ARQQ

Image source: The Motley Fool. Thursday, May 21, 2026 at 11 a.m. ET Chief Executive Officer — Andrew J. Leaver Chief Financial Officer — Nicholas Pointon Chief Financial Officer — Rob Russell Andrew J. Leaver: Thank you, and thank you for joining our first half of year 2026 earnings call. When we spoke in December, reflecting on fiscal year 25, I said that 2025 had been a year of momentum in the realization of the need for enhanced cybersecurity to address the coming threat to data security posed by quantum computers at scale. Governments were taking their concerns public, some mandating road maps to enhance cryptographic postures, for governmental agencies, and encouraging enterprises to take action as well. I noted that from Arqitde's conversations with governments and enterprises, it was no longer a question of if organizations need to upgrade their cryptographic security posture, but when they will upgrade their posture. What has become clear in the first half of our current fiscal year is that when is becoming now. While that, in my view, while that is my view based on our deep understanding of the threat, let me cite the view of some leading players in the quantum and security space. Google has been aligned with the US National Institute for Standards and Technology, or NIST, timeline for migration to post quantum cryptography which calls for the deprecation, meaning the market of removal, of unsafe cryptography by 2030 and complete disallowance by 2035. On March 25, Google advised that cryptographic systems migrate by 2029. Google's accelerated timeline was the result of research which it published that demonstrated quantum computers will be able to break elliptical curve cryptography, the kind of cryptography that protects things like crypto wallets, with 20x fewer qubits engaged than previously projected. That moves the timescale from 2035 to by 2029. That is a serious migration timeline compression. Also, Cloudflare on April 7, it pulled forward its advice to migrate by 2029 as well. Cloudflare's revision was based on Google's published research, but also research published by Oratomic on March 30. Oritomik concluded that by leveraging advances in high rate quantum error correcting codes, efficient logical instruction sets, and circuit design, Shaw's algorithm can be executed at cryptographically relevant scales with as few as 10 thousand reconfigurable atomic qubits. That is a shockingly low estimate of the computational resources needed to crack RSA. And finally, IonQ, on its May 6 earnings call, CEO, Nicola DiMasi stated, based on our public road map, we expect to achieve the logical cubic count required to challenge RSA 2048 encryption in the 28 to 29 window. If it is correct, migration to a post quantum security posture by 2029 may be too late. The urgency to migrate post quantum cryptography is heightened by 2 factors. Firstly, protecting your existing data against harvest now, decrypt later attacks. Any data that is stolen today, even if protected with current encryption technology, is vulnerable to exposure when a quantum computer sets to work on it on a later date. Any data that is sensitive or has a shelf life should be secured with post quantum encryption now. Secondly, migrating to post quantum cryptography involves analysis, planning, and execution across the entire data and communication architecture of an organization, which requires time. If Google Cloudflare, and IonQ are correct, and we think they are, then time's of the essence. Arqit's product set is well positioned to enable an end to end migration to a post quantum cryptographic security posture. From assessing the current risk inherent in an organization's network architecture to implementing software based post quantum cryptographic solutions which are compliant with NIST and NSA standards. Our encryption intelligence risk analysis tool gives organizations complete visibility into all encryption technologies and use across the network automatically identifying weak points and vulnerabilities, including those susceptible to quantum attacks. This is a critical step in developing a migration strategy. Understanding what encryption is in use, where and what it is protecting allows CSOs and CTOs to scope their risk and develop a game plan to upgrade to post quantum cryptography. Our software based post quantum encryption solutions allow organizations to upgrade now protect and against harvest now, decrypt later attacks, and when quantum computers arrive at scale. Our solutions are cryptographically agile, which gives CSOs and CTOs flexibility to mix and match PQAs, that is post quantum algorithms, and symmetric key cryptography. Being software based and lightweight, our encryption solutions can be flexibly deployed at any level of a network architecture from servers, down to small edge devices. No new hardware devices are required, and it can be implemented quickly. We have completed deployments in as few as a couple of days. So leading industry players are now saying the time for post quantum cryptography is here, Arqit is saying we have the products to meet that need. Where do we stand in capturing growing market demand for post quantum migration? We acquired our encryption intelligence product in 2025 and announced commercial rollout in January of this year. We are actively directly marketing the solution to end customers, A marketing campaign targeting approximately 450 organizations is in process, and engagement to date has been strong. On May 18, Arqit executed its first encryption intelligence contract supporting PQC migration planning. On May 19, ARKit signed its first partnership agreement with a European specialist cybersecurity provider for ARKIT's encryption intelligence solution. Feedback about our encryption intelligence products has been favorable, and the breadth of prospective customer engagement has been highly encouraging. The product delivers high utility for organizations, giving deep network encryption visibility and risk assessment a critical first step for CSOs and CTOs on their PQC migration journey. Based on the pipeline of sales opportunities, we expect additional contract wins during the balance of the fiscal year. Our software-based encryption solutions, led by our NetworkSecure product, are gaining traction. Sparkle, a tier 1 Italian network operator, licensed our product create a quantum secured network as a service. It is seen take up of its offering most noticeably with the financial institution. This is important for several reasons. 1, it demonstrates the efficacy of our encryption in a real world use case. Securing critical data and communication in transit. 2, it demonstrates the applicability of our cryptographic solutions for the financial service industry, which we believe is a significant market opportunity And 3, and finally, take-up of Sparkle's network as a service offering means consumption of its volume defined license with ARKit. We wish Sparkle much success, and we are welcome Sparkle's need to upsize its license. And we expect that to be the case as Sparkle just yesterday announced the commercial availability of its Quantum Safe Interconnect, which is secured by ARKit across 20 Equinix international business exchange data centers in Europe. The Americas, and Asia where Equinix managed solutions are offered. Sparkle's Quantum Safer Internet is now available to enterprises, carriers, and hyperscalers seeking quantum safe protection for their cross site VPNs hybrid infrastructures, and distributed multicloud environments. Sparkle indicated that it expects to expand the offering across the broader Equinix ecosystem. To paraphrase, Joe Crawford, VP of Equinix managed service, it is innovative, quote, integration of next generation security directly into the environment where dense ecosystem of customers build and scale their digital infrastructure. This is an exciting development for Sparkle and Arqit. In regards to other telecom network operators, recently, Arqit with-- excuse me, COLT Technology to deliver a quantum secure wide area network to help protect ANK Travel Group from the future risk presented by Quantum Computers including the threat presented by Harvest Now, Decrypt Later. AMK owns a portfolio of premier travel brands, including Abercrombie & Kent, Crystal, and Cox & Kings. AMK's brands provide travel adventures in more than 100 countries across the world and rely on a secure global network to key customers, employees, and travel partners connected. Colton Arqit will now keep ANK Travel Group customers and the customers' data and communications protected from the quantum threat. Large telecommunications networks are a significant opportunity for our encryption solutions, and we engage in late stage dialogue and demonstrations with several, including 1 in The US. However, our encryption solutions are broadly applicable beyond Tier 1 telecommunications networks. The lightweight software nature of our product allows deployment of all layers of a network and almost any device regardless of size or power. Our solution is also crypto agile and that it can be mixed and matched with other cryptographic modalities, including post quantum algorithms. The flexibility of our software encryption solutions