WISeKey International Holding Ltd

Ladies and gentlemen, thank you for your patience. Welcome to YSK International Holdings Full Year 2025 Financial Results Conference Call. As a reminder, this conference contains forward-looking statements. Such statements involve certain known and unknown risks, uncertainties, and other factors that could cause actual results, financial condition, performance, or achievement of YK International Holding limited to be materially different from any future result. performance, or achievements expressed or implied by such forward-looking statements. WISE Key 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. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require 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 and chief executive officer of WiseKey. Thank you, sir. You may begin.

Good morning. Thank you very much. Good morning to everybody. So 2025 was a defining year for WiseKey and the early weeks of 2026 have already validated the strategy decision we made over the last 24 months. We deliver out of the full year revenue of $19.3 million, representing a 62% growth year over year, with a subsidiary, CLSQ, contributing $18.3 million and growing 66% over the prior year. Q4 alone produced $8 million of that revenue. More importantly, we ended 2025 with a fundamentally transformative balance sheet We have over $429 million in cash and short-term investment at year-end, growing to more than $535 million as of April 30, following our March capital raise for CLSQ. This strong and well-capitalized balance sheet gives us the ability to execute our strategy without compromise. I want to frame today's discussions around three important messages. First, the transition from sampling to commercial revenue is now underway, and the data points are concrete. Second, our strategy architecture, what we call the year of convergence, is integrating five technology pillars into a single vertical integrated quantum secure platform. And third, the regulatory and geopolitical environment is moving decisively in our favor. So we're starting with commercial inflation at CLSQ. The 66% revenue growth CLSQ delivered in 2025 reflects two distinct things happening simultaneously. One hand or legacy semiconductor and PKI product line saw a renewed demand cycle as customers work through their inventory positions. On the other hand, we generated our first revenue from sampling or post-quantum products, which is the leading indicator that matters more for what comes next. Today, our commercial pipeline at CLSQ exceeds $200 million, covering potential revenue opportunities from 2026 onwards. through 2029. With that, more than $60 million is directly tied to QS7001 and QVOL TPM programs, growing more than five-fold year over year from approximately $11 million. On the certification side, QS7001 has now passed fold injection on side channel attack resistance evaluation at the EAL 5 plus level, and we have completed the NIST validation. First production revenues are on track for 2026, late in 2026. This is the gain, a gating event that converts pipeline into recurring hardware revenue, and we are tracking on schedule. Moving the year of conversion for WiseKey, we are calling 2010-26 our year of conversion because our five technology pillars, CLSQ, WiseApp, CLCoin, WiseID, slash INS, and WiseArt are now operating as a single integrated stack rather than as a gentle business as it was the case until now. What that means in practice is that our team in sharing knowledge and resources to create virtual integrated solutions for our customers. Our CLSQ, which developed post-quantum secure chip design to generate ASIC design services revenue, hardware revenue, and recurring income through outsourced semiconductor personalization and tests, OSPT Center, has now entered in commercial acceleration phase. Or why is that? We have made significant progress. We have launched 21 satellites to date with 14 currently operational in low Earth orbit. And we remain on track towards the 100th satellite constellation. The definitive business combination agreement we signed in November with Columbus Acquisition Corporation is expected to close June. in the second half of 2026, very likely around the month of September, which will result in YSAT space holding listing on the NASDAQ with YSAT and CLSQ together receiving 25 million shares at $10 per share, representing a $250 million of equity value while retaining majority ownership. This listing is the structure enabler of a quantum spatial orbital cloud, what we call the QSOC initiative. Under the QSOC, YSAT operates the space infrastructure and CLSQ owns and operates the quantum cloud as a managed subscription service. The full operational capability target is 2033, and YSAT is expected to operate a constellation provided a dedicated QSOF capability for CLSQ, and CLSQ is aiming to deliver a contractual guarantee 99.9% uptime service agreement to its customer. The CLSQ Quantum Fund. I want to spend a moment on capital deployment to date. The CLSQ Quantum Fund grew from $20 million at launch in 2025 to $200 million of available capital resources as of April 30, 2026. Though the end of April, we have deployed approximately $23.2 million across five portfolio positions, which are we invested $40 million in IC Alps, The acquisition added more than 100 ASIC engineers in Grenoble, in France, and we are now developing a quantum resistance secure element optimized for Crystal as Kyber, which are the standards for post-quantum technology. We deploy 4.2 million in Quantix ED security project in Murcia, Spain, which is building one of the European first sovereign post-quantum semiconductor personalization center and test center co-founded by the Spanish SETT.ES, which is the government agency in charge of investment in critical infrastructure in Spain, a program with $20 million that has been contributed by the Spanish government. We invest another $4 million in WICAN, which integrates our PQC secure digital identity into financial KYC. we made two rounds of investment ee rock or anchor u.s quantum hardware investment in a company in chicago which brings electrons on helium quantum architecture which is cmos compatible with our chip processes so cmos is the technology that we are investing on because it totally is aligned and fits with our semiconductor capabilities we plan to demonstrate a joint quantum security stack at our Geneva Quantum Center of Excellency, currently in preparation to be inaugurated in October this year. Additionally, we made an initial small investment in Colibri TD, our French quantum solver partner, which is working on improving sub-7nm wafer yields from 50% to 80%, which directly reduces our chip manufacturing costs. Each of these investments reinforce the underlying business. They are not agency debts. They are vertical integration required to move the company technology to the next level. Finally, on the regulatory environment, the U.S. NSA CNSA 2.0 mandate by the U.S. government requires CNSA 2.0 compliant for all new national security system acquisitions by 1 January 2027 in the United States. This is now eight months away. Federal agencies in the U.S. are required to identify and remedy a quantum vulnerable system, and the NIST PQC standards were finalized in 2024. Our products are designed to comply with all these standards, and we are seeing this translate directly into pipeline activity in areas such as defense, smart meters, ecosystem through the WISON, and U.S. federal procurement through the All Trusted Semiconductor Solution Alliance partner. With that strategic context, let me hand the call over to John to walk you through the financials in details. John, the floor is yours.

