XNDU

Download the Complete Report Here Key Takeaways: XNDU’s 2Q26 hardware progress and higher fabrication activity are beginning to translate post-listing capital into faster roadmap execution. XNDU’s second public-company quarter provided more tangible evidence that its expanded capital base is supporting measurable photonic-component improvements and a faster development cadence. The company achieved average edge-coupling loss of 0.085 dB per facet, supported by its internal advanced photonic chip-packaging facility, customized fiber and fiber-array work with Corning, and wafer-singulation support from DISCO. The 0.085 dB result represents a significant component-level improvement and, according to XNDU, may be the lowest edge-coupling loss achieved in the industry. XNDU’s remaining 5-10x loss gap provides a more measurable framework for tracking progress toward fault tolerance. The aggregate optical-loss gap has declined by as much as 200x over roughly four years, with a further 5-10x reduction still required to reach the threshold for scalable fault-tolerant operation. This gives investors a clearer benchmark for evaluating whether future hardware improvements are translating into meaningful progress against the company’s long-term roadmap. XNDU is addressing the remaining loss gap through both hardware improvement and architectural simplification. Progress is coming from more chip runs and improvements across fabrication, packaging, propagation loss, coupling, and detector efficiency, while architectural changes are designed to reduce the number of components and optical operations photons must traverse. XNDU expects to provide a more detailed loss and hardware roadmap around the end of summer or Analyst Day, consolidating these contributors into two principal optical paths and extending the framework toward 2029-2030. The update should be an important near-term catalyst by providing clearer benchmarks around current performance, required thresholds, timing, and system dependencies. Higher wafer throughput should accelerate development cycles across the company’s two core material platforms. Fabrication activity increased approximately 75% for thin-film lithium niobate and 50% for silicon nitride. Silicon-nitride availability through NY CREATES increased from approximately 100 to 150 wafers, while thin-film-lithium-niobate activity through WaferTech, a UMC subsidiary, increased from slightly above 100 to approximately 175 wafers per month. XNDU expects both corridors to increase further. Albany expansion should strengthen XNDU’s access to U.S. semiconductor infrastructure and engineering talent. XNDU is expanding its U.S. operations around Albany, New York, where proximity to semiconductor research, photonics infrastructure, foundry partners, and government stakeholders should improve coordination across design, fabrication, packaging, and testing. U.S. headcount has increased more than fivefold since 2023, with further significant growth expected by year-end. The public listing has also improved recruiting visibility and compensation flexibility through liquid equity awards, broadening the pool of specialized engineering candidates. Together, the expanded U.S. footprint and deeper talent base should support higher tapeout and wafer activity, greater parallel component development, and a faster hardware iteration cadence. QROM improvements demonstrate how software innovation can reduce future hardware requirements and reinforce the value of the full-stack model. The company published a patent-filed quantum read-only memory, or QROM, technique that cuts required Toffoli-gate operations by roughly half by reducing unnecessary data-movement and unlocking steps. Because QROM is a common subroutine for loading classical data into quantum algorithms, lower gate requirements could ultimately reduce physical-qubit, error-correction, and runtime needs, easing the burden on the hardware roadmap; the implementation is already available through PennyLane. XNDU also trained a Fourier-based quantum-machine-learning model with more than one million parameters to learn the distribution of ribosomal RNA, demonstrating the software stack’s ability to support increasingly complex scientific workloads, although commercial applicability remains early. PennyLane continues to expand its developer reach and strengthen XNDU’s future customer funnel, while monetization remains early. The company released PennyLane 0.45 and Catalyst 0.15, improving end-to-end algorithm development and compilation, while the foundational PennyLane paper surpassed 2,000 citations. Active users, university relationships, and corporate engagement continue to grow, with the latest disclosed metrics at more than 35,000 active users, approximately 200,000 monthly downloads, and roughly 150 university partners. PennyLane remains more important today as a developer and customer-acquisition funnel than as a software revenue driver, with researchers and enterprises trained on the platform potentially becoming future users of enterprise software, application-development services, and quantum-compute access as fault-tolerant hardware becomes available toward 2029-2030. Partnership activity is increasingly supporting application development, workforce readiness, and future enterprise adoption. The company expanded its Lockheed Martin relationship through a joint quantum-machine-learning and workforce-training initiative that uses PennyLane, educational resources, and dedicated workshops to train AI developers and research engineers through the Quantum Talent Pipeline. The program addresses a shortage of internal quantum specialists while broadening PennyLane adoption across aerospace and defense. XNDU also brought PennyLane and its Lightning simulator to Oak Ridge National Laboratory’s Frontier supercomputer, enabling distributed quantum simulation across AMD-powered nodes; renewed its multi-year Rolls-Royce collaboration in computational fluid dynamics and aerodynamics; continued research with Fidelity FCAT; and disclosed advanced-stage engagements with several major banks focused on systematic-risk modeling and multi-input correlations. Engagement with Los Alamos and membership in the Unitary Foundation further extend the company’s research, talent-development, and open-source ecosystem. Project OPTIMISM is nearing a potential funding decision that could materially reduce the capital intensity of XNDU’s manufacturing roadmap. The program remains in final discussions, with a potential update expected over the next one to two months. It could provide up to C$390 million of support from the governments of Canada and Ontario for photonic packaging, wafer-level testing, heterogeneous integration, and quantum-module assembly. If finalized, the funding would strengthen XNDU’s manufacturing capacity while supporting Canada’s sovereign quantum supply chain. The program should not be viewed as unrestricted upfront liquidity, however, as funding is expected to be received over time against qualifying R&D and capital investments; final terms, eligible expenditures, cost-sharing requirements, and reimbursement timing will determine the ultimate balance-sheet and cash-flow benefit. DARPA Stage C could provide an important external validation point for the company’s fault-tolerance roadmap. DARPA remained the principal driver of 2Q26 revenue through Stage B of the Quantum Benchmarking Initiative, with XNDU indicating that required milestones are being met and expressing confidence around potential advancement to Stage C. Selection would matter beyond incremental funding by providing independent validation of the company’s loss-reduction and fault-tolerance progress, strengthening the credibility of its hardware roadmap, and increasing visibility with U.S. government and sovereign-compute customers. Continued progress through DARPA’s benchmarking process could also improve the longer-term pathway toward government procurement. The synthetic ATM expands funding flexibility for roadmap acceleration. XNDU established a synthetic ATM facility with Yorkville Advisors for up to $300 million over 36 months, allowing the company to issue up to 30 million Class B shares with no minimum usage requirement. During 2Q26, the company raised $67.2 million through the issuance of 5.5 million shares at an average net price of $12.28, with the company retaining flexibility to draw selectively based on market conditions and valuation. The facility reduces near-term financing risk and supports additional engineering, wafer, and manufacturing investment; however, future issuance will need to translate into measurable optical-loss reduction, qubit-factory progress, and faster roadmap execution. Revenue remains early-stage, concentrated, and largely program-driven. 