WKEY

Ladies and gentlemen, thank you for your patience, and welcome to WISeKey International Holding's full year 2025 financial results conference call. As a reminder, this conference contains forward-looking statements. Such statements involve certain known and unknown risks, uncertainties, and other factors that could cause actual results, financial condition, performance, or achievements of WISeKey International Holding Ltd to be materially different from any future result, performance, or achievements expressed or implied by such forward-looking statements. WISeKey is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events, or otherwise.

At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Carlos Moreira, Founder and Chief Executive Officer of WISeKey. Thank you, sir. You may begin.

Good morning. Thank you very much to everybody. 2025 was a defining year for WISeKey, and the early weeks of 2026 have already validated the strategy decision we made over the last 24 months. We delivered audited full year revenue of CHF 19.3 million, representing a 62% growth year-over-year, with a subsidiary, SEALSQ, contributing CHF 18.3 million and growing 66% over the prior year. Q4 alone produced CHF 8 million of that revenue. More importantly, we ended 2025 with a fundamentally transformed balance sheet. We have over CHF 429 million in cash and short-term investment at year-end, growing to more than CHF 535 million as of April 30 following our March capital raise for SEALSQ.

This strong and well-capitalized balance sheet give us the ability to execute our strategy without compromise. I want to frame today discussions around three important messages. First, the transition from a sampling to commercial revenue is now underway, and the data points are concrete. Second, our strategy architecture, what we call the year of convergence, is integrating five technology pillars into a single vertical integrated quantum secure platform. Third, the regulatory and geopolitical environment is moving decisively in our favor. We're starting with commercial inflation at SEALSQ. The 66% revenue growth SEALSQ delivered in 2025 reflects two distinct things happening simultaneously. One, PAN, our legacy semiconductor and PKI product line, saw a renewed demand cycle as customers work through their inventory positions.

On the other hand, we generated our first revenue from sampling or post-quantum products, which is the leading indicator that matters more for the what comes next. Today, our commercial pipeline at SEALSQ exceeds $200 million, covering potential revenue opportunities from 2026 through 2029. With that, more than $60 million is directly tied to QS7001 and QVault TPM programs, growing more than five full year-over-year from approximately $11 million. On the certification side, QS7001 has now passed fault injection and side-channel attack resistance evaluation at the EAL5+ level, and we have completed the NIST validation. First production revenues are on track for 2026, late in 2026.

This is a gating event that converts pipeline into recurring hardware revenue, and we are tracking on its schedule. Moving the year of conversion for WISeKey. We are calling 2026 our year of conversion because our five technology pillars, SEALSQ, WISeSat, SEALCOIN, WISeID / INES, and WISe.ART, are now operating as a single integrated stack rather than as adjacent business as it was the case until now. What this means in practice is that our team in sharing knowledge and resources to create virtual integrated solutions for our customers. Our SEALSQ, which develop post-quantum secure chip design to generate ASIC design services revenue, hardware revenue, and recurring income through outsourced semiconductor personalization and tests or SPT center, has now entered in commercial acceleration phase. Our WISeSat, we have made significant progress.

We have launched 21 satellites to date with 14 currently operational in low earth orbit, and we remain on track towards the 100 satellite constellation. The definitive business combination agreement we signed in November with Columbus Acquisition Corporation is expected to close in the second half of 2026, very likely around the month of September, which will result in WISeSat.space Holdings The listing on the NASDAQ with a WISeKey and SEALSQ together receiving 25 million shares at $10 per share, representing a $250 million of equity value while retaining majority ownership. This listing is the structure enabler of our quantum special orbital cloud, what we call the QSOC initiative. Under the QSOC, WISeSat operates the space infrastructure and SEALSQ owns and operates the quantum cloud as a managed subscription service.

The full operational capability target is 2033, and WISeSat is expected to operate a constellation provided a dedicated QSOC capability for SEALSQ. And SEALSQ is aiming to deliver a contractual guarantee 99.9% uptime service agreement to its customer. The SEALSQ Quantum Fund. I want to spend a moment on capital deployment to date. The SEALSQ Quantum Fund grew from CHF 20 million at launch in 2025 to CHF 200 million of available capital resources as of April 30, 2026. Though the end of April, we have deployed approximately CHF 23.2 million across five portfolio positions, which are. We invested CHF 14 million in IC'Alps. The acquisition added more than 100 ASIC engineers in Grenoble in France, and we are now developing a quantum-resistant secure element optimized for CRYSTALS-Kyber, which are the standards for post-quantum technology.

We deploy CHF 4.2 million in Quantix Edge Security project in Murcia, Spain, which is building one of the European first sovereign post-quantum semiconductor personalization center and third center co-funded by the Spanish SETT.es, which is the government agency in charge of investing money in critical infrastructure in Spain. Program with CHF 20 million that has been contributed by the Spanish government. We invest another CHF 4 million in WeCan Group, which integrates our PQC secure digital identity into financial KYC. We made two rounds of investment in EeroQ or our U.S. Quantum Hardware investment in a company in Chicago, which brings electrons on helium quantum architecture, which is CMOS compatible with our chip processes. CMOS is the technology that we are investing on because it totally is aligned and fits with our semiconductor capabilities.

We plan to demonstrate a joint quantum security stack at our Geneva Quantum Center of Excellence, currently in preparation to be inaugurated in October this year. Additionally, we made an initial small investment in ColibriTD, our French quantum solver partner, which is working on improving sub-7 nm wafer yields from 50%-80%, which directly reduces our chip manufacturing cost. Each of these investments reinforce the underlying business. They are not adjacent bets, they are vertical integration required to move the company technology to the next level. On the regulatory environment, the U.S. CNSA 2.0 mandate by the U.S. government requires CNSA 2.0 compliant for all new national security system acquisitions by January 1, 2027 in the United States. This is now eight months away.