has been manifest in our activities defense organizations. Implementations range from a defense contractor securing communications for a government defense research network to a defense contractor securing tax control of drone platforms for a European Ministry of Defense. From large networks to small devices. It takes time to win contracts in the government and defense space, That said, we are making tangible progress. We believe a renewal and up sizing of our largest US defense related contract is imminent, further establishing a track record which we can build upon. Also, May 1, a partner, which is the leading technology and innovation solution provider to the aerospace and defense industry, renews renewed and upsized its contract with Arqit by almost 90%. Together, we bid on its contractor opportunities to military organizations with a heavy emphasis on Europe. Our opportunity set in the government and defense market is the strongest it has ever been. Breadth of demonstration and bid activity is significant. We expect further progress in this key target market and expect to see further results in the second half of the fiscal year. We continue to grow our go to market partnerships during the first half of the fiscal year and more recently, we have added 3 new partnerships to grow our opportunities in the telecommunications market, and just this week, signed our first partnership agreement for Arqit's encryption intelligence solution. Specifically, we announced a strategic collaboration with 6Wind to deliver highly scalable quantum safe encrypted virtual private network or VPN business services. 6WIND products enable telecom service providers and enterprises to build and manage efficient, scalable, secure, and sustainable networks. Secondly, a strategic collaboration with RAD to deliver a joint quantum safe encryption solution for telcos enabling them to offer quantum safe business services such as site-to-site and site to cloud VPNs, as well as data center interconnect or DCI. RAD is a global leader in networking edge solutions. Further, Arqit was selected to join Tomorrow Street portfolio as a scale up partner, a joint venture between Vodafone Group and Technoport, Luxembourg's national tech incubator, TomorrowStreet's ecosystem brings together innovative young companies and scales their technology solutions across Vodafone's global ecosystem. Arqit is the first quantum security company to join the portfolio. And finally, on May 19, Arqit signed a partnership agreement with the European cybersecurity provider, for Arqit's encryption intelligence product. Our product will be the cornerstone of strategic PQC migration activities. Within financial services. Go to market partnerships drive product awareness and are an important source for lead and bid generation. They are a force multiplier for ARKET. We expect to see revenue opportunities come through these partnerships. From my vantage point, the important vectors for success are converging. Those vectors are market need, the right products, and customer traction. The need to migrate to a post quantum cryptographic security posture has significantly increased with rapid advancement in quantum computing. Leading industry players are now sounding the alarm. We are no longer the modest voice raising awareness, big industry voices are in full cry. We have the right products to enable CSOs and CTOs to understand their current cryptographic security posture and upgrade to quantum safe encryption. We are seeing product take up in our key markets: telecommunications and government and defense. Circling back to my remarks from our fiscal year-end 2025 earnings call, the key message was the momentum was building in the market and for the company in 2025, The first half of fiscal year 2026 has seen a continuation and amplification of momentum. Excited about the building demand for post quantum cryptography, and we believe in the products and solutions which we offer. With continued focus on hard work, I expect an up our up and to the right momentum to continue. With that, let me turn the call over to Nick Pointon. Thank you, Nick. Nicholas Pointon: Thank you, Andy. For the first half of fiscal year 2026, Arqit generated $623 thousand in revenue, as compared to $67 thousand in revenue for the similar period in fiscal year 25. The variance between periods resulted from revenue under a contract with a customer in The Middle East that commenced late in the first half of fiscal year 25, and revenue under 11 contracts in the period versus 6 in the first half of fiscal year 25. Revenue for the period represents the second consecutive reporting period of growth. With a small dataset, it gives credence to Andy's comments when we reported in fiscal year 25 results that our revenue had troughed as of March 2025, and our expectation is for growth going forward. As I noted, we executed 11 contracts in the period. For comparison, we executed under 7 for fiscal year 25. 2 of the 11 contracts have or are expected to imminently renew and be upsized. 3 of our 11 contracts were in the telecom sector, and 8 for government defense, and enterprise organizations. Our administrative expenses equate to operating costs for those more familiar with US GAAP. Administrative expenses for the first half of fiscal year 2026 rose from $20.2 million for the 6 months ended 03/31/2025 to $33.9 million for the 6 months ended 03/31/2026. The variance between periods resulted from an increase in employee related costs and share based compensation stemming from a higher headcount during the period partially offset by a decrease in property costs as a result of the termination of Arqit's previous office lease arrangements and a decrease in foreign exchange expenses. Administrative expenses for the period includes a $12.7 million noncash charge associated with share based compensation versus an $872 thousand charge for the comparable period in 2025. Operating loss for the period was $33.7 million versus a loss of $20 million for the first half of fiscal year 25. The variance in operating loss between periods primarily reflects higher revenue more than offset by an increase in administrative expenses for the period. For the period, loss before tax from continuing operations was $33.1 million. For the first half of fiscal year 25, loss before tax from continuing operations was $19.5 million. The variance between periods is primarily due to increased administrative expenses and a lower finance income. As of March 31, the company had cash and cash equivalents of $28.9 million. However, our cash balance as of May 20 was $35.9 million. In addition, there are in the money warrants outstanding with an exercise expiration of September 2026. Which we expect will exercise and provide approximately $13.5 million of additional liquidity to the company. On a personal note, this is my last earnings call with Arqit as I will be stepping down as CFO at the end of the month. It has been my pleasure working with the Arqit team for the past 5 years and building the business, which I believe has a bright future. Rob Russell will be stepping into the CFO role Rob is a seasoned finance executive with deep expertise spanning investment banking, private equity, and SaaS scale ups. And more recently served as chief financial and operating officer at VirtualStock, where he played a central role in the company's successful exit in 2025. Rob began full time as CFO on May 1 following 2 months working part-time to ensure continuity ahead of assuming the CFO role. I am confident that this measured transition leaves the company's financial stewardship in excellent hands. With that, I will hand the call back to Andy. Andrew J. Leaver: Thank you, Nick. On behalf of the company and board, I would like to thank you for your service You have been instrumental in building the infrastructure which every company needs to operate and succeed. it is largely the behind the scenes work, which is critical and efficient to creating a successful organization. We wish you well in your future endeavors. Thank you again. And now I will hand the call back to the operator for Q&A. Operator: Certainly. *1 on your telephone. If your question has been-- And our first question comes from the line of Troy Jensen from Cantor Fitzgerald. Your question, please. Analyst (Troy Jensen): Hey, gentlemen. Congrats on all the momentum. Maybe start off here with 1 for Andy. I would just be curious your thoughts on the sense of urgency around kind of Q-Day. And just, you know, relating that to the slowness that it seems that we have seen on the adoption currently. So any thoughts would be helpful. Andrew J. Leaver: Yeah. Hey. Thanks, Troy, and thanks for joining the call. Appreciate the question. So I think as I mentioned in my opening comments, we are seeing, obviously, some of the very big players in the market. So notably, Google, Cloudflare, all pulling forward their predictions of cryptographically relevant quantum computers becoming available. And likewise, at the same time, we have seen the estimate of the number of qubits required to break short algorithm is coming down also at the same time. Hence, the revision of those timelines coming forward I think what is really interesting is today, which