2Q26 revenue increased 43% y/y to $1.5 million from $1.1 million but declined approximately 47% from $2.8 million in 1Q26, primarily reflecting the timing of DARPA Stage B revenue and milestone recognition. Two customers represented approximately 75% of 2Q26 revenue and 79% of 1H26 revenue, reinforcing the limited recurring nature of the current revenue base. Until revenue shifts toward scalable software subscriptions, cloud access, system sales, IP licensing, or repeatable application-development work, quarterly results should be viewed primarily as evidence of technical engagement and government validation rather than product-market maturity. Higher R&D and capex are beginning to translate the post-listing capital base into a faster engineering cadence. R&D expense increased to $19.7 million from $17.3 million in 1Q26, driven by engineering and manufacturing hiring, stock-based compensation, and broader development activity, while G&A rose to $11.1 million from $9.8 million on higher headcount, public-company costs, and capital-markets activity. Capital expenditures increased to $6.4 million from $0.3 million as the company invested in specialized equipment for chip testing, process refinement, and manufacturing scale-up. The step-up is consistent with the broader roadmap, as higher wafer throughput and tapeout activity require additional engineering capacity, testing infrastructure, and process-control capabilities, providing a clearer test of whether incremental capital is accelerating hardware development. Wider adjusted EBITDA losses reflect the deliberate step-up in R&D and public-company investment. Adjusted EBITDA loss widened to $21.3 million from $13.9 million in 1Q26 and $13.4 million in 2Q25, driven by higher R&D, G&A, and lower grant revenue, while GAAP net loss increased to $42.1 million. The GAAP result included $12.5 million of fair-value losses, $4.7 million of stock-based compensation, and $2.3 million of non-recurring transaction and financing expenses, which explain much of the gap between reported net loss and underlying operating investment. The core trend, however, remains one of higher spending and wider losses as XNDU accelerates engineering, manufacturing, and public-company buildout. Physical infrastructure commitments are increasing alongside XNDU’s manufacturing and engineering buildout. The company recognized a $19.1 million operating lease liability for a new Toronto facility under a 15-year term, driving much of the increase in long-term lease liabilities to $25.6 million from $7.2 million at year-end. The expanded footprint supports higher manufacturing, testing, and engineering activity as the roadmap scales, although it also increases the fixed-cost base ahead of scaled commercialization. The expanded balance sheet provides substantial capacity to accelerate technical execution. XNDU ended 2Q26 with $312.8 million of cash and approximately $32.5 million of debt, implying net cash of roughly $280 million. Operating cash use was $30.6 million in 1H26 versus $27.4 million a year earlier, while investing outflow totaled $7.2 million. Liquidity reflects the post-SPAC capital raise, supplemented by $67.2 million of 2Q26 synthetic ATM proceeds, providing flexibility to expand wafer activity, engineering headcount, and manufacturing infrastructure. Near-term financing risk remains limited, but with R&D and capex expected to increase through 2H26, the more relevant measure of capital efficiency will be whether higher spending translates into faster optical-loss reduction, qubit-factory progress, and broader roadmap execution. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. XNDU’s valuation has reset despite measurable technical and ecosystem progress and remains below listed quantum peers. At $10.4 per share, XNDU trades at a market capitalization of approximately $3.2 billion and enterprise value of roughly $2.9 billion, compared with approximately $4.1 billion and $4.3 billion, respectively, at the time of the May earnings update. This represents a roughly 22% decline in market capitalization and 33% reduction in EV despite progress in optical loss, materially higher wafer throughput, expanded manufacturing capacity, and broader software and partner engagement. XNDU’s current market capitalization is also roughly 47% below the peer average of about $6.0 billion, while its EV is approximately 44% below the roughly $5.2 billion peer average. The valuation gap is notable given XNDU’s scarce pure-play photonic exposure, differentiated architecture, and full-stack positioning, although relative valuation remains sensitive to differences in revenue scale, technical maturity, and commercialization timelines across quantum platforms. Architecture credibility, funding capacity and milestone execution remain the more relevant valuation framework. XNDU ended 2Q26 with $312.8 million of cash and has increased fabrication activity by approximately 75% for thin-film lithium niobate and 50% for silicon nitride, while the aggregate optical-loss gap has narrowed by as much as 200x over roughly four years, with a further 5-10x reduction estimated to remain. These metrics provide a more useful framework for assessing whether higher R&D, capex, and infrastructure investment are reducing technical risk and accelerating development. The upcoming detailed loss and hardware roadmap should therefore be particularly important for valuation, as it is expected to provide clearer benchmarks around current performance, required thresholds, timing, and the path toward the 2029-2030 roadmap. Rerating potential remains tied to measurable technical, funding, and commercial catalysts. Key drivers include further reduction in the remaining 5-10x optical-loss gap, continued increases in wafer and tapeout velocity, qubit-factory progress, DARPA Stage C advancement, finalization of Project OPTIMISM, updated PennyLane adoption metrics, and conversion of strategic partnerships into paid or procurement-linked demand. Successful execution across these milestones could support a narrowing of XNDU’s current valuation discount as technical risk declines and revenue visibility improves. Conversely, slower loss reduction, qubit-factory delays, rising R&D and capex without comparable technical progress, additional ATM dilution, or continued uncertainty around government funding could constrain rerating potential. Download the Complete Report Here Read Exec Edge’s Initiation on Xanadu Quantum Here Watch IPO Edge Fireside Chat with Xanadu Founder & CEO Christian Weedbrook Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Xanadu Accelerates Chip Production as Investors Await Next Catalyst in Race to Scalable Quantum Computing – Quarterly Update Report appeared first on ExecEdge.

