Infleqtion, Inc.

Good afternoon, and welcome to Inflection's first quarter 2026 earnings conference call. Thank you for joining us today. My name is Marcus Cooper-Schmidt, Head of Investor Relations and Strategic Finance. Before we begin, I would like to remind you that this conference call may include forward-looking statements. These statements are subject to various risks, uncertainties, and assumptions that could cause actual results to differ materially. These factors are detailed in our Form 8K and other filings with the SEC and which are available on our website at ir.inflection.com. We undertake no obligation to revise or update any forward-looking statements except as required by law. During today's call, we will also reference certain non-GAAP measures. We use these measures because we believe they provide additional insight into the underlying operational performance of the business. This non-GAAP financial information should not be considered in isolation or as a substitute for GAAP results. Reconciliations between GAAP and non-GAAP measures can be found in today's press release and in our SEC filings. Joining me today are Matt Kinsella, our Chief Executive Officer, Ilan Hart, our Chