Quantinuum Inc.

Good day and welcome to the Quantinium second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Shubh Mukherjee, the new head of investor relations for Quantinium. Please go ahead.

Good evening and welcome to Quantinium's second quarter, 2026 earnings call. With me here today are Raj Hazra, President and Chief Executive Officer, and Nitesh Sharan, Chief Financial Officer. Before we begin, I'll cover the Safe Harbor Statement. I would like to direct you to the cautionary statement regarding forward-looking statements in our earnings release issued earlier today, which are available under the investor relations section of our website. And earnings release include a discussion of certain risks, uncertainties, assumptions, and other factors that could cause our results to differ from those expressed in any forward-looking statements within the meaning of the Private Securities Litigation Reform Act. With that, Raj, over to you.

Thank you, Shubh. I'm pleased to welcome you to Quentinium's Second Quarter 2026 Earnings Call, our first as a public company following our successful IPO in June. We went public, the first pure-play quantum computing company to do so using the traditional IPO route, at a time when quantum computing is entering a new phase. A new phase of accelerated technological development, investment, commercial interests, and most importantly, first mover adoption. The question is no longer whether quantum computing will be real and valuable. The real question is, Who will lead the creation of this new era of computing? Who will build and deploy performant, accurate quantum computers at scale, working seamlessly with classical computing while enabling an entire ecosystem of developers to build applications for this infrastructure and transform the enterprise? And of course, how quickly and predictably will they be able to do so? We believe leadership belongs to the company that can consistently excel across three critical dimensions. First, technology leadership. This entails not just inventing fully fault-tolerant universal quantum computers, but also engineering them for deployment beyond carefully controlled environments like laboratories into commercial data centers, both in the public cloud and on customer premises. and do so at scale, strategically managing complex supply chains and building efficient and agile manufacturing capacity. Second, ecosystem leadership. More specifically, software ecosystem leadership. The history of compute is rich in examples of promising hardware technologies that failed because they did not get traction with those whose work transforms potential to real value. that is application developers. Successful computer architectures like the Intel architecture for CPUs using the IA programming model and more recently the dominant GPGPU architecture using CUDA as its programming model are a testament to the power of the ecosystem. A rapidly growing group of developers using advanced capabilities of languages, tools, libraries, and development environments to advance the software spiral. Building a developer ecosystem doesn't happen simply by providing a stack, hardware and infrastructure software that allows the hardware to be programmed. It does require a systematic and strategic approach across the full stack from hardware to applications and with deep ecosystem investments and partnerships to address developer needs in the areas of new capability, standards, compatibility and benchmarks. Third, and certainly not the least of the three pillars, commercial leadership. Working with customers and partners to embed quantum computing into enterprise workflows and deliver solutions that solve meaningful business problems. Our goal is to be the undisputed leader in quantum computing. and our strategy is entirely focused on delivering that outcome. More specifically, our strategy is to provide the most performant, accurate quantum hardware with the most widely adopted hybrid that is classical plus quantum developer platform supported by target ecosystem programs to accelerate application development. And in parallel, enable market-defining applications and verticals with significant potential for value creation through the addition of quantum computing to the existing classical computing fabric. Our laser focus in the company has been on disciplined capital investment in accelerating this strategy. And every major milestone we achieved in the second quarter is a result of this focus. Let me begin with technology, the fundamental underpinning of our full-stack capability engine. Our hardware roadmap continues to advance the plan, hardened by the de-risking approach we have undertaken to prove out the critical technologies for building very large-scale fault-tolerant quantum computers like Apollo in 2029 via intermediate generation of commercial systems such as Helios and Sol. We are on track for the release of SOL in 2027, a system designed to provide 192 physical qubits and 100 logical qubits with a logical error rate of 10 to the power of minus five, or five nines logical fidelity. SOL is the first commercial system on our roadmap to use the two-dimensional QCCD trap chip. We achieved a major milestone in the second quarter, The first of the product candidate SOL traps, manufactured by Honeywell, now Honeywell Aerospace, came back from the fab and is being put through a full validation suite, and no showstoppers have been found so far. Our confidence in this critical SOL system component is already high, having built the prototype, a smaller version of SOL earlier, and validated key functionality in real silicon. Beyond Sol, we made substantial progress on Apollo in detailed design and analysis of critical subsystems, increasing our confidence significantly in Apollo's functional capabilities and performance. In the second quarter, we made significant advances in quantum error correction, de-risking our roadmap for full fault tolerance by Apollo. Our work on novel code families allowed us to demonstrate near five nines logical fidelities on Helios, an industry mile marker that is in the future for many who are still working to achieve four nines in a commercial system, a milestone we reached on Helios last year. The latest demonstrations of the novel code families on Helios is also state of the art. More significantly, these results provide increased confidence in achieving Apollo's logical fidelity targets due to Apollo's superior hardware in terms of physical fidelities, speed, and parallelism. These milestones represent critical steps that reinforce confidence in our two-dimensional QCCD traptine architecture as well as in our implementation of the key elements of this architecture. However, true leadership in technology also means the ability to translate these technological achievements in the lab to at-scale deployments, which requires, amongst other things, strategic partnerships in the supply chain and in the manufacturing base. During the second quarter, we strengthened our industrial advantage by strengthening our supply chain and scaling our manufacturing ecosystem. We entered a letter of intent with the U.S. Department of Commerce's CHIPS R&D office. This LOI provides up to $100 million to Quantinium to support advanced manufacturing for the tractile modality in the United States. It accelerates our strategic partnerships with global foundries for critical integrated photonics and cryogenic electronics capabilities and a monarch quantum for high reliability photonic components to further de-risk key engineering pathways for components within Quentinium's future commercial roadmap. This LOI positions us to further diversify and strengthen our supply chain, which already includes long-term strategic partnerships with Infineon Technologies and Honeywell Aerospace for critical quantum computing components. It is worthy of noting that we are the only trapped ion quantum computing company to be selected for this partnership. In the second quarter, we also signed a new joint development agreement with the leading global electronics manufacturer, a major acceleration in scaling our manufacturing foundation. This agreement will give us the ability to incorporate best-in-class scaled data center systems manufacturing to increase our throughput while achieving world-class cost targets on our systems. More on this to come soon. Technology leadership and execution discipline will continue to be a key focus in the future, with the second quarter proving to be a very good one through this lens. Moving on to software and our developer ecosystem progress. Technology creates opportunity, but as we have seen from the various computing transitions of the past, it's really developers and rich developer ecosystems that rapidly create markets for these technologies. In the second quarter, we expanded access to our next generation programming language, Guppy. through Guppy PlayPond, a web-based developer environment which makes it easier for developers to use Guppy to build applications that will define the next generation of quantum computing. Developer engagement continued to accelerate rapidly with now more than 180 organizations building applications on Quentinium Nexus, our cloud-based application development and deployment platform for hybrid that is classical plus quantum workflows. We also expanded our startup partner program with new members seeking access to the state of art hardware and developer tools to accelerate their innovation on our platform. For example, KEDMA integrated its quantum error suppression and mitigation software into our platform, giving enterprises and scientific users an additional optimization layer that can improve circuit accuracy and enable larger, more complex workloads on our full stack systems. Last, but certainly not the least, the exciting frontier of commercial progress. The clearest trend we've seen in quantum adoption is via the convergence of quantum computing, AI, and high performance computing. Customer use cases increasingly require quantum computing capabilities integrated into the on-premises high-performance computing enterprise environments or the public cloud infrastructures already widely in use. And customers want to use these hybrid capabilities with as much seamless integration to avoid disruption to the existing business processes and to manage growing infrastructure complexity. We made substantial industry-leading strides in both public cloud and on-premise integration of quantum and classical computing in the second quarter. Today's strategic partnership with Oracle is a major milestone in the public cloud, or more importantly, the AI cloud ecosystem. Deploying Helios within the Oracle Cloud infrastructure makes our quantum computing technology available through one of the world's leading enterprise cloud platforms, enabling customers to combine quantum computing, AI, and high performance computing with a significantly more unified development and deployment environment than is available today to our customers on a public cloud. Our strategic collaboration with HPE establishes a framework for integrating quantum computing with high performance computing infrastructure in a manner where users of these hybrid systems can create and deploy hybrid workflows easily and without disrupting the supercomputing tools they are familiar with in a high-performance computing environment. Both agreements represent a major step in accelerating quantum adoption by making quantum computing practically available for our customers. Speaking of end customers and accelerating their commercial use cases, In the second quarter, we significantly expanded our direct engagement with leading global enterprises across a broad set of end markets. Together with NVIDIA and a Fortune 100 pharma company, we demonstrated the first time how AI-driven quantum simulation can enhance molecular property characterization. This is a real commercially relevant example of what we call Gen Q AI. The enhancement of generative AI or gen AI capabilities with quantum computing via training the AI on quantum phenomena, which is incapable of being generated by classical computers. We are seeing growing momentum for GenQ AI and breakthroughs like this one with pharmacological molecules being repeatable in similar computational problems beyond pharma. For instance, and new specialty material discovery, identifying new energy sources, amongst a few others. We also advanced customer programs across multiple end markets in aerospace, energy exploration, semiconductors, demonstrating growing maturity of quantum value propositions in industrial applications. Taken together, the second quarter demonstrated something even more important than these already significant individual announcements. It demonstrated a maniacal focus and disciplined execution against our strategy. In the second quarter, we extended our technology leadership, strengthened our developer ecosystem, and accelerated commercial momentum with partners and end customers. Quantum computing is now an integral part of the next generation of computing infrastructure alongside AI and high-performance computing. I believe Quentinium is uniquely positioned to lead that transition because we've built differentiated capabilities across the entire full stack, from breakthrough hardware technology to developer platforms and end-market applications, all packaged with enterprise deployment capabilities for on-premise and public cloud infrastructures. I remain very confident in our strategy. I'm encouraged by the momentum we saw this quarter and even more excited about the opportunity ahead than I was a few months ago. With that, let me turn the call over to Nitesh to review our financial results, outlook, and our capital strategy.