Horizon Quantum Computing Pte. NASDAQ: HQ outlined hiring-driven spending increases, an expanded hardware partnership roster, and progress on its software stack during its first-quarter fiscal 2026 earnings call, while emphasizing that it is prioritizing technical execution over near-term revenue generation.
Management highlights software roadmap and “tight integration” with hardware
Founder and CEO Dr. Joe Fitzsimons opened the company’s first earnings call as a public company by highlighting five areas of focus: headcount growth, deepening hardware partnerships, progress in its software stack—particularly its object-oriented quantum programming language Beryllium—tighter integration with quantum hardware, and what he described as sufficient capital “for the foreseeable future.”
Fitzsimons said Horizon Quantum’s long-term aim is to “automate the acceleration of classical code on quantum computers,” describing the creation of quantum algorithms as a compilation task rather than an R&D project. He framed the company’s approach as building a software infrastructure and programming language stack that can abstract away quantum mechanics for domain experts in industries that could benefit from quantum computing.
Fitzsimons also reiterated the company’s focus on a hardware-agnostic approach. “Our goal is to ensure that no matter which system architecture takes a lead in quantum computing, you'll be able to program it with Triple Alpha,” he said, referring to Horizon Quantum’s platform and toolchain.
Testbed buildout includes Ember One and an agreement with IonQ for a 256-qubit system
Fitzsimons described the January inauguration of Horizon Quantum’s quantum computing testbed, including its first system, Ember One, which he said was officiated by Singapore’s Minister of Digital Development and Information, Josephine Teo. According to Fitzsimons, Ember One is based on a Rigetti Novera 9-qubit superconducting processor along with Quantum Machines controller electronics and a dilution refrigerator, and was integrated in-house.
He said operating hardware directly enables the company to integrate its software stack more tightly with the hardware “without having to pass through third-party software layers,” which he called important to achieving quantum advantage in the near term. He added that direct access to the superconducting system has accelerated development of the company’s real-time execution stack and enabled “pulse level programming and pulse level optimization within our stack.”
Fitzsimons also disclosed that Horizon Quantum entered into an agreement with IonQ for a 256-qubit trapped ion quantum computer. He said the anticipated qubit count and fidelity are expected to put the system “on the cusp of quantum advantage for at least some chemistry problems,” and that it allows the company to accelerate its testbed roadmap with one system rather than two. Fitzsimons said the company has disclosed plans for a second testbed system to be installed in calendar year 2027 and stated the company is on track to achieve that timeline, while noting he was limited by confidentiality agreements in providing more detail.
In response to questions about capital spending, CFO Greg Gould said the IonQ system represents “the big capital expenditure” compared with what he characterized as more normalized spending on employee hardware and other items. Fitzsimons added that while the amount is disclosed in the company’s Form 20-F, the payment schedule was redacted and the company could not share full details, reiterating that the expense would be recognized ratably over time. On Ember One, management indicated most of that expense had already been incurred over the past couple of years, with Fitzsimons referencing a remaining partial payment related to a dilution refrigerator disclosed in the company’s filings.
Hardware partnerships broaden; Beryllium development continues
During the quarter, Fitzsimons said Horizon Quantum expanded collaborations with additional quantum hardware companies. He highlighted partnerships with:
- Alice & Bob, which he said will include integrating their emulators into Triple Alpha to support interaction with emulated versions of planned quantum processors.
- AQT, which he said will include integrating AQT’s simulators and trapped ion processors into Triple Alpha to deepen support for trapped ion systems.
On the software side, Fitzsimons said the company’s R&D in the quarter focused on continued development of Beryllium “to a more feature-complete and stable form” and on integrating Ember One into Triple Alpha ahead of making it available to external users later in the year.
Fitzsimons said the company tracks approximately 40 hardware manufacturers and that interest from hardware companies currently exceeds Horizon Quantum’s capacity, a constraint he said the company expects to alleviate through its hiring ramp. He also said headcount growth has been concentrated in R&D, and that the company believes it is nearing the staffing level needed to execute its plans.