literally has happened just before our earnings call is you know, we have seen people like The Wall Street Journal and others reporting that the US government is taking an active interest in investment into quantum companies. You know, if rumors are believed, it is kind of in the region of $2 billion. To me, I see that as you know, are we now looking at quantum computing being almost like national infrastructure and the strategic importance of that? And at the same time, aligning that with the needs for organizations, be they defense, public sector, or commercial to actually be ready for the long talks about Q-Day, which looks like it is getting closer and closer. I believe now, and you will see from our encryption intelligence tool, we now have the ability to quantify where are your weaknesses, what are the threats, and what do you need to do urgently to really remedy some of that, but also lay out a timeline to move to a full quantum secure landscape in an organization. I think right now, you know, I liken it a little bit to the original build out of the Internet. So you are seeing a lot of the infrastructure providers. So we just talked about people like Equinix you know, infrastructure provider, telcos, are driving the cabling. The ground up secure security quantum security of infrastructure is happening, and at the same time, defense regulated industries, and also IP rich industries are also leaning into this thinking that they need to get going. So as I said in my comments, I feel I really feel like you know, last year was the year of quantum. This is the year of quantum security. It actually just feels like the year of quantum security. Analyst (Troy Jensen): Yeah. Interesting. I would agree with you on the sense of urgency, and it just feels like we need to have you know, an inflection at some point, right, for all these governments and you know, telcos and corporations that can get, you know, kind of quantum ready. But what are your thoughts on, like, the milestones that are the catalyst that we need to watch for investors in the near term here? Andrew J. Leaver: Could you just repeat the last bit? I missed the very last bit of the question. Analyst (Troy Jensen): Yeah. The milestones that we need to kind of watch to really see, you know, when this catalyst, when this inflection, is going to come in the near term. Mean, I am assuming it is just the technical milestones that continue to happen from the quantum companies, but your thoughts on kind of the next catalyst for you guys. Andrew J. Leaver: Yeah. I think just to comment on the quantum availability side, you know, I do not believe that there is gonna be a day where somebody says, hey. We have broken you know, we have used Shaw's algorithm. We have broken existing encryption. I-- you know, that could be anytime in the next 2 years according to what, you know, Cloudflare and Google are talking about or, you know, kind of in that time frame. Think for us, it is this recognition. You know, I think a lot of people thought for a while, hey. This is this is, like, just moving to a new form of encryption and, we just kind of move on. You think about the previous way that we were securing things with certificates. It was built for a different age. It was built for a very different level of compute power. Memory, storage, etcetera. And I do not think people quite understand that it is a bigger job, especially with the amount of data that is machine generated now. So that is why we made a thing talking there about all the way from the data center to the edge. You think about how many edge devices there are now, which are producing masses of data. Think for us, when we use encryption intelligence to say, where do you start and how do you ensure that you are safe on the perimeter working into the core, and then how do you plan to make sure you can migrate the whole organization? You know, I am not sat here now saying, you know, is my local supermarket worried about being quantum safe? They will be eventually, but I think that urgency is definitely in like I said, in the more defense, public sector. Infrastructure providers. Those are the ones that are feeling it today and feeling the need to get on top of it. Analyst (Troy Jensen): Alright. Makes sense. Then 1 other question, or it is probably a multipoint question. Just on finances here. So the warrants that you just talked about, $13.5 million you will raise, just what is the share count that is gonna come with that? Are there other warrants outstanding? Excuse me. And can you just talk about your cash position and the cash burn would be awesome to hear? Andrew J. Leaver: Well, let me turn to Nick first to start that question, and I am sure Rob's got some thoughts on that as well. I think I will just hand over the cash part of that answer to Rob. Nicholas Pointon: Rob Russell: While we look at the warrants. Great. Thanks, Nick, and thanks. Analyst (Troy Jensen): For the question, Troy. Rob Russell: So as Nick said earlier, we closed the half year with $29 million of cash in the bank. Today, we have in excess of $35 million That translates to more than 14 months of runway. And then add on top of that, $13.5 million worth of warrants, which you have mentioned that are heavily in the money, and they expire in September. So before the fiscal year end. So what does all of that translate to? We feel very comfortable with our cash position. We believe it gives us more than more than enough cash to meet our commercial objectives. Especially in a market that we believe is moving towards us. The reasons that Andy's outlined. Analyst (Troy Jensen): Very fair. Alright. Andrew J. Leaver: Well, good luck, gentlemen. Just real quick. I will have missed the warrants. Yeah. Yeah. Yeah. Thank you. Nicholas Pointon: So I will just jump in. On the warrants that expiring in September 2024, that equates to 5.4 million shares. according to the table. Okay. Analyst (Troy Jensen): Any other outstanding warrants? Nicholas Pointon: There are other outstanding warrants. I think these are covered in the 20-F in some detail. And expire over the next 2 further years. The last ones expire in September 2028. Analyst (Troy Jensen): Okay. Alright. Good luck, guys. Andrew J. Leaver: Thanks, Rob. Operator: Thank you. And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star And this does conclude the question and answer session of today's program. I would like to hand the program back to Andy Leaver for any further remarks. Andrew J. Leaver: Hey. Thank you, Jonathan. And, again, thank you everybody on the call for joining us today. Or if you are listening on replay, we look forward to speaking with you again following the close of our 2026 fiscal year. Thank you. Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day. 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LONDON, May 21, 2026 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (Nasdaq: ARQQ) (“Arqit” or the “Company”), a global leader in quantum-safe encryption, announces financial results for the first half of fiscal year 2026. Consistent with management’s preliminary assessment of the expected range of revenue, which was announced 10 April 2026, reported revenue for the first half of fiscal year 2026 was $623,000 as of 31 March 2026. Revenue for the period compares favourably to revenue for the comparable period in fiscal year 2025 of $67,000 and revenue for the second half of fiscal year 2025 of $463,000. Revenue was generated from eleven contracts in the first half of fiscal year 2026. For comparison, Arqit generated revenue from seven contracts in the full fiscal year 2025. 3 contracts were with telecom network operators and 8 were with government, defence and enterprise organizations, all key markets for Arqit. The Company has maintained cost discipline with operating costs averaging $2.6 million per month for the period, excluding external legal expenses primarily associated with the previously announced resolution of a shareholder lawsuit. The Company ended the period with cash and cash equivalents of approximately $28.9 million as of 31 March 2026. Cash and cash equivalents as of 20 May 2026 was $35.9 million. In January, Arqit announced the commercial launch of Encryption Intelligence, a completely automated cryptographic inventory solution, which enables continuous discovery and risk prioritisation to help governments and enterprises plan and execute migration to post-quantum cryptography (PQC). In collaboration with Intel, Arqit announced in February the availability of its encryption software pre-installed inside an Intel Trust Domain Extensions (Intel TDX) trusted execution environment (TEE) on Intel Netsec Accelerator Reference Design-based accelerator cards enabling confidential computing for telecom operators and critical national infrastructure. In February, Arqit and 6WIND announced a strategic collaboration to deliver highly scalable quantum-safe, encrypted virtual private networking (VPN) business services. 6WIND products enable telecom service providers and enterprises to build and manage efficient, scalable, secure, and sustainable networks. In March, Arqit and RAD, a global leader in networking edge solutions, announced a collaboration to deliver a joint quantum-safe encryption solution for telcos, enabling them to offer quantum-safe business services such as site-to-site and site-to-cloud VPNs, as well as Data Center Interconnect. Arqit’s NetworkSecure™ quantum-safe encryption key generation technology is seamlessly integrated with RAD’s high-performance ETX Carrier Edge platform. Recent Developments On April 16th, Arqit was selected to join the Tomorrow Street portfolio as a Scaleup Partner.  A joint venture between Vodafone Group and Technoport, Luxembourg’s National tech incubator, Tomorrow Street’s ecosystem brings together innovative young companies and scales their technology solutions across Vodafone’s global ecosystem. Arqit is the first quantum security company to join the portfolio. On May 1st, a partner, which is a leading technology and innovation solution provider to the aerospace and defence industry, renewed and upsized its contract with Arqit by almost 90%. Arqit bids jointly with its partner into contract opportunities to military organizations with a heavy emphasis on Europe. On May 18th, Arqit executed its first Encryption Intelligence related contract supporting PQC migration planning. On May 19th, Arqit signed a partnership agreement with a European specialist cybersecurity provider for Arqit’s Encryption Intelligence product to be the cornerstone of strategic PQC Migration activities within financial services and other client verticals. CEO’s statement Andy Leaver, Chief Executive Officer, noted, “Broad recognition for the need to address the cryptographic cybersecurity risk posed by quantum computers now exists. While the U.S. National Security Memorandum 10 has been mandating government migration to a post-quantum security posture since 2022, other countries including the U.K. and Canada have more recently been mandating post-quantum migration as well. The commercial market is now on board with leading players like Google, IBM and Cloudflare recently accelerating timetables for post-quantum migration to 2029. Even that time horizon may be too distant as IonQ recently announced it has accelerated its roadmap for a quantum computer with a logical qubit count sufficient to challenge RSA 2048 to the 2028 to 2029 window. The threat to cybersecurity is real and the time to begin addressing it is now. With the commercial launch in the period of Arqit’s Encryption Intelligence cryptographic risk-analysis tools and advisory service, Arqit is well positioned to help governments and enterprises take the initial steps in migrating to a post-quantum cryptographic security posture. Organizations need to understand their current architectures and embedded risks before they can implement post-quantum solutions. Arqit this week signed its first Encryption Intelligence related contract and, also, executed an Encryption Intelligence partnership agreement with a European specialist cybersecurity provider focused on PQC migration for financial services organizations. We see multiple near-term opportunities for Encryption Intelligence either directly with customers or through channel partners. We believe Encryption Intelligence is an important addition to Arqit’s ability to provide an end-to-end PQC migration offering. Our post-quantum cryptographic solutions, led by our NetworkSecure™ product, offer clients software based cryptographically agile post-quantum solutions. Current applications include securing data in transit (e.g. secure VPNs) and data in process (e.g. quantum secure data computation on Intel Netsec accelerator cards). The applicability of Arqit’s post-quantum cryptographic solutions is broad. Current implementations include an international bank securing its data traffic via a Tier 1 telecom partner, a defence contractor securing communications of a major government’s research network and a defence contractor securing tactical control of unmanned platforms for a major European Ministry of Defence. We see increasing engagement and demand for our quantum secure cryptographic solutions in our key target markets of telecommunications, government and defence as evidenced by our increased contract activity during the period in these markets. With heightened urgency in the marketplace and a complete end-to-end PQC migration product offering, we believe Arqit is well positioned for success. The sell-through of our solutions by current partners, the renewal and upsizing of certain existing contracts and our increasing contract base give us confidence in the direction of the business.” Focus for the second half of Fiscal Year 2026 Accelerate Arqit’s go to market strategy emphasizing Arqit’s end-to-end PQC migration solution leading with our Encryption Intelligence product and followed by Arqit’s post-quantum software based cryptographically agile security solutions. The company expects additional revenue contracts from both aspects of its end-to-end migration solution. Conversion of engagements and demonstrations for defence organizations. Arqit has multiple opportunities directly with defence organizations or through OEM vendors or IT consultancies. Applications include, but are not limited to, secure communication between facilities, secure command of the battle space and cryptographically hardened assets. Continue developing the confidential computing and data sovereignty markets which Arqit believes represent significant opportunities for the sale of its encryption solutions. The announced commercial launch in the period with Intel of quantum-safe encryption inside an Intel Trusted Domain enclave on its Netsec Accelerator cards is an important step in developing the confidential computing market for telecom operators and critical national infrastructure. Arqit is developing an end-to-end data sovereignty solution which enables customers to continue to utilise the value of public and private clouds while maintaining a robust data sovereignty posture. Conference Call Arqit will host a conference call at 11:00 a.m. ET / 8:00 a.m. PT on 21 May, 2026 with the Company’s CEO, Andy Leaver, and CFO, Nick Pointon. A live webcast of the call will be available on the “IR Calendar” page of the Company’s website at ir.arqit.uk. To access the call by phone, please go to this link (registration link) and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at ir.arqit.uk. About Arqit Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) secures the world’s most critical data with quantum-safe encryption software. Simple, scalable, and compliant, its products integrate with existing infrastructure, requiring no hardware changes. Arqit provides a complete “Detect, Protect, Comply” solution for governments and enterprises that protects data, ensures compliance, and safeguards their transition to the post-quantum era. Arqit’s primary product offerings are Encryption Intelligence and NetworkSecure™. Encryption Intelligence detects cryptographic exposure, identifies vulnerabilities, and maps dependencies. NetworkSecure™ protects data in transit with provably secure post-quantum cryptography and contributes to establishment of confidential compute environments for complete data sovereignty. Arqit is an IDC Innovator for Post-Quantum Cryptography (2024) and a multi-award-winner in quantum-safe security. For more information, visit www.arqitgroup.com. Media relations enquiries: Arqit: [email protected] Investor relations enquiries: Arqit: [email protected] Caution About Forward-Looking Statements This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements are based on Arqit’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Arqit’s control. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Arqit to predict these events or how they may affect it. Except as required by law, Arqit does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date this communication is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this communication may not occur. Uncertainties and risk factors that could affect Arqit’s future performance and cause results to differ from the forward-looking statements in this release include, but are not limited to: (i) the outcome of any legal proceedings that may be instituted against Arqit, (ii) the ability to maintain the listing of Arqit’s securities on a national securities exchange, (iii) changes in the competitive and regulated industries in which Arqit operates, variations in operating performance across competitors and changes in laws and regulations affecting Arqit’s business, (iv) the ability to implement business plans, forecasts, and other expectations, and identify and realise additional opportunities, (v) the potential inability of Arqit to successfully deliver its operational technology, (vi) the risk of interruption or failure of Arqit’s information technology and communications system, (vii) the enforceability of Arqit’s intellectual property, (viii) market and other conditions, and (ix) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Arqit’s annual report on Form 20-F (the “Form 20-F”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on 9 December 2025 and in subsequent filings with the SEC. While the list of factors discussed above and in the Form 20-F and other SEC filings are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realisation of forward-looking statements.

