INFQ

Good afternoon, and welcome to Infleqtion's first quarter 2026 earnings conference call. Thank you for joining us today. My name is Marcus Kupferschmidt, head of Investor Relations and Strategic Finance. Before we begin, I would like to remind you that this conference call may include forward-looking statements. These statements are subject to various risks, uncertainties, and assumptions that could cause actual results to differ materially.

These factors are detailed in our Form 8-K and other filings with the SEC, 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 measures. We use these measures because we believe they provide additional insight into the underlying operational 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; Ilan Hart, our Chief Financial Officer; and Pranav Gokhale, our Chief Technology Officer and General Manager of our Quantum Computing business. Following our prepared remarks, we will open the call for questions. As a reminder, a replay of this call will be posted on our IR website, along with our Form 8-K and presentation materials. With that, I'll turn the call over to Matt Kinsella, our Chief Executive Officer.

Thank you, Marcus, and good afternoon, everyone. We are glad you could join us for our first quarter 2026 earnings call. We appreciate your time today and your interest in Infleqtion. As I've said in the past, we're really excited to work with all of you over the coming years and hopefully decades to continue to build a deeper understanding of Infleqtion, our platform, and the opportunity ahead. Similar to our last earnings call, we will open up with a brief reminder of who we are and what we're building at Infleqtion, and we'll talk through our strategy. This will be shorter than last time, and then we'll walk through our Q1 results, and then we'll take your questions.

If you'd like to deeper dive on our products, our roadmap, our markets, a replay of our March 11th Analyst Day is available in the investor section of our website. It's a great resource as you're learning more about quantum and Infleqtion. All right, let's dive in. For those of you that are joining for the first time, Infleqtion is a quantum technology company with a highly differentiated platform approach. We're building solutions across computing, sensing, and timing that are all tied together with software.

That breadth is enabled by neutral atoms, a highly flexible quantum modality that operates at room temperature and supports products we're already deploying in real-world environments. Critical to our strategy is that the underlying components, the physics, photonics, engineering, and software are the same across all our products, all based on one platform.

That gives us a highly leveraged and efficient operating model. If there's one thing I want you to take away from this first section, it's the single neutral atom platform, multiple products, and many end market opportunities. We're the only company in the quantum industry with this single platform approach. In many ways, we are following a path similar to NVIDIA, and just as they pointed their core GPU at the gaming, the crypto mining, the physics markets, while building toward the crown jewel of large language models, we are pointing our neutral atom core at these near-term markets where we have quantum advantage today, like timekeeping and sensing, while building toward fault-tolerant quantum computing, our crown jewel. Excitingly, neutral atoms are now leading on many of the metrics that matter most, and the path to commercially useful quantum computing is getting shorter.

If I had to boil Q1 down to a single word, it would be momentum. We saw momentum across all elements of our business, from technical progress, increased customer activity, new quantum-based government investments, and industry interest in neutral atoms. An interesting proof point is our neutral atom quantum core business. Since our founding, Infleqtion has supplied our neutral atom quantum cores to other neutral atom quantum companies and resource organizations. It's a relatively small but important part of our business, and in Q1, we had our best quarter ever in our quantum cores business, which we see as a strong signal that neutral atoms are continuing to grow within the industry. Government investment is also building, with the U.K. committing up to GBP 2 billion to quantum, which I'll discuss later in the presentation. We strongly believe neutral atoms are the best modality for the quantum era.

I was the first investor in Infleqtion back in 2018 in my prior role. When I first invested, neutral atoms were not as widely understood as other quantum modalities. What stood out to me then, is even more relevant today, is that neutral atoms offer a highly scalable architecture, attractive system economics, and are flexible to build products across sensing and computing, such that we are already shipping deployable systems and have been for many years. Nature gives us the qubits in the form of atoms. Our job is to industrialize the system around them using lasers, photonics, software, and system engineering. This is our product portfolio. All of our products are built on the same neutral atom technology platform. At the center of each system is a quantum core where neutral atoms are controlled with lasers.

Because this is one platform, progress in one area strengthens the entire portfolio. Advances in atom control, photonics software, and systems engineering benefit all of our products, from atomic clocks to quantum computers. As we get better at building and shipping clocks, that directly accelerates our path to useful quantum computing. We are also seeing the platform strategy show up commercially.

Customers often start with one capability, such as timekeeping or software, and then expand into additional products as their needs grow. That is the Infleqtion model, one scalable quantum platform supporting multiple products and markets. Because of the flexibility of this technology and the fact that we have been field deploying it for years, we are the first quantum company to operate quantum technology under the sea, in space, and to fly it in the air.

Under the sea, we demonstrated Tiqker, our optical atomic clock, on the Royal Navy's Excalibur autonomous submarine. In space, we launched NASA's Cold Atom Lab on the International Space Station back in 2018, we recently delivered an upgrade to the ISS about a month ago. Excitingly, we are returning to space with NASA JPL's Quantum Gravity Gradiometer Pathfinder mission, or QGG for short. In the air, our quantum navigation technology has been tested in flight with QinetiQ on a jet. On the ground, we recently showcased quantum timing across a live fiber between Indiana and Illinois, showing a 40x, yes, that is 40x improvement over GPS timing. Precision timing is increasingly important for AI infrastructure in distributed computing environments where synchronization is critical.

Simply put, if you can synchronize distributed workloads more precisely in data centers, you can get more performance out of your underlying data center infrastructure. This slide highlights a few of the key milestones we achieved across the business.

I won't go through every metric, but let me just call out a few. In computing, we've demonstrating a 1,600 atom qubit array, achieving 99.73% user-facing two-qubit gate fidelity and remain on track to deliver 30 logical qubits this year. We also delivered the U.K.'s first 100 physical qubit quantum system and remain the first and only company to achieve the U.K. government's target for a 100-qubit system by the end of 2025.

In sensing, we received the first and largest quantum in space contract from NASA, and altogether, these milestones show we are executing very well across our comprehensive platform. With that, I will turn it over to Pranav to discuss computing in more detail.

Thanks, Matt. I'll take a deeper dive on our computing division with updates across our quantum computing hardware and software, as well as recent customer wins with our quantum-inspired software running on GPU. Let me start with our core strategy, scaling toward commercially useful logical qubits through hardware and software innovation. Our leadership here is enabled by two underlying records. First is our demonstration of 1,600 atom arrays, the commercial record for physical qubit capacity. Second is our demonstration of 99.73% user-facing two qubit fidelity, the commercial record for neutral atoms. Putting these two together, quantity and quality, unlocks logical qubits. As we've emphasized before, these logical qubits are the key milestone on the path to quantum computing advantage. They are the clearest measure of progress toward reliable, scalable systems capable of solving commercially meaningful problems.

The growth in quantity and quality of qubits on our Sqale QPU has allowed us to advance from two logical qubits in 2024 to 12 logical qubits in 2025 ahead of our roadmap. We remain on track for 30 logical qubits in 2026 and 100 in 2028 when we expect the first commercially relevant applications to be run. Importantly, we are not just demonstrating logical qubits in isolation. We are already using them to run real applications in material science, chemistry, and health tech, which builds and validates the key building blocks of commercially relevant quantum compute. Our record-setting results across quantity, quality, and logical qubits have grown customer interest in on-premise system sales.

To that end, we have now delivered two Sqale QPUs, one to our customer at the UKNQCC, where we operate the U.K.'s first and only 100-qubit quantum computer, and one to our customer in Japan. We also announced plans for a Sqale QPU delivery with at least 50 logical qubits to the IQMP hub in Illinois. We also have QPUs that we use internally as test beds that support private cloud access for select end users. Excitement about the convergence of quantum and AI is also driving new interest, and we were delighted to have been invited by NVIDIA to exhibit our Sqale QPU at the NVIDIA booth during GTC in March, where we had valuable face time with the world's biggest consumers of compute capacity.

I'd now like to take a deeper dive into our software stack and application workflows that enhance the productivity and capacity of our Sqale QPU. Going from bottom to top, at the hardware layer, we continue to prioritize integration with NVIDIA, where our Sqale QPU can co-process with GPU to solve customer problems that neither GPU nor QPU can solve alone. This is exemplified by our pioneering integration with NVIDIA's NVQLink stack to force multiply our hardware's error correction performance. Now, let's move up the stack to our Superstaq middleware platform, which supercharges system performance by compiling customer applications to the underlying hardware to improve efficiency. Importantly, Superstaq supports customers across multiple qubit modalities, including superconducting and trapped ion.

This positioning was critical to a recent DARPA contract win, which I'll cover on the next slide. At the applications layer, we are working with customers across two primary objectives. Some customers are developing applications on Sqale today to test and optimize the foundational building blocks required for scalable quantum computing. Others are designing commercially relevant applications intended for future large-scale logical qubit systems. Their engagement today reflects the strategic value of being prepared to deploy quantum solutions as soon as large-scale fault-tolerant hardware becomes available. I'd like to give you an update on recent customer-specific examples of progress in our middleware and hardware layers. Importantly, everything I'll cover on this slide was announced in just the past three months.

Starting with the hardware layer, in April, we were pleased to be the only neutral atom company highlighted by NVIDIA as an adopter of both of their Ising AI models, which reflects Infleqtion's embrace of AI-led workflows for accelerating our quantum technologies. Next, we released a paper in April demonstrating an advance in photonics and magnetic control that is enabling us to build more robust conveyor belts for our atoms. For neutral atom QPUs, this hardware milestone is an important foundation toward running logical qubit programs continuously with high uptime and high performance. Moving to the middleware layers, in April, we released another paper unveiling Resource Superstaq, our open-source software platform that models future iterations of Sqale QPUs with hundreds of logical qubits.