Financial results reflect hiring and public-company transition costs
Gould said total operating expenses for the first quarter of 2026 were $6.5 million, up from $4.7 million in the first quarter of 2025, attributing the widening operating loss largely to hiring. He noted results reflect the business combination with dMY Squared Technology Group, which closed March 19, with March 31 results reflecting the combined entity.
Key financial figures discussed on the call included:
- R&D expense: $2.13 million, down $1.19 million year-over-year, driven by a $2.28 million decrease in share-based compensation versus the prior-year quarter, which included a one-time “catch-up” expense of $2.5 million. Excluding that catch-up, Gould said R&D increased 135% year-over-year, driven by a doubling of science and engineering teams and incremental testbed setup costs.
- Sales and marketing: $0.46 million, up 40% from $0.33 million, with Gould citing higher trade show activity and industry engagement; excluding share-based compensation, he said sales and marketing rose 85% year-over-year.
- General and administrative: $3.6 million, up from $0.9 million, which Gould said included business combination expenses; excluding share-based compensation and one-time transaction costs, he said G&A increased 191% year-over-year.
- Loss from operations: $6.5 million, compared with a $4.7 million loss a year earlier.
- Net loss: $3.6 million, or $0.09 per share, compared with $4.8 million, or $0.12 per share, in the prior-year quarter. Gould attributed the narrower net loss relative to operating loss to a $3.0 million non-cash gain tied to fair value changes in warrant and SAFE-related liabilities.
Gould said EBITDA loss was $3.3 million versus $4.7 million a year ago, while adjusted EBITDA loss was $4.1 million versus $1.8 million a year ago, with the widening primarily due to hiring. Headcount ended the quarter at 52 full-time employees versus 29 a year earlier, which he said represents a 79% year-over-year increase.
Net cash used in operating activities was $4.2 million, compared with $1.6 million in the year-ago quarter. Gould said net cash provided by financing activities was $101 million, driven primarily by the PIPE and the business combination, and Horizon Quantum ended the quarter with $96.6 million in cash.
Go-to-market commentary centers on usage-based model, with revenue tied to “quantum advantage” timing
In response to analyst questions about commercialization, Fitzsimons said the company’s revenue model is centered on software running through Horizon Quantum’s stack, positioning it to charge based on usage for cloud deployments. For on-premises deployments, he described a licensing model tied to hardware capabilities, pointing to analogies such as Windows Server or VMware. He declined to provide a revenue split or forecasts for the two channels.
Gould also said Horizon Quantum is not pursuing proof-of-concept services work, calling it a potential distraction from the roadmap. He said the company intends to shift early access users to paying users “when the larger quantum industry is reaching quantum advantage,” at which point the company expects cost-per-use cloud or on-prem models to apply.
Asked about the types of prospective users for cloud access, Fitzsimons said the company receives inbound early access requests clustered in several areas, including financial services, pharma and chemistry, energy (including oil and gas and renewables), automotive, aerospace and defense, and “general big tech.”
On spending trajectory, Gould said the bulk of hiring was completed in anticipation of the transaction, with “a slight increase and then a leveling off.” Fitzsimons added the company has “a few hires still coming in,” agreeing that first-quarter adjusted EBITDA loss may be a reasonable proxy for near-term run rate.
About Horizon Quantum Computing Pte. NASDAQ: HQ
Horizon Quantum Holdings Ltd. is a quantum software infrastructure company focused on tools and systems that help developers build and deploy quantum applications. The company emphasizes software, algorithms, and workflow infrastructure intended to support practical quantum and hybrid quantum-classical use cases.
Horizon Quantum became a public company through its business combination with dMY Squared Technology Group, Inc (DMYY), which was formed to take a private company public through a business combination.
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