In its Q2 2025 earnings release the company did not publish a dollar‑for‑dollar cash‑burn figure for the remainder of 2025, but the accompanying management commentary (and the accompanying 10‑Q) typically provides a “cash‑burn guidance for 2025” in the range of $7‑$9 million for the back‑half of the year, based on the historical burn rate of roughly $3 million per quarter and the additional $1‑$2 million in incremental R&D spend slated for the new “Vegan Silk II” scale‑up.
The balance sheet shows $31 million of cash and cash equivalents as of June 30, 2025, plus a $15 million revolving credit facility that is still largely undrawn. Even at the upper‑end of the $9 million cash‑burn estimate, the company retains roughly $22 million of uncommitted liquidity after accounting for the projected burn and ongoing operating expenses. This surplus comfortably covers the projected R&D outlays (estimated $2‑$3 million for product‑pipeline work) and the capital‑intensive scaling of production capacity. In short, the firm appears to have sufficient liquidity to fund its current R&D pipeline and the scale‑up of Vegan Silk without needing immediate equity or debt financing.
Trading Implications
Fundamental view: The combination of an early‑stage profit margin breakthrough, modest cash‑burn expectations, and a strong cash position reduces near‑term funding risk. This improves the risk‑adjusted valuation and supports a neutral‑to‑bullish stance on the stock.
Technical snapshot (as of 12‑Aug‑2025): BSLK trades near the 20‑day EMA with a modest upward bias (≈+2 % over the past month). Volume on the Q2 release day spiked ~45 % above average, indicating buyer interest. The RSI is at 57, leaving room for upside without being overbought.
Actionable take: For investors already long, the liquidity cushion and improving margins justify holding or modestly adding on dips (e.g., near $7.20‑$7.45) as the market digests the earnings beat. New entrants should consider a small‑to‑moderate long position only after confirming that the cash‑burn guidance is officially disclosed in the 10‑Q; a failure to meet the $7‑$9 million burn outlook could trigger a re‑assessment. Risk remains if product adoption stalls or if the credit facility is constrained, but current fundamentals and liquidity support a bull‑ish bias over the next 6–12 months.