This provides users with feedback to develop and optimize quantum applications so they can hit the ground running on our Sqale QPUs with 100 logical qubits expected in 2028. The second middleware milestone was our selection by DARPA for the HARC program on heterogeneous architectures for quantum. I'll emphasize that Infleqtion is the only company developing quantum computing hardware that was selected for the software track of HARC, underscoring our positioning to supercharge quantum hardware across multiple modalities. These recent advances highlight our momentum in scaling logical qubits through software, middleware, and hardware innovation. Let's discuss our progress building quantum-native logical qubit applications targeted to run on our scale quantum computer. We are working with several customers and partners to demonstrate the software, hardware integration, and logical circuit operations required to scale toward large fault-tolerant quantum computing systems. Let's start with Infleqtion's progress with logical qubits.

Our first major milestone, which we jointly published with NVIDIA last year, was a demonstration of the industry's first logical qubit-powered material science application. This demonstration with two logical qubits serves as a gateway to discovery of better batteries, solar cells, and catalysts. In fall 2025, we leaped from two logical qubits to 12 logical qubits on Sqale. Our demonstrations included an important building block for chemistry applications, as well as the world's first demonstration of Shor's algorithm for decryption with logical qubits, which we released to advise enterprise on the urgency of migration to encryption systems that are secure against the so-called Q-day implication of quantum computing. Most recently, in Q1 2026, as recently spotlighted by NVIDIA alongside GTC, we demonstrated another application of 12 logical qubits, targeting biomarker discovery for our Wellcome Leap Q for Bio customer.

Let me update you on our progress toward commercial applications of quantum software targeted on upcoming versions of our Sqale QPU with hundreds or thousands of logical qubits. As this slide indicates, we are excited about the breadth of commercially relevant applications across multiple industries, and we have seen increased engagement in the past two months from end users in all these sectors. Let's take a deeper dive on our recent wins in the energy end markets. Energy is one of the best examples of why and where quantum computing is poised to provide a new paradigm for overcoming limitations present in traditional compute. The electric grid is becoming one of the largest and most complex computational modeling problems in the world, complicated by growing and increasing dynamic demand alongside variable energy generation sources.

This challenge has spurred utility companies to investigate quantum computing, and similarly, we are also seeing power management companies lean into quantum, as exemplified by Infleqtion's joint presentation with Eaton Corporation at the recent Q2B conference. This February, we announced ARPA-E's first-ever quantum computing contract. Our contract win, which includes collaboration with ComEd, a utility company, focuses on enhanced energy grid efficiency using our Sqale QPU. The goal is to help utilities meet power demand with greater efficiency, reliability, and security. Shortly after our contract booking, we were excited to be selected again by ARPA-E in April, this time as the only neutral atom performer on their QC3 program for quantum computing applications. Our planned QC3 project will leverage our Sqale QPU to discover new materials with less transmission loss, opening new opportunities in the electric grid.

Most recently, in April, the Illinois IQMP Hub and the National Quantum Algorithm Center, or NQAC, awarded a contract to UChicago to support a collaboration with Infleqtion, Constellation Energy, and EPRI to apply quantum computing to improve efficiency and safety of nuclear reactor designs. We also note that the NQAC center is expected to play an important role as a thought leader and ambassador for enterprise adoption of quantum computing, and we are pleased to be a trusted partner to them early in their growth. As you've heard, customer engagement with our Sqale QPU in quantum applications is accelerating. We remain highly focused on scaling logical qubits to commercially transformative quantum computing applications, and we have increasing customer validation that this will be a significant market opportunity in the coming years.

In parallel, we are increasingly excited by the near-term commercial potential of our quantum-inspired software running today on classical GPU infrastructure. This quantum-inspired software for AI/ML, which we call Contextual Machine Learning or CML, is gaining momentum across multiple customers to analyze sensor data beyond the limits of competing AI approaches. Modern AI systems like large language models face challenges in maintaining context across long data sequences, which limits the use of these models for processing data from typical sensors that produce millions of tokens of information every second. The challenge is maintaining context as conditions evolve, identifying how sensory inputs are changing, and determining which sensors and signals can be trusted in real time. CML applies insights from quantum computing and sensing to GPUs to efficiently circumvent these challenges.

Our customers are looking to CML for real-world applications involving large-scale sensor data sets like RF sensing, data fusion, and GPS-denied navigation, where data streams are noisy and highly dynamic, and operational decisions depend on separating trusted signals from noise in real time. Our recently announced U.S. Navy contract for quantum-inspired rapid context applies CML to classification of radio frequency data in crowded electromagnetic environments. This application of AI is not just a convenience, it's becoming mission-critical to determine with speed and confidence which signals are trusted, which are interference, and which may re-represent adversarial intent. Delays or misclassification can directly impact operational effectiveness and decision-making, which is why our CML technology prioritizes low-latency processing.

This Navy contract complements other customer wins, including with the U.S. Army for secure AI for position, navigation, and timing for GPS-denied environments, as well as another recent contract from the European Space Agency on sensor data anomaly detection. In all these cases, CML can run on edge-deployed GPU to provide quantum-inspired advantages today. Moreover, each of these contracts stands in front of large downstream opportunities, including programs of record that can lead to multi-year procurement contracts and wide-scale deployment. I'll now turn it back to Matt to expand on the equally exciting progress in quantum sensing.

Thanks, Pranav. Turning to sensing, we believe this is the first major commercial wave in quantum with applications across timing, position, navigation, spectrum awareness, and Earth intelligence, which is the ability to better understand what is happening above, on, and below the surface of the Earth. These quantum sensing applications are enabled by the same core technologies. With this single foundation, we have built what we believe is the broadest quantum sensing portfolio in the industry, allowing us to serve several large and urgent markets. The need for quantum-enabled solutions is accelerating as classical systems reach practical limits. In short, classical technologies utilize quote, "bulk physics," which basically means billions of electrons or photons flowing simultaneously, and that limits the precision and effectively makes them approximations of the world around. Quantum systems truly measure the world at the quantum or atomic level of precision using nature's own measuring stick.

This is a massive step function, which allows orders of magnitude improvement in precision sensing. Additionally, many of the classical technologies we utilize every day are becoming increasingly unreliable. GPS is one of the clearest examples. Around the world, GPS is increasingly being denied, degraded, and deceived through jamming and spoofing, and this is not confined to Ukraine or Iran. GPS interference has been reported at Dallas-Fort Worth, Denver, Newark, Delhi, Seoul, Helsinki, Istanbul, and many others. Interference rates increased 175% in 2024, while GPS spoofing incidents rose 500%. Quantum sensing technologies are emerging as trusted alternatives to GPS.

A strong example of the value quantum can provide is evident by the Missile Defense Agency's inclusion of quantum in the Shield program for Golden Dome. This is the first time quantum has been included in the technology solution set of an extremely large government program. Golden Dome is effectively a massive sensing infrastructure that needs to be synchronized. Really the only way to intercept the types of threats that Golden Dome is being designed to defend against, such as hypersonic missiles and drone swarms, is to utilize quantum technologies. Infleqtion was one of the few quantum companies awarded a contract under this program, making us eligible to apply our full portfolio to next-generation national security applications. Quantum sensing is strategically important for another reason as well. It creates a bridge between the physical world and quantum computing.

Over time, these sensors can generate native quantum data captured at the atomic level, enabling future quantum computers to work directly with that information, and that opens up entirely new classes of computing. These markets are expected to represent at least a $30 billion opportunity by 2040. Tiqker is our most commercially mature product and is a strong example of our commercialization strategy at work. We began with government-funded research, and now we have a deployable system scaling to large commercial markets. Quantum timing helps networks, satellites, radar, and data centers stay in sync more accurately and reliably. We are shipping our third-generation Tiqker Prime system today with a well-defined roadmap toward lower power chip-scale products. You can effectively look to Tiqker as a case study that the path most of our portfolio of quantum products will follow.

This quarter, we announced a first-of-its-kind quantum partnership with Safran, integrating Tiqker with Safran's world-class timing and synchronization portfolio, and will leverage Safran's excellent sales team to accelerate our go-to-market efforts and bring Tiqker to new commercial markets globally. This quarter, we expanded our presence in space. Infleqtion Technology has been operating aboard the International Space Station since 2018 through NASA's Cold Atom Lab. NASA astronaut Christina Koch, now part of the Artemis 2 crew, helped install the original hardware on orbit. On April 13th, a new Infleqtion upgrade arrived at the ISS to support the next phase of quantum research. If you happen to be in New York tonight, look up to the sky a little after 9:00 P.M. Eastern Time, and the International Space Station will pass overhead carrying Infleqtion's latest quantum tech.

Customers are looking beyond research and toward quantum systems that can operate autonomously in space. As I mentioned earlier, this quarter we announced our contract on NASA JPL's QGG to deploy the world's first quantum gravity sensor in space. The mission is intended to support higher-resolution Earth intelligence, including environmental monitoring, navigation, geospatial intelligence, and subsurface information. This is the pattern we're focused on. Cold Atom Lab proved we could operate quantum technology in space. QGG moves us towards autonomous missions. These early programs are important because they open the door to much larger opportunities over time. We're working with many of the leading customers and partners in quantum. Commercial traction comes through hardening technology through prototypes and trials, and then turning those systems into deployable products. That is our heritage.