Federal agencies in the U.S. are required to identify and remediate quantum vulnerable system. The NIST PQC standards were finalized in 2024. Our products are designed to comply with all these standards. We are seeing this translate directly into pipeline activity in areas such as defense, smart meters, ecosystem through the WISeSat and U.S. federal procurement through our Trusted Semiconductor Solution Alliance partner. With that strategic context, let me hand the call over to John to walk you through the financials in details. John, the floor is yours.

Thank you, Carlos, and good morning, everyone. Full year revenue for 2025, as Carlos has said, was CHF 19.3 million, an increase of 62% versus CHF 11.9 million in 2024. Fourth quarter revenue was CHF 8 million, which doubled from CHF 4 million in the fourth quarter of 2024. Approximately CHF 3.5 million of the full year increase relates to five months of revenue contribution from IC'Alps, which we acquired through SEALSQ on August 4, 2025 and consolidated from that date forward. Organic growth was driven by a recovery in our core secure microcontroller and PKI product families, plus initial sampling revenue from our post-quantum platforms. I want to be transparent about how to think about 2025. As Carlos has already said, it is the year that paved the way for our convergence strategy.

The 2025 numbers continue to reflect the transitional period between the traditional product offerings and next generation post-quantum semiconductor platforms, and included the first revenue from sampling and with the transitions expected to enter its commercialization phase, with the first production revenues anticipated in the latter part of 2026. The full year 2025 net loss was CHF 38.2 million, which was due in a large part to CHF 8.3 million of non-cash share-based compensations, consolidation following the acquisition of IC'Alps. The materially increased R&D investment we made to accelerate the post-quantum semiconductor product range and the expanded sales and marketing related expenses made to support the expected commercial ramp. Which were partially offset by a one-off credit on the settlement of the ExWorks loan and by interest income on cash deposits.

On the balance sheet side, as of December 31st, 2025, WISeKey had CHF 429 million in cash and short term investments, up from CHF 91 million at the end of 2024, an increase of 370%. This was achieved while deploying CHF 23 million during the year towards strategic investments in WeCan, IC'Alps, Quantix Edge Security and others, as Carlos has already touched on. In March 2026, SEALSQ raised a further CHF 125 million in additional capital. As of April 30th, the WISeKey Group had over CHF 535 million in cash and short term investments. This strong cash position allows us to fund post quantum R&D, scale our manufacturing capacity, pursue selective M&A, and continue to deploy through the SEALSQ Quantum Fund.

Moving on to guidance, we are reaffirming our full year 2026 revenue guidance, which calls for growth of 50%-100% year-over-year, driven primarily by SEALSQ. We have some significant projects in relatively advanced phases of negotiation, and we therefore hope to be able to positively reinforce and upgrade our guidance in the coming months. The drivers of this are full year consolidation of IC'Alps, broader entry into the trusted platform module market via QVault TPM, the launch of QASIC custom post quantum ASIC engagements, initial QS7001 production revenues following the EAL5+ certification in late 2026. Initial revenues expected from the Quantix Edge Security Personalization Center development in Spain and continued expansion of recurring PKI subscription and-

Thank you, John. Before we move into our Q&A, let me close with a brief view on what we expect to see through the remaining of 2026 that has not been yet disclosed during the first part of this meeting. As we say, the QS7001, the EAL5+ certification is on track, and we expect to generate the first production revenue in the latest part of this year. It is important to note that this is the first type of chip that they are certified with that level of security. Although this is not a requirement to sell because we can sell them without that certification, that certification will help to increase the revenue, especially in government contracts and critical infrastructure projects.

Second, we expect the WISeSat business combination of Columbus Acquisition Corporation to close in the second half of 2026, creating an independent listed company in WISeSat.space Holdings Corporation. As you all know, with the IPO of SpaceX, space is becoming a very important infrastructure as many of the current Earth-based infrastructure, such as data centers, nodes, are moving to the space. It's critical for a company like WISeKey via its subsidiary, WISeSat, to have an early presence in that ecosystem, which will be a very important growth ecosystem in the future as everything is moving to what we call quantum Internet.

We're having assets related to satellite, launching capabilities in cooperation with SpaceX, cryptographic capabilities to store at the satellite, and the future possibility to do a quantum key distribution for space are strategic components for companies like WISeKey and WISeSat. Third, we expect continued capital deployment from the SEALSQ Quantum Fund into vertical integrated R&D partnership. As the company is sitting a very important cash position, it is essential that we use this unique opportunity to build up infrastructure both in the United States and Europe. That will include investments, important investments in areas such as personalization center, which are capital intensive.

This is one of the main reason why the company has raised important funding during 2020, last year and this year, with a total incremental cash position of CHF 500 million, over CHF 500 million, which CHF 200 million are allocated for. That will accelerate our revenue, particularly in the United States, in announcements that they will be made during the second half of the year.

Fifth, the reallocation of WISeKey and SEALSQ to Lancy-Pont-Rouge facility in Geneva should be completed in the second half of 2026, which is a much larger facility than the one we have now, and will allow us to establish the Geneva Quantum Center of Excellency in cooperation with leading organizations in Geneva, such as CERN, the United Nations, the Geneva government, and others, that they are all working in accelerating the adaptation of quantum technologies into sectors such as financial sectors and others. The quantum threat to today encrypting infrastructure is mathematically certain and approaching rapidly as the latest announcements made by Google and other, NVIDIA and others, that they are confirming that Q-Day could be as near as 2028, 2030.

The companies that will lead the post-quantum era will be those that combine sovereign silicon trusted identity, secure satellite key distribution, and quantum-resistant transaction infrastructure into a single integrated platform. That is what WISeKey is building and it's all about. That is what we are now monetizing. I leave now the operator to open the Q&A part of this call. Thank you very much for your attention.

Thank you. 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 a participant choosing speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Matthew Galinko with Maxim Group. Please proceed.

Hey, thanks for taking my questions. Maybe just start with of the pipeline you're seeing for quantum chips. I think you said it's about CHF 60 million from 2026 to 2029. How much of that would you say is driven by regulation, and how much is just, you know, independent of, you know, regulatory driven requirements?

