SEALSQ Corp

Greetings, ladies and gentlemen, and welcome to the SEALSQ First Half 2026 Financial Results Earnings Conference Call. As a reminder, this conference call contains forward-looking statements. Such statements involve certain known and unknown risks, uncertainties, and other factors which could cause actual results, financial condition, performance, or achievements of SEALSQ to be materially different from any future results TLSQ is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise. These risks are also discussed in our filings made with the Securities and Exchange Commission. Please be advised that SEALSQ's financial results release for the six months ended June 30th, 2026 was issued last week and can be found by visiting the investor section of the SEALSQ website at investors.sealsq.com. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, Please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Carlos Moreira, Founder, Chairman and Chief Executive Officer of SEALSQ . Mr. Moreira, please go ahead.

Thank you very much and good morning in the United States and good afternoon in Europe. So welcome to SEALSQ first half 2026, earning call. I am joining today by our Chief Financial Officer, John O'Hara. I will begin with our first half financial and operational highlights, followed by an update on the progress we are making in transforming SEALSQ into a global leader in post-quantum and quantum security. John will then review our financial results in greater detail, after which we will discuss our outlook and priorities for the remaining of 2026 and beyond. The first half of 26 was an important inflection point for SEALSQ . We delivered strong revenue growth, significantly improved gross margins, and advanced our post-quantum semiconductor roadmap, achieved important certification milestones, and integrated acquired businesses, and expanded our capability across secure semiconductors, trusted digital infrastructure, and quantum technology. increased by 131% to $11.2 million compared to $4.8 million in the first half of 2025. Gross profit increased by 233% to $5.4 million from $1.6 million, while gross margin expanded to approximately 48%. This growth was driven by renewed demand for our Volt IC secure element expansion in PKI subscription and digital identity services, initial revenue from Quantix Edge Security in Murcia, Spain, and six months of contribution from IC Alps. IC Alps contributed approximately 2.5 million of first half revenue More importantly, the acquisition substantially strengthened our capabilities and capacities in custom ASIC design, secure semiconductor architecture, and advanced engineering services. These capabilities are increasingly important as customers seek integrated hardware-rooted security solutions rather than just standalone cryptographic software. North America generated $5.6 million of revenue, representing 50% of the total. Europe and the Middle East and Africa generated $3.7 million, or 33%, while Asia Pacific contributed to $1.9 million, or 17%. We believe this is the right moment to invest decisively in building a global leadership position in post-quantum and quantum security. The quantum transition is no longer a distant research topic. Governments, defense organizations, critical infrastructure operators, financial institutions, and technology companies increasingly recognize that migration to post-quantum security requires much more than a software update. It requires secure semiconductors, hardware routes of trust, quantum-resistant algorithms, trusted identities, security provisioning, certified manufacturing, Sovereign Infrastructure and Control over the Complete Technology Supply Chain. CLSU is building capability across all these layers. As of June 30, 2026, we had more than $486 million in cash, cash equivalent and restricted cash. This strong liquidity position gives us the flexibility to fund research and development Certification, Product Industrialization, Acquisitions, Infrastructure, Manufacturing, Personalization, and other selected strategic opportunities. Our strategy is to convert SLSQ from a secure semiconductor and digital trust company into a major quantum security platform, developing a sovereign vertical stack, what we call from root to qubit, and increasingly from root to space. At the center of this transformation is what we call the quantum highway. The quantum highways are architectures for securely connecting the different layers of the emerging quantum economy. It is designed to combine post-quantum semiconductors, quantum computers, quantum photonics, interconnects, quantum secure communications, satellites, PKI, digital identity, trusted provisioning, artificial intelligence, and compliance. The objective is not simply to invest in separate quantum technology, to integrate them into a commercially deployable, sovereign, and interoperable infrastructure. The silicon and hardware root of trust layer, or QS7001 secure element and QVolt TPM remain central to our post-quantum commercialization strategy. During the first half, QS701 achieved NIST SP890B Entropy Secure Source Validation under ESV Certificate E333. Validated entropy is fundamental to secure key generation and cryptographic protection, particularly for systems operating in regulated defense and critical infrastructure environments. QS7001 also completed important common criteria of false injection and side-channel resistant testing. These matters bring us closer to the formal certification required by government agencies and major industrial customers before high-volume deployments. We also continue advancing QVolt TPM, Customer Sampling Progress and Engineering Samples of the post-quantum QVOL TPM-185 become available. Our objective is to support the next generation of computers, servers, industrial systems, edge device, and critical infrastructure with hardware-based protection against both classical and quantum-enabled threads. As of June 30, more than 150 customers and prospects were engaging with our post-quantum technologies. with over 30 actively evaluating or integrating QS701 and QVOL TPN. We expect initial QS701 and QVOL TPN revenue late in the second half of 2026 with more meaningful contributions beginning in 2027 as customers complete integration, qualification, and product planning. The precise timing remains subject to certification, customer validation, and procurement cycle. Since the end of the first half, we have continued to make significant progress. Our Volta-IC 408 secure element achieved the FIPS 143 validation under the NIST certificate number 5463. This is a major commercial and technology milestone. FIPS 140-3 validation is widely required for cryptographic products used by governments, defense organizations, financial institutions, and operators of critical infrastructure. The certification strengthens our ability to address highly regulated markets and confirms that SEALSQ is building its quantum security platform on an already validated and trusted foundation. We also achieved ISO EEC 27001 recertification, reinforcing the security and government framework supporting