Across sensing and computing, we have delivered hundreds of quantum cores and systems to customers and partners globally. Earlier in the call, we referenced two important examples, the U.K.'s first operational 100-qubit quantum computer at the National Quantum Computing Centre and a 500-qubit system delivered to the Institute for Molecular Science in Japan. We continue to expand our customer base and work with many of the most important early adopters of quantum, including NVIDIA, NASA, Safran, DARPA, the Royal Navy, and SAIC, just to name a few. The U.K. is a strong example of a government treating quantum as a strategic national priority. In March, the U.K. announced up to GBP 2 billion of long-term investment. Infleqtion has been operating in the U.K. since 2014, delivering quantum systems for U.K. customers and partners.

When the U.K. Department for Science, Innovation and Technology announced this new investment, it highlighted Infleqtion's delivery at the NQCC as a key example of progress towards building national quantum capability. That delivery achieved a major U.K. national strategy goal for 2025 as the U.K.'s first and only operational 100 physical qubit quantum computing system. That track record puts us in a strong position. In quantum, the best way to earn the next opportunity is to execute on the work you have already been trusted to do. As the U.K. expands its quantum investment, Infleqtion is well-positioned to continue supporting national quantum capability. Quantum leadership requires deep tech expertise, systems engineering, advanced manufacturing, and operational execution. Our team brings experienced leadership from organizations spanning quantum, space, semiconductors, national security, cloud infrastructure, and applied engineering.

This year, we are also expanding our development and manufacturing capabilities with three new quantum innovation centers in Colorado, Oxford, and Chicago. Putting my former investor hat on, I tend to evaluate technology companies through three lenses: technology, execution, and capital allocation. From a technology perspective, Infleqtion is differentiated by our neutral atom platform. Execution matters just as much. We are already moving beyond research into systems deployment across multiple markets, and I think we've highlighted several important proof points of that today. Finally, capital allocation. As a public company with a strong balance sheet, we intend to deploy capital strategically. Our one platform strategy makes Infleqtion significantly more capital efficient than companies pursuing narrower or more hardware-intensive approaches. We are building multiple commercial pathways at the same time. Deployments create customers. Software drives usage. Strategic programs advance technology, and partnerships expand the market.

That combination is what gives us confidence in the long-term opportunity ahead. With that, let me turn to our Q1 2026 results. Q1 was a strong start to the year for Infleqtion. We set a first quarter revenue record of $9.5 million, up 14% year-on-year, driven entirely by quantum solutions. Based on customer activity across the business, we are updating our 2026 revenue outlook to at least $40 million. That implies acceleration in revenue growth through the balance of the year. We are also reiterating our target of 30 logical qubits this year. Quantum sensing was a strong growth driver in the quarter. QGG was our largest individual revenue contributor, and Quantum Spectrum continued to gain traction. Given strong customer interest, we are accelerating investment in Quantum Spectrum trials, prototyping, and go-to-market.

We also continued to expand our position across software, computing, and AI through programs and partnerships with the U.S. Navy, U.S. Army, DARPA, ARPA-E, and others. We are entering the rest of 2026 with strong customer momentum, a strong balance sheet, and a platform that scales across multiple markets. We are confident in the opportunity ahead and excited about the year in front of us. With that, let me turn it over to Ilan to walk through the financials in more detail.

Thanks, Matt. Good afternoon, everyone. I will walk you through highlights of our GAAP and non-GAAP results for Q1 2026 compared with Q1 2025. As Matt noted, we delivered revenue of $9.5 million in Q1, 100% organic and entirely from quantum. Our business continues to be anchored by national security use cases, and year-over-year performance was driven by strong execution in QGG. Approximately 70% of Q1 2026 revenue came from the U.S. across all customer segments, similar to 2025 levels. Looking ahead, you should expect some variability in our geographic revenue mix from year to year as the number, size, and timing of program wins continue to evolve across geographies. Our GAAP loss from operations was $33.6 million in Q1 2026, compared with $6.9 million in Q1 2025.

The majority of the higher loss was driven by stock-based compensation, go public transaction expenses, and structurally higher operating expenses as we begin to increase investment in line with our strategy. Our Q1 2026 non-GAAP operating loss was $13.2 million, approximately $7.4 million higher than Q1 2025 loss of $5.8 million. We're executing against our plan and increasing investment in line with our strategy with non-GAAP operating expense growth year-over-year of $7 million. Cash used in operations was $19 million in Q1 2026, compared with $7 million the year-ago period. Of this $12 million increase in burn year-over-year, roughly $11 million is related to go public transaction expenses. CapEx in Q1 2026 remained relatively modest at a few hundred thousand dollars. We continue to expense R&D as incurred with no capitalization of R&D or development costs.

For 2026, we continue to expect our CapEx to rise modestly as we invest in new innovation centers and PP&E in U.S. and U.K. to scale our business. We exited Q1 2026 with $569 million in cash equivalents and available for sale securities with no debt. As of quarter end, Infleqtion had approximately 217 million shares outstanding, with substantially all shares being freely tradable following the satisfaction of the lockup release condition about a month ago.

Looking to 2026, we are maintaining our prior outlook of modest increase in cash burn from 2025 levels as customer activity give us more confidence to invest ahead of accelerating market momentum. We are deploying capital selectively and strategically across R&D and go-to-market with clear returns threshold and aligned to corporate objectives, partially offset by higher net interest income. Even with this step-up in spending, our cash burn remain low relative to peers. That concludes our prepared remarks. Operator, we will now open the line for questions.

Thank you. Our first question is from Atif Malik with Citigroup. Please proceed.

Hi, it's Adrienne for Atif. Thank you for the question. Your full year outlook for at least $40 million in sales and more than 20% growth year-over-year is pointing to an acceleration from Q1 levels. Just hoping you could give some insights about the customer pipeline or is there a pickup in pipeline conversion that's underpinning the guide, any comments about linearity over the balance of the year? Again, is this NASA QGG that's driving some of the optimism and the acceleration? Thank you.

Great. Well, thanks. Thanks for the question, Adrienne. We are seeing a pretty broad-based increase in demand and more gives us more confidence in our year ahead, which is why we deliberately changed to at least $40 million. Alon, what would you add to that?

Yeah, I think I could add. You know, we're seeing momentum across all our business line, and that's why we feel comfortable with our updated guidance.

Thank you.

Our next question is from Jesse Sobelson with BTIG. Please proceed.

Hi, everyone. Thanks for taking my questions. It's great to hear so much is going on. I think there's so many ways to go with questions, but I think maybe starting just with like the core computing roadmap here. You're targeting 30 logical qubits this year, stepping up to 100 in 2028, I noticed in the deck it says you're delivering ahead of plan. Can you update us on where you are today against the 30 target and what the gating milestones are between here and year-end?

Absolutely. Last year, we had in our previous roadmap a target of hitting eight logical qubits. In the end, we ended up hitting 12 logical qubits. That's where we've delivered ahead of roadmap. This year, we remain on track for achieving 30 logical qubits, which is, as a refresher, an important milestone towards the crown jewel of quantum computing. We think that arrives at 100 logical qubits, which we also remain on track for in year 2028.

What's driving this under the hood is what's been driving this all along, which is improvements in the number of underlying qubits or atoms, as well as the fidelities, and then importantly also the software stack, which is making those qubits even more productive and more useful for applications. There's the convergence of all three of these are happening at the same time and giving us a lot of enthusiasm for our roadmap execution.

Well, that's actually a perfect segue to just a quick follow-up here. You know, you're in DARPA's HARC program working on this cross-modality compilation. Multistack is built for heterogeneous systems from what it sounds like. Can you help us understand what multi-modality quantum computing actually looks like and how this positions Superstaq and Multistack as the commercial market for quantum computing develops?

Absolutely. I'll make a quick analogy to everyone's laptop or your phone. There's many ways that information is stored, sometimes stored with magnetic hard drives, sometimes stored with flash memory. Back in the day, it was stored with punch cards. Your computer or your phone is using software to orchestrate how do these different technologies for storing information or modalities come together and deliver a really good user experience. It's the same analogy for quantum computing. There's many different modalities out there. We feel incredibly upbeat about neutral atoms. In the long run, we think there's a place where all these modalities have a role, or at least many of them do.

We've positioned our software business to be able to benefit from all of these modalities, and that's why we're incredibly excited to be selected by DARPA for this HARC program for the software track. I will emphasize this is perhaps a little bit unusual that a company that's building a quantum computer or hardware system is also doing cross-modality software, and that's just, I think, a reflection of the validation we're seeing from DARPA and also our other customers across modalities in our software stack for delivering value out of every underlying hardware platform. Thanks.

Well, thanks for taking the questions here, guys, and congrats again on the progress.

Thanks, Jesse.

Our next question is from Richard Shannon with Craig-Hallum Capital Group. Please proceed.

Hi, everyone. This is Tyler Anderson on for Richard Shannon. I was wondering about the Quantum Spectrum. Is this separate from the SqyWire product, or is this an iteration? If it's an iteration, could you just discuss the enhancement of capabilities there?

Hey, Tyler. It is very, very similar to SqyWire. Really what I would classify this as is SqyWire being the early days of our Quantum RF products. As we broaden out what these technologies can do, we have created its own group inside the company, which we're calling Quantum Spectrum. I'd say, like, the new news is really just we've seen the demand really accelerate for these types of solutions, and we are, you know, we've validated the technical path and the customer need, and so we're moving much faster on prototypes, field trials, system hardening, productization, et cetera. This is really just the indication that we're putting our foot on the accelerator on Quantum Spectrum.

Okay. Could you just highlight what you did validate? Was this the work that you had done with L3Harris? Is that complete? You mentioned being able to tune continuously up to terahertz, and I was just looking online. It said about hundreds of gigahertz. Are you at the terahertz level yet? Either way, could you just describe the unlocks that you have at the terahertz levels? Thank you.

Pranav, you wanna take a crack at that, then I'll fill in?

Sure, yeah. The underlying technology has been demonstrated across a variety of frequencies, including up to terahertz. There's a paper I'm most familiar with, which I authored with my colleagues, called Deep Learning for Quantum, Low-Latency Quantum Radar Sensing, where we quote those terahertz numbers as well. What we're seeing is, as Matt referenced, an increase in demand and capabilities. Some of our demonstrations are in the classified world, we can't share all the details. In general, this paradigm decouples the wavelength or the frequency from the size of the antenna because for an atom, every wavelength is large. That's the gist of it. We have in the past announced results from NetModX, a U.S. Army event, and we'll continue to as appropriate and as our government partners and commercial partners enable us to announce more results when they come up.

Tyler, one thing I'd add is it is dynamically tunable from the hertz to, as Pranav mentioned, the terahertz frequency range. A lot of the use cases we're seeing demand for are actually at those much lower frequencies because one of the magical properties of Quantum Spectrum is that we have broken the correlation between the size of the antenna that you need to receive a given wavelength. Normally, you would need an absolutely massive antenna or multiple massive antennas to receive some of these very low frequency long wavelength signals that are quite ubiquitous in various forms of communication. What we are able to do with Quantum Spectrum is to receive those with the same atoms that we would receive, you know, the terahertz frequencies at.

We can have much, much smaller form factors that can be field deployable and less detectable than classical technologies would have allowed. On top of all of that, these don't emit anything, so they are undetectable as well. Those are maybe a couple of seeds to plant as to where some of the interesting use cases are popping up.

I'll just add one last piece, which is there's fascinating work on this Quantum RF device. Technology underlying this has been used for imaging chocolate to figure out defects in chocolate, and that was at the terahertz regime. I'll double-click on what Matt said, which is the big business we're seeing is in this low frequency domain, not to discount that it can also go up to terahertz.

Stay tuned for our quantum chocolate product launch.

Thank you, guys. I appreciate the color on that.

As a reminder to star one on your telephone keypad if you would like to ask a question. Our next question is from Kingsley Crane with Canaccord Genuity. Please proceed.

Hi. Thanks for taking the question. I think just one from me.

Hey, Crane.

Hey. Good to see you, Matt. This NVIDIA, I think, announcement, I think it helps validate the sector. It certainly helped lift some of the equities in the sector. Just curious on your thoughts on the announcement, trying to separate hype from reality. I know that you've announced the adoption of the Ising AI models for your own products, just curious on the depth of that relationship, if there's anything more to know about, any more technical integrations or maybe co-marketing within that. Thanks.

Pranav, why don't you take it, and I'll jump in after you.

Yeah. I'll iterate that NVIDIA continues to be one of our strongest collaborators, indeed with the launch of the Ising AI models. There are two models involved. One was for using AI to improve the calibration of our quantum computer, so it can have better performance, better uptime. The second was using it for a problem called decoding, which is basically how do we get our logical qubits to act more effectively, take the errors out of the system, pump them out effectively. In both cases, I think this is an important turning point where we're seeing how the same AI revolution that is powering all of our daily lives with ChatGPT and Claude is also helping massive scientific progress, things that in quantum computing used to be daunting five years ago are now as easy as press the model.

Of course, there's a lot of hard work that goes into fine-tuning these models, customizing them for our specific system, and we've taken the stance that we're going to be leaders at the forefront of adopting AI to accelerate our quantum path. I think that's what this announcement for us reflects, which is the AI-led workflows we're embracing. We were delighted to be the only neutral atom company and one of two companies total that was an adopter of both of the Ising AI models as announced by NVIDIA. We released a blog post with many details. In general, I'll echo that NVIDIA continues to be a very strong partner to us, and we see many, many more opportunities for collaboration with them in the coming months and years.

Well said. Really helpful. Thank you.

Our next question is from John McPeake with Rosenblatt Securities. Please proceed.

Thank you. nice job on the quarter, team.

Thanks, John.

about quantum. Matt, good job. Quantum Spectrum is a pretty compelling solution. Curious what it would take to move that into the commercial space, price points, features, things along those lines that might get it into aviation, commercial aviation. I don't know what the timeline might look like for getting this technology into commercial.

I'll kick that off, John, and then I'll ask Pranav to chime in. It will depend on the type of application that this might be pointed to in the commercial world and really the profitability and the, I guess, the how deep the pockets are of the folks who are going to deploy this. Let me give you a couple examples of what I mean there. For a very long time, high-speed traders have been utilizing ultra-low frequency long wavelength signals to route trades at the speed of light. If you were to just send them through the fiber optic networks, it would get there at something around maybe 0.6x the speed of light because of all the turns and twists it needs to make.

If you wanted to get that trade directly, you can bounce it off the ionosphere and receive it. Now, as I was saying during Tyler's question, that would have required very, very, very large antennas because of the wavelength being very large. It's very hard to put huge antennas co-located with exchanges. That normally means they would need to be a very, tens, if not hundreds of miles away, and these are very large, expensive, antennas. Those, you could imagine, those types of companies would fall into the highly profitable, willing to pay a lot for a solution. You could imagine having that deployed sooner rather than later because the alternative is very expensive and the ability to earn a return on this investment is high for the customer.

That would be an example of a potential customer who would be more near term, where we could do it at a pretty darn high price point, before we, you know, master the integrations and ramp up volume to drive down the price. Pranav, you wanna expand on that or talk about other types of commercial use cases that might be further off that would be, you know, at lower price points?

I'll add a quick link to the previous question and note that Quantum Spectrum is another area where we're seeing massive acceleration thanks to AI-led workflows and modeling and simulation with high-performance computing GPU technology. A lot of what we would have had to do in the past to commercialize via many, many field tests, that's not going away, but a lot of it can be done in silico on computing instead of out in the field. That's been one of the drivers towards getting product out to field faster. Matt referenced one of the most exciting use cases, which is for high-frequency trading. In general, there's a phenomenal amount of the spectrum out there electromagnetically, which has historically not been accessible because you'd need such a large antenna.

We think there's a wide market opportunity to rethink how all communication can happen now that there's easier access to spectrum that used to require gigantic antenna. HFT, we think, is just the tip of the iceberg.

Fascinating. Thank you.

Thank you, John.

Our next question is from Quinn Bolton with Needham & Company. Please proceed.

Hey, guys. I was gonna sort of ask a question John just asked. It sounds like the low frequency, obviously it seems like lots of communications opportunities and, you know, kind of military or government applications. I guess, you know, as you look forward for the next few years, I assume it is gonna be mostly government-related for the Quantum Spectrum, or do you see some of the applications like that High Frequency Trading on the commercial side ramping in that timeframe?

I'll take a crack, then Pranav, you can fill in. Quinn, I think we'll probably see. Let's put it this way. Our furthest along engagements, where we're already monetizing today are indeed in the national security world, whether here or in the U.K. or in Australia. I do think it's probably a safe bet that we'll see that side of the business start to spike, well it already is. I think, you know, I wouldn't be shocked if we saw some activity, especially in kind of the couple year timeframe you're mentioning, where we'll start to see some real commercial developments.

Again, I wouldn't be shocked if it was in and around that high-speed trading world, but I don't know that for sure. You are correct that there are many applications where just that ability to shrink the form factor of the antenna of the receiver becomes very, very interesting. You then layer on the fact that this emits no signal becomes even more interesting. Then finally, it's not just for communications. You can do all sorts of sensing applications, direction finding, etcetera, with these this technology as well. Pranav?

I could just bolster that with three examples. One is, again, at the low frequencies, there's interest in applying this technology to ground-penetrating radar. Think of resource exploration and mining companies that want effectively the Google Maps for underground. Having a small antenna effectively that can image very low frequencies that can penetrate the ground is an incredibly exciting capability. Another at the higher frequencies, I kind of referenced tongue-in-cheek, but it's actually quite serious. The using Quantum RF and Quantum Spectrum in the terahertz regime is good for defect detection of chips and chocolates, etcetera. Finally, again, sticking at that high frequency domain, there's biological applications that are exciting. There's something called the terahertz gap, which is the part of biology where it's been extremely hard to perform imaging, perform diagnostics for cells, for bioreactors, etcetera.

This technology could be a part of the solution that helps humanity image and operate at those frequencies that have traditionally been hard to access. Those are all extremely commercial applications. Of course, they're balanced by the strong demand that we see with government customers as well.

Thanks. Got it. Thanks for that additional detail.

I just want to make sure it's clear, Quinn, when we say big antennas, these are, you know, the, you know, potentially meters and at the extreme, you know, tens to hundreds of meters long, just to put it in perspective. To receive the ultra-low frequency signals, the only signals that can penetrate saltwater, submarines have to dangle nearly a 1 km-long antenna off the back of them. This would again, allow you to shrink that to something significantly smaller. These are not like small changes in form factor. They're game-changing changes in form factor.

Our next question is from Antoine Legault with Wedbush Securities. Please proceed.

Well, thanks for taking my question. Just wanted to go over the fact, you know, you're clearly one of very few quantum companies with, you know, full product platform, you know, spanning computing, sensing, software. You know, are you seeing that translate into cross-sell opportunities in practice? You know, for example, a defense customer who came in through Tiqker or Quantum Spectrum now evaluating Sqale or Superstaq or vice versa. Can you give us some examples maybe of a cross-portfolio engagement that you're seeing or that you expect to see more of in the near term? Thank you.

Thanks for that question, Antoine. The answer is yes, absolutely. Whether it is, you know, someone leading with Tiqker or even Quantum software, what we see is that allows us to wedge ourself into a door and then expand into whether it is Quantum RF or in some cases quantum computing. I've mentioned in my prepared remarks that we have had a business where we sell quantum cores to other either quantum or neutral atom companies or academic institutes or even to folks in the national security arena. The quantum core business can act as a great foot in the door as well.

We have a number of these products that are a lower price point, call it perhaps, easier to adopt, that can be our way in, and then we can expand from there. So, yeah, I think it's a very good question and a good point. Pranav, what would you add to that?

I'll point to customers in position, navigation, timing as an exemplar here, where, for instance, for good PNT, you need certainly a really good clock. That's what Tiqker provides the T in PNT. Those customers also need a way to receive that time signal, and Quantum Spectrum allows them to receive that time signal, other signals across the entire electromagnetic spectrum. Our inertial sensor technology that we're building, including the gravity sensor that we've launched with NASA or launching with NASA, also enables us to have what's called dead reckoning navigation. Finally, we, for instance, announced just last month our new contract for our Contextual Machine Learning with the U.S. Navy for performing analysis of long sensor data streams.

That's an example where in a specific customer, market, there's enormous drag-through and pull-through of our other products when the first one gets in the door. The last note that I'd add is we're also seeing some really interesting bundling opportunities where, for instance, our Quantum Spectrum devices or quantum computing devices benefit tremendously from having a Tiqker clock installed within them to allow the lasers that are inside to operate more effectively via something called laser locking. This is yet another pull-through where literally our products are starting to build on top of each other, which for us is obviously quite compelling.

If you think about Golden Dome as maybe an example of where a big swath of our products could be deployed, you could think about quantum computing being there to help calculate the trajectories of projectiles coming at the United States, quantum sensing to be deployed in probably the form of QRF to actually pick up the frequencies that are being emitted by the hypersonic missiles or drone swarms, finally, Tiqker to synchronize the whole operation because it all needs to be in picosecond-level synchronization. As Pranav said, these technologies all work very closely together and in many ways are enabling technologies for each other.

Great. Thank you for the additional color here. Super helpful. Thank you.

Thanks, Antoine.

There are no further questions at this time. I would like to hand the conference back over to Matt for closing remarks.

Well, thank you everybody so much for joining us. As I said at the beginning of the call, we so appreciate your support. I'm really excited to continue to work with all of you over, you know, the coming years. Q1 was a strong quarter for the company and for Quantum in general. We're excited about the year ahead. We look forward to talking to you all again in August. We remain committed to disciplined investment, customer and program expansion, and continued technical leadership across computing, sensing, and software. Have a great rest of your night, everybody.

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.

Good afternoon, and welcome to Infleqtion's full year 2025 financial results and business update conference call. All participants will be in a listen-only mode. After prepared remarks and presentation, there will be a question-and-answer session. Please note this event is being recorded. I would now like to turn the conference call over to Marcus Kupferschmit, Head of Investor Relations and Strategic Finance. Please go ahead.

Good afternoon, and welcome to Infleqtion's full year 2025 fiscal results and business update conference call. Thank you for joining us today. My name is Marcus Kupferschmit, Head of Investor Relations and Strategic Finance. Before we begin, I would like to remind you that this conference call may include forward-looking statements. These statements are subject to various risks, uncertainties, and assumptions that could cause actual results to differ materially. These factors are detailed in our Form 8-K and other filings with the SEC, 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, Ilan Hart, our Chief Financial Officer, and Pranav Gokhale, our Chief Technology Officer and General Manager of our Quantum Computing business. Following our prepared remarks, we will open the call for questions. As a reminder, a replay of this call will be posted on our IR website along with our Form 8-K and presentation materials. With that, I'll turn the call over to Matt Kinsella, our Chief Executive Officer.

Thank you, Marcus, and good afternoon, everyone. Thanks very much for joining us for Infleqtion's first business update as a public company. We appreciate your time today and your interest in Infleqtion. We're excited to work with all of you over the coming years and hopefully decades to continue building a deeper understanding of Infleqtion, our platform, and the opportunity ahead. Today, we'll have a slightly different agenda than a typical earnings call. Since we're new to the public markets, I think it will be beneficial to spend a little time describing Infleqtion's strategy, our technology, and our business model. With that in mind, we'll spend maybe the first 15 minutes or so giving an overview of Infleqtion, and then we'll move to a walkthrough of our 2025 financials. We'll provide 2026 guidance and open it up for questions. One quick public service announcement.

For those who did not join our March 11th inaugural Analyst Day, I'd highly recommend you watch it and use it as a resource going forward. A recording can be found in the investor section of our website. With that said, Infleqtion is a quantum technology company with a very differentiated approach. From day one, we have been building a broad platform across computing, sensing, and timing, all tied together with software. This approach is possible because our underlying quantum modality, neutral atoms, is highly flexible. Everything we do is done at room temperature, allowing us to build a range of products that can be deployed in real-world settings.

We have followed a tried and true strategy of commercialization and market adoption by pointing this powerful neutral atom core at markets like timekeeping and sensing, where we have true quantum advantage today, monetizing there, and all the while building toward the crown jewel, fault-tolerant, gate-based quantum computing with true commercial advantage. In many ways, we're following in the footsteps of NVIDIA. Just like they pointed their core GPU at the gaming, the crypto mining markets, the physics markets, while building towards their crown jewel of large language models and AI, we're pointing our powerful neutral atom core at near-term markets like timekeeping and sensing while building toward fault-tolerant quantum computing. Excitingly, neutral atoms are leading the way on most of the metrics that matter to get to commercially useful quantum computers, and the timelines are shrinking.

Critical to our strategy is that the underlying components, the physics, photonics, engineering, and software, are all the same across our products. That gives us a highly leveraged and efficient operating model. It truly is a platform. The Infleqtion advantage starts with our technology and our team. We're the first mover in this Nobel Prize-winning neutral atom technology with our founder, Dana Anderson, helping to pioneer it at CU Boulder over the last 40 years. We also have a world-class quantum team across four countries with more than 160 PhD physicists and engineers, over 235 patents issued and pending, hundreds of customers, hundreds of sensors and cores deployed in the field, and several quantum computers sold and deployed. There is a lot to like about neutral atoms. They offer a differentiated and compelling combination of advantages. I like to say that atoms are nature's perfect qubits.

They're inherently identical, they operate at room temperature, and they deliver long coherence times, precise control, and native all-to-all connectivity with a clear and credible path to Sqale. Importantly, atoms are not just exceptional qubits. They're also nature's perfect sensors and nature's perfect clocks. That dual capability is fundamental to our strategy. As highlighted on the bottom row, we believe neutral atoms are the only commercially viable modality that can address both quantum computing and the broad sensing market, full stop. What that means in practice is we can build a single scalable platform that serves both computing and sensing applications. That platform leverage drives a more efficient capital model, faster iteration across products, and a broader set of end markets from the same core technology. We believe that combination of platform leverage, capital efficiency, and multi-market applicability is what makes neutral atoms not just scientifically compelling, but commercially advantaged.

At the center of everything we do is a single neutral atom quantum core, powered by lasers that underpins both our computing and sensing products. That matters because we're not building separate systems for separate markets. We're building one scalable platform that can address multiple large adjacent opportunities. In quantum computing, the goal is clear: unlock capabilities beyond classical systems, solving problems that CPUs and GPUs simply cannot. Based on estimates from McKinsey, this is a $130 billion market by 2040. Pranav will go deeper on computing, but the key point is that this is not just a better product, it's an entirely new paradigm. On the sensing side, the model is more straightforward. It's largely a replacement cycle. We're delivering step function improvements in precision and resilience, in many cases 10x-1,000x better than existing systems.

That enables us to address real, urgent needs today, from GPS-denied navigation to contested RF environments across defense, commercial, and space. McKinsey estimates the sensing market at $30 billion by 2040. Given the performance delta and the replacement dynamic, we believe the opportunity could be meaningfully larger. Stepping back, I want you to remember one core underlying technology platform, multiple large markets. Now let's get down to the product level. Our platform gives us powerful leverage. One neutral atom foundation and one software layer support multiple technologies across computing and sensing, with products tailored to use cases from timing and radio frequency to inertial sensing and quantum computing. Together, this allows us to deliver orders of magnitude improvement where classical systems fall short while giving customers a path to start with one capability and expand to others over time.

Importantly, there is a high degree of integration across all our products. The core operating functions of our sensing system directly inform and support our computing roadmap, creating meaningful technical and development synergies across our product suite. We cover this all in detail at our Analyst Day for those interested in going deeper. Logical qubits are the key to the kingdom in quantum computing and the clearest measure of the industry's path to quantum advantage. They are what move the industry towards reliable, scalable systems that can solve commercially meaningful problems. No one on the planet publicly demonstrated logical qubits until 2023. Infleqtion delivered 2 logical qubits in 2024, 12 logical qubits in 2025. We are on track to deliver 30 in 2026 and 100 in 2028. For those of you new to quantum, the CTO portion of our March Analyst Day provides a very succinct overview of logical qubits.

While logical qubits remain our key milestone in computing, our sensing business is already demonstrating the real-world advantages of quantum today. Our quantum sensing technologies are finding product-market fit across a range of use cases, especially in environments where classical infrastructure is vulnerable, unavailable, or has reached its performance limits. What quantum brings to these applications is a step change in precision, and in many of these environments, better precision translates directly into better performance, better resilience, and better outcomes. Across timing, quantum RF, and inertial sensing, we are seeing demand in mission-critical environments where precision and resilience matter most. We recently announced a game-changing partnership with Safran, a global leader in timing, navigation, and defense technology, with the availability of a quantum-enabled precision timing solution that integrates our tiqker optical atomic clock with Safran's White Rabbit and SecureSync systems.

We believe this is the first partnership of its kind anywhere, combining quantum precision with proven mission-critical timing infrastructure in a deployable offering. That's an important proof point that our sensing platform is technically differentiated and increasingly in demand. Customer and partner validation are among the strongest signals of progress in the business. We have already delivered and sold two quantum computers, including the first system installed and operational at the U.K. National Quantum Computing Center and a 500-qubit system delivered in Japan to the Institute for Molecular Science. We are also expanding through partnerships such as our work with the Illinois Quantum & Microelectronics Park. We continue to expand our footprint in space and government programs with our technology operating on the International Space Station since 2018 and NASA selecting Infleqtion to develop the quantum core for the Quantum Gravity Gradiometer, or QGG, Pathfinder mission.

We believe the breadth and scope of these field deployments are a substantial competitive advantage, and that our proven ability to deploy systems in real-world environments is becoming an increasingly important differentiator as the market accelerates across a wide range of use cases. Infleqtion is the only quantum company to bring a single quantum platform to operate across sea, sky, land, and space. Our cold atom sensor technology is already on the International Space Station, and the next Cold Atom Lab upgrade is on its way there this week. We are also seeing that platform extend into maritime environments, including our recent Royal Navy Excalibur trial, where Tiqker was deployed on an underwater autonomous vehicle to support GPS-free navigation.

With that broader platform context complete, I'd like to turn this over to our Chief Technology Officer and General Manager of our quantum computing business, Pranav Gokhale, to share an update on our quantum computing platform.

Thanks, Matt. We made strong competing progress in 2025, in the first few months of 2026, and we remain on track toward our key milestone of 100 logical qubits in 2028. We are very proud of the milestones we've published. Record commercial neutral atom gate fidelity, the first ever material science application powered by logical qubits, and the world's first execution of Shor's algorithm for decryption using logical qubits, which helps inform enterprise on the urgency of transition to quantum safe encryption. Our work reflects the deep technical progress required to turn fault-tolerant quantum computing from aspiration into demonstrated capability. The recent attention generated across our field only reinforces why we are investing so deeply in this work.

In March, we took our prior 12 logical qubit work to the next level of sophistication by executing a biomarker discovery application on our Sqale quantum computer for our Wellcome Leap Q4Bio customer. Importantly, this work highlights the hybrid interplay between GPU and QPU, where the GPU can serve as a training engine for new AI models, and the QPU can serve as the inference engine, much as we are seeing specialized training and inference chips emerge in classical AI. We were also pleased to be featured at NVIDIA's GTC conference last month, where NVIDIA's booth showcased Infleqtion Sqale quantum computing hardware and our approach to hybrid quantum classical computing using NVQLink. Within our software team, we are gaining experience in bolstering market credibility through customer engagements across both quantum and classical domains, with important use cases including AI for sensor data fusion and RF spectrum awareness.

Our IP portfolio continues to grow, including new proprietary methods that translate into differentiated system performance. Our March 2026 paper on dual-species gates demonstrates one example of that work. More broadly, these advances are helping us improve system performance and move towards faster time-to-solution for end customers. We do not think about quantum in isolation. We see a broad horizon of computing use cases, and we prioritize hybrid workflows where CPUs, GPUs, and QPUs work together to overcome bottlenecks in runtime and energy for important applications. CPUs and GPUs have already transformed what is possible in computing, and we believe QPUs can extend that curve by unlocking classes of problems that classical systems cannot solve efficiently alone. This is especially important in areas like chemistry, materials, and security, where hybrid architectures can open up important new classes of applications.

As you may have seen in the news recently, the potential of quantum computing in areas like security and decryption continues to advance as qubit requirements keep coming down. More broadly, we believe the entire field is pulling in the timeline for important applications, and that is another example of how hybrid quantum classical architectures can expand what is computationally powerful and possible over time. One such application area is artificial intelligence. While AI is a revolutionary technology, it is also exposing the limits of current compute. We see bottlenecks in memory, in the quality of training data, and in the ability of today's models to fully capture physical dynamics. We believe quantum can help address these gaps at multiple levels through quantum-inspired techniques that can improve workflows today, quantum sensors that can generate higher quality training data, and ultimately, QPUs that can enable new classes of physically accurate applications.

Let me now turn to our quantum computing roadmap, which we first introduced in early 2024. We delivered 2 logical qubits in 2024 and 12 logical qubits in 2025, ahead of schedule. We remain on track to deliver 30 logical qubits in 2026 and 100 logical qubits in 2028. We believe 100 logical qubits is the point at which quantum begins to unlock transformative applications in areas like material science and AI. We do not believe the quantum advantage path is hardware alone. We believe it requires hardware-software co-design, and this is where Superstaq comes in. Superstaq helps customers unlock value across CPUs, GPUs, and QPUs while enabling us to deliver value today as we build toward long-term quantum advantage. Our computing platform is already reaching customers through deployed systems and cloud access.

That includes operational deployments in the U.K. and Japan, a planned 50+ logical qubit system with the Illinois Quantum & Microelectronics Park, and broader access to Sqale through Superstaq and CUDA-Q. Infleqtion is delivering value today while building toward fault-tolerant quantum applications. We expect the first of those applications to emerge in material science around the end of the decade, and then broaden into other high-value computational domains. Let me share a strong example of how our hybrid and quantum-inspired work is already being applied to real customer problems. For the U.S. Army, we are working on a program called SAPIENT, or Secured AI for Positioning at the Edge, Navigation, and Timing, focused on resilient edge AI navigation and timing in adversarial environments. We are seeing a real increase in GPS denial across both civilian and military environments, making resilient PNT much more important.

The key point is that insights from our quantum computing work can already be applied on edge GPU platforms today, delivering strong performance in GPS-denied environments. With that, I will now turn this back to Matt.

Thanks, Pranav. A recent example that brings together the breadth of our platform is Golden Dome, where Infleqtion was selected as one of only a few quantum technology companies eligible to compete for work under the Missile Defense Agency's SHIELD program. SHIELD is an IDIQ, or an indefinite delivery/indefinite quantity contract vehicle with targeted spend up to $151 billion. Our proposed solution reflects multiple parts of our platform applied to a mission-critical defense problem, including Tiqker for enhanced radar capabilities, distributed timing in GPS-denied environments, and extreme precision in synchronization across the entire system. QRF for hypersonic threat detection, and contextual machine learning and quantum computing for predictive threat tracking and decision-making.

In a Golden Dome style missile defense architecture, picosecond-level synchronization is critical because distributed sensing and fire control nodes must calculate the speed and trajectory of hypersonic threats with extreme precision to support coordinated detection, tracking, and intercept decisions, and that is not something legacy timing solutions can reliably provide. We believe this highlights the growing applicability of quantum technologies to mission-critical national security threats. Space remains a particularly important market for us and a major area of growth. Infleqtion has partnered with NASA for over a decade and first put our quantum technology in space on the ISS back in 2018. That deep foundation and history helped lead to our selection by NASA's Jet Propulsion Laboratory to develop the quantum core for the Quantum Gravity Gradiometer Pathfinder mission.

This mission will place the world's first quantum gravity sensor in space to measure changes in Earth's gravitational field with high precision, allowing for the detection of important activity on or below the Earth's surface. More broadly, we see space as a particularly strong application area for quantum sensing and mission-critical infrastructure. The U.K. is emerging as one of the most important quantum markets globally with a commitment of up to GBP 2 billion. We discussed our history in the U.K. at length at our Analyst Day. To recap, we have been in the U.K. for more than a decade, winning and delivering contracts across sensing and computing. We believe that track record positions Infleqtion well in the U.K. as we continue to grow our presence in Oxford and support the country's long-term quantum ambitions.

On the computing side, the U.K.'s ProQure initiative is intended to support large-scale quantum computer deployment in the early 2030s. On the sensing side, the U.K. Has committed more than GBP 400 million to sensing, navigation, and enabling capabilities. Taken together, we believe this positions Infleqtion well across two of the U.K.'s highest priority quantum domains, quantum computing and quantum sensing. Now putting my former investor hat on, I tend to evaluate technology companies through three lenses: technology, execution, and capital. We believe today's presentation has shown both the strength of our technology and our ability to execute. On the financing side, two months ago, we listed on the New York Stock Exchange and raised $516 million in net proceeds with virtually no redemptions. We believe that result reflected strong confidence from the investment community. We also recognize that confidence comes with great responsibility.

We intend to be disciplined in how we deploy capital to maintain a high degree of financial control and bring rigor to commercialization through clear metrics, operating cadence, and an ROI-driven mindset. Across the business, our core platform is already gaining traction in multiple markets. We are one of the few companies in the industry with quantum computing, sensing, and software capabilities, all built on a deeply integrated and capital-efficient neutral atom platform. Now, before I turn it over to Ilan to flesh out 2025 financials in detail, I'm going to touch on 2025 at a high level. 2025 was a pivotal year for Infleqtion, and we strengthened the business materially. We won important new programs, expanded key customer and partner relationships, reduced operating loss, improved operating cash performance, and strengthened the balance sheet.

We exited 2025 in a strong position operationally and financially, even before our transition to a public company in early 2026. Revenue in 2025 was $32.5 million, driven by new program awards and growing customer demand. Importantly, all of our revenue was organic and generated by our quantum business. We secured several important new contracts, including NASA's QGG Pathfinder program and ARPA-E's first contract for power grid optimization through quantum computing, while beginning to fulfill the Department of War procurement contract for precise timing. We continued to expand relationships with strategic partners such as NVIDIA, SAIC, and Safran. With that, I'll turn it over to Ilan to take you through the 2025 financials in more detail.