Maybe I'll let John to further explain. Thank you, Matt, by the way, and nice to talk to you again. The regulation, obviously, the CNSA 2.0 is of concern to anyone that is conducting critical infrastructure. Imagine hyperscaler, imagine data centers, imagine space satellite. I mean, everything will be compromisable in terms of security because quantum computer will be breaking RSA keys. Obviously, we are not yet there. Quantum computers will need something like 10 million qubits to do that. The new is a lot of R&D and a lot of innovation in the quantum arena on where companies are already in the process of being able to generate 10 qubits.

The new thing is that you can put those qubits also in a serial process, so you can combine qubits from different companies and bring them into a data center and use them in a scaling process to generate enough qubits to make a substantial usage of those decentralized quantum computers. It's something like we call Quantum as a Service. That growth of compute capability and possibility of using quantum computers to break RSA, obviously that's not the main focus of quantum computer. Quantum computer can do many good things, but this is a bad thing that they could do, right? This is making a lot of companies conscious about the risk.

This is also increasing their potential insurance policies, so they know that they need to be ready to that day. We are working with integrators, for instance, that they are now adding PQC security as part of the contracts that they have with thousands of companies, and they want to expand the current security services that they get from those professional service companies to add both PQC defense capability and also in some cases also a space security as many of these companies are now launching satellites and they want to use satellite constellations to access their data. There is a trend that is moved both by innovation in the market. It also moves by government regulatory, and this is not only in America.

We have the similar regulations in now in Europe, and also going to be the same thing in Asia, in Singapore and India. I think, by the year 2030, anyone that runs a critical infrastructure will be PQC compliant. They will have to buy the chips that allow them at the object level to defend a quantum attack. There is also PQC software, which is at the back-end level. Those are how we are working also with partners to provide that technology that will allow, for instance, to assess the vulnerabilities of a financial institution if a quantum computer arrives.

Those are also partnership with a professional services company that they will work with us to teach potential risk to those companies if they don't apply post-quantum capabilities as soon as possible. It is a trend. I mean, it's like putting the airbag in the car, right? You needed a time. Now it's compulsory, nobody thinks about it. That's happening the same from the year 2030, you will not conceive the possibility of developing anything which is potentially breakable through a quantum attack.

Thanks. That's great color. I think you sort of started on this, but maybe beyond kind of the regulation you referenced, where else regionally are you seeing movement towards those sorts of requirements for quantum, you know, or PQC capable, you know, chips and security?

Sorry, if you don't mind, asking the question again, I didn't get the first part.

Sure. I'm curious where else, you know, in the world that you're seeing regulation emerge to mandate quantum secure technology on critical infrastructure?

As I mentioned, the CNSA 2.0 is the reference. This is a U.S. government, right? That says that 2028, you need to be protected against quantum attack through a post-quantum capability, otherwise your technology might be considered legacy. Imagine anyone selling anything to the U.S. government, they will need to be PQC compliant, otherwise they will not just buy your product. That will also affect import products. Imagine video cameras, imagine cars, imagine drones, imagine satellite equipment, imagine Cisco routers. All that without PQC capabilities will not be able to be deployed on critical infrastructure. Critical infrastructure, obviously airports, smart cities, government entities are the first one that needs to be secure. This is the this is a must-to-have type of first line of defense.

You have obviously the commercial opportunities of this. I mean, if you have a, you know, we just announced a deal with Parrot. Parrot is one of the leading drone companies in the world, one of the first one, by the way. Parrot is being used now in many battlefield type of activities. As you know, the drone industry has evolved enormously. The founder of Parrot recognized that he wanted to be the first drone company to have our QS7001 installed physically into the drone. We did it, and obviously we announced it, and this is now being used as a case study on many other drone company that they want to have their drone PQC compliant.

Imagine the consequences of having a drone that is not secure to that level, right? That will be in industries like the health industry, you know, where we have, for instance, PQC deployments with connected devices that they are used in hospital. You can ensure that your pump insulin that connects to the internet cannot be breakable through an external attack. Quantum computers are so powerful that they could make a massive attack into billions of devices in one shot. They will detect the vulnerability of those devices, as it is the case now with AI, right? I mean, there's a lot of discussions about what is happening with some AI companies, without mentioning them, that they have now capabilities to identify cybersecurity vulnerabilities very easily.

Imagine if that is used in the wrong hands, right? We are in a very similar situation with quantum computers. PQC is the line of defense of quantum, but also the company because we are investing in quantum companies like we invest in EeroQ, which is a Chicago-based company where we are working very closely with them to develop semiconductors, and they will be able to basically create a quantum computer. We are also learning from innovation in quantum in order to create basically what we call a sovereign quantum computer. A quantum computer that will be able not to be used to, you know, to destroy the security of critical infrastructure, but it could be used to solve major problems like discovering a new medical product.

A new, you know, for instance, with less than 10 qubits, we can now work with pharmaceutical companies to develop a new drug and put that into the market much faster that without having that compute capability. It is a very emerging market where you will see a combination between quantum security, quantum computer deployment, hybrid combinations where you are using quantum computers and supercomputers at the same time, as supercomputers are not gonna disappear, right? It will take a time between now and maybe 10 years where quantum computers will totally displace supercomputers. This is, we have a still few years to go where you might have a hybrid platform solutions.

The big opportunity of WISeKey is that WISeKey has all those critical assets through SEALSQ in what concerns chips, in WISeSat in what concerns the space constellation with operationalist satellite, in WISeID what concerns identity management and the possibility of injecting digital identity into the silicon directly with a, with a cryptographic Root of Trust. All these ecosystem of companies that have been created under the WISeKey is making WISeKey a very unique company, very hard to replicate it, and extraordinary important for the next generation of quantum computing that is gonna emerge, as you will need to have an end-to-end. Then at the same time, you need to provide a sovereign structure.

Another important aspect here is that many companies will prefer to buy a solution of SEALSQ in the U.S.A. because they don't wanna buy a Chinese quantum computer, for instance, because they will be concerned about what is the process of that quantum computer and who has done it and what is the cryptographic capabilities, what is the trust model, and so on. Quantum computing industry is becoming sovereign, and this is a big opportunity for us.