our semiconductors, PKI, digital identity, and post-quantum operations. Our active commercial pipeline exceeded $225 million in potential revenue opportunities through 2029 and as of September 9, 2026. including more than 100 million associated with post-quantum projects already. This pipeline spans secure element, custom ASIC, PKI, digital identity, trusted provision, post-quantum semiconductor and critical infrastructure security. It is a management estimate rather than revenue guidance and remains subject to certification, customer validation, commercial negotiation, procurement decision and execution risk but nevertheless it demonstrates the scale We are also developing a strategic relation with major semiconductors and technology companies, or work with global fundraisers, supports the migration of future secure and post-quantum designs to advanced manufacturing platforms. Our collaboration with LATI Semiconductors supports Post-Quantum Security for FPGA-based systems, while our work with Pyro provides access to import and drown robotics and sovereign technology applications for defense. We are also advancing major commercial opportunities for QVolt, DPN, Volt-IC 409, and our broader post-quantum roadmap, including potential applications in computing, industrial systems, connected devices, and critical infrastructure. Beyond our core semiconductor roadmap, we have accelerated the development of CL Quantum, sovereign vertical stat, and its quantum highway architecture. At the semiconductor design layer, ICIALT provides secure ASIC design and engineering capabilities. At the quantum computing layer, our investment in Kubli and EROC provides two different differentiated semiconductor-based quantum computer architectures. At the quantum interconnect layer, we completed the acquisition of MIRO-X. MIRO-X brings quantum photonics interconnect technology that can help connect quantum processors, sensors, data centers, and communication systems. This is an essential component of the quantum highway, because quantum systems must eventually be interconnected, not operated as isolated machines. As the Trusted Data and Compliance Layer, we have increased our ownership in WE-CAN Group to 55.5%, gaining control of the company. WE-CAN strengthens all capabilities in high-power compliance, secure data exchange, trusted digital identity, and post-quantum-ready financial infrastructure. As the Sovereign Design, Personalization, and Provision Layer, Quantics and Security, MUSIA, generated initial first half-year revenue. This is approximately 40 million initiative is intended to support Europe-based semiconductor design personalization and security provision in one centralized location. We are now evaluating an expanded Q-Quantix 2.0 vision that could bring together additional semiconductor quantum AI and satellite capability in Murcia. In India, we advanced the negotiations to build SEAL Keynes Initiative, which is intended to create localized post-quantum semiconductor capability and give SEALSQ access to one of the world's fastest growing semiconductor and digital technology market on which sovereignty is important. The space and quantum communication layer or relation with the YSAT supports the development of both quantum secure satellite and IoT connectivity and communications. The objective is to extend our hardware route of trust from terrestrial devices to satellite infrastructure, creating a route to space security architecture. Together, these capabilities form the basis of our quantum highway. Secure ASIC design and engineering through IC-ALP, hardware root of trust through both IC-QS7001 and QVolt TPM, both quantum PKI, digital identity and secure provisioning, quantum computer technology through Kubli and EROC, quantum photonics interconnect through MIRA-X, APower Compliance and Trusted Data through WICAN, Sovereign Semiconductor Infrastructure through Quantix-H and CL-KN-SQ, and Post-Quantum Satellite Communication through YSAT. This is what we mean by sovereign vertical quantum stack. Control over the essential layers required to generate, protect, process, transmit, and authenticate sensitive data in the quantum era. During 2026, we increased the capital allocation 2VSEO Quantum Servering Vertical is stacked to 200 million. More than 60 million has already been committed across ICL, Mirax, Kubli, Quantix Edge, Colibri, EROC, YSAT, and WeCan. We are applying this disciplined investment strategy focused on technologies that complement our semiconductor and security roadmap, create commercial synergies, and can ultimately become an integrated component on the quantum highway. Our participation as a lead investor in Kubli with 150 million Series A financing and our increased commitment to EROC reflected our conviction that secure semiconductor post-quantum cryptography and quantum computing and quantum communications will increasingly converge among themselves. Our ambition is not to become a passive financial investor in quantum company, obviously. Our objective is to assemble, integrate, and control a strategic technology that can generate products, intellectual property, customer, and required revenue for SEALSQ . We also continue to expand the commercial visibility of this strategy or collaboration with the BWT Alpine Formula One team has progressed beyond the cybersecurity into quantum and multi-physics simulation. Formula One offers an exceptional environment for demonstrating how quantum technologies can address highly complex industrial challenges involving aerodynamics, materials, energy optimization, and real-time decision making. These applications are relevant for beyond motorsport. The same capabilities can ultimately be applied to aerospace, defense, mobility, advanced manufacturing, energy, and defense. Looking ahead, our priorities are clear. First, we complete the required certification and customer qualification for QS7001 and QVOL TPN and begin their commercial ramp. Second, we convert a growing post-quantum pipeline into production contracts and long-term customer relationships. Third, we integrate ICO, MIREX, and WE-CAN into a unified product and technology roadmap for expand sovereign semiconductor design, personalization, and provisioning capabilities in Europe, the United States, India, and the rest of Asia. Fifth, connect or invest in quantum computers, photonics, AI, trusted data, and satellite communications through the quantum highway. And finally, continue deploying or capital selectively and strategically with the objective of creating a vertically integrated quantum security company with defensible technology, sovereign infrastructure, and global commercial reach. SEALSQ ENTER 2026, primarily recognized as a secure semiconductor and post-quantum company. We intend to exit this transformation year as a broader quantum security leader, one capable of protecting the entire digital lifecycle from the semiconductor root of trust to quantum computer and space-based communication. We believe our financial strength, technology portfolio, certification, partnership, Thank you, Carlos, and hello to everybody joining us today.

On the financials, SEALSQ reported first half revenue of £11.2 million, an increase of 131% from £4.8 million in the first half of 2025. As Carlos has already explained, this growth was driven by renewed demand for our Volt IC Secure Element products, continued expansion in PKI subscriptions and digital identity services, initial revenue from the Quantix Edge Security joint venture, and approximately £2.5 million of revenue from IC Alps in six months consolidation versus nothing in last year basis pre-acquisition. From a geographic perspective, North America generated 5.6 million of revenue representing 50% of the total. Europe, the Middle East, and Africa generated 3.7 million and Asia Pacific contributed 1.9 million or 17%. Our gross profit increased by 233% to 5.4 million compared with 1.6 million in the prior year. And the gross margin expanded to approximately 48%. This improvement reflects a more favourable revenue mix, including ASIC design and engineering services, as well as continued contributions from secure elements, PKI and digital identity. Margins in the ASIC sector in particular are higher than our traditional semiconductor margins, and so these have had a positive impact on our margin and this should continue as this revenue stream continues to grow. Overall operating income was £1.4 million compared with £1.7 million in the first half of 2025, remaining relatively consistent year on year. Turning to expenses, R&D expense was 8.7 million compared with 4.7 million in the prior year period. The increase reflects the consolidation of IC-ALPS, post-quantum product development, certification activities, acquisition-related amortization, and continued investment in our technology roadmap. We continue to expect this to be an area of heavy investment in the future as we look to widen our product range and continue on the roadmap that Carlos set out above before. Selling and marketing expense increased to £7.2 million from £6.0 million, reflecting expanded commercialisation efforts, customer engagement and market development. General administration expense was £23.1 million compared with £13.8 million and this was primarily due to acquired business consolidation, expanded corporate infrastructure, intangible asset amortisation and legal audit, advisory and transaction related costs due to the activities undertaken in the first half of the year. In particular, the acquisition of IC Alps, Mira X and WeCan contributed almost 3 million of additional G&A expenditure, alongside 1.3 million of intangible asset amortisation relating to these transactions. As a result, operating loss was 32.2 million compared with 21.2 million in the first half of 2025, while the net loss was 27.8 million compared with 20 million in the prior year. Higher operating expenses were partly offset by the 3.8 million increase in gross profit, and also higher interest income earned on our liquidity reserves. Our EBITDA loss was 29.5 million compared with 20.9 million in the prior year period. The reconciliation included approximately 0.4 million of depreciation expense and 2.3 million of amortization expense added back. We end June 30th with 486 million in cash, cash equivalents and restricted cash, including short-term investments. Total liquidity was approximately 488.5 million. This strong liquidity position remains a significant advantage. It enables us to continue investing in R&D, certifications, infrastructure, manufacturing, secure personalisation, integration and selected strategic opportunities while reducing our near-term dependence on external financing. We will continue to allocate capital carefully toward commercialisation, recurring revenue, strategic control and long-term value creation. Turning to our outlook, we are reaffirming our previously announced fiscal 2026 revenue guidance of £27-36 million. This represents expected growth of approximately 50-100% over the audited 2025 revenue of £18.3 million. Our outlook is supported by the full year consolidation of IC Alps, continued demand for our Volt IC products, growth in recurring PKI and certificate management revenue, the initial commercialisation of QS7001 and QVolt TPM, contributions from the Quantix Edge Security Project and potential custom post-quantum ATIC design programs. As always, this outlook reflects our current expectations and remains subject to customer demand, qualification, and certification timing, supply chain conditions, commercial execution, order timing, and other risks described in our SEC findings. I will now turn back to Carlos to discuss our growth opportunities and strategic priorities.