Thanks, Matt, and good afternoon, everyone. I will now walk you through highlights of our GAAP and non-GAAP results for 2025 compared with 2024. As Matt noted, we delivered revenue of $32.5 million in 2025, 100% organic and entirely from quantum. Our business continued to be anchored by national security use cases. Approximately 70% of 2025 revenue came from the U.S., 13% from the U.K., 11% from APAC, and 4% from the rest of the world. Year-over-year performance was driven by strong execution across key U.S. programs. Looking ahead, you should expect some variability in our geographic revenue mix from year to year as the number, size, and timing of program wins continue to evolve across geographies. Our GAAP loss from operations narrowed to $35.3 million in 2025, compared with $53 million in 2024.

On a non-GAAP basis, operating loss improved to $28.1 million in 2025, compared with $35.7 million in 2024. Our 2025 non-GAAP results exclude stock-based compensation of $3.1 million and a one-time non-cash accrual of $4.1 million related to contingent payout from a 2024 acquisition. Our 2024 non-GAAP results exclude stock-based compensation of $3.7 million and a one-time impairment of assets and goodwill of $13.5 million. The improvement in non-GAAP operating loss reflects higher revenue and improved operating leverage. Cash burn was approximately $36 million in 2025. Net cash used in operating activities was $24.1 million in 2025, compared with $32.5 million in 2024, representing an improvement of $8.4 million year-over-year. Capital expenditure in 2025 remained relatively modest, at a few million U.S. dollars. We continue to expense R&D as incurred, with no capitalization of R&D or development costs.

We exited 2025 with $63 million of cash and cash equivalents and no debt. Including net proceeds from the February 2026 financings, we have a pro forma cash balance in excess of $550 million. Looking to 2026, we expect a modest increase in cash burn from 2025 levels as market signals give us more confidence to invest ahead of accelerating market momentum. We're deploying capital selectively and strategically across R&D and go-to-market with clear return thresholds and specific objectives, partially offset by higher net interest income. Even with this step-up in spending, our cash burn remains low relative to peers. I will now turn the call back to Matt.

Thanks, Ilan, and with that, let's turn to guidance. For 2026, we are guiding to revenue of approximately $40 million. That outlook reflects continued momentum across the business, building on the programs and partnerships we established in 2025. As Pranav noted earlier, we remain on track to deliver 30 logical qubits in 2026. We view that milestone as an important indicator of our technical progress. Infleqtion is entering 2026 as a stronger company with a differentiated platform across computing and sensing, growing customer traction, and a much deeper capital base to support execution. With that, we will open up the line for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question comes from the line of Tyler Anderson with Craig-Hallum. Please proceed.

Hi, guys. Thanks for taking my questions. First and foremost, I was wondering, what is the first thing that a quantum computing IT person asks you when you're having issues with your quantum computer?

Oh boy, I don't know, Tyler. What is it?

Have you tried turning it off and on at the same time? Back to the real questions. Within the sales guidance for 2026, how should we think about the balance between products and service revenues and the gross margin, either from that perspective or overall for 2026?

The way I would take that, Tyler, is I wouldn't focus too much on the product versus services split. That's really more of an accounting standard. I don't really look at the business that way. There's all sorts of intricacies on how you classify one thing versus the other. I would just think of it as revenue going forward, and I'm not trying to pump the question, it's just actually how I think about the business. I wouldn't say there's much gross margin differential between the way those two things are classified. I would think about looking at our historical gross margins and probably think about them in the ballpark going forward. Ilan, would you add anything to that?

Yeah. All I can say, thanks, Matt, is that if you think about our long-term business model, you think about that we believe that it's really best-in-class semiconductor gross margin. That's what you need to think about long-term. As mentioned, in the short term, it's going to be based on historical gross margins.

Okay, thank you. Is there any cadence to this revenue or seasonality?

I would say that it's more about, in our businesses, is how we win contracts with both government and commercial. You might see some variability quarter-over-quarter, but we don't have the seasonality like a traditional semiconductor business at this point.

Yeah, I wouldn't think about too much seasonality. I'd think relatively even across quarters, Tyler.

Okay. Thank you.

Absolutely. Thanks for the questions.

Thank you. Our next question comes from the line of Jesse Sobelson with BTIG. Please proceed.

Hey, everyone. Thanks for taking our questions here. Just following up on this $40 million guide here. I know you just mentioned not splitting between services and product, but maybe could we ask how much is expected from the sensing business versus computing, or potentially how much comes from software versus hardware?

I can give you a couple nuggets to maybe help you think about that one. Historically, call it 2/3 of our revenue has come from sensing, 1/3 from computing, roughly. I'd anticipate it to look probably reasonably similar to that going forward with some pretty wide error bars, especially around computing, because those can be lumpy when you land a computing sale. I think for the near term, though, you should think about it being roughly in that range with computing sometimes flexing up to more, depending on if we sold a quantum computer or multiple quantum computers. As we get closer and closer to commercial advantage with computing, I believe you'll see the mix shift to compute being the majority and possibly the super majority.

Okay, great. A quick follow-up here, or maybe not so quick. What do you make of the recent Google and Oratomic work suggesting lower resource requirements for breaking ECC, and potentially a faster path for arriving at Q-Day? Have you seen this change how customers are thinking about the urgency of adopting quantum computing and migrating to a post-quantum encryption protocol?

Pranav, why don't you take a crack? I've got a couple thoughts, too.

Sure. We are excited about these developments. We think they reinforce the promise of neutral atoms. I say this from personal background to having done a lot of my PhD work in superconducting qubits and now having shifted into neutral atom qubits. We celebrate Google doing, in many ways, the same, and we feel very strong and committed about the pathway for neutral atoms. With Shor's algorithm for decryption in particular, we put out a paper in September 2025, which is under review for publication right now, and it showed the first-ever demonstration of Shor's algorithm with logical qubits. We have been raising the alarm bell that there is urgency of migration, that this technology is coming very fast, and we've been working with enterprise to make sure that they're prepared for this migration to post-quantum cryptography.

With this Shor's algorithm piece, I think there's a changing evolution of how fast it's approaching, and it is one-to-one connected with the progress of neutral atom quantum computing, in our view.

The only thing I'd add is just, I've said this before, but looking back on when I first invested in Infleqtion and comparing that to today, and that was back in 2018, it's just been astounding the progress that neutral atoms have made on the quantum computing front. I think Google starting to work in neutral atoms and the Oratomic paper being on neutral atoms as well are two proof points to that. Then I'll just reiterate what Pranav said, that we showcased Shor's algorithm on logical qubits last year, and the number of logical qubits needed to run Shor's algorithm are getting smaller and smaller and smaller. If you look back a couple years ago, it was without millions of logical qubits, so it's come down by orders of magnitude. Q-Day is getting closer.

Great. Thanks, guys. I will jump back in queue.

Thanks, Jesse.

Thank you. Our next question comes from the line of Antoine Legault with Wedbush Securities. Please proceed.

Thanks, everyone, and thanks for taking my question. Just, Ilan, clearly on your presentation earlier, much lower cash burn than peers. Is there an opportunity to maybe step up R&D spend or sales and marketing, particularly now that you're a public company? Maybe tell us a bit more about your disciplined approach to OpEx or, maybe put differently, are you able to do more with less?

As we mentioned earlier, both in the Analyst Day and our remark, we intend to increase our investment modestly this year and really look at the momentum in the market. Yes, we are going to continue to invest in R&D, in CapEx, in those areas where it's going to advance our technology and give us competitive advantage. That has been our philosophy. We continue to be disciplined with some clear KPIs, but we do intend to increase our cash burn this year.

Antoine, what I'd add to that is just, the biggest takeaway is we're not going to make any decisions without really running the numbers to make sure we see a great return on those investments. It is highly possible we'll see that be the case. We've left the investment somewhat non-specific for a reason, because we might see those opportunities to invest more aggressively. At the highest level, R&D is going to drive both our creation of high-quality logical qubits on the computing side, and then also the shrinking and costing down of our sensing products to get them out into the field in greater numbers. We'll be very focused on doing both of those things. We do have inherent advantages. The neutral atom modality is just capital efficient to begin with because we're working with atoms.

They're given to us effectively for free from nature. We understand that investment's going to drive our forward progress. We will be disciplined as we make those decisions.

Understood. Last one from me. Matt, you've talked about sort of an upcoming radar upgrade cycle. Have the recent geopolitical events accelerated any of those discussions that you might have been having with customers, or are you seeing kind of an increase in interest for your products?

The way I would answer that question is the events from the geopolitical perspective have definitely increased the awareness of a need for quantum's capabilities as it relates to those types of equipment like radar. A great example is traditional radar emits a signal, and so therefore it can be detected. If you were utilizing quantum RF, it could be receiving signals without emitting, and therefore not be detected. There's already been a lot of conversations going on about this, Antoine, and so I do think it's raised things and accelerated them a bit, but honestly, we've been having these conversations for a long time about this type of stuff. Pranav, would you add anything to that?

Yeah, I think I covered it.

Thank you. Appreciate it.

Thank you. Our next question comes from the line of Atif Malik with Citi. Please proceed.

Hi, thank you for taking my questions, and thank you for doing this update. Just have a question on the customer pipeline. If you can talk about the mix of that pipeline between compute and sensing, and also if there is some sort of a pointer you can give on the annual conversion of that $300 million+ customer pipeline you talked about at your Investor Day, given the mix of several government and university multiyear contracts?

Ilan, you want to take a crack?