Thanks, Carlos. Just one final question from me, particularly on the satellite business. I'm wondering if you could share anything about, you know, where you're hearing or seeing demand for, you know, services delivered through the constellation that, you know, you're building. Is there a pull on, you know, the services that you're demonstrating now or is it a push or, you know, kind of talk about how that is developing commercially.

Yeah. The constellation we use, WISeSat, which is a company owned by WISeKey, initially invested in sending with a SpaceX 2021 satellites. Those are picosatellites, the 3U satellite. That's the measure, you know. That basically were tested to IoT projects. Let the satellite track and trace anything on Earth that has a chip. Not necessarily a PQC chip, can be a traditional VaultIC secure element. You can track and trace from the, from the space object. This is a big market, right? Because 90% on Earth is not connectable. You cannot track an object in the middle of the sea or in the middle of the desert or in rural areas where connectivity is not available.

There is a very big demand on companies and they are running logistics, cargo companies, and there are trucks company, then there are containers in the middle of the sea, military applications. They need to have that connectivity. That's what we proved during the first 21 launches. This was obviously an important investment because of the company. Those launches are expensive. One satellite is at $300,000-$500,000 to launch and produce. We were one of the first ever PQC compliant constellation in the space with a satellite that are in orbit.

Now we are moving into the next level of that with the last the last launch of the satellite we did in June, included already the latest version of the QS7001. We started to test. We also added new things like a crypto wallet for SEALCOIN, which is another company of the group. WISeKey owns 80% of SEALCOIN in cooperation with Hedera. Hedera Hashgraph is one of the largest blockchain companies in the world. With them, what we did is to embed a wallet into the satellite itself, so the satellite can exchange crypto tokens with another satellite or with a earth station or with a or with a an object that will require a payment.

Imagine, one satellite collecting pictures for another satellite and paying for that service with tokens, and those tokens are automatically exchanged between the wallets, and they are located in each of the satellites. This is a breakthrough technology. We are now working on this. I cannot say names now because we are still in the process of finalization, but you will see agreements with a strategic professional service company and others, and they will resell that capability that we have already to their clients because their clients are, as I mentioned before, they want to add space into the cybersecurity contracts that they have with those professional integrators.

We are launching the space with the SpaceX IPO is gonna boom because SpaceX has already announced, you know, that they cannot even cope with the demand of sending on sending rockets. We will need to send rockets all over the world with different company. We have established relations with ISRO in India, with PLD Space in Spain. Those are new companies, and they are sending rockets. Our preference obviously is to do it as much as we can with SpaceX, and we have a very good relationship with them. I'm sure that something there will be very soon possible in a more integrated way because as we need to send more satellite, the objective is to send 100 satellites in the next month.

We will need obviously to be able to scale up the launching capability. The final objective of those satellite is to act as a nodes in the space. Let's say that SpaceX sends creates a data center, and that data center needs to be connected to earth station. Those earth station, by the way, we have already two operational earth station, one in the southern part of Spain and another in Switzerland, in Lausanne. Those earth station, they are now triangulated with the nodes in the space, encrypting the data using PQC chips on it on both ends, and that data then is made available to data centers both in the space, in the future data centers than SpaceX is very focused to build, but also data centers on Earth.

End users can get a combination, a hybrid combination of access to data centers in the space using those nodes. Without the node, the communication is not secure. I mean, Starlink is not a secure satellite. They need a layer of security to talking to a non-Starlink or a SpaceX assets. This is where WISeSat position. It's an interconnector of existing constellations using those very sophisticated high secure satellites that we are manufacturing and launching to the space. It's a very I mean, the clients are there. We are working has been announced with the Swiss Army is one important client.

We are working with several financial institutions, they are saying, "We will actually prefer to connect to the space to even to connect to the Internet as what they call the quantum Internet, space Internet." SEALSQ has launched an initiative we call QSOC, which is, I mentioned that on my brief. It's a quantum space constellation cloud. In the future, you will be asking the space like you access Amazon Cloud or any of those clouds. This is the positioning of the company.

The fact that we own the critical infrastructure is a very strategic asset for WISeKey, not only on terms of evaluation because obviously the listing of the company on the NASDAQ is going to increase substantially the value because we are aiming at $250 million initial listing. You know, this company, WISeKey is the majority shareholder. All that hopefully will be reflected on the increased valuation of WISeKey, plus the fact that WISeKey, and that has been also announced, is planning hopefully by the end of this year to move directly to the NASDAQ as a way to simplify the processes. Currently we are listed in Switzerland, which is a very small market, not at all specialized in this type of technology. This is obviously detrimental to the evaluation of the company.

Great. Thanks, Carlos, and good luck with the convergence.

Thank you very much, Matt.

As a reminder, it is star one on your telephone keypad, if you would like to ask a question. We will pause for a brief moment to see if there's any final questions. With no further questions at this time, I would like to turn the conference back over to Carlos for closing remarks.

Thank you very much for your attention to this call. The company obviously is available. This information will be provided to the investor side. The company, myself and John, we are fully available for any further question. I'd like to thank the moderator for the organizing, to Lena, the IR company, and also for the questions and the analyst present on this call. Thank you very much.

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

Greetings, ladies and gentlemen, and welcome to the WISeKey International Holdings 2025 Interim Financial Results Earnings Conference Call. As a reminder, this conference call contains forward-looking statements. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause actual results, financial condition, performance or achievements of WISeKey International Holding Limited to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce Carlos Moreira, Founder and Chief Executive Officer of WISeKey. Mr. Moreira, you may begin.

Good afternoon to all of you joining us from Europe and the United States. I am joined today by our Chief Financial Officer, Mr. John O'Hara. And I'll start this call by providing highlights on the company performance and also on the subsidiary level initiatives for the first half of 2025. I will disclose the growth opportunities since the beginning of 2025. And moving forward, and then John will provide commentaries on our financial conditions in greater detail. Then we will open the floor to Q&A. I would like to provide now a short overview of the corporate structure. So WISeKey is a Swiss cybersecurity company created in 1999, which I am the founder. As a computer infrastructure provider, WISeKey delivers secure platforms for data and device management across various industries, including finance, health care and government, leveraging its route of trust technology and public infrastructure PKI. WISeKey is expanding its legacy technology into the quantum realm, building on the case of expertise in securing digital identities and enabled trusted communities, WISeKey continues to safeguard traditional encrypted communications and provide strong authentication services to governments, enterprises and consumer worldwide. At the same time, WISeKey is pioneering the transition toward the next generation of security through the post-quantum cryptography, what we call PQC. This dual approach ensures that existing infrastructures remain protected today while preparing them for a future where quantum computers will challenge conventional cryptographic standard, it is being projected and this will happen in 2030. So we have only a few years to get ready. By integrating PQC into semiconductors, IoT and digital identity solutions, WISeKey is setting the foundation for a quantum resilient digital ecosystem, ensuring continuity of trust and privacy in the post-quantum era. So WISeKey operates also as a holding company, encompassing several specialized operational subsidiaries, each subsidiary plays a crucial role in the WISeKey ecosystem contributing through independent research and development and expertise while integrating their technology into the overall WISeKey platform. This businesses are no longer operating as a separate businesses, but as a single interconnected ecosystem, what we call the convergent effect. Specifically, these companies are SEALSQ, which is well known now as it is a listed company on the NASDAQ under the symbol LAES, which focus on advanced semiconductor technology and it's coming with a world first in November of a post-quantum chip. WISeID, which offers Root of Trust and PKI services central to the WISeKey digital identity and encryption services and ecosystem. WISeSaT, a newcomer also in the last year, which offers space technology using and developing and securing picosatellite for secure communications from the space. We also have WISe.ART, it's the trusted blockchain and NFT segment, offering secure digital asset solution. And lastly, we have SEALCOIN AG, which is incorporated -- which was incorporated in 2024 and is developing the SEALCOIN platform and is focusing on a decentralized physical Internet with a soon-to-come token with name QAIT. In regard to the first half of 2025 has been a decisive step forward in the execution of WISeKey Quantum convergence strategy. So the WISeKey Quantum convergence strategy launched last year has the combining existency of combining different assets like proven identity, security methods with emerging quantum safe technologies to ensure a smooth transition into the post-quantum era. It maintains the protection of current infrastructure while -- sorry, classical cryptographic capabilities while progressing, integrating post-quantum cryptography, what I call PQC and quantum resilient algorithm. This strategy relies on a hybrid model, where traditional and quantum safe algorithms work together, guaranteeing backward compatibility with avoiding disruption. By applying this convergence across semiconductor, IoT, satellite, digital identities and blockchain network, it ensures that the trust and privacy remains intact. As quantum computers advances, the essence of quantum convergence is the bridge today of security with tomorrow challenges, enabling a resilient and future-proof digital ecosystem. This quantum convergence is now beginning to show its financial potential as each component drives value creation for the others, enabling WISeKey to multiply revenues, diversifying them and starting to reduce the dependency of any single line of business and to capture new recurring income streams. The foundation of this quantum conversion strategy lies in SEALSQ, which I mean before -- I mentioned before, is a major player on that ecosystem and one of the most secure and secure manufacturing capability of post-quantum chips, which is going to be released in November 2025 is a world first, the first post-quantum chip with the capability of protecting against quantum attack, so this is positioned to be the world first secure chip to embed NIST-standard quantum-resilient algorithm, the ML8-KEM CRYSTALS-Kyber on ML8-DSA-CRYSTALS-Dilithium which are the NIST standard quantum resistant algorithm that had been available for companies like SEALSQ to implementing their hardware devices. WISeKey control through its 52% of the voting rights of SEALSQ as of June 30, 2025. The Quantum Shield QS7001, which is the chip aims to secure critical applications such as cryptocurrency transaction but also defense system, healthcare infrastructure, airport security and IoT devices against future quantum computing threats. As quantum computer advances towards what we call the Q day when Quantum computers will break traditional encryption like electric curve cryptography, ECC, RSA, the QS7001 chip addresses vulnerability in systems such as Bitcoin and other blockchains that could be hacked with this new computing capability provided by Quantum. Current ECC base algorithm, including ECDSA are susceptible to quantum attack that could compromise public keys and expose funds. The quantum shield QS7001 integrates Lattice-based quantum resistant cryptography to provide secure key storage, efficient signing and key exchange operation, optimized for hardware wallet called storage and IoT devices. It also offers a migration framework with hybrid cryptography and tools to transition assistance system to quantum safe standards with minimal disruption. The chip is launched as an open hardware platform to hold personalized customer firmware, enabling full flexibility for all kinds of application. SEALSQ also plans to launch the trusted platform module version of the QVault TPM in H1 2026. While it's very few competitors only integrate post-quantum cryptography through hardware accelerators that supports PQC via software implementation, SEALSQ QS7001 embeds this quantum resistant algorithms directly at the hardware level. This approach delivers enhanced efficiency, which is around 10x faster, side-channel protection and tamper resistance without relying on software layers aiming to provide a more robust foundation for long-term security at high-stake environment. So the conversion does not stop at connectivity. Each secure device will in time be able to transact autonomously between themselves within a SEALCOIN ecosystem from which WISeKey holds 75% of the corporation created. This is creating four revenue stream through transaction fees on trusted IoT changes. Earlier this year, WISeKey proved the potential of this model with a world first space-based cryptocurrency transaction, showing, demonstrating how satellites, chips and the blockchain can combine the power on entire new digital ecosystem or new generation of WISe.ART platform, which WISeKey is owning 87.5% of the Corporation and remainder is held by The Hashguard (sic) [ Hashgraph ] Group, the Hedera blockchain company which is a pioneering Swiss-based work 3.0 technology company. So this platform adds a fifth layer by extending this infrastructure into tokenized assets generating transaction revenue from authenticated trading on both digital and physical assets. Together, this creates a diversified yet fully integrated monetization model where every element from chip to satellite to blockchain to marketplace reinforces and extends the other. So for shareholders, the value of this model lies in scalability and resilience. Hardware sales generating media revenue, while OSPT services, satellite subscription and blockchain transaction and tokenization provide recurring income streams that we expect will grow with adoption. This means that each customer or partner engagement has a compounding effect, a defense contractor, let's say, adopting SEALSQ chips could also become a client for OSPT services or it can also be a subscriber for WISeSat connectivity, a participant in the SEALCOIN transaction and potentially a user of WISe.ART for tokenized asset management. It is important to note that only few companies in our sector can offer this level of vertical integration and horizontal interoperability and monetization. So this sets us apart from most of our competitors and makes the DNA of WISeKey. Another key point are the strategic partnership in which WISeKey is building further enhancement in shareholder value by creating new addressable market, such as the Quantix Edge Security initiative in Spain, which actually has been announced this morning as a finalization company with a participation of the Spanish government invested in that company EUR 20 million, on which WISeKey is also investing together with SEALSQ EUR 10 million. And this company has already a committed revenue of EUR 25 million over the next 3 years for the company. So this is already a very concrete example on how this verticalization works, how you can create what we call decentralized value by bringing the technology at national level. So this is the -- this company is at the heart of semiconductor sovereign strategy in Europe. which is supported by public funding and demand for secure microelectronics. Also, our collaboration with the Swiss Army, which is already 3 years going, demonstrate that our convergence model is not just theoretically but already being deployed to deliver ultra secure sovereign communication, such as connecting mobile phones with our satellites and being able through those mobile phones to secure the communication directly with the satellite and to exchange the keys that they are required to ensure that both devices end-to-end are secure and authenticated or protected. And also our HUMAN-AI-T initiative, which we launched with the United Nations, extends our leadership-based technology into AI global governance, which although is not directly related to revenue generation, it is required in order to ensure that countries of the world can benefit through the AI revolution without the need of dependencies. So those initiatives are strengthening our brand, creating influence over standards and laying the foundation for future trust services where AI must rely on secure chips, authentication of data and tamper-proof transaction. So as WISeKey moves into the second half of 2025, our focus is on scaling execution. Here, I give you a few milestones. We are approaching the commercial launch of SEALSQ’ in Q4 2025. The date actually is now around the 22nd of November as a world first, which will -- which we expect will trigger new revenue growth in 2026 and beyond, as already communicated during the earnings call of SEALSQ, where these projections were disclosed. We're also expanding the WISeSat constellation to increase coverage and open new subscription. Now we have 22 operational satellites in orbit. We are testing real time those satellites on a daily basis by connecting devices to the satellite with a new launch, which is due in November, again, with SpaceX, which will include the new generation chip and will coincide with the world's first launch of VaultIC, the new generation chip for post-quantum capabilities. So we are also bringing SEALCOIN and WISe.ART from the pilot stage to commercial deployment, establishing new transactional base income stream. And we are strengthening OSPT footprint to ensure that every chip produced by SEALSQ had rapidly personalized and integrated into this global infrastructure. For shareholders, the message is loud and clear. WISeKeY convergence strategy is designed to create multiple layers of monetization from each customer relationship recurring revenue stream that compound over time and strategic partnerships that are open to us creating a new market while derisking the execution. So with $170 million robust pipeline of revenue opportunity at September 8, 2025, for the period '26 to '28, a very strong balance sheet and increased global recognition of a role of the intersection of quantum security, space connectivity, blockchain and AI, WISeKey is building a business designed to scale, resilience and long-term shareholder value. So WISeKey is not just adopting to a technology change. Actually, WISeKey is shaping it. We are building new world's sovereign trusted digital infrastructure that the world increase is dependent on as currently the move is to centralize technology in some few countries and few players, which creates a dependency issue. So for investors, this represents a unique opportunity to participate in the creation of a company positioned not only to grow revenue but to define the architecture of digital trust for the decades to come. With that, I will now turn the call over to John, who will provide further insights into our first half 2025 financial highlights. So John, please go ahead.

Thank you, Carlos. As Carlos mentioned earlier, WISeKey performance in the first half of 2025 is in line with our expectations. While the company is executing on its strategy moving towards next-generation semiconductors, space connectivity, transactional IoT and blockchain laying the foundation for sustainable long-term growth. For the first half of 2025, revenues grew slightly by $0.1 million to $5.3 million, which was entirely in line with our expectations reflecting the continued transition period, which is coming in ahead of the industry-wide strategic shift towards post-quantum and IoT-driven technologies. As in slide here, I would highlight that with the second half growth is already -- we've got very -- all our orders for the second half booked out at the SEALSQ level. And we actually now have roughly a 300% higher backlog of book orders for 2026 than we had at the end of 2025. So we already have much more confidence in the figures going ahead in the continued growth. Our operating losses did increase by $30.2 million to $27.3 million, but this was largely driven by a one-off stock-based compensation charge at the SEALSQ level of $10.1 million. in addition to increased investment in research and development and an increase in the general and administrative costs as a result of an investment in the infrastructure of the company to support developing verticals. The increase in the operating losses is partially offset by an increased nonoperating income due to a one-off gain on the settlement of the ExWorks loan, which we recognized a $3.7 million one-off credit as we settle for far less than the out held on our balance sheet and interest earned on our cash deposits of $1.6 million. This results in a net loss of $22.3 million for the 6 months to the end of June '25, which has increased by $6.8 million in comparison with the same period last year. As I just mentioned, we continue to invest in research and development, which for the first half of the year totaled $5.8 million, focusing on the development of SEALSQ's next-generation quantum resistant chips, the SEALCOIN transactional IoT platform, the WISeSaT expansion and Constellation and the launch of the WISeSaT 3.0 platform. Our strong balance sheet and cash balance of $124.6 million as at the end of June, will allow us to accelerate technological development and to execute strategic investments that expand our capabilities, strengthen growth pipeline and position-wise get the forefront as the transition to quantum resilient security solutions. A brief word on the outlook. We expect strong growth in the second half of the year with full year revenues expected to be in the range of $18 million to $21 million. This growth is driven by the expected return to growth in the demand for SEALSQ's traditional semiconductor products, the consolidated revenue of IC'ALPS, a subsidiary of SEALSQ since the completion of the acquisition by SEALSQ on August 4, 2025, as well as the continuing development of the revenue streams of our other business divisions. We look forward to reporting our progress in the coming months. With that, this concludes our prepared remarks. I would like to now open now the line to Q&A.

[Operator Instructions] Our first question comes from the line of Matthew Galinko with Maxim Group.

And congrats on getting the Quantix deal done. Can you maybe touch on the contribution from Quantix. I think the press release said a relatively even revenue recognition of $20 million over 3 years. Is there anything we should think about for margins on that project revenue? And is there potential for product revenue on top of the project revenue?

Just to clarify, it's $25 million over 3 years. So margins in that, yes, it's -- they vary a bit because some of it is equipment and plants as we install the equipment in Murcia. So some of that will be lower margin than our traditional semiconductor work, but then other elements will relate to professional service type arrangements, the expertise of our staff, the installation of IP. So it would run, we would expect at a higher margin, something much closer to what our -- well, as a margin level, would be very high because some of these staff are already currently employed by us. But yes, we start to be somewhere in the sort of the more traditional margin range. Then yes, as the PR also hopefully highlighted, we were also agreeing that we will be looking to allow them to sell our next-generation semiconductors and other products directly beforehand so that we don't kind of lose momentum or lose too much time. So yes, we would hope that there will be product revenues coming through whilst the center is still under sort of construction.

Yes. Maybe, Matt, this is Carlos. So just maybe to develop a bit further on that point. So this deal is actually a very important deal because this is the first personalization center that we sign, right? So the logical to personalization center is that many countries now they are getting concerned about the dependency on semiconductors and they want to have some kind of control on that process. And they start with injecting the keys, although the chips might come from whatever Taiwan, Singapore, whatever, but they want to inject the keys at national level. And those are the machines that John just mentioned. So there is going to be a full transfer of knowledge, equipment, licenses, IP, royalties in order for them to be able to do that. So this is -- and that includes obviously a building ultra secure facility, which we just came actually. We were there yesterday. So we were visiting that facility. So parallel to that, there is going to be -- this investment is a private partnership with the Spanish government SETT. So SETT is sitting in EUR 18 billion, actually, to develop semiconductor capabilities in Spain. So they are investing in Cisco, got EUR 300 million in Barcelona to develop a plant. There are many companies around the world, and they are coming to Spain due to the fact that the government is willing to co-invest with companies, and they would like to develop semiconductor capabilities at national level. Which is okay, right? So they put $20 million, we put $10 million and another start-ups in Murcia, Spain put another $10 million. So obviously for us is we recover our investment, because we have $25 million commitment over the next 3 years. But in the plus of that, as John said, we're selling immediately the semiconductors even before the center is fully operational to the market, and Spain is a high user of IoT, the electrical solar power plants, all that requires IoT connectivity. It requires authentication, required chips on solar panel the agricultural business, which is huge in that area, they are using IoT sensors to monitor water irrigation. So there's a lot of very interesting new applications that we are adding to the ones that we already do with these new generation chips. In plus of that, because SETT is an investor in many other companies, not only us, it creates an ecosystem right? Because the companies where they are also investing, they are creating synergies with other companies that like us now. So we are entering into new agreements like we signed with OdinS and TProtege. Those are local companies, and they are very highly specialized in a specific sector that then we can also bring to other countries. As we are currently negotiating actually, similar experience of those personalization centers in several countries, like including the United States in Arizona, where we are also advancing, also in India also in South Korea, there was last week at MoU signed with the major of civil and many countries are coming to us to say, wow, we really want to use your technology, not only because it's unique, nobody has it in terms of having this post-quantum chip. But in plus of that, you are maybe the only company in the world that is willing to help us at a national level; other companies, they rather centralize this technology, right? So this is creating a very interesting ecosystem for us. And as I mentioned during my introduction, that creates huge synergies with the rest of the companies WISeKey Group has, right? Because once you have those chips deployed at national level, then the next thing is connectivity, then is where the WISeSat satellite makes a lot of sense because we already concrete test on how to connect the satellites directly with sensors, then they are located into IoT devices or device-to-device communication or mobile-to-satellite communication. So that is a totally new industry emerging, and actually WISeSaT is booming, thanks to that, right? And then you have the tokenization, which is also a very interesting technology world first, which is letting machine to pay each other with SEALCOINS, right? So imagine a satellite buying data for another satellite and getting paid with SEALCOINS or a connected car buying data from a plug, electrical plug and do that directly through the car connection to the plug without the need to pay with Visa, MasterCard, right, intermediaries. So this is a very complex technology. People sometimes don't grasp the complexity that we are dealing here. But the good thing is the company is really making a huge progress, right? As each of those verticals are evolving. And they are creating, as I mentioned, this convergence synergy, which is what I believe is going to be the breakthrough in revenue here, is that once you build a very large microchip infrastructure, they start to want to be connected, they start to be transactional. And that creates a very new stream of revenue for the company in the years to come.

Appreciate the answer, Carlos, and John, a lot of color and very helpful to see how everything is coming together. I guess in the follow-up, you talked about the $170 million I think the 3-year business pipeline on the SEALSQ press release and conference call, and you repeated it here. Can you talk about how significantly, the TPM is represented in the pipeline versus some of the other applications of what you're working on? Or is TPM kind of a major component of that?

