Infleqtion Q2 Earnings Call Highlights

Key Points

• Record growth: Infleqtion’s Q2 2026 revenue rose 116% year over year to $12.6 million, prompting the company to raise its full-year revenue outlook to approximately $43 million. Growth was entirely organic and led by its quantum gravity gradiometer program.
• Strong liquidity but higher costs: The company ended the quarter with about $582 million in cash and securities and no debt, although its GAAP operating loss widened to $30.6 million. Reported operating cash flow included a temporary $27 million working-capital benefit; excluding it, cash burn was approximately $14 million.
• Expansion of funding and commercialization: Infleqtion could receive up to $100 million in proposed Commerce Department funding, while new government projects and commercial relationships support its growth plans. Management remains focused on demonstrating 30 logical qubits in 2026 and expanding access to its quantum systems.

Infleqtion NYSE: INFQ reported record second-quarter 2026 revenue of $12.6 million, up 116% from a year earlier, and raised its full-year revenue outlook to approximately $43 million as the neutral-atom quantum technology company cited stronger bookings visibility and expanding government and commercial demand.

Chief Executive Officer Matt Kinsella characterized the quarter as one of “acceleration,” pointing to progress in quantum computing and sensing, new government initiatives, customer programs and expanded operating capacity. The company said its second-quarter revenue growth was entirely organic and came entirely from quantum-related business, led by execution on its quantum gravity gradiometer, or QGG, program.

Financial Results and Outlook

Approximately 92% of second-quarter revenue came from the United States, up about 10 percentage points from the prior-year period. Chief Financial Officer Ilan Hart said the company expects geographic revenue mix to normalize in the second half, depending on the timing and location of program awards.

Infleqtion reported a GAAP operating loss of $30.6 million, compared with a $10.1 million operating loss in the second quarter of 2025. Its non-GAAP operating loss was $17 million, compared with $7.3 million a year earlier. Hart said the increased losses reflected investments in headcount, technology development and the incremental costs of operating as a public company, as well as higher stock-based compensation.

The company generated $13.2 million of operating cash flow during the quarter, compared with $2.8 million of cash used in operations a year earlier. However, Hart said that figure included a temporary $27 million working-capital benefit from payroll taxes collected but not yet remitted on stock-option exercises by current and former employees. Excluding that benefit, operating cash burn was about $14 million. The company expects to remit the $27 million in the third quarter.

• Capital expenditures totaled $1.4 million in the second quarter.
• Infleqtion ended the quarter with about $582 million in cash equivalents and available-for-sale securities, with no debt.
• The company had approximately 225 million shares outstanding at quarter-end.
• Remaining performance obligations increased to $21 million from the first quarter, according to Hart.

Management maintained its 2026 expectation for a measured increase in capital expenditures as it completes expanded facilities, as well as a modest increase in annual cash burn. Kinsella said the company expects to provide more detail on 2027 revenue visibility when it reports third-quarter results.

Government Programs and Commercialization

During the quarter, the Department of Commerce signed a letter of intent that could provide Infleqtion with up to $100 million in proposed funding for quantum-computing commercialization. The company expects to complete the definitive agreement process later this year. Hart said that, under the current structure, the funding would be expected to be recorded as other income to offset eligible operating expenses, subject to the final agreement and accounting review.

Kinsella said the Commerce review, which involved the National Institute of Standards and Technology, assessed the company’s technology and commercialization roadmap. He also cited a quantum executive order signed in June that established actions and timelines across quantum computing, sensing and the domestic supply chain.

The Department of Energy subsequently selected Infleqtion for three Genesis Mission projects involving computing and sensing applications, including work spanning artificial intelligence, nuclear applications and quantum sensing, according to the company. Infleqtion also cited quantum investment and policy developments in the United Kingdom and Australia as potential market drivers.

On the commercial front, Chief Technology Officer Pranav Gokhale said the company’s planned 30-logical-qubit demonstration this year will support three end customers in finance, energy and precision medicine. During the question-and-answer session, Gokhale said all three customer engagements are revenue-generating.

Infleqtion also announced a relationship with power-management company Eaton, which will receive private-cloud access to the company’s Sqale quantum processing unit, Superstaq compiler and quantum software tools to explore energy applications. The company said it plans to deploy a neutral-atom quantum computer integrated with NVIDIA NVQLink at the Illinois Quantum and Microelectronics Park in 2027. That system is designed for modular upgrades beyond 50 logical qubits on a path to a 100-logical-qubit goal and is intended to be made available through the cloud.

Quantum Computing Roadmap

The company reiterated its target to demonstrate 30 logical qubits on its Sqale quantum computer in 2026. Gokhale said the company is tracking two principal technical factors: maintaining high fidelity while dynamically reconfiguring qubits and achieving advanced circuits using fewer than 10 physical qubits per logical qubit.

Gokhale said Infleqtion is targeting a code rate below 10 physical qubits per logical qubit and is monitoring atom retention, or the probability that an atom is removed from a trap during a gate operation. He said the company wants that measure to remain below approximately 2% for long-running computations.

The company also reported what it described as a new experimental record for dual-species two-qubit gate fidelity on its Madison-based Sqale system. Gokhale said a paper co-authored by Chief Scientist of Quantum Information Mark Saffman proposed a gate technique intended to provide a path toward fidelities above 99.9%.

Management said it is preparing to offer broader customer access to its quantum processing units in response to demand for live circuit execution. Kinsella said the company is already providing substantial private-cloud access and intends to broaden public-cloud availability in the “not-too-distant future.”

Sensing, Timing and Capacity Expansion

In sensing, Infleqtion said it advanced its NASA Jet Propulsion Laboratory quantum gravity gradiometer pathfinder program toward deploying what it described as the first quantum gravity sensor in orbit. The company is preparing prototype testing at the Einstein Elevator facility in Germany, which recreates microgravity conditions.

Gokhale said the company has begun engaging potential terrestrial customers for quantum gravity sensing, including applications related to detecting subsurface features and critical mineral deposits. Infleqtion also introduced Quantum Spectrum, an RF sensing architecture intended for defense and potential commercial uses, and cited work with the U.S. Navy, U.S. Army and European Space Agency involving its contextual machine-learning technology.

Its Tiqker precision-timing product is selling through partner Safran’s sales channels, and the company has secured a satellite-application design win. Management plans to launch a next-generation Tiqker before year-end. Kinsella declined to provide a specific timing forecast for a Safran-related revenue ramp.

To support growth, Infleqtion increased headcount by just over 25% since the beginning of the year, primarily in technical roles. The company is also expanding facilities in Chicago, Oxford and Louisville for research, development and manufacturing.

About Infleqtion (NYSE:INFQ)

We are a blank check company incorporated as a Cayman Islands exempted company and formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses, which we refer to throughout this prospectus as our initial business combination. We have not selected any business combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target.

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