Infleqtion, Inc. 2026 Q2 Earnings Call

Good afternoon, and welcome to Infleqtion's second quarter 2026 earnings conference call. Thank you for joining us today. My name is Marcus Kupferschmid, Head of Investor Relations and Strategic Finance. Before we begin, I would like to remind you that this conference call will include forward-looking statements, including statements regarding our future financial condition, business strategy, and plans and objectives of management for future operations, and all other statements that are not statements of historical fact. These statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. These factors are detailed in the earnings press release we issued today and other filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2025, which are available on our website at ir.infleqtion.com. We undertake no obligation to revise or update any forward-looking statements except as required by law.

During today's call, we will also reference certain non-GAAP financial measures. We use these measures because we believe they provide additional insight into the underlying operating performance of the business. This non-GAAP financial information should not be considered in isolation or as a substitute for GAAP results. Reconciliations between GAAP and non-GAAP measures can be found in today's press release and in our SEC filings. Joining me today are Matt Kinsella, our Chief Executive Officer, Pranav Gokhale, our Chief Technology Officer and General Manager of Quantum Computing, and Ilan Hart, our Chief Financial Officer. Following our prepared remarks, we will open the call for questions. A replay of this call will be posted on our investor relations website, along with our earnings press release and presentation materials. With that, I'll turn the call over to Matt.

Thank you, Marcus, and good afternoon, everyone. Whether you've been with us since we became public or you're dialing in for the first time, welcome, and thank you for your interest in Infleqtion. Last quarter, I summarized Q1 in one word: momentum. This quarter, the word is acceleration. By that, I mean the market is moving faster and the opportunities in front of us are becoming more concrete. Today I'll start with a quick reminder of who we are. Then I'll summarize the quarter and explain what has changed in the market and why I believe Infleqtion is well-positioned. Pranav will cover our progress across computing and sensing. I'll return to discuss how we are growing the company and our outlook for the balance of the year. Ilan will then review the financial results in more detail, and then we'll move on to Q&A.

Just a quick refresher on Infleqtion. We are a neutral atom quantum company building quantum computers, sensing systems, and software all on one platform. Nature gives us our qubits in the form of atoms, and our job is to turn those atoms into working systems by controlling them with light and integrating the hardware and the software around them. Because our products share the same core capabilities, progress in one area strengthens all of the others. We're the only company in the quantum industry combining this breadth of products on a single platform, giving us multiple paths to commercial value. All neutral atoms, all the time. All right, so now that we aren't strangers anymore, let's move on to the quarter. Our second quarter results and the progress announced since quarter end show how much we have accomplished.

We delivered record revenue of $12.6 million, up 116% year-on-year, and are raising our full year 2026 revenue outlook to approximately $43 million. Our visibility is also improving as customers commit to larger systems and the market increasingly validates the roadmap that we laid out and have been executing to. We secured a contracted fault-tolerant system sale and strengthened our position in quantum space and energy. The picture is clear. Revenue is growing, our platform is being deployed, and the opportunities in front of us are expanding. One of the clearest signs of acceleration is what governments are doing. The past quarter, they began putting dates and dollars behind quantum. As you will see, Infleqtion was at the center of all of this. In May, the Department of Commerce signed a letter of intent providing for up to $100 million in proposed funding for Infleqtion.

In June, President Trump signed a quantum executive order that assigned federal agencies specific actions and deadlines across computing, sensing, and the domestic quantum supply chain. Quickly following the executive order in July, the Department of Energy selected Infleqtion for three Genesis Mission projects across both computing and sensing. Those projects bring our computing and sensing capabilities together with government and commercial partners. That same shift is underway internationally. The United Kingdom is backing quantum with up to £2 billion in government investment. We have operated there since 2014 and recently delivered the country's first and only operational 100 physical qubit quantum computer to the National Quantum Computing Centre, building on our decade of quantum work in the U.K. Australia has also named quantum technology one of six defense innovation priorities for the next decade, with an emphasis on rapid field testing and deployment.

We believe our growing team in Australia gives us a strong position as those opportunities develop. Governments are recognizing that quantum can deliver a level of precision and insight that classical technologies cannot, and they are moving with urgency to put that advantage to work. The Commerce selection and the executive order are worth a closer look. Let me start with Commerce. The headline is up to $100 million in proposed funding. That is obviously significant, but just as important is how we got there. Commerce, with deep involvement from NIST, which is the National Institute of Standards and Technology, basically really smart scientists who work for the government, took a hard look at our technology and roadmap. Following that review, Infleqtion was selected as one of seven quantum computing companies for up to $100 million in proposed funding to advanced commercialization.