Thank you, Carlos, and good morning, everyone. So full year revenue for 2025, as Carlos has said, was $19.3 million, an increase of 62% versus $11.9 million in 2024. Fourth quarter revenue was $8 million, which doubled from $4 million in the fourth quarter of 2024. Approximately $3.5 million of the full year increase relates to five months of revenue contribution from ICI Alps, which we acquired through CLSQ on August 4th, 2025, and consolidated from that date forward. Organic growth was driven by recovery in our core secure microcontroller and PKI product families, plus initial sampling revenue from our post-quantum platforms. I want to be transparent about how to think about 2025. As Carlos has already said, it is the year that paved the way for our convergence strategy. The 2025 numbers continue to reflect the transitional period between the traditional product offerings and next-generation post-quantum semiconductor platforms. and included the first revenues from sampling, and with the transitions expected to enter its commercialization phase with the first production revenues anticipated in the latter part of 2026. The full year 2025 net loss was 38.2 million, which was due in a large part to 8.3 million of non-cash share-based compensations, consolidation following the acquisition of IC Alps, The materially increased R&D investment will be made to accelerate the post-quantum semiconductor product range and the expanded sales and marketing related expenses made to support the expected commercial ramp, which then were partially offset by a one-off credit on the settlement of the ex-works loan and by interest income of cash deposits. On the balance sheet side, as of December 31st, 2025, Wieske had $429 million in cash and short-term investments, up from $91 million at the end of 2024. an increase of 370%. This was achieved while deploying $23 million during the year towards strategic investments in WeCan, ICAOPS, Quantix Edge Security, and others, as Carlos has already touched on. In March 2026, CMFQ raised a further $125 million in additional capital. As of April 30th, the WiseKey Group had over $535 million in cash and short-term investments. This strong cash position allows us to fund post-quantum R&D, scale our manufacturing capacity, pursue selective M&A, and continue to deploy through the CLSQ Quantum Fund. Moving on to guidance, we are reaffirming our full-year 2026 revenue guidance, which calls for growth of 50% to 100% year-over-year, driven primarily by CLSQ. We have some significant projects in relatively advanced phases of negotiation, and we therefore hope to be able to positively reinforce and upgrade our guidance in the coming months. The drivers of this are full-year consolidation of IC-ALPS, broader entry into the trusted platform module market via QVault TPM, the launch of QASIC, QASIC custom post-quantum ASIC engagements, initial QS7001 production revenues following the EAL5 Plus certification in late 2026, Initial revenue is expected from the Quantix Edge Security Personalization Center development in Spain and continued expansion of recurring PKI subscription and OSPT personalization revenues. With that, I'll hand back to Carls for closing remarks before we open the line for questions.