Interested in Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares? Here are five stocks we like better. Q2 revenue rose year over year to CAD 1.5 million from CAD 1.1 million, though it declined sequentially from CAD 2.8 million. DARPA Stage B work was the primary revenue driver, while cash totaled CAD 312.8 million after CAD 67.2 million was raised through a synthetic equity offering. Hardware development advanced as Xanadu achieved average photonic chip edge-coupling loss of 0.085 decibels per facet, which management described as potentially industry-leading. The company increased fabrication runs and expects to publish a broader loss-reduction and hardware roadmap by summer’s end. Investment and operating losses are accelerating: capital expenditures reached about CAD 6.4 million and are expected to rise in the second half, while adjusted EBITDA loss widened to CAD 21.3 million. Xanadu is expanding U.S. operations, hiring, research and manufacturing capacity, and said it is optimistic about advancing to DARPA Stage C but has not received confirmation. Could These 3 New-to-Market Quantum Computing Firms Threaten D-Wave? Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares (NASDAQ:XNDU) reported second-quarter revenue of CAD 1.5 million, down from CAD 2.8 million in the first quarter but above CAD 1.1 million in the prior-year period, as the company continued to invest in photonic quantum-computing hardware, software and manufacturing capacity. Revenue in the quarter was primarily driven by work with the U.S. Defense Advanced Research Projects Agency, or DARPA, at Stage B, Chief Financial Officer Michael Trzupek said during the company’s Aug. 5 earnings call. → 3 Drone Stocks That Should Soar After the Summer Slump Xanadu ended the quarter with CAD 312.8 million in cash. During the quarter, the company raised CAD 67.2 million through its synthetic at-the-market equity facility with Yorkville Advisors, selling 5.5 million Class B subordinate voting shares at an average net price of CAD 12.28 per share. Founder and Chief Executive Officer Christian Weedbrook said the company reached an average edge-coupling loss of 0.085 decibels per facet in photonic chip packaging. He described optical loss as one of the most important engineering challenges for photonic quantum computing and a critical factor in progressing toward fault-tolerant systems. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Weedbrook attributed the result to Xanadu’s internal photonic chip-packaging facility, collaboration with Corning on customized fiber and fiber-array solutions, and work with DISCO on wafer singulation. The company also increased fabrication activity across its core material platforms. Fabrication runs involving thin-film lithium niobate rose about 75%, while silicon nitride runs increased about 50%, according to management. Weedbrook said higher tapeout volumes should allow faster chip-design iterations and process improvements. → Jersey Mike's Serves Fresh Gains After IPO Stumble During the question-and-answer session, Weedbrook said Xanadu is addressing 16 or 17 major sources of loss across its system, including qubit generation, gates, detectors, beam splitters, phase shifters, ring resonators and fiber-to-chip coupling. He said the edge-coupling result was among the major advances, though not the only required improvement. “We believe [it is] the lowest loss anywhere in the world,” Weedbrook said of the fiber-to-chip coupling performance, while adding that the company plans to publish a more detailed loss-reduction and hardware-milestone roadmap by the end of summer. On DARPA, Weedbrook said Xanadu was “looking good for Stage C” and was meeting the requirements it needs to meet, while cautioning that the company could not make promises before an outcome is confirmed. Xanadu announced an expansion of its U.S. operations in July, centered on its growing Albany, New York presence. Weedbrook said the location provides proximity to quantum-computing and semiconductor research partners as well as established semiconductor and photonics supply chains. The company’s U.S. workforce has increased more than fivefold since 2023 and is expected to grow significantly again by year-end, he said. Xanadu also expects research and development hiring to accelerate as it expands engineering and manufacturing capabilities. In response to an analyst question, Weedbrook said public-market visibility and the ability to use equity-based compensation had expanded the company’s talent pool. He added that building a large-scale quantum computer remains a difficult challenge despite the improved hiring environment. Capital expenditures rose to approximately CAD 6.4 million in the quarter, mainly for specialized equipment used to test, refine and scale chip-manufacturing capabilities. Trzupek said capital spending is expected to increase further in the second half as Xanadu invests in research, development and manufacturing infrastructure. On the software side, Xanadu said its researchers developed an approach to quantum read-only memory, or QROM, that reduces the Toffoli gate operations required by roughly half. The company said the work is protected by a patent filing and is available in its PennyLane software platform. Xanadu also released PennyLane version 0.45 and Catalyst version 0.15. Weedbrook said a foundational PennyLane paper has surpassed 2,000 citations. Chief Operating Officer Rafal Janik said PennyLane adoption continues to increase among users, universities and corporate organizations, though the company did not disclose updated 30-day active-user figures. The company highlighted several partnerships, including a quantum machine-learning and workforce-training initiative with Lockheed Martin, a renewed multiyear collaboration with Rolls-Royce focused on computational fluid dynamics and aerodynamics, and work with Oak Ridge National Laboratory to bring PennyLane and distributed Lightning simulation capabilities to the Frontier exascale supercomputer. Xanadu also said it is in advanced-stage engagements with several major banks regarding quantum algorithms and financial-services applications. R&D expense was CAD 19.7 million, up CAD 2.4 million from the first quarter, reflecting increased headcount, stock-based compensation and the scaling of research capabilities. General and administrative expense increased to CAD 11.1 million from CAD 9.8 million sequentially. The company recorded CAD 2.3 million in non-recurring fees related to its SPAC combination and the launch of the synthetic ATM program. Adjusted EBITDA loss widened to CAD 21.3 million from CAD 13.9 million in the first quarter, driven primarily by higher R&D and G&A expenses and lower grant revenue. Trzupek said Xanadu expects R&D spending growth to accelerate in the third quarter as it adds personnel and increases tapeouts, but did not provide explicit financial guidance. Xanadu Quantum Technologies Limited is a quantum computing company headquartered in Toronto, Canada, that develops photonics-based quantum hardware and software. The company focuses on building programmable photonic quantum processors that use light rather than superconducting qubits, and it provides cloud-based access to its systems for researchers and commercial users. Xanadu is publicly listed under the ticker XNDU on both Nasdaq and the Toronto Stock Exchange. Its technology stack combines integrated photonic hardware, control systems, and software designed to support quantum algorithms and applications in areas such as optimization, simulation, and quantum machine learning. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

The Company is on a Mission to Build Quantum Computers That Are Useful and Available to People Everywhere TORONTO, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Xanadu Quantum Technologies Limited ("Xanadu" or the "Company") (NASDAQ: XNDU) (TSX: XNDU), a leading photonic quantum computing company, today announced financial results for the second quarter ended June 30, 2026. "Every decision at Xanadu comes back to one mission: building quantum computers that are useful and available to people everywhere," said Dr. Christian Weedbrook, Founder and Chief Executive Officer of Xanadu. "This quarter, we made real progress on that mission. We set new performance records across some of our core photonic components, and we're pairing that hardware progress with software breakthroughs that we believe make quantum algorithms more efficient today." "We ended the quarter in a strong financial position, with $312.8 million of cash on hand," said Michael Trzupek, Chief Financial Officer of Xanadu. "That balance sheet gives us the runway to keep investing in the engineering talent and wafer capacity our roadmap requires. During the quarter we raised $67.2 million under our synthetic at-the-market facility with Yorkville Advisors, and we intend to remain disciplined, drawing on that facility only when we believe conditions are favorable to the Company, including its shareholders." Second Quarter Business Milestones and Announcements Chip packaging and fabrication: Achieved an average edge-coupling loss of 0.085 dB per facet, supported by the Company's internal packaging facility and collaborations with Corning and DISCO, and increased foundry fabrication runs across its two core material platforms: thin-film lithium niobate (up approximately 75%) and silicon nitride (up approximately 50%). U.S. operations expansion: Announced a significant expansion of U.S. operations anchored in Albany, New York; U.S. headcount has grown more than five-fold since 2023, with further growth expected by year-end. Software and algorithm advancements: Published an algorithmic breakthrough in Quantum Read-Only Memory (QROM) that cuts required Toffoli gate operations by roughly half, patent-filed and available today in PennyLane; also trained a Fourier-based quantum machine-learning model with over one million parameters, large enough to learn the distribution of ribosomal RNA. PennyLane momentum: Shipped PennyLane 0.45 and Catalyst 0.15; the foundational PennyLane white paper surpassed 2,000 citations. Strategic collaborations and partnerships: Partnered with Oak Ridge National Laboratory to bring PennyLane