The selection is a strong external validation of our computing technology, our team, and the direction that we are taking the company. There is something else I think is important about Commerce. Historically, much of the government's work in quantum has understandably focused on advancing the science. Commerce brings a different lens. It is looking at which technologies have a credible path to commercialization and can strengthen the U.S. technology leadership. In many ways, it was the U.S. government determining which quantum companies they believe will scale commercially and want to deepen their relationship with, and that is exactly the criteria that we want Infleqtion to be judged on. The executive orders reinforce the same shift. Federal support for quantum is not new. What is new is the push to put it to work. The administration's priority is very clear: accelerate the use and commercialization of quantum.

It sets real timelines for computing and sensing and brings industry directly into the work. That lines up exactly with where we've been investing and building for years. I was truly honored to be invited to the Oval Office when President Trump signed the quantum executive orders. It was a powerful moment. The message was unmistakable. The United States intends to lead in quantum, and I told President Trump that we would do everything we could to help the United States win the quantum race. We've spent years preparing for this shift. Now our job is to lead it. Infleqtion's advantage comes down to three things: our neutral atom technology, the complete systems and software that we build around it, and our experience deploying quantum systems. Let me take those in order. First, neutral atoms. Neutral atoms begin with an inherent advantage.

The qubits are made by nature, and therefore they are fundamentally identical. Infleqtion builds on that advantage with an optical system that traps, moves, and controls atoms using light. That allows us to create large atom arrays, change their geometry for different calculations, and connect qubits without locking the machine into one permanent layout. A common optical system can control many atoms. Our systems already operate on power comparable to a few household hair dryers, and that's pretty different from building a machine that needs its own power plant. Ultimately, we expect a commercially useful system to fit within a few server racks. The technologies around those atoms just keep getting better. Advances in photonics and packaging will make the overall system more capable and economical as we scale.

That gives us a more efficient path to commercial scale with a best-in-class operating profile across footprint, power, and cost, which is a big reason neutral atoms are gaining momentum across the industry, and we are increasingly seeing evidence that they will be the winning modality in quantum computing. Second, technology alone is not a product. Infleqtion has built the complete system required to turn neutral atoms into computing and sensing products, from the hardware and the controls all the way through the software. We sell those products today. Our software connects quantum hardware with the computing environments customers already use, and our teams have delivered quantum computers in the U.K. and Japan. Third, we know how to build and operate neutral atom systems in demanding environments. Our technology has operated on the International Space Station since 2018.

We demonstrated an optical atomic clock on the Royal Navy's Excalibur submarine. We flew quantum navigation technology with BAE Systems and QinetiQ, two major defense and aerospace technology companies, and we demonstrated precision timing across live fiber between Indiana and Illinois in partnership with Safran, a global aerospace and defense technology company and our first commercial partner for Tiqker. That experience gives us engineering and operating knowledge that you only get by putting systems in the field, and that's a real advantage when customers are deciding who to work with. They want partners that can actually deliver. We have the technology and the systems, knowledge, and experience are ingrained across Infleqtion, and that is why Infleqtion will lead in neutral atoms. Pranav will now walk you through the progress that we made across computing and sensing during the quarter.

Thanks, Matt. Our progress is racing ahead faster than ever before with the extraordinary leverage unlocked by AI tooling. In that spirit, last month, we held a company-wide hackathon supported by OpenAI, who equipped us with office hours and plenty of swag. With the help of GPT-5.6 Sol and Codex, our teams executed projects in 24 hours that would have previously taken months. In quantum computing, we are translating these advances into rapid progress toward utility-scale systems that outperform classical systems for commercially relevant applications. We remain on track to demonstrate 30 logical qubits on our Sqale quantum computer this year, and we are happy to update today that our logical qubit demonstrations will serve three end customers, one in finance, one in energy, and one in precision medicine. This past quarter, we established explicit logical qubit circuits for these customer workloads.

We found new AI-discovered techniques for converting our logical circuits into physical circuits. And we experimentally demonstrated the key underlying hardware operations that power our target circuits. To make the final leap to 30 logical qubits, we are tracking two key characteristics. First, can our system retain high fidelity even when qubits are being dynamically reconfigured? And second, can software co-design enable us to run advanced circuits with fewer than 10 physical qubits per logical qubit, rather than the hundreds or thousands that were demanded in previous proposals? We are tracking progress closely across both of these characteristics. This quarter, we also announced a new experimental record for two qubit gate fidelity with dual species, demonstrated on our Sqale quantum computer in Madison.