This article first appeared on GuruFocus. Release Date: May 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Arqit Quantum Inc (NASDAQ:ARQQ) reported a significant increase in revenue for the first half of fiscal year 2026, reaching $623,000 compared to $67,000 in the same period of 2025. The company has successfully executed 11 contracts in the period, up from six in the first half of fiscal year 2025, indicating growing market traction. Arqit Quantum Inc (NASDAQ:ARQQ) has formed strategic partnerships with major players like Sparkle and Colt Technology, enhancing its market presence in telecommunications and defense sectors. The company's encryption intelligence product has received favorable feedback and is actively being marketed to approximately 450 organizations, with strong engagement reported. Arqit Quantum Inc (NASDAQ:ARQQ) has a solid cash position with $35.9 million as of May 20, 2026, and expects additional liquidity from in-the-money warrants, providing financial stability for future growth. Despite revenue growth, Arqit Quantum Inc (NASDAQ:ARQQ) reported an operating loss of $33.7 million for the first half of fiscal year 2026, up from a loss of $20 million in the same period of 2025. Administrative expenses increased significantly to $33.9 million, driven by higher employee-related costs and share-based compensation. The urgency for migration to post-quantum cryptography is high, but the adoption rate appears slow, posing a challenge for the company's growth trajectory. The company faces competition from major industry players like Google and Cloudflare, which are also advancing in the quantum security space. Arqit Quantum Inc (NASDAQ:ARQQ) is experiencing a transition in its financial leadership, with the CFO stepping down, which may impact financial strategy and execution in the short term. Warning! GuruFocus has detected 4 Warning Signs with ARQQ. Is ARQQ fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the urgency around "Q day" and the current slow adoption of quantum security measures? A: Andy Lever, CEO: The urgency is underscored by major players like Google and Cloudflare revising their timelines for quantum computing capabilities. The U.S. government's significant investment in quantum companies highlights its strategic importance. Our encryption intelligence tool helps organizations identify vulnerabilities and plan for a quantum-secure future. The infrastructure for quantum security is being built, and industries like defense and public sector are leading the charge. Q: What milestones or catalysts should we watch for in the quantum security industry? A: Andy Lever, CEO: There won't be a specific day when quantum computing breaks current encryption, but advancements from companies like Cloudflare and Google suggest it could happen within two years. The transition to quantum security is more complex than previous encryption upgrades due to the vast amount of machine-generated data. Industries like defense and public sector are currently prioritizing this transition. Q: Can you provide details on the financial impact of the warrants and your current cash position? A: Rob Russell, CFO: We ended the half-year with $29 million in cash, now over $35 million, providing more than 14 months of runway. We also have $13.5 million in warrants expiring in September, which are expected to be exercised. This positions us well to meet our commercial objectives. Q: Are there any other outstanding warrants, and what is their impact? A: Nick Poynton, Former CFO: There are additional outstanding warrants, with some expiring over the next two years, the last ones in September 2028. The warrants expiring in September 2024 equate to 5.4 million shares. Q: What are your thoughts on the current market demand for post-quantum cryptography? A: Andy Lever, CEO: The demand is growing as the need for post-quantum cryptography becomes more urgent. Our products are well-positioned to meet this demand, and we are seeing traction in key markets like telecommunications and government defense. The momentum from 2025 continues to build in 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Arqit Quantum Inc.? Here are five stocks we like better. Arqit Quantum reported higher first-half fiscal 2026 revenue of $623,000 versus $67,000 a year earlier, with management saying revenue has now grown for two straight reporting periods. The company also saw more activity across 11 contracts, up from six in the prior-year period. Management says urgency around post-quantum cybersecurity is accelerating, citing Google, Cloudflare and IonQ as evidence that organizations are moving faster toward crypto migration. CEO Andy Leaver said the focus has shifted from whether to upgrade to how quickly it can be done. Arqit’s new products and partnerships are gaining traction, including the Encryption Intelligence risk tool, which landed its first contract and a first European partnership, and NetworkSecure, which is being used by Sparkle for quantum-secure networking. The company also highlighted ongoing opportunities in telecom, government and defense, including an imminent U.S. defense contract renewal discussion. Big Gains Alert: These 3 Tech Stocks Are Surging This Month Arqit Quantum (NASDAQ:ARQQ) reported higher first-half fiscal 2026 revenue and said it is seeing increased commercial activity as governments, telecom operators and defense-related customers evaluate post-quantum cybersecurity needs. Chief Executive Officer Andy Leaver told investors that the market has shifted from debating whether organizations need to upgrade cryptographic security to determining how quickly they can do so. He pointed to public comments and research from Google, Cloudflare and IonQ that, in his view, have accelerated the urgency around migration to post-quantum cryptography. → CAVA Group’s Stock Looks Delicious After Strong Earnings 3 Quantum Computing ETFs to Know—And Why 2 Don't Hold D-Wave “What has become clear in the first half of our current fiscal year is that when is becoming now,” Leaver said, referring to the timing of post-quantum security upgrades. Chief Financial Officer Nick Pointon said Arqit generated $623,000 in revenue for the first half of fiscal 2026, compared with $67,000 in the same period of fiscal 2025. He said the increase reflected revenue from a Middle East customer contract that began late in the first half of fiscal 2025, as well as activity under 11 contracts during the latest period, compared with six in the prior-year first half. → SpaceX IPO: Opportunity? Or the Ultimate Hype Trade? Arqit Stock Soars as NVIDIA’s GTC Fuels Quantum Excitement Pointon said the latest period represented Arqit’s second consecutive reporting period of revenue growth. “With a small data set, it gives credence to Andy’s comments when we reported in fiscal year 2025 results that our revenue had troughed as of March 2025, and our expectation is for growth going forward,” he said. Administrative expenses rose to GBP 33.9 million for the six months ended March 31, 2026, from GBP 20.2 million a year earlier. Pointon said the increase was driven by higher employee-related costs and share-based compensation associated with higher headcount, partially offset by lower property costs and lower foreign exchange expenses. The latest period included a GBP 12.7 million non-cash share-based compensation charge, compared with GBP 872,000 in the comparable 2025 period. → 2 Software Stocks Turning AI Fears Into Fundamental Gains Arqit reported an operating loss of GBP 33.7 million, compared with a GBP 20 million loss in the first half of fiscal 2025. Loss before tax from continuing operations was GBP 33.1 million, versus GBP 19.5 million a year earlier. Leaver framed Arqit’s market opportunity around what he described as a shortening timeline for the arrival of cryptographically relevant quantum computers. He cited Google’s March 23 advice that cryptographic systems migrate by 2029, following research suggesting quantum computers could break elliptic curve cryptography with fewer resources than previously projected. He also cited Cloudflare’s April 7 migration guidance and research from Oratomic concerning the resources needed to execute Shor’s algorithm at cryptographically relevant scale. Leaver also referred to IonQ CEO Niccolo de Masi’s comments on IonQ’s May 6 earnings call, in which de Masi said IonQ expected to achieve the logical qubit count required to challenge RSA 2048 encryption in the 2028 to 2029 window. Leaver said the urgency is increased by the risk of “Harvest Now, Decrypt Later” attacks, in which encrypted data stolen today could be decrypted later using quantum computers. He also said migration requires analysis, planning and execution across an organization’s data and communications architecture. Arqit said its product set includes tools to assess existing cryptographic risk and software-based post-quantum encryption offerings designed to comply with NIST and NSA standards. Leaver highlighted the company’s Encryption Intelligence risk analysis tool, which he said gives organizations visibility into encryption technologies used across a network and identifies weak points, including vulnerabilities to quantum attacks. Leaver said Arqit acquired the Encryption Intelligence product in 2025 and announced commercial rollouts in January. A marketing campaign targeting about 450 organizations is underway, and