onto the Frontier exascale supercomputer; re-signed a multi-year collaboration with Rolls-Royce on computational fluid dynamics and aerodynamics; and continued research with the Fidelity Center for Applied Technology (FCAT), alongside advanced-stage engagements with several major banks. Launched a joint quantum machine learning and workforce-training initiative with Lockheed Martin under its Quantum Talent Pipeline; deepened engagement with Los Alamos National Laboratory's 2026 Summer School; and joined the Unitary Foundation. Second Quarter Financial Highlights (1) Cash and cash equivalents were $312.8 million as of June 30, 2026 Revenue was $1.5 million, compared to $2.8 million in the first quarter of 2026 and $1.1 million in the second quarter of 2025, with the year-over-year increase primarily driven by DARPA Stage B revenue Research and development ("R&D") expense was $19.7 million, an increase of $2.4 million from the first quarter of 2026, primarily reflecting increased spending on engineering hires General and administrative ("G&A") expense was approximately $11.1 million, compared to $9.8 million in the prior quarter, primarily due to higher headcount, stock-based compensation, and capital market and public-company related professional costs Net loss was $42.1 million, compared to a loss of $20.6 million in the first quarter of 2026 Adjusted EBITDA(2) loss was $21.3 million, compared to a loss of $13.9 million in the first quarter of 2026, primarily due to increased R&D, G&A, and lower grant revenue in the quarter Capital expenditures increased to approximately $6.4 million in the quarter, compared to $0.3 million in the first quarter of 2026 (1) All financial figures in this release are presented in United States Dollars unless otherwise noted. (2) Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures,” below. Note: Components may not sum to totals due to rounding. Synthetic At-The-Market Equity Facility In May 2026, Xanadu entered into a Standby Equity Purchase Agreement with Yorkville Advisors, establishing a synthetic at-the-market equity facility for up to $300 million. The facility gives the Company the flexibility, but not the obligation, to issue Class B subordinate voting shares to Yorkville over a three-year term, opportunistically, based on market conditions and valuation. During the second quarter, the Company raised $67.2 million under the facility, selling 5.5 million shares at an average net price of $12.28. Net proceeds are used for working capital and general corporate purposes, which help fund the continued development of the Company's quantum computing technology roadmap. The Company intends to remain disciplined and strategic in its use of the facility, drawing on it only when it believes market conditions and valuation are favorable to the Company and its shareholders. The Company continues to expect to provide more detailed engineering and spending guidance metrics later this summer, as previously indicated. This press release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction in which such offer or solicitation is unlawful. Second Quarter 2026 Conference Call Xanadu will host a conference call today, August 5, 2026, with Dr. Christian Weedbrook, Founder and Chief Executive Officer, Michael Trzupek, Chief Financial Officer, and Rafal Janik, Chief Operating Officer to discuss the results and business outlook. The call will be webcast live and archived on the Investor Relations section of the Company's website at investors.xanadu.ai. About Xanadu Founded in 2016, Xanadu is a Canadian photonic quantum computing company with the mission to build quantum computers that are useful and available to people everywhere. Xanadu is building fault-tolerant quantum computers using light, with systems designed to compute at room temperature. Xanadu develops both hardware and software, including PennyLane, its open-source quantum computing platform. Xanadu is the first pure-play photonic quantum computing company to list on public markets (Nasdaq/TSX: XNDU) and is recognized globally for its breakthroughs in scalable quantum technologies. Visit xanadu.ai or follow us on X @XanaduAI. Non-GAAP Financial Measures To supplement our historical consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use Adjusted EBITDA, a non-GAAP financial measure, to understand and evaluate our financial and operating performance. We define Adjusted EBITDA as net loss before interest expense, income tax expense (benefit), depreciation and amortization expense, stock-based compensation, change in fair value of financial instruments, and other income and non-recurring expenses. We use Adjusted EBITDA to measure the operating performance of our business, excluding specifically identified items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations. By excluding certain items that are non-recurring or not reflective of the performance of our normal course of business, we believe that Adjusted EBITDA provides meaningful supplemental information regarding our performance. Accordingly, we believe that Adjusted EBITDA is useful to investors and others because it allows investors to supplement their understanding of our financial trends and evaluate our ongoing and future performance in the same manner as management. However, there are several limitations related to the use of Adjusted EBITDA as it reflects the exercise of judgement by our management about which expenses are excluded or included. Adjusted EBITDA should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Adjusted EBITDA is not a standardized measure and our presentation of Adjusted EBITDA may differ from how such a metric is used by other companies. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, is provided below. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. We have based these forward-looking statements on current expectations and projections about future events. These statements include: Xanadu's mission and technology roadmap, including its path toward fault-tolerant, utility-scale quantum computing; expectations regarding R&D and capital spending, including the timing and pace of wafer runs, tapeouts, and engineering hires; the Company's plans to provide more detailed engineering and spending guidance later in the summer; expectations regarding strategic collaborations and partnerships, including with Lockheed Martin, Los Alamos National Laboratory, the Unitary Foundation, Oak Ridge National Laboratory, Rolls-Royce, the Fidelity Center for Applied Technology, and other financial institutions; the anticipated benefits, use of proceeds, and Company's approach to the synthetic at-the-market equity facility with Yorkville Advisors, including expectations regarding dilution and the Company's cash position; and the continued growth of the Company's U.S. operations, including in Albany, New York. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, many of which are beyond the control of Xanadu. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such statements. Such risks and uncertainties include: that Xanadu is pursuing an emerging technology, faces significant technical challenges, and may not achieve commercialization or market acceptance; Xanadu's historical net losses and limited operating history; Xanadu's expectations regarding future financial performance and capital requirements; Xanadu's competitive landscape; Xanadu's dependence on members of its senior management and its ability to attract and retain qualified personnel; the potential need for additional future financing; Xanadu's reliance on strategic partners and other third parties; Xanadu's concentration of revenue in contracts with government or state-funded entities; Xanadu's ability to maintain, protect, and defend its intellectual property rights; risks related to the equity line of credit, including the potential for substantial dilution to existing shareholders; and other factors described in the Company's filings with the U.S. Securities and Exchange Commission (the “SEC”) and the Canadian Securities Administrators (the “CSA”), which are incorporated by reference herein. These forward-looking statements are based on certain assumptions, including that none of the risks identified above materialize; that there are no unforeseen changes to economic and market conditions, and that no significant events occur outside the ordinary course of business. Additional information concerning these and other factors that may impact such forward-looking statements can be found in filings by the Company with the SEC and the CSA, including under the heading “Risk Factors.” If any of these risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements reflect the expectations, plans, and forecasts of Xanadu's management as of the date of this press release; subsequent events and developments may cause their assessments to change. While Xanadu may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, unless required by applicable securities laws. Accordingly, undue reliance should not be placed upon these statements. Summary financial tables follow. Contacts Press Contact: [email protected] Investor Relations: [email protected] Brett Harriss, Vice President, Investor Relations, Xanadu Quantum Technologies Ltd. (1) Old Xanadu convertible preferred shares and common shares have been retroactively recast after giving effect to the Reverse Recapitalization. Refer to the Company's 6-K Q2 2026 Quarterly Report filed on August 5, 2026 for additional information. (1) Net loss per share and weighted average shares outstanding have been retroactively recast after giving effect to the Reverse Recapitalization. Refer to the Company's 6-K Q2 2026 Quarterly Report filed on August 5, 2026 for additional information. _______________________________(1) Includes the gain (loss) on the fair value of the warrant, earn-out share liabilities, and derivative instruments.(2) Other (income) expense, net primarily consists of foreign exchange gain (loss).(3) Non-recurring expenses include professional fees such as legal, consulting, accounting and advisory fees incurred in connection with indirect costs related to the Reverse Recapitalization and PIPE Transaction, public offering, and the SATM Facility.