It's a mixture between the three, it is a mixture between the QS7001, which is the new chip. And that chip is basically upgrading the existing security of existing chips. So clients, and they are on the legacy chips and they are buying 5 million, 10 million of those chips per year. They want to upgrade now. As you know, out of the $170 million, an important piece is the design wins that the company already have with some of our clients, right? And they are then they are getting concerned now on the new legislation in the United States, but also in Europe actually now, that by 2027, the White House actually there's going to be in a few days, I guess, in a few weeks is going to be White House, similar to what happened on AI. It's going to be on quantum and regulation of quantum, that says companies needs to be quantum resilient already before 2027 and then by 2030, legacy systems will not be authorized anymore in critical infrastructures, right? So because the risk will become huge because everybody is now kind of in agreement and Quantum day arrives in 2030. And if you wait until 2027 to start to get ready for it, it's going to be too late, right? So this regulatory push is making, obviously, and you see that on the evaluation of some Rigetti, IonQ, the wave and SEALSQ, you see that happening now. I mean companies that they are in this quantum realm, they are getting a very strong valuation because it's actually easy to project in the next 10 years, what will be the revenue and the valuation of these companies if that momentum happens and because this is a regulatory type of movement now. It's going to happen. I mean there's no way that companies will not do it because their insurance premium will increase and then the clients who will get concerned on their products are now PQC ready and things like that. So part of the $170 million comes from that. The other priority comes from the TPM, as you say, and that is a bit later on the year. And the rest is coming actually from the centers because in every center that we built, the price is between $40 million to $100 million, depending the country, right, in the United States is a $100 million project. And you need to -- and even in some cases, we might want to invest together with investors to show that we are really serious about it, and this is important to us because we provide the licensing, the technology, the chips, the machines and everything. It becomes also revenue for the company. So this is the breakdown of the $170 million. What is happening now is that clients then they are being using the VaultIC. So VaultIC has been sold already historically 1.6 billion times. So it's a massive community of companies using already our technology. Some of them on a legacy environment, they are now considering to move into post Quantum, like yesterday, we announced a Taiwanese company that is doing ledger technology for storage of Bitcoin, Hashkey storage, and everybody is getting concerned that once Quantum arrives, the blockchain can be compromised. And therefore, people can lose all the bitcoins. And we signed a deal with them where we PQC enabled those devices. They are testing on a small group of devices, but obviously, the normal step is the entire production is going to be PQC ready next year. And I'm sure you're following as analyst the PQC addressable market, which is getting bigger and bigger, because we have, for the time being, we don't really have a clear competitor on PQC. I mean, the possibilities are projecting very high revenue. It becomes very realistic. Very big company. One question I get all the time, say, "Oh, how can you do that?" And I don't know, one of those multibillion-dollar chip manufacturing company don't do it? And the reason is that these are very large companies, and it's very hard for them to defocus from the current technology to just develop a PQC technology play and that takes 3 to 5 years to do it, right? So this is the years we have that we can conquer the market or at least take as much as possible of the addressable market.

Carlos. Great color on that. Maybe just last one for me before I jump back in the queue. You touched on commercializing WISe.ART with the 3.0 release and maybe in conjunction with WISeCoin -- SEALCOIN. Can you touch on maybe how you kind of what's the path to commercializing that piece of the business? And what can we expect for that in 2026?

So WISe.ART we developed, originally, the concept was that if you have a microchip into an object and that object is secure within microchip and authenticated, let's say, a spare part of a car or a drone or a hardware device, you can create digital twins of this part. And then on the metaverse or being able to regenerate the car, right, transfer directly from the original into the digital twin environment where engineers can play with the digital twin without touching the car. So that still is the design. And obviously, it's a very early business and the people are not doing that yet. The technology is what 3.0 is a complex technology. You have to put an identity on every spare part. And that identity needs to be storing a secure element, secure element injected into the object. The object then generates the digital twin and so on. So we found that art was the easiest way to start. And actually, we were very successful in art. We have now 1,000 of artist and we have thousands of pieces of arts than they have been dematerialized. But then you have these NFT collapse during the last 2 years, NFT companies like OpenSea and others, they just totally collapsed. We have suffered a bit of the misunderstanding of the market and say, "Oh, WISe.ART is an NFT platform," which is not. So we are basically reeducating the market to really see the potential with WISe.ART, which is becoming less maybe art, it is more like industrial generator of digital twin components to be analyzed on a digital environment. And then the SEALCOIN becomes the payment method or whatever you need to do between those devices. I mentioned before it is the machine to machine. So our objective is both companies actually WISe.ART, WISeKey in the identity management. They were very close to create that identity relation. And then we have, as I mentioned, plans to bring SEALCOIN as an exchange. So SEALCOIN will soon be on a topic change. We will give more information soon about that. And that will obviously create a huge amount of potential new diversification of revenue. Also WISeKey acquired 22% of WeCan. So WeCan is another blockchain company that develops -- we did it through the direct investment on SEALSQ. That was the model which we chose at that time. But as we all know, WISeKey controls the interest of SEALSQ. So both companies are working with WeCan in a KYC compliance using blockchain. So this is a very interesting project where you can basically bring web your technology to the financial sector and simplify the process of customers or banks to provide KYC compliance processes and registration. So you see the technology is converging, and that's the beauty. I think in 3 years, you're not going to be talking so many companies, so many products, you're going to be talking really bring Web 3.0 technology and simplify the process of customers of banks to the financial sector and simplify the process of customers of banks to provide KYC compliant processes and registration. So you see the technology is converging, and that's the beauty. I think in 3 years' time, you're not going to be talking so many companies, so many products. You're going to be talking really on Web 3.0 cybersecurity, which is what it's all about and connectivity. And obviously, you need to start somewhere. And the way to start this is by creating those specialized, very focused companies, and they are solving one specific problem. But once this problem is solved, it creates a lot of synergies with the rest of the ecosystem.

[Operator Instructions] Mr. Moreira it seems there are no other questions at this time. I'll turn the floor back to you for final comments.

So thank you very much for your help in organizing this call. And thank you very much to Matt and the analysts and they have been following us and also, obviously, our shareholders and investors, that they might be joining the call. If you didn't have the possibility to join, this call has been recorded. We also have, obviously, all the presentations available on our website. And John and I are here available for any further questions you might have. Thank you very much for your attention, and have all a great day.

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