Pasqal

Greetings and welcome to the Pascal First Half 2026 Earnings Conference. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone key. As a reminder, this conference is being recorded. I'd now like to turn the conference over to Investor Lake. Please go ahead.

Welcome to Pascal's first half 2026 earnings conference call. Joining us are Pascal's CEO, Wasiq Bokhari, and CFO, Stephane Rougeot. Before we begin, I'd like to remind everyone that today's discussion will include forward-looking statements, including, among others, statements about our expectations for our future financial performance, growth opportunities, business strategy, market trends, and capital allocation plans. These statements are based on our current views and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. We direct you to our recent SEC filings for a full description of these risks. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise except as required by law. We will also reference certain non-GAAP financial measures. These measures should be considered only as supplements to their comparable GAAP measures. Additional information, including reconciliations of the non-GAAP measures to their most comparable GAAP measures, can be found in our earnings release at investors.pascal.com. Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the company's website at investors.pascal.com. With that, I'll now turn the call over to Wasiq.

Thank you. Good morning, and thank you for joining us for Pascal's first earnings call as a public company. The first half of 2026 was an important period for Pascal. We advanced our technology roadmap expanded our commercial activity, delivered a major customer system, strengthened our manufacturing and organizational capabilities, and prepared the company for its next phase of growth as a NASDAQ-listed company. Before stepping back and discussing the broader Pastel story, I want to briefly highlight a few accomplishments from the first half. We delivered revenue growth of 14% year over year, with QPU-related services revenue increasing 34%, reflecting growing customer demand for our systems and expertise. We continued advancing customer deployments, expanded strategic relationships across our priority industries, and executed against our product roadmap. I would like to spend a few minutes now providing context for investors who may be newer to the Pascal story. At its core, Pascal is building a high-value, high-scale quantum computing business. We are not a research project. We are not a lab experiment. We are focused on building commercially relevant computing systems that solve important problems for customers today while creating the foundation for fault-tolerant quantum computing tomorrow. Today, we believe Pascal operates the world's second largest fleet of high complexity quantum computers after IBM. We have seven systems deployed across three continents with three additional systems in production. These systems operate in real world environments, support customers and researchers globally, and are designed to function as practical computational infrastructure rather than lab equipment. What differentiates Pascal is the combination of scientific leadership, engineering discipline, and commercial focus. We were founded by pioneers of neutral quantum computing, including Nobel Laureate Alain Aspect and Professor Antoine Browaeys. We have deep technical expertise, a substantial intellectual property portfolio, and a full stack platform spanning hardware, software, and applications. Just as importantly, We have spent years industrializing our technology and learning what it takes to build, deploy, operate, and upgrade reliable quantum computing systems at scale. Pascal is genuinely a global company. Our customers, scientific talent, engineering capabilities, and intellectual property stand in Europe, North America, the Middle East, and Asia. So our NASDAQ listing Investors now have access to a global quantum computing platform with established systems, customer relationships, and technical capabilities across multiple innovation ecosystems. While quantum technologies include several important fields, quantum computing represents the most significant long-term opportunity for Pascal. Focus matters. Concentrating our talent, Thank you very much. matter to us as engineers, but they are not where the customer conversation begins. Customers care about value. Can we solve an important problem? Can we solve it better than existing approaches? And if we can, what is the economic value of that improvement? That philosophy has become the foundation of our commercial strategy. We organize the company around what we call the problems worth solving. Rather than pursuing every possible quantum opportunity, we deliberately concentrate on applications where we believe quantum computing can generate significant and measurable value, a meaningful benefit compared to traditional computing. Today, our highest priority verticals are energy, financial services, and high-value materials. Within each vertical, we seek to develop deep domain knowledge, identify valuable applications, Validate them with leading reference customers and then make the resulting expertise, software, and solutions repeatable across additional customers. This creates a stronger foundation for a scalable business than building a large collection of disconnected proofs of concept. A broad pipeline can become large without becoming repeatable. Our objective is to create customer relationships and intellectual property that compound over time. The foundation of this strategy is our neutral atom architecture. Our qubits are individual rubidium atoms. Every rubidium atom is fundamentally identical to every other rubidium atom. Our qubits therefore start identical by nature and behave in highly predictable ways. They also connect spontaneously to each other without requiring wiring. Our public roadmaps share our ability to scale to tens of thousands of high-quality qubits by 2030. We believe this creates a fundamental scaling advantage. Unlike quantum architectures that require increasingly complex fabrication of specialized semiconductor or superconducting devices, We do not need to manufacture new chips for each qubit or to connect them to make complex systems. Nature manufactures our qubits. It creates a capital efficiency advantage for us as a business. We do not need the massive fabrication infrastructure that some other approaches ultimately require at this scale. We believe all this provides meaningful advantages in uniformity, manufacturability, scalability, and long-term economics. Our current TPUs consume approximately 3.5 kilowatts of power and are designed to operate inside conventional data center environments. This results in lower capex and opex. For our customers, we believe all these advantages ultimately translate into a highly capital efficient form of quantum computation that we expect to become among the lowest capital cost for useful quantum operation as the technology scales. We believe scalability must be viewed much more broadly than simply increasing to the top. True scalability means increasing computational capability while also manufacturing systems efficiently, deploying them reliably, minimizing infrastructure and energy requirements, and maintaining attractive economics as systems grow larger. We also operate facilities in France and Canada that provide the infrastructure to build and deliver systems as demand develops. For Pascal, this means lower capital requirements as he scales. Those characteristics matter because quantum computing ultimately must become practical infrastructure, not an isolated lab capability. We believe Pascal's architecture and industrial approach position us well for that transition. One of the most important differences between Pascal and many others in the quantum industry is that we do not believe customers should have to wait for fault-tolerant quantum computing before deriving value from quantum systems. There is a common assumption that useful quantum computing only begins when large-scale fault tolerance arrives. We disagree. Our neutral atom platform enables analog quantum computing today while securing a path towards digital fault-tolerant quantum computing on the same underlying hardware architecture. That creates a bridge rather than a waiting period. Customers can begin developing applications, workflows, integrations, and expertise today while remaining on a platform that we believe can continue evolving toward large-scale fault-tolerant quantum computing. This is why we describe our strategy as analog today and fault-tolerant tomorrow. Analog is not a detour on the road to fault-tolerance. It is the first stage of the same journey. The applications we develop today, the customer relationships we establish today, and the software capabilities we build today all contribute to the foundations of future fault-tolerant systems. We believe this approach shortens the path to commercial adoption. and allows us to create customer value while we continue advancing our long-term technology roadmap. This gives Pascal a major competitive edge in the industry. Turning now to the first half, our focused commercial strategy continued to gain traction. We made progress across strategic accounts, expanded the range of applications being pursued with leading customers and continued concentrating our resources on problems that quantum computing can provide meaningful business value. Aramco is an important example. In May, we commissioned the QPU under our Aramco contract, moving the system into its operational phase. Our work spans several potential applications, including reservoir simulation, well placement optimization, rig scheduling, and demurrage prediction. The progression of this relationship illustrates our model. One engagement helps us learn more about the customer's operations, which helps us identify the next problem worth solving. As our relationship has deepened, the number of use cases and opportunities has expanded. In August, we also announced a memorandum of understanding with 11 ventures to establish a commercial joint venture intended to deploy, commercialize, and scale Pascal systems across Saudi Arabia, and the broader region. The parties have not yet entered definitive agreement, but the initiative reflects the broader opportunity we see to build our presence and customer engagement in the region. We see a similar progression with Credit Agricole. After multiple years of collaboration in portfolio optimization and credit risk modeling, the relationship has advanced toward production-oriented applications involving Capital Reserve Consumption, and Risk-Weighted Assets. That progression from experimentation toward implementation is exactly the outcome we are working to create. In high-value materials, we continue building on our work in quantum material simulation and on the domain expertise generated through those efforts. We believe materials is particularly well aligned with the neutral atom quantum computing because accurately modeling quantum systems is both computationally difficult and economically significant. Increasingly, our commercial model is therefore less about adding logos and more about expanding relationships within strategic accounts. Deep customer relationships can create reusable expertise, reusable software, and repeatable solutions that have substantially greater longer-term value than isolated pilot projects. That strategy also provides important context for how we develop our backlog and commercial momentum. As of June 30th, 2026, our booked and awarded business stood at 70.4 million euros. We view this as an important indicator of the commercial traction we are seeing across our target market and the confidence customers are placing in Bestel's technology and long-term roadmap. Importantly, This reflects momentum across multiple customer engagements and verticals, providing a strong foundation as we continue scaling our commercial activity. Our objective is not simply to maximize the number of projects in our pipeline. A pipeline can become very large without necessarily becoming scalable. If every engagement requires a completely new customer, a completely new problem, and a completely new solution, The underlying model may not create durable value. Our approach is different. We focus on identifying the problems worth solving, building reusable expertise, expanding strategic customer relationships, and creating solutions that can be replicated across customers and industries. As a result, the economic potential of a customer relationship can increase before every additional opportunity appears in contracted backpacks. That is why we evaluate commercial progress through a broader lens. Are use cases expanding within strategic accounts? Are customers progressing towards implementation? Are we creating reusable intellectual property? And what can we learn with one customer? Can it be applied somewhere else? Increasingly, the answer is yes. And because analog and fault-tolerant quantum computing exists on the same platform for us, The work we do today compounds rather than becoming obsolete over time. From a technology perspective, the first half was also significant, and we continued delivering against our roadmap. Perhaps most importantly, Pascal demonstrated an important example of quantum advantage in material simulation. Using our system, we performed a one-to-one simulation of the rare earth magnetic material TMGO. They produced experimentally observed behavior and generated consistent results across five independently deployed TPUs. Using our TPUs, we were also able to explore quantum regimes of TMGO and predicted new properties that were then verified experimentally. The work took hours on our systems compared with weeks using classical GPUs. It is important to note that even with weeks on GPUs, the convergence to an answer was not guaranteed. Our work also demonstrates repeatability across our deployed machines and illustrates the value of our engineering effort to create systems that deliver consistent performance. This work illustrates how quantum computing can address a real, important, and computationally difficult materials problem. We also advanced our fault-tolerant roadmap. We demonstrated under live conditions an initial capability to construct and operate key building blocks of the logical qubit. We used that capability to solve differential equations, demonstrating our focus on valuable industrial problems. The demonstration was designed to evidence a repeatable and robust capability rather than an isolated experimental result. In May, Pascal was selected as a finalist in the XPRIZE Quantum Applications Competition, a global competition supported by Google Quantum AI, Google.org, and Jesta. The competition evaluates applications based on quantified impact, hardware feasibility, and demonstrable advantage over classical approaches. Our selection validates our focus on real-world use cases and rigorous benchmarking. We continued advancing Photonic integrated circuit capabilities through Oplonix, who we acquired 18 months ago. Recently, we reported that we trapped four individual rubidium atoms using optical tweezers generated by a photonic integrated circuit, which we believe is a first for a neutral atom quantum computer. Our atom lifetimes match our existing bulk optic systems with no loss in qubit control quality. By moving qubit control onto a photonic chip, we removed what we believe to be one of the biggest barriers to scale. This work also gives us the roadmap to reduce the optical footprint of future processors by up to 50 times. We also shared our unique progress from utilizing agentic GenAI systems to run various workloads on our QPUs. Our work on agentic workloads for quantum computing was reported by Nature. We converted a plain English description of a quantum simulation into a running result. The GenAI agent reasons about hardware constraints, encodes the problem into the geometry of atoms trapped by laser light, validates the code on a classical emulator, then runs it on a live neutral atom GPU with the researchers staying in charge of every scientific decision along the way. What we demonstrate is that the combination of our fleet of cloud accessible High complexity and operational full stack QPUs with powerful agentic systems makes it significantly easier and faster to do end-to-end complex work for both fundamental research and application development and deployment. Across hardware, software, and applications, our objective remains consistent. Deliver useful capabilities today, improve performance and scalability, and progress towards systems with tens of thousands of physical qubits and hundreds of logical qubits by the end of the decade. For us, building quantum computers that excel commercially means building hardware that delivers industry-leading performance and can be manufactured in a scalable way. With that, I will turn the call over to Stephane to review our first half financial performance and capital position.