Download the Complete Report Here Key Takeaways: Public listing and capital infusion shift XNDU into funded roadmap execution. XNDU completed its business combination with Crane Harbor Acquisition Corp. in 1Q26 and began trading on both Nasdaq and the Toronto Stock Exchange under the ticker XNDU. The listing represented more than a capital raise; it marked a transition from early-stage research toward large-scale engineering and commercialization. The transaction generated ~$302 million in gross proceeds, which, together with ~$285 million (C$390 million) of anticipated Canadian and Ontario government funding currently under negotiation, is expected to support XNDU’s roadmap toward a quantum data center by 2029-2030. Government funding and ATM flexibility broaden the roadmap funding stack. XNDU is in discussions with the governments of Canada and Ontario for up to ~$285 million, or C$390 million, under Project OPTIMISM to advance domestic quantum manufacturing capabilities, while DARPA QBI Stage B contributed to 1Q26 revenue and could provide a path toward a potentially meaningful Phase C opportunity. The Canadian Quantum Champions Program adds another layer of government-backed validation, with these programs supporting more than funding by validating the roadmap, creating potential procurement pathways, strengthening sovereign quantum infrastructure, and helping offset manufacturing intensity across photonic packaging, test and measurement, heterogeneous integration, and module assembly. Importantly, anticipated Canadian government funding is expected to be received gradually as qualifying R&D investments are made rather than upfront on the balance sheet. Partnerships are expanding across application development and commercialization pathways. XNDU highlighted active relationships with AMD, Lockheed Martin, TELUS, and Fidelity Center for Applied Technology, building on earlier work with Mitsubishi Chemical, Rolls-Royce, Riverlane, Corning, Applied Materials, EV Group, and other industrial partners. The structure of these relationships matters more than the number of logos: defense and aerospace partners can support application IP and future procurement pathways, telecom and finance partners can help identify commercial workloads, and materials / industrial partners can support use-case development ahead of full-scale quantum data-center availability. Manufacturing partnerships support faster iteration and lower execution risk across the hardware roadmap. Hardware-focused relationships with AMD, Corning, EV Group, Applied Materials, and other manufacturing partners provide access to established infrastructure, engineering expertise, and high-volume production capabilities. These relationships can help accelerate chip iteration cycles, improve wafer access, support packaging and module assembly, and reduce per-iteration costs, strengthening XNDU’s ability to scale from R&D prototypes toward fault-tolerant photonic quantum systems. Selective commercial strategy prioritizes high-value partners over low-quality services revenue. XNDU is not chasing services revenue that could divert technical talent from the 2029-2030 roadmap, instead focusing on partnerships that support application development, technical validation, manufacturing scale, and eventual procurement. Lockheed Martin is a paid partnership focused on quantum machine learning, while AMD supports hybrid quantum-classical computing and FPGA-enabled workflows. XNDU highlighted a 20-qubit, 35 million-gate quantum computational fluid dynamics simulation with AMD that delivered a 25x workflow acceleration versus CPUs for aerospace and engineering applications. These relationships are meaningful because they represent early application work that could inform future demand for cloud-based quantum compute, enterprise software, and quantum data-center access, rather than generic logo validation. PennyLane remains a strategic developer funnel, with monetization still a future opportunity. PennyLane reached more than 35,000 active users and approximately 200,000 monthly downloads, while the platform now has roughly 150 university partners, including the University of Toronto, Johns Hopkins University, and the University of Maryland. The three-year University of Maryland National Quantum Lab partnership is focused on workforce development and commercialization across the Mid-Atlantic, reinforcing PennyLane’s role as a low-cost customer acquisition engine rather than a current software revenue driver. By training researchers, developers, and enterprises on its platform before fault-tolerant hardware is commercially available, XNDU is building developer mindshare that could support future demand for enterprise PennyLane, QCAST, cloud access, software subscriptions, and application-development work. Hardware-agnostic software positioning strengthens ecosystem relevance across quantum modalities. PennyLane continues to grow as one of the leading hardware-agnostic quantum software platforms, with Qiskit identified as a primary competitor and NVIDIA increasingly active in the broader software ecosystem. PennyLane’s ability to work across multiple quantum hardware modalities remains a key differentiator, while Catalyst extends XNDU’s software stack through a hardware-agnostic quantum compiler that can support multiple platforms. Photonics-based architecture remains XNDU’s core long-term differentiator. XNDU’s approach combines a modular, networked architecture designed to scale like modern data centers with the ability to leverage existing semiconductor and photonic manufacturing supply chains. The architecture also operates primarily at room temperature after initialization, reducing reliance on continuous cryogenic cooling, while supporting flexible real-time error correction with potentially lower overhead requirements. Gate speeds of approximately 100 MHz, which XNDU believes are roughly 10x–1,000x faster than competing approaches, could become a meaningful advantage as systems scale. While fault tolerance remains the industry-wide challenge, XNDU believes its modular photonic architecture has largely addressed the networking component, shifting the key execution focus toward chip performance, optical-loss reduction, and system-level scale. Aurora anchors XNDU’s roadmap toward scalable, fault-tolerant quantum computing. Aurora is the world’s first modular, scalable, and networked photonic quantum computer, featuring 12 logical qubits across 35 photonic chips connected through 13 kilometers of fiber optics, with room-temperature operation and real-time error-correction decoding. With the networking component largely established, XNDU’s focus has shifted toward improving photonic chip performance through optical-loss reduction, where the company delivered a 60% y/y improvement in 2025. The roadmap targets a qubit factory by 2026-2027, fault-tolerant operations by 2028, and a quantum data center capable of scaling toward up to 500 logical qubits by 2029-2030, alongside continued expansion of manufacturing capabilities. Manufacturing strategy supports the transition from lab-scale systems to industrial photonic chip production. XNDU is increasingly focused on turning its photonic architecture into a scalable manufacturing advantage by combining internal photonic integrated circuit design with external fabrication partners across substrates such as silicon nitride and lithium niobate. Building on Project OPTIMISM, the company is working to establish domestic semiconductor and photonic manufacturing infrastructure across photonic chip packaging, wafer-level testing, and quantum module assembly, while leveraging existing telecom photonics and semiconductor infrastructure rather than building a fully bespoke supply chain. The qubit factory represents a central milestone in XNDU’s roadmap toward scalable, fault-tolerant quantum computing. The qubit factory is designed to reliably generate large volumes of photonic GKP qubits on demand, which is a foundational requirement for large-scale quantum computation. GKP qubits are particularly important within XNDU’s architecture because they help tolerate optical loss, one of the primary technical challenges facing photonic quantum systems. The qubit factory remains one of the most difficult remaining components of the roadmap, with many subsequent milestones becoming materially easier once scalable qubit generation is achieved. While XNDU already has an early MVP-style version of the architecture through Aurora, continued loss reduction, component optimization, and system-level assembly remain critical to achieving fault-tolerant quantum computing at scale. Leadership additions support public-company execution and roadmap discipline. XNDU expanded its executive and board bench as part of its public-market transition, adding finance, legal, semiconductor, defense, government, and capital markets experience. CFO Michael Trzupek and Chief Legal Officer Natalie Wilmore strengthen financial discipline, securities compliance, and governance, while board additions with semiconductor, defense, and capital markets backgrounds support XNDU’s foundry-compatible manufacturing strategy, sovereign-compute positioning, and long-term roadmap funding needs. Revenue growth remains early-stage and service-led. XNDU reported 1Q26 revenue of $2.8 million, up 4x