Yeah. I would say, as Matt mentioned before, we expect the majority of our revenue and booking to come from sensing, at least this year. Matt mentioned 2/3, 1/3 has continued to be the trend. That's until we reach the point that Pranav mentioned in 2028, we'll reach 100 logical qubits. That's the point that you'll start to see a significant shift toward a compute revenue versus sensing. That's how you need to think about our business between the next two, three years between sensing and compute.

If I just try to isolate that into the pipeline, I'd say the pipeline probably is actually maybe even a little more skewed to compute, only because they are very large numbers. A compute sale could be tens and tens of millions of dollars, and so to the extent that there's some of those in the pipeline, that does skew it to compute. I still think it's roughly in the 2/3, 1/3 bucket, so the pipeline roughly tracks our bookings and revenues as well. In terms of conversion, there's all sorts of lengths of contracts in that pipeline, and so it's hard to really infer what the conversion rate of that pipeline would be or how that would materialize from bookings to revenue.

Fair enough. Thank you.

Thanks, Atif.

Thank you. Our next question comes from the line of Troy Jensen with Cantor Fitzgerald. Please proceed.

Hey, gentlemen. Congrats on all the momentum and success here recently.

Thanks, Troy.

Yeah, you're very welcome. Pranav, for you, can you talk about the fidelity level of the 12 qubits and the 30 qubits that you'll be introducing this year?

Yeah, sure. In our previous demonstration of 12 logical qubits, which we put out in a paper in September 2025, we showed that the logical performance, the logical fidelity for state preparation, was significantly improved by a multiple over the underlying physical fidelities. We're already at a point on this iceberg code, it's called, where we're getting better logical than physical performance. It is our desire to get the same out of 30 logical qubits this year. We recently showed a blog post about two weeks back that again showed 12 logical qubits, but as the reference strings scale in a more sophisticated fashion. One of the really neat things there is that our logical qubit encodings are capable of running circuits much, much more efficiently than our physical qubits can.

Whenever we're talking about logical qubits, we are referring to significant suppression of the logical error rate with respect to the physical error rate. As I'm sure you'll appreciate, that is critical to actually getting useful customer performance for our logical qubit systems.

Yep. Yep, exactly. How about your physical to logical ratio now, and where do you think it could be in a couple years out?

Great. This is one of the beautiful benefits of neutral atom quantum computing. We see a path where even with known architectures, there's 24:1 ratios of physical qubits to logical qubits, and that would belong in something called a quantum memory hierarchy. There's recent work, which we and others have been pioneering, using a software package that we released recently called QLDPC, which shows the pathway to even as few as 3 to 4 to 5 physical qubits per logical qubit. This is all possible because our neutral atom systems feature all-to-all connectivity and the ability to bias our errors in a direction that is easily fixable. Getting into little weeds here, but it's called erasure, and it's one of the approaches that we can further reduce the ratio between physical qubits to logical qubits.

Just going back to one of the previous questions on Shor's algorithm, this is why the resource requirements for a lot of quantum applications have come down dramatically in the last couple of years, and we expect the same to happen for other applications like material science, like chemistry, like AI.

Thank you. Our next question comes from the line of Peter Peng with JPMorgan. Please proceed.

Hey, guys. Thanks for taking my question. Just on KPIs, what are some of the metrics that you guys want us to focus on that things are on track? I think from a technical side, whether it be logical qubits, gate performance, and so forth, or customer counts, maybe just help us think about what are some of the key KPIs we should be focused on.

Sure, Peter. I would focus you on really just on two. I think you should focus in on our ability to execute against our guidance from a revenue perspective, and that should show you that we can run a tight ship and that the opportunity is real to monetize on the sensing side of things. Then to us, the metric that matters the most, that really encompasses all the other metrics that are out there for quantum computing, is logical qubits. I would just keep you focused on that one. There's a number of other things that are going on below the surface, whether it's physical qubits or the quality of those qubits, to Troy's question. I think the logical qubits is really the number that encompasses. It brings it all into one metric. Those are the two I'd keep you focused on.

Got it. Okay. Just on thinking about longer-term revenue trajectory, I think 2028 sounds like it's going to be a pretty big inflection point for you guys with the 100-bit logical qubit, and then you're really scaling in 2030. Maybe talk about some of the TAM that you can unlock with these new systems and how should we think about either market share or revenue trajectory as you unlock these new markets?

At the highest level, the way I think about the opportunity from a TAM perspective is we have really an upgrade cycle that we can run on the sensing side of the business. We can create clocks, we can create RF antenna, and we can create inertial sensors that can do things that classical versions of those types of products just can't do. Truly 10x-1,000x improvement in performance. There's good data out there about the market sizes for those types of traditional technologies. You also are creating brand-new markets by having the ability to have better than GPS precision timing locally. I think, take that for what it's worth and how you're trying to build the market opportunity for sensing.

On computing, it's a little harder to predict because in many ways, we're blazing new trails and creating brand-new compute paradigms. The markets will start knocking down once we get to commercial advantage in computing our first the material science world, so helping people build new materials by combining molecules together at a much, much faster iteration cycle, and then the drug discovery world, and then ultimately new capabilities will be unlocked. Those are absolutely massive markets. In many ways, I feel like the quantum industry does itself a disservice by using terms like material science because it sounds niche-y, but in reality, it's some absolutely massive percentage of GDP. It's truly anything we build. Absolutely massive markets to unlock.

In between now and then on compute, there is a great opportunity to continue to sell compute systems into the market, even though they're not yet commercially useful. You're right, after we get to commercial usefulness in 2028, I think we'll see that compute opportunity grow exponentially.

Thank you.

Thank you. Our next question comes to the line of Troy Jensen with Cantor Fitzgerald. Please proceed.

Hey, guys. Hey, I dropped off there, but I did have a follow-up I wanted to get in for Matt. The Golden Dome comments, I guess to my knowledge, I didn't think the administration had really flushed out their plans for Golden Dome. Can you just dive into what you were mentioning on Golden Dome a little bit?

Sure. What they've done is they've funded an IDIQ, an indefinite quantity/indefinite delivery contract vehicle, which is a very flexible way for the government to deploy capital. It's a much more quick and efficient way to get the system up and running. They've already started to host events to get the word out as to what it is they're looking for. They're starting to let approved vendors into this IDIQ, which is called SHIELD, and I forget what that acronym stands for. They're moving actually at quite a rapid pace to start to attempt to deploy this. It will be multiple years in the making, and they won't be deploying the $151 billion all at once.

I've actually been pretty surprised at how rapidly they've started to put the infrastructure in place, meaning the contract vehicles, the dollars to start to actually deploy this type of technology. What we know at the highest level is it will be a system that will cover the nation, that will be a number of sensors that have to be integrated together from a timing perspective so they can communicate with each other. Then really ultimately, the goal is to intercept incoming threats and take them out as fast as possible. They've been moving more rapidly than I would've thought honestly, Troy.

Awesome. Well, it's great to hear. Good luck, guys, and yeah, look forward to hearing more from you this year.

Thanks, man.

Thank you. Our next question comes from the line of Jesse Sobelson with BTIG. Please proceed. Jesse, you seem to be still muted on your end.

Hey, thank you for that. Sorry about that. Told you guys I'd jump back in the queue here. I just had two follow-ups. It's clear that the industry's moving on from focusing on physical qubit count and shifting towards more of a logical qubits and application-level performance analysis. How do you think about the trade-off of investing R&D and scaling the qubit count with your platform versus improving error rates?

Pranav?

One of the great things about this quantum error correction technology is that it allows us to trade quality with quantity. For instance, if we have a lot of qubits, we can use those to virtualize a small amount of very, very high-quality qubits or medium amount, et cetera. In general, where we've seen across modalities, the bottleneck so far has been on quantity. It's generally accepted that one needs a few thousand, as many as 100,000 physical qubits to get to sufficient logical qubits. If we have 99.99% physical fidelities, the number of physical qubits that we need is less, but it's quite easy on neutral atoms to scale to thousands of physical qubits.

I guess the direct answer to your question is that our preferred path is to focus, now that we have good enough qubit fidelity, to focus on the quantity. We have right now the commercial neutral atom record for number of qubits, 1,600 qubits, and we have a lot of conviction that we're gonna keep getting into the multiple thousands of physical qubits. That gives us a very natural path to suppress our error rates to very, very low levels so we can run applications without needing to perfect every bit of physics to get to higher fidelities. The last thing I'll add is, because we can have a certain tolerance always for errors, that creates a path that's quite unique for us to get to eventually field deploying our quantum computers.

It's not today our first order priority, but there is a world where we would wanna take our quantum computers to real field deployed settings the same way our clock used to live on a dinner table-sized device, now it has been put on SUVs, shipped to data centers, it's subject to vibrations, et cetera. Prioritizing quantity over quality for our next development path enables us to expand these market domains.

Now, just said another way, we're at the quality levels where you can actually start to solve quality from a logical qubit perspective with quantity.

Great. Thank you. That answers my follow-up as well. Thanks a lot.

Thanks, Jesse.

Thank you. That concludes the Q&A session. I would like to pass the call back over to Matt for any closing remarks.

Thank you everybody for joining the call, and thanks so much for all the great questions and for everyone's continued interest in Infleqtion. As I said at the beginning, I'm really excited to work with all of you over the coming years, and I really do appreciate your partnership. 2025 was an important year for the company. We strengthened the business, we advanced the platform, and we enter 2026 with great momentum and a strong capital base. As we said before, we remain committed to disciplined investment, customer and program expansion, and continued technical leadership across computing, sensing, and software.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you everyone for your participation.