he said engagement has been strong. Arqit executed its first Encryption Intelligence contract supporting post-quantum cryptography migration planning on May 18 and signed its first partnership agreement for the product with a European specialist cybersecurity provider on May 19. Leaver said Arqit expects additional contract wins during the balance of the fiscal year based on its sales pipeline. The company also said its NetworkSecure product is gaining traction. Leaver said Sparkle, a tier 1 Italian network operator, licensed Arqit’s product to create a quantum-secure network-as-a-service offering and has seen take-up, including with a financial institution. Sparkle recently announced commercial availability of its Quantum Safe Interconnect, secured by Arqit, across 20 Equinix International Business Exchange data centers in Europe, the Americas and Asia, according to Leaver. Leaver said large telecommunications networks represent a significant opportunity for Arqit’s encryption solutions. He said the company is in late-stage dialogue and demonstrations with several operators, including one in the U.S. Arqit also teamed with Colt Technology Services to deliver a quantum-secure wide-area network for A&K Travel Group, which owns travel brands including Abercrombie & Kent, Crystal and Cox & Kings. Leaver said the project is intended to protect A&K customer data and communications from future quantum risk, including Harvest Now, Decrypt Later threats. In government and defense, Leaver said Arqit is seeing “tangible progress,” though he noted that contracts in the sector take time to win. He said a renewal and upsizing of Arqit’s largest U.S. defense-related contract is imminent. He also said a partner serving the aerospace and defense industry renewed and upsized its contract with Arqit by almost 90% on May 1. Arqit also reported several go-to-market partnerships during and shortly after the first half, including: A strategic collaboration with 6WIND for quantum-safe encrypted VPN business services. A strategic collaboration with RAD for joint quantum-safe encryption solutions for telecom operators. Selection to join the Tomorrow Street portfolio, a joint venture between Vodafone Group and Technoport. A partnership with a European specialist cybersecurity provider for the Encryption Intelligence product. Pointon said Arqit had cash and cash equivalents of GBP 28.9 million as of March 31. He said the company’s cash balance was GBP 35.9 million as of May 20. Rob Russell, who is assuming the CFO role, said the current cash position represented more than 14 months of runway. Management also said in-the-money warrants expiring in September 2026 are expected to provide approximately GBP 13.5 million of additional liquidity if exercised. Pointon said he will step down as CFO at the end of the month. Russell began full-time as CFO on May 1 after a two-month part-time transition period. Pointon described Russell as a finance executive with experience in investment banking, private equity and SaaS scale-ups, most recently as Chief Financial and Operating Officer at VirtualStock. Leaver thanked Pointon for his service and said the company expects to speak with investors again after the close of fiscal 2026. Arqit Quantum Inc is a UK‐based cybersecurity company specializing in quantum-safe encryption solutions designed to protect sensitive data from current and emerging cyber threats. The company's core technology leverages principles of quantum physics to generate and distribute encryption keys in a way that remains impervious to attacks, including those enabled by future quantum computers. Arqit's platform is designed to integrate with existing IT infrastructures without requiring hardware upgrades, offering end‐to‐end data protection for enterprises, governments and critical infrastructure providers. The company's flagship QuantumCloud platform uses a patented key distribution architecture to deliver symmetrical keys to endpoints across distributed networks. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Arqit Quantum H1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

LONDON, April 10, 2026 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) (“Arqit”), a global leader in quantum-safe encryption, announces select preliminary financial results for the first half of fiscal year 2026. Based on preliminary unaudited results, management expects revenue for the first half period ended 31 March 2026 of approximately $620,000 to $630,000. This compares to $67,000 for the same period in fiscal year 2025 and $530,000 for the full 2025 fiscal period. Cash and cash equivalents were approximately $28.9 million as of 31 March 2026. Growth in revenue for the first half of fiscal year 2026 versus the comparable period in fiscal year 2025 resulted from but was not limited to: revenue recognition associated with delivery under contracts signed prior to the commencement of the period; and revenue recognition associated with three new contracts signed in the period Recognition of revenue under existing contracts is subject to a number of factors including, amongst others, the successful delivery of our products under the terms of those contracts, and the assumption that customers will not cancel, delay or amend the terms their contracts. The preliminary financial results discussed in this press release are based on management’s preliminary unaudited analysis of financial results for the first half of fiscal year 2026. As of the date of this press release, the Company has not completed its financial statement reporting and the Company’s independent accounting firm has not reviewed the preliminary financial data discussed in this press release. During the course of the Company’s first half closing procedures and independent accountant review process, including the finalization of its financial statements for and as of the period ended 31 March 2026, the Company may identify items that would require it to make adjustments, which may be material to the information presented above. As a result, the estimates above constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to preliminary results. Conference Call The Company expects to report its first half results in May 2026 followed by a conference call. Additional details, including the date and time of the conference call, will be provided in advance of the event. About Arqit Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) secures the world’s most critical data with quantum-safe encryption software. Simple, scalable, and compliant, its products integrate with existing infrastructure, and requires no rip and replace of hardware. Arqit provides a complete “Detect, Protect, Comply” solution for governments and enterprises that detects and inventories cryptographic assets, protects data, ensures compliance, and safeguards transition to the post-quantum era. Arqit’s primary product offerings are Encryption Intelligence and NetworkSecure™. Encryption Intelligence detects cryptographic exposure, identifies vulnerabilities, and maps dependencies. NetworkSecure™ protects data in transit with provably secure post-quantum cryptography and contributes to establishment of confidential compute environments for complete data sovereignty. Arqit is an IDC Innovator for Post-Quantum Cryptography (2024) and a multi-award-winner in quantum-safe security. For more information, visit www.arqitgroup.com. Media relations enquiries: Arqit: [email protected] Investor relations enquiries: Arqit: [email protected] Caution About Forward-Looking Statements This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements are based on Arqit’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Arqit’s control. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Arqit to predict these events or how they may affect it. Except as required by law, Arqit does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date this communication is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this communication may not occur. Uncertainties and risk factors that could affect Arqit’s future performance and cause results to differ from the forward-looking statements in this release include, but are not limited to: (i) the outcome of any legal proceedings that may be instituted against Arqit, (ii) the ability to maintain the listing of Arqit’s securities on a national securities exchange, (iii) changes in the competitive and regulated industries in which Arqit operates, variations in operating performance across competitors and changes in laws and regulations affecting Arqit’s business, (iv) the ability to implement business plans, forecasts, and other expectations, and identify and realise additional opportunities, (v) the potential inability of Arqit to successfully deliver its operational technology, (vi) the risk of interruption or failure of Arqit’s information technology and communications system, (vii) the enforceability of Arqit’s intellectual property, (viii) market and other conditions, and (ix) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Arqit’s annual report on Form 20-F (the “Form 20-F”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on 9 December 2025 and in subsequent filings with the SEC. While the list of factors discussed above and in the Form 20-F and other SEC filings are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realisation of forward-looking statements.

