Quantinuum — Q3 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $9.1 million, a 233% increase year-over-year compared to $2.7 million in Q3 2025.
• GAAP gross margin improved to 33.3% in Q3 2026 from (43.5%) in the prior-year period.
• Adjusted gross margin reached 74.6% in Q3 2026, an increase of 853 basis points versus the prior-year period.
• Adjusted EBITDA loss was $80 million in Q3 2026, widening from a $45 million loss in the prior-year period.
• GAAP net loss was $118 million in Q3 2026, compared to a $52 million net loss in the prior-year period.
• GAAP net loss per share attributable to Class A common stockholders was $0.46 in Q3 2026.
• Adjusted net loss per share was $0.29 in Q3 2026.
• Cash and cash equivalents totaled $1.94 billion as of September 30, 2026, up from $762.6 million as of December 31, 2025.
• For the nine months ended September 30, 2026, net cash used for operating activities was $229.9 million, compared to $96.9 million in the prior-year period.
• Capital expenditures were $64.7 million for the nine months ended September 30, 2026, compared to $61.0 million in the prior-year period.

Guidance and Future Outlook:

• Raised full-year 2026 revenue outlook to $31 million to $34 million, up from the previous guidance of $28 million to $32 million.
• Helios assembly is underway in Singapore ahead of spring 2027 commissioning.
• Sol system remains on track for second half 2027, with integration and assembly targeted for Q1 2027.
• Apollo system remains on track for 2029, supported by design milestones including cryogenic system deployment validation.
• Reimei system upgrade at RIKEN in Japan is scheduled for completion in the current month.

Business Segments and Product Lines:

• Nexus platform adoption grew nearly 20% quarter-over-quarter to 215 organizations.
• Total Nexus job submissions increased tenfold in the 12 months ended August 2026 compared to the preceding 12-month period.
• Announced a multi-generational Nexus roadmap through Apollo, aligning application development with successive hardware generations.
• September Nexus release extended Guppy tools for logical-qubit programming and supported error-correction encoding.
• Validated a path to universal, fully fault-tolerant quantum computing by 2029 with back-to-back accuracy world records on Helios.
• Achieved 99.9995% logical fidelity in October, within Apollo's target range, with an error rate ten times lower than September's record.
• Secured the largest cloud agreement in company history with a leading global financial institution, including multi-year committed full-stack access through Apollo and Nexus.
• Signed agreements with a top 5 global pharmaceuticals company, GE Vernova, Abu Dhabi Maritime Academy, and Quincus.
• Expanded cloud distribution through a new agreement with a leading hyperscaler and launched a joint beta program with Oracle for hybrid quantum-AI applications.
• Advanced U.S. government commitments by executing on the DARPA QBI Stage B contract and participating in four winning proposals under the Department of Energy's Genesis Mission Phase 1.
• Strengthened manufacturing foundations through partnerships with GlobalFoundries, Infineon, Honeywell Aerospace, and Monarch Quantum.
• Finalized the CHIPS R&D award as the only trapped-ion company selected.

Market and Competitive Landscape:

• Quantinuum is building industry-wide alignment toward a common standard for benchmarking useful computational scale and speed through QUOPS with Sandia National Laboratories and NVIDIA.
• Q-Net ecosystem grew to more than 800 members, adding eight startup partners.
• Partnered with Singapore's National Quantum Office to organize a global quantum challenge attracting over 200 submissions.

Risks and Challenges:

• Forward-looking statements are subject to risks including the ability to develop, commercialize, and achieve market acceptance of quantum computing hardware and software.
• Risks include the pace of industry development, timing of commercial quantum advantage, and potential technological obsolescence or competing modalities (superconducting, photonic).
• Challenges include dependence on key suppliers for specialized components, ability to scale production, and protection of intellectual property.
• Significant research and development costs are inherent in developing next-generation capabilities.
• Risks include the ability to attract and retain highly skilled personnel, changes in government funding, export controls, and cybersecurity risks.

Management Commentary and Tone:

• CEO Rajeeb Hazra stated that accelerated momentum in technology leadership, customer base expansion, and route-to-market expansion is supporting the raised revenue outlook.
• Management expressed increased confidence in the opportunity ahead due to the extension of technology leadership in fault-tolerance.
• Management highlighted that period-to-period results are affected by the timing of individual contracts and large non-cash charges related to the Reorganization and warrant remeasurement.

Other Key Points:

• The company completed an initial public offering, with proceeds from the issuance of common stock totaling $1.63 billion for the nine months ended September 30, 2026.
• The company has a global workforce of approximately 800 employees, with over 70% of the technology team holding PhDs or Master's degrees.
• The company operates with an Up-C structure, presenting adjusted results on an as-converted, fully distributed basis to reflect the whole economic enterprise.
• The company is the only trapped-ion company selected for the CHIPS R&D award.