WISeKey International Holding Ltd

Greetings ladies and gentlemen and welcome to the WiseKey International Holdings 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 WiseKey International Holdings Ltd. to be materially different from any future results. Performance or achievements expressed or implied by such forward-looking statements. WiseKey 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 listen-only mode. A brief question and answer session will follow a 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's now my pleasure to introduce Carlos Moreira, Founder and Chief Executive Officer of WiseKey. Mr. Moreira, please go ahead.

Carlos Moreira Thank you very much and thank you all for joining us this morning. I am joined today by our Group CFO, John O'Hara. With that, the first half of 2026 was a period of meaningful progress for WiseKey. We continue to improve our financial performance while advancing key strategic priorities including the commercialization of our post-quantum semiconductor technology, the expansion of our quantum technology strategy, and the development of our secure space infrastructure platform. We also continue to refine our corporate structure to provide investors with greater visibility into the value and growth potential of our technology For the first six months of 2026, preliminary United Revenue increased approximately by 116% to approximately $11.4 million, compared to $5.3 million in the first half of 2025. Gross profit increased 192% to $5.5 million, and Gross Margin expected to approximately 48% compared with 35% in the prior year period. This result reflected improved product mix as well as the increasing contribution of our semiconductor engineering and related technology capabilities. At June 30, we had approximately $495 million in cash and restricted cash with minimal debt. This gives WiseKey an unusually strong financial foundation from which to execute our long-term strategy commercializing post-quantum technology, building severing semiconductors and cybersecurity capabilities, developing quantum platforms, expanding trusted digital identities, and advancing in secure space infrastructure. We have built this technology and investment over many years. In 2026, they are increasingly coming together as one commercial ecosystem. Our priorities are clear and measurable, which are convert the CLSQ commercial pipeline into recognized revenue, move both quantum semiconductor products from qualification and certification towards volume production, complete our planned corporation, Corporate Structure Initiatives, including the WiseKey Redemiscillation and the proposed WISAT and Quantissimo transactions. Continue expanding servering, semiconductor, cybersecurity, and trusted infrastructure capability in key jurisdictions. Build value across our technology platform while maintaining a common root of trust. We will provide more details on each of these areas shortly. Before doing that, I will ask John to provide an overview of our first half financial performance. I will then return to discuss the strategic progress and outlook. John, please go ahead.

Thank you, Carlos, and good morning, everybody. As Carlos noted, preliminary unaudited revenue for the first half of 2026 was $11.4 million, an increase of 116% from $5.3 million in the first half of 2025. This stems from the revenue increase of our core semiconductor and PKR product lines, the first revenues relating to the Quantix Edge project, and the consolidation of six months revenue of IC-ALPS and one month revenue of Mira-X and WeCan Group SA, both acquired on 1st June 2026. Gross profit increased 192% to 5.5 million compared with 1.9 million in the prior year period. Gross margin expanded to approximately 48% from approximately 35% in the first half of 2025. The gross margin improvement reflects changes in revenue mix and the growing contribution from higher value technology, semiconductor and engineering activities. We will continue to focus on the opportunities that can support revenue growth while improving the quality and scalability of the group's revenue base over time. Operating loss for the first half was $40.9 million, compared with $27.3 million in the first half of 2025. Net loss was $36.4 million, compared with $22.3 million in the prior year period. Of note, in H1-2026, the group recorded R&D expenses of $9.1 million net of stock-based compensation, showing an increase by $5.1 million in comparison with the $4 million net of stock-based compensation for the six months ended June 30, 2025. The increase was primarily attributable to the consolidation of the results of IC-ALPS, acquired in August 2025, with 4 million R&D expenses. Additionally, approximately 1 million of R&D expenses related to group-wide intangible asset amortization, substantially all of which relates to intangible assets recognized in the MiraEx, WeCan and IC-ALPS transactions. The increase in operating and net losses principally reflects the investments we are making across the group's strategic platforms, including post-quantum semiconductors, quantum technologies, secure infrastructure, satellite initiatives, product development, certification, engineering, and planned corporate transactions. At June 30th, 2026, Wysky had approximately $495 million in cash and restricted cash and minimal debt. This liquidity position gives us the flexibility to continue investing with a long-term perspective while also pursuing strategic opportunities across the group. It supports our ability to fund commercialization, product development, certification, infrastructure initiatives, and selective acquisitions without relying on short-term financing needs. Turning to our guidance, Weiskey reaffirms its expectation for full-year 2026 revenue growth of 50% to 100% compared with 2025. This outlook reflects our current expectations regarding the timing and execution of existing programs, semiconductor and ASIC design activity, digital identity and PKI services, sovereign infrastructure initiatives, and the initial commercialization of our post-quantum product portfolio. As always, this guidance is subject to risks and uncertainties described in our public filings, including customer timing, certification, production schedules, market conditions, and the conversion of commercial opportunities into recognized revenues. I will now turn the call back to Carlos. Thank you, Carlos.