Rigetti Computing RGTI has announced that it will release fourth-quarter and full-year 2025 results on March 4, 2026, after market close. This is likely to be a pivotal update as investors assess whether recent commercial wins and technical milestones are beginning to translate into tangible momentum. In the third quarter, RGTI’s revenue declined 18% year over year to $1.9 million, while gross margin compressed sharply to 21% due to contract mix and pricing variability. However, management highlighted $5.7 million in Novera system purchase orders and a $5.8 million AFRL contract that began contributing to revenue in the fourth quarter. With Novera system sales recognized upon shipment and AFRL revenue flowing, the fourth-quarter earnings should show sequential improvement. Investors should watch closely for revenue acceleration, stabilization in gross margins and any indication that commercial demand for on-premises systems is expanding beyond government-driven contracts. Investors should also pay close attention to the company’s updated roadmap following its recent reset. Rigetti revised the timeline for general availability of its 108-qubit quantum computing system, Cepheus-1-108Q, now targeting availability around the end of the first quarter of 2026. Investors should also look for updates on DARPA Phase B engagement, traction from NVIDIA’s NVQLink hybrid computing ecosystem and commentary on capital allocation, especially as the company exited the third quarter with roughly $600 million in cash and no debt. With operating losses still elevated, the fourth quarter needs to demonstrate not just roadmap ambition, but measurable progress toward scalable commercial revenue. Arqit Quantum Inc. ARQQ recently strengthened its commercial traction by broadening deployments of its quantum-safe encryption solutions and expanding integrations with telecom operators and enterprise infrastructure partners. The company is scaling its NetworkSecure platform alongside complementary cryptographic management offerings designed to support organizations preparing for post-quantum security standards. Arqit has also introduced new capabilities focused on automating encryption discovery and assessing cryptographic risk exposure. With increasing adoption across telecom, government and enterprise segments, Arqit is steadily repositioning itself as a scalable cybersecurity infrastructure player rather than a company centered primarily on quantum research. Quantum Computing Inc. QUBT has enhanced its commercial profile by advancing its integrated photonics roadmap and building early traction across government and enterprise customers. The company is expanding its thin-film lithium niobate foundry operations while promoting its room-temperature photonic quantum and optimization platforms, including broader cloud-based access to its Dirac systems. Recent capital raises have materially strengthened its balance sheet, giving it greater financial flexibility to scale manufacturing capacity and support ongoing product commercialization efforts. Shares of RGTI have gained 7.4% in the last six-month period against the industry’s decline of 18.2%. Image Source: Zacks Investment Research From a valuation standpoint, Rigetti trades at a price-to-book ratio of 14.13, above the industry average. RGTI carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Rigetti’s 2026 earnings implies a significant 74.3% improvement from the year-ago period. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quantum Computing Inc. (QUBT) : Free Stock Analysis Report Arqit Quantum Inc. (ARQQ) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Arqit Quantum (ARQQ) just dropped its full year 2025 results alongside fresh 2026 revenue guidance, giving investors a clearer look at how this quantum cybersecurity bet is evolving financially. See our latest analysis for Arqit Quantum. The market reaction has been choppy, with a 1 day share price return of 6.54 percent after the update but a 90 day share price return of negative 42.66 percent. The 3 year total shareholder return of negative 77.21 percent shows that momentum is still rebuilding from a deep drawdown. If Arqit’s quantum security story has caught your eye, it could be worth also scanning other high growth tech and AI names using Simply Wall St’s high growth tech and AI stocks. With losses narrowing, revenue inching higher, and a lofty analyst price target still on the table, the key question now is simple: Is Arqit undervalued after its slump, or already pricing in a quantum growth rebound? Based on its latest close at 23.93 dollars, Arqit trades on a rich price to book multiple that sits well above both peers and the wider software sector. The price to book ratio compares the company’s market value to the net assets on its balance sheet. This is a common yardstick for early stage or unprofitable tech names where earnings are not yet a reliable guide. For Arqit, this lens matters because the business is still loss making, has minimal current revenue, and investors are effectively paying up today for future quantum security adoption. That premium is steep. At 13.8 times book value, Arqit is not only more expensive than the US Software industry average of 3.4 times, but it also trades above its own peer group average of 11.7 times. This suggests the market is pricing in stronger execution and growth than is currently visible in the financials. See what the numbers say about this price — find out in our valuation breakdown. Result: Price to Book of 13.8x (OVERVALUED) However, significant ongoing losses and reliance on still nascent quantum adoption mean that any execution slip or demand disappointment could quickly puncture today’s premium valuation. Find out about the key risks to this Arqit Quantum narrative. If you see the numbers differently, or would rather dig into the details yourself, you can build a custom view in just minutes: Do it your way. A great starting point for your Arqit Quantum research is our analysis highlighting 1 key reward and 6 important warning signs that could impact your investment decision. Do not stop at one opportunity, use the Simply Wall St Screener to quickly uncover fresh stock ideas tailored to your income needs, risk appetite, and growth goals. Secure growing cashflows by targeting reliable income opportunities through these 13 dividend stocks with yields > 3% that can strengthen your portfolio’s foundation. Ride powerful innovation trends by focusing on cutting edge businesses using these 24 AI penny stocks before the crowd fully catches on. Lean into the next wave of digital finance by screening potential market leaders via these 80 cryptocurrency and blockchain stocks that could reshape global payments. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ARQQ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: $530,000 for fiscal year 2025, up from $293,000 in fiscal year 2024. Second Half Revenue: $463,000, compared to $67,000 in the first half of fiscal year 2025. Contractual Revenue for FY 2026: $1.2 million in executed contracts. Arqit SKA Platform and Network Secure Revenue: $476,000 for fiscal year 2025. Professional Services and Maintenance Revenue: $54,000 for fiscal year 2025. Administrative Expenses: $34.7 million for fiscal year 2025, up from $25.4 million in fiscal year 2024. Operating Loss: $38.5 million for fiscal year 2025, compared to $26.9 million in fiscal year 2024. Loss Before Tax from Continuing Operations: $36.5 million for fiscal year 2025, compared to $37.4 million in fiscal year 2024. Cash and Cash Equivalents: $36.9 million as of September 30, 2025. Headcount: 91 employees as of September 30, 2025, up from 82 employees as of September 30, 2024. Warning! GuruFocus has detected 3 Warning Signs with ARQQ. Is ARQQ fairly valued? Test your thesis with our free DCF calculator. Release Date: December 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Arqit Quantum Inc (NASDAQ:ARQQ) experienced significant momentum in fiscal year 2025, with increased customer engagements and revenue growth. The company broadened its product and service footprint through acquisitions and collaborations, including partnerships with Intel and Sparkle. Arqit Quantum Inc (NASDAQ:ARQQ) signed multiple contracts in the telecom and defense sectors, demonstrating the growing demand for enhanced cryptography solutions. The acquisition of encryption intelligence tools provides a comprehensive solution for organizations to detect, protect, and comply with cybersecurity requirements. The company ended fiscal year 2025 with $1.2 million in executed contracts, indicating a strong foundation for future revenue growth in fiscal year 2026. Despite revenue growth, Arqit Quantum Inc (NASDAQ:ARQQ)'s fiscal year 2025 revenue remained modest at $530,000, highlighting the need for further expansion. The company reported an operating loss of $38.5 million for fiscal year 2025, an increase from the previous year's loss of $26.9 million. Administrative expenses increased to $34.7 million in fiscal year 2025, primarily due to foreign exchange losses and increased headcount. The company faces competition from traditional security vendors upgrading their algorithms for post-quantum security. Sales cycles in the defense market are slower, which may delay revenue realization despite significant opportunities in this sector. Q: Andy, is there a particular catalyst driving the higher level of demonstrations and activity recently? A: Andy Leaver, CEO: The advances in quantum computing by major players like IBM and Google have heightened awareness of quantum's potential and risks. This, combined with regulatory bodies urging organizations to address quantum threats, has increased interest in our solutions. The threat of "harvest now, decrypt later" is also prompting organizations to act now to protect their data. Q: How does the sales cycle for encryption intelligence compare to legacy products? A: Andy Leaver, CEO: The sales cycle for encryption intelligence is shorter as it allows organizations to quickly assess their cryptographic landscape and identify vulnerabilities. This tool is gaining traction, especially among telecom operators, who are interested in ongoing use to maintain security. Q: Are there additional acquisition opportunities similar to the encryption intelligence purchase? A: Andy Leaver, CEO: We are exploring opportunities in data sovereignty and confidential computing. These areas align with our "detect, protect, comply" strategy and could complement our existing offerings, particularly in enhancing our quantum-safe solutions. Q: Should we expect any changes in operating expenses for fiscal 2026? A: Nicholas Pointon, CFO: We plan to maintain cost control similar to fiscal 2025, targeting a maximum cash spend of $2.5 million per month. We believe we can support anticipated growth within these constraints. Q: Can you discuss the competitive landscape in post-quantum security? A: Andy Leaver, CEO: While competition is increasing, Arqit has a unique position with over five years of experience and 25 patents. Our symmetric key agreement solution is trusted by governments and defense sectors, offering a software-based, non-mathematical approach that is resilient against quantum threats. Q: What about the corporate sector's interest in your solutions? A: Andy Leaver, CEO: We are seeing interest from regulated industries, critical infrastructure, and sectors rich in intellectual property, such as financial services, pharmaceuticals, and chemicals. These organizations are concerned about protecting their data and IP from future quantum threats. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