year-over-year from $0.7 million and above approximately $1.9 million in 4Q25, with growth primarily driven by revenue recognized from DARPA QBI Stage B participation. While the growth is notable, revenue remains lumpy and tied to government programs, paid partnerships, and milestone-based work rather than recurring software or cloud consumption. Until revenue begins shifting toward scalable QCAST access, enterprise PennyLane subscriptions, on-premise systems, IP licensing, and recurring support, we view the revenue line primarily as evidence of engagement and validation rather than proof of product-market maturity. Losses widened as XNDU remains in a deliberate investment phase. Net loss increased to $20.6 million, or $0.28 per share, in 1Q26 compared with a net loss of $12.2 million in the prior-year period, while adjusted EBITDA loss was $13.9 million versus $10.6 million in 1Q25. The widening loss reflects continued investment in hardware development, software infrastructure, talent, and public-company costs following the March 2026 listing. Balance sheet reset strengthens roadmap funding. Following the Crane Harbor business combination, XNDU ended 1Q26 with $272.5 million in cash and equivalents, up from $16.2 million at year-end 2025, supported by approximately $302 million in gross proceeds, including a $275 million oversubscribed PIPE. The company also had $30.0 million of long-term debt and 298.5 million shares outstanding, with more than 250 million legacy shares subject to 180-day lock-up provisions until September 2026. While the planned $300 million synthetic ATM facility and potential sovereign funding programs improve financial flexibility, they also introduce dilution and share-overhang risk. The stronger liquidity position should support faster technical progress, including higher chip-run velocity, improved optical-loss performance, expanded engineering capacity, greater manufacturing readiness, and continued progress toward the 2029-2030 target of up to 500 logical qubits. Differentiated photonic quantum platform remains attractively positioned relative to listed quantum peers. Please note that the following valuation analysis is for illustrative purposes only and is not meant to be a stock recommendation, price target, or buy/sell/hold recommendation. Near-term revenue multiples remain less relevant than architecture credibility, funding runway, and milestone execution. Valuation across the quantum computing sector remains largely decoupled from current revenue given the early stage of commercialization, and XNDU’s P/S multiple is not especially meaningful given its limited revenue base. Listed quantum peers trade at elevated LTM P/S multiples, with the peer average at approximately 431x, suggesting investors are underwriting long-duration platform potential rather than near-term sales. For XNDU, the more relevant valuation framework is whether its photonic architecture, Aurora roadmap, PennyLane developer ecosystem, government funding potential, and strategic partnerships can translate into a commercially useful quantum platform over time. Rerating potential should be tied to measurable technical, commercial, and funding milestones. We continue to see XNDU’s valuation supported by architectural scarcity and full-stack positioning, with further upside dependent on execution rather than sector enthusiasm alone. Key milestones include continued optical-loss reduction, faster chip-run velocity, qubit-factory progress, advancement toward fault-tolerant operations, finalization of Project OPTIMISM, and conversion of strategic partnerships into recurring or repeatable revenue streams. Upside should also be supported if XNDU demonstrates that it can scale beyond early logical-qubit milestones, improve manufacturing repeatability, monetize software and partner relationships, and use government support to reduce net capital intensity. Conversely, delayed loss reduction, slower wafer iteration, higher-than-expected burn, ATM-related dilution, government funding uncertainty, or peer multiple compression could constrain valuation upside. Download the Complete Report Here Read Exec Edge’s Initiation on Xanadu Quantum Here Watch IPO Edge Fireside Chat with Xanadu Founder & CEO Christian Weedbrook Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected]

Interested in Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares? Here are five stocks we like better. Xanadu used its first quarterly earnings call after going public to highlight its long-term goal of building a scalable, fault-tolerant photonic quantum computer and a quantum data center by 2029 to 2030. Management said the $302 million from its business combination, plus potential government funding, should help fund that roadmap. The company said its Aurora system demonstrated modular, networked photonic computing, and it is now focused on reducing optical loss and scaling toward a “qubit factory” in 2026 to 2027 and fault-tolerant operations by 2028. Financial results showed revenue rose to CAD 2.8 million from CAD 700,000 a year earlier, largely from DARPA-related work, while adjusted EBITDA loss widened to CAD 13.9 million. Xanadu also said its PennyLane software platform remains central to commercialization efforts, with more than 35,000 active users and multiple possible future revenue streams under review. Could These 3 New-to-Market Quantum Computing Firms Threaten D-Wave? Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares (NASDAQ:XNDU) used its inaugural quarterly earnings call to outline its post-listing financial position, technology roadmap and commercialization strategy, with management emphasizing that the company remains focused on building a scalable, fault-tolerant photonic quantum computer. Founder and Chief Executive Officer Dr. Christian Weedbrook said Xanadu’s March 27 public listing on Nasdaq and the Toronto Stock Exchange under the ticker XNDU marked “more than a capital event,” describing it as a signal that photonic quantum computing is moving from experimental research toward scaling and engineering execution. → Micron Investors Face a High-Stakes Moment After the Latest Rally The company completed its business combination with Crane Harbor Acquisition Corp., generating $302 million in gross proceeds. Weedbrook said those proceeds, together with anticipated Canadian and Ontario government funding currently under negotiation, are intended to accelerate Xanadu’s path toward building a quantum data center in the 2029 to 2030 timeframe. Weedbrook described Xanadu as a full-stack quantum computing company that develops both photonic hardware and software. He said the company’s approach, which uses photons, offers several advantages, including modular networking, use of existing semiconductor and photonic supply chains, room-temperature computation after initialization, flexible error correction and high gate speeds. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? According to Weedbrook, Xanadu’s Aurora system, which was demonstrated in Nature, is the “world’s first modular, scalable, and networked photonic quantum computer.” He said the system featured 12 logical qubits across 35 photonic chips and 13 kilometers of fiber optics, operating at room temperature with real-time error correction decoding. Weedbrook said the company has “put the networking challenge behind us” and is now focused on improving the performance of its photonic chips by reducing optical loss. He said Xanadu reduced optical loss by 60% year over year in 2025 and is targeting a “qubit factory” in 2026 to 2027, fault-tolerant operations by 2028 and a quantum data center in 2029 to 2030. The company is also aiming to scale toward up to 500 logical qubits in the 2029 to 2030 period. → Reading the Stripes: Is The Industrial Recession Over? Weedbrook also highlighted PennyLane, Xanadu’s open-source quantum software platform, as a key part of the company’s long-term strategy. He said PennyLane is used by developers, researchers and enterprises to access and explore quantum computing and prepare for future fault-tolerant hardware. As of the company’s Analyst Day, Weedbrook said PennyLane had more than 35,000 active users and 200,000 monthly downloads. He also pointed to 150 university partners, including the University of Toronto, Johns Hopkins University and the University of Maryland. During the question-and-answer session, Weedbrook said PennyLane and IBM’s Qiskit are among the top quantum software platforms. He described PennyLane as highly hardware-agnostic, while characterizing Qiskit as predominantly tied to IBM’s superconducting qubit ecosystem, though available on some other platforms. Chief Financial Officer Michael Trzupek said Xanadu ended the quarter with CAD 272 million in cash. He said the company’s capital base gives it flexibility to pursue both technical and commercial priorities, while noting that anticipated Canadian government funding would not appear on the balance sheet upfront and would instead be received over time as qualifying R&D investments occur. Revenue increased to CAD 2.8 million from CAD 700,000 in the prior-year quarter, primarily due to revenue recognized from Xanadu’s participation in DARPA’s Quantum Benchmarking Initiative Stage B. The company also recognized approximately CAD 5 million of grant income related to the Canadian Quantum Champions Program and other operating income. Research and development expense rose to approximately CAD 17 million from CAD 10 million a year earlier, reflecting investments in engineering talent, wafer iterations with foundry partners and process development. General and administrative expense was approximately CAD 10 million, including about CAD 5.5 million of non-recurring costs tied to the SPAC transaction and public listings. Adjusted EBITDA loss was CAD 13.9 million, compared with a loss of CAD 10.6 million in the prior-year quarter. Trzupek said spending is expected to increase in subsequent quarters as the company adds engineering talent and accelerates investment in wafer and chip production. Trzupek also said Xanadu plans to establish a CAD 300 million synthetic at-the-market facility. He described the structure as a primary issuance in which proceeds would flow directly to Xanadu’s balance sheet, adding that any capital raised would support development and scaling of the company’s quantum computing platform and roadmap. As of March 31, Xanadu had 298 million shares outstanding, including 255 million Class A shares and 43 million Class B shares. Trzupek said more than 250 million issued shares are held by legacy Xanadu shareholders and remain subject to 180-day lock-up provisions connected to the SPAC transaction, meaning they will not be freely tradable until September. Weedbrook said Xanadu announced new partnerships during the quarter with AMD, Lockheed Martin, TELUS and Fidelity Center for Applied Technology. He said those partnerships expand work across defense, finance and telecommunications and build on earlier partnerships with Mitsubishi Chemical, Rolls-Royce, Riverlane, Corning and Applied Materials. With AMD, Weedbrook said Xanadu is advancing hybrid quantum-classical computing for aerospace and engineering simulations using GPUs to run 20-qubit, 35 million-gate quantum computational fluid dynamics simulations, accelerating workflows by 25 times compared with CPUs. Management also discussed negotiations with the governments of Canada and Ontario for funding tied to Project OPTIMISM, which Weedbrook said is intended to support advanced semiconductor and photonic manufacturing infrastructure for Canada’s quantum supply chain. He said the company was not yet able to provide milestones for the program because negotiations remain ongoing, but said the program aligns with Xanadu’s broader roadmap. Analysts asked management about the path to reducing optical loss, the timing of DARPA Stage C decisions and potential monetization of PennyLane. Weedbrook said optical loss reduction depends heavily on repeated chip runs, which can take two to five months, as well as improvements in areas such as fiber-to-chip coupling. He said Xanadu works with multiple foundries and materials, including silicon nitride and lithium niobate. On DARPA, Weedbrook said Stage B is a year-long phase and that the company expects to know more toward the end of the year, with Xanadu’s year up around November. He said the team still has several months of deliverables remaining. Asked about PennyLane monetization, Weedbrook said the company is evaluating commercialization options for the open-source platform and told investors to “stay tuned.” Trzupek said potential future revenue models include quantum computing as a service, enterprise-grade PennyLane software, on-premise system sales, IP licensing of photonic subsystems and monetization of strategic partnerships. Xanadu Quantum Technologies Limited is a quantum computing company headquartered in Toronto, Canada, that develops photonics-based quantum hardware and software. The company focuses on building programmable photonic quantum processors that use light rather than superconducting qubits, and it provides cloud-based access to its systems for researchers and commercial users. Xanadu is publicly listed under the ticker XNDU on both Nasdaq and the Toronto Stock Exchange. Its technology stack combines integrated photonic hardware, control systems, and software designed to support quantum algorithms and applications in areas such as optimization, simulation, and quantum machine learning. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

The Company is on a Mission to Build Quantum Computers That Are Useful and Available to People Everywhere TORONTO, May 14, 2026 /CNW/ - Xanadu Quantum Technologies Ltd. ("Xanadu" or the "Company") (NASDAQ: XNDU) (TSX: XNDU), a leading photonic quantum computing company, today announced financial results for the first quarter ended March 31, 2026. "I started Xanadu in 2016 with a whitepaper and a conviction that photonics was the right path to a scalable quantum computer. After a decade of research, peer-reviewed breakthroughs, and a public listing on Nasdaq and the TSX, I am more convinced of that than ever," said Dr. Christian Weedbrook, Founder and Chief Executive Officer of Xanadu. "We believe harnessing photons gives us a distinct and viable path to building a quantum data center capable of solving some of the world's most complex challenges — and going public gives us the platform to help get there. We are not measuring success in quarters. We are measuring it in the breakthroughs that pave the road towards utility scale quantum computing." "Our public listing marks an important milestone, and with it comes a new level of transparency into how we are building this company for the long term. We are in an investment phase — deliberately allocating capital toward the hardware, software, and talent required to realize the full potential of photonic quantum computing," said Michael Trzupek, Chief Financial Officer of Xanadu. "The completion of our business combination with Crane Harbor Acquisition Corp. in conjunction with the anticipated support from the Canadian and Ontario governments, which are currently being negotiated, gives us runway to execute on our roadmap. Our decisions and investments are all made with one goal in mind: to build quantum computers that are useful and available to people everywhere." First Quarter Business Milestones and Announcements Public listing: Xanadu became the first publicly listed pure-play photonic quantum computing company, completing its business combination with Crane Harbor Acquisition Corp. and listing on Nasdaq and the Toronto Stock Exchange under the ticker "XNDU". Government support negotiations: Entered discussions for up to roughly $285 million(1) ($390 million CAD) in funding from the governments of Canada and Ontario to advance Project OPTIMISM and domestic quantum manufacturing capabilities. The proposed support remains subject to the completion of due diligence and the execution of final agreements. Strategic collaborations and partnerships: Active relationships with AMD, Lockheed Martin, Mitsubishi Chemical, and TELUS, support the Company's path to commercialization. PennyLane momentum: Xanadu reported strong adoption of its open-source PennyLane platform, reaching over 35,000 active users and averaging 200,000 monthly downloads as of our Analyst Day. Algorithm advancements: The Company advanced its hybrid quantum-classical algorithms through its new partnership with AMD, demonstrating 20-qubit, 35-million gate quantum computational fluid dynamics simulations that delivered 25x workflow acceleration versus traditional CPUs for aerospace and engineering applications. Executive appointments: The Company announced the appointments of Michael Trzupek as Chief Financial Officer and Natalie Wilmore as Chief Legal Officer. Inaugural Analyst Day: Xanadu hosted its first analyst day showcasing technical progress, roadmap updates, and a deeper view of commercialization strategy. First Quarter Financial Highlights (1) Cash and cash equivalents were $272.5 million as of March 31, 2026 Revenue increased 4x to $2.8 million, compared to $0.7 million in the first quarter of 2025 Net loss was ($20.6) million, versus ($12.2) million in the prior year period Adjusted EBITDA(2) loss increased ($3.2) million to ($13.9) million, compared to ($10.6) million in the prior year period Loss per share of ($0.28) increased compared to ($0.22) per share in the first quarter of 2025 Anticipated Financing Agreement The Company anticipates establishing a $300 million synthetic ATM facility (the "Program"), which would give the Company the flexibility to issue Class B subordinate voting shares over time in private placements at its discretion, subject to applicable stock exchange approval in connection with the launch of the Program. The net proceeds are expected to be used to fund the continued development of our quantum computing technology roadmap. We intend to be disciplined and strategic in our use of the Program, raising capital only when market conditions and valuation are supportive. This press release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction in which such offer or solicitation is unlawful. Upcoming Investor Conferences The Company expects to participate in the following investor conferences: CIBC Technology & Innovation Conference 14.0 — May 21, 2026, Toronto, ON TD Cowen's 54th Annual TMT Conference — May 28, 2026, New York, NY Stifel 2026 Boston Cross Sector 1x1 Conference — June 2-3, 2026, Boston, MA A live webcast of each presentation will be available on the Investor Relations