LONDON, Dec. 09, 2025 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (Nasdaq: ARQQ) (“Arqit” or the “Company”), a global leader in quantum-safe encryption, announces financial results for the fiscal year ended 30 September 2025. Consistent with management’s preliminary assessment of the expected range of revenue which was announced 9 October 2025, reported revenue for the fiscal year ended 30 September 2025 was $530,000. Revenue for the second half of the fiscal year was $463,000 as compared to $67,000 for the first half of the period. Revenue was generated from seven contracts, including two which are multi-year contracts representing annually recurring revenue. Two contracts were with telecom network operators and five were with government, defense and enterprise organizations, all key markets for Arqit. As of 30 September 2025, the Company had executed contracts expected to generate revenues of approximately $1.2 million in fiscal year 2026, providing a revenue baseline before consideration of new business opportunities and or the expansion of existing contracts. In the two months since the close of the fiscal year, Arqit has signed 12 demonstration and test licenses with prospective customers across key target markets. The pace of prospective customer activity is materially ahead of the prior fiscal year. The Company has maintained cost discipline with operating costs averaging $2.5 million per month for the fiscal year. The Company ended the fiscal year with cash and cash equivalents of approximately $36.9 million as of 30 September 2025. In May, Arqit acquired Ampliphae’s product portfolio IP and innovations team, specialising in encryption risk advisory and AI analytics. Ampliphae’s Encryption Intelligence product combined with Arqit’s quantum encryption technology delivers a comprehensive proposition to identify and mitigate cyber risk exposure from both current and future quantum threats. CEO’s statement Andy Leaver, Chief Executive Officer, noted, “Fiscal year 2025 was successful on many fronts for the Company. Our revenue performance reflected a bottoming out and return to growth driven by our focus on key market sectors, particularly telecom network operators, government and defense, and the completion of our B-2-B-2-B business model through leading technology hardware and services partners. Our recently acquired Encryption Intelligence risk-analysis tools and advisory service gives organisations complete visibility into all encryption technologies in use, automatically identifying weak points and vulnerabilities, including those susceptible to quantum attacks – a key first step in migrating to a quantum secure posture. Arqit now can offer a holistic solution which permits organisations to detect cryptographic weaknesses, then protect their networks and IT infrastructure in compliance with the post-quantum cyber security recommendations of leading government and industry security organizations. With three contracts activated since the close of the fiscal year and strong demonstration and test activity with potential new partners and customers across our key target markets, including five new technology OEMs, we are enthusiastic about the Company’s growth prospects for this fiscal year.” 2026 Outlook Arqit believes that fiscal year 2026 could represent a year of significant growth as compared to 2025. The Company’s optimism is based upon: Contracts executed prior to the close of fiscal year 2025 which are expected to generate revenues of approximately $1.2 million in fiscal year 2026. Recognition of revenue under existing contracts is subject to a number of factors including, amongst others, the successful delivery of our products under the terms of those contracts, and the assumption that customers will not cancel, delay or amend the terms their contracts. Material discussions with five new OEM vendors which have engaged with Arqit since September 2025 and are in the demonstration and test process. Significant engagement with prospective customers across Arqit’s key market sectors. Arqit’s Encryption Intelligence risk-analysis tools and advisory service provides a compelling solution to CISOs and CTOs who need to begin the process of migrating to a quantum-secure cryptographic posture Encryption Intelligence is a stand-alone product offering but also introduces customers to Arqit’s symmetric key agreement encryption solutions. Based on the level of inquiry and engagement, Arqit believes telecom network operators, generally, are actively assessing and preparing to deploy post-quantum encryption architectures. 2026 Strategic Focus The Company seeks to balance capturing near term revenue prospects with developing markets which offer additional medium and long term opportunities. 2026 strategic focus will include: A holistic go-to-market strategy that offers customers the ability to detect, protect and comply by tightly integrating the company’s Encryption Intelligence offering with Arqit’s symmetric key agreement encryption solutions - SKA-Platform™ and NetworkSecure™. Driving additional sales to telecom network operators, replicating the product offering successfully deployed with announced customers such as Sparkle, RSG Telecom and Fabric Networks. Building upon growing success in the government and defense sectors. Arqit currently has 5 government or military related customers. Demonstration and test activity is robust with multiple militaries and defense contractors across various geographies. Developing the confidential computing and data sovereignty markets which Arqit believes represent significant opportunities for the sale of its encryption solutions. Arqit has previously announced initiatives in this space including its collaboration with Intel for quantum-safe encryption inside a Trusted Domain enclave. Conference Call Arqit will host a conference call at 11:00 a.m. ET / 8:00 a.m. PT on 9 December, 2025 with the Company’s CEO, Andy Leaver, and CFO, Nick Pointon. A live webcast of the call will be available on the “IR Calendar” page of the Company’s website at ir.arqit.uk. To access the call by phone, please go to this link (registration link) and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at ir.arqit.uk. About Arqit Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) supplies a unique symmetric key agreement encryption software service which makes the communications links of any networked device, cloud machine or data at rest secure against both current and future forms of attack on encryption – even from a quantum computer. Compatible with NSA CSfC Components and meeting the demands of NSA CSfC Symmetric Key Management Requirements Annexe 1.2. and RFC 8784, the Arqit SKA-PlatformTM, uses a lightweight software agent that allows end point devices to create encryption keys locally in partnership with any number of other devices. The keys are computationally secure and facilitate Zero Trust Network Access. It can create limitless volumes of keys with any group size and refresh rate and can regulate the secure entrance and exit of a device in a group. The agent is lightweight and will thus run on the smallest of end point devices. The product sits within a growing portfolio of granted patents. It also works in a standards compliant manner which does not oblige customers to make a disruptive rip and replace of their technology. In September 2024, Arqit was named as an IDC Innovator for Post-Quantum Cryptography, 2024. Arqit is winner of two GSMA Global Mobile Awards, The Best Mobile Security Solution and The CTO Choice Award for Outstanding Mobile Technology, at Mobile World Congress 2024, recognised for groundbreaking innovation at the 2023 Institution of Engineering and Technology Awards and winner of the National Cyber Awards’ Cyber Defence Product of the Year 2024 and Innovation in Cyber Award 2022, as well as the Cyber Security Awards’ Cyber Security Software Company of the Year Award 2022. Arqit is ISO 27001 Standard certified. www.arqit.uk Media relations enquiries: Arqit: [email protected] Investor relations enquiries: Arqit: [email protected] Caution About Forward-Looking Statements This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements are based on Arqit’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Arqit’s control. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Arqit to predict these events or how they may affect it. Except as required by law, Arqit does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date this communication is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this communication may not occur. Uncertainties and risk factors that could affect Arqit’s future performance and cause results to differ from the forward-looking statements in this release include, but are not limited to: (i) the outcome of any legal proceedings that may be instituted against Arqit, (ii) the ability to maintain the listing of Arqit’s securities on a national securities exchange, (iii) changes in the competitive and regulated industries in which Arqit operates, variations in operating performance across competitors and changes in laws and regulations affecting Arqit’s business, (iv) the ability to implement business plans, forecasts, and other expectations, and identify and realise additional opportunities, (v) the potential inability of Arqit to successfully deliver its operational technology, (vi) the risk of interruption or failure of Arqit’s information technology and communications system, (vii) the enforceability of Arqit’s intellectual property, (viii) market and other conditions, and (ix) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Arqit’s annual report on Form 20-F (the “Form 20-F”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on 9 December 2025 and in subsequent filings with the SEC. While the list of factors discussed above and in the Form 20-F and other SEC filings are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realisation of forward-looking statements.