section of the Company's website at investors.xanadu.ai. Replays will be accessible for 90 days following each event. First Quarter 2026 Conference Call Xanadu will host a conference call on Thursday, May 14, 2026, at 4:30 PM EDT to discuss the results and business outlook. The call will be available live on the Company's website. The call will also be accessible by telephone at 1-888-349-0106 (USA/Canada toll-free) or 1-412-902-0131 (International). Participants must ask to be joined into the Xanadu Quantum Technologies Ltd. (Nasdaq/TSX: XNDU) call. A telephone replay of the conference call will be available approximately 1 hour after it concludes at 1-855-669-9658 (USA/Canada toll-free) or 1-412-317-0088 (International) with access code 4363342 and will be available until 11:59 PM EDT, May 28th, 2026. Participants will be required to state their name and company upon entering the call. An archive of the webcast will also be available on the Company's website. About Xanadu Founded in 2016, Xanadu Quantum Technologies Ltd. is a Canadian photonic quantum computing company with the mission to build quantum computers that are useful and available to people everywhere. Xanadu is building fault-tolerant quantum computers using light, with systems designed to compute at room temperature. Backed by more than $500 million USD in funding, Xanadu develops both hardware and software, including Pennylane, its open-source quantum computing platform. Xanadu is the first pure-play photonic quantum computing company to list on public markets (Nasdaq/TSX: XNDU) and is recognized globally for its breakthroughs in scalable quantum technologies. Visit xanadu.ai or follow us on X @XanaduAI. Non-GAAP Financial Measures To supplement our consolidated financial statements which are prepared and presented in accordance with U.S. GAAP, we use Adjusted EBITDA, a non-GAAP financial measure, as described below, to evaluate our financial and operating performance. We define Adjusted EBITDA as net loss before interest expense, income tax expense (benefit), depreciation and amortization expense, stock- based compensation, change in fair value of financial instruments and other non-recurring income and expenses. We use Adjusted EBITDA to measure the operating performance of our business, excluding specifically identified items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations. By excluding certain items that are nonrecurring or not reflective of the performance of our normal course of business, we believe that Adjusted EBITDA provides meaningful supplemental information regarding our performance. Accordingly, we believe that Adjusted EBITDA is useful to investors and others because it allows investors to supplement their understanding of our financial trends and evaluate our ongoing and future performance in the same manner as management. However, there are several limitations related to the use of Adjusted EBITDA as it reflects the exercise of judgment by our management about which expenses are excluded or included. Adjusted EBITDA should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. In addition, our presentation of Adjusted EBITDA may be different from how such a metric is used by other companies. The following tables provide unaudited reconciliations to net loss, the most directly comparable GAAP measure, to Adjusted EBITDA for the periods presented. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the U.S. federal securities laws and "forward-looking information" within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target," "continue," "could," "may," "might," "possible," "potential," "predict" or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. We have based these forward-looking statements on current expectations and projections about future events. These statements include: Xanadu's mission; Xanadu's path to building a quantum data center and related uses; the expected benefits of going public; uses of funds from the business combination with Crane Harbor Acquisition Corp.; the potential government funding, including the negotiation and execution of final agreements with the Governments of Canada and of Ontario, Xanadu's ability to execute on its quantum computing technology roadmap, including the path towards utility-scale quantum computing, Xanadu's planned investment in hardware, software, and talent to advance photonic quantum computing, the completion of due diligence and the amount and terms of such funding; expectations regarding the impact of strategic collaborations and partnerships, including with AMD, Lockheed Martin, Mitsubishi Chemical, and TELUS, on the Company's path to commercialization; expectations regarding the equity line of credit, including the amount thereof, anticipated benefits and use of proceeds therefrom, and approach to use, and expectations regarding the Company's cash position and dilution profile; and investor conference participation. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, many of which are beyond the control of Xanadu. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such statements. Such risks and uncertainties include: that Xanadu is pursuing an emerging technology, faces significant technical challenges and may not achieve commercialization or market acceptance; Xanadu's historical net losses and limited operating history; Xanadu's expectations regarding future financial performance, capital requirements and unit economics; Xanadu's use and reporting of business and operational metrics; Xanadu's competitive landscape; Xanadu's dependence on members of its senior management and its ability to attract and retain qualified personnel; the potential need for additional future financing; Xanadu's ability to manage growth and expand its operations; potential future acquisitions or investments in companies, products, services or technologies; Xanadu's reliance on strategic partners and other third parties; Xanadu's concentration of revenue in contracts with government or state-funded entities; Xanadu's ability to maintain, protect and defend its intellectual property rights; risks associated with privacy, data protection or cybersecurity incidents and related regulations; the use, rate of adoption, and regulation of artificial intelligence and machine learning; uncertainty or changes with respect to laws and regulations; uncertainty or changes with respect to taxes, trade conditions and the macroeconomic environment; material weaknesses in Xanadu's internal control over financial reporting and the Company's ability to maintain internal control over financial reporting and operate as a public company; the outcome of any legal proceedings or government investigations that may be commenced against Xanadu; failure to realize the anticipated benefits of the business combination with Crane Harbor Acquisition Corp.; the Company's ability to issue equity or equity-linked securities in the future; risks related to the equity line of credit, including the potential for substantial dilution to existing shareholders resulting from the issuance of Class B Subordinate Voting Shares thereunder, the risk that sales of such shares or the perception that such sales may occur, could cause the price of the Company's Class B Subordinate Voting Shares to decline; uncertainty regarding the proposed government funding from the Governments of Canada and Ontario, including the risk that due diligence may not be completed, that final agreements may not be executed, or that the amount or terms of any such funding may differ materially from those currently anticipated; and other factors described in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC") and the Canadian Securities Administrators (the "CSA"), which factors are incorporated by reference herein. These forward-looking statements are based on certain assumptions, including that none of the risks identified above materialize; that there are no unforeseen changes to economic and market conditions, and that no significant events occur outside the ordinary course of business. Additional information concerning these and other factors that may impact such forward-looking statements can be found in filings by the Company with the SEC and the CSA, including under the heading "Risk Factors." If any of these risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, these statements reflect the expectations, plans and forecasts of Xanadu's management as of the date of this press release; subsequent events and developments may cause their assessments to change. While Xanadu may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, unless required by applicable securities laws. Accordingly, undue reliance should not be placed upon these statements. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Summary financial tables follow. XANADU QUANTUM TECHNOLOGIES LIMITEDConsolidated Balance Sheets (In thousands, except for share amounts) XANADU QUANTUM TECHNOLOGIES LIMITEDConsolidated Statements of Operations and Comprehensive Loss (Unaudited)(In thousands, except for share and per share amounts) XANADU QUANTUM TECHNOLOGIES LIMITEDNON-GAAP FINANCIAL MEASURE(In thousands) Reconciliation of Non-GAAP Financial Measure Adjusted EBITDA: View original content:https://www.prnewswire.com/news-releases/xanadu-announces-first-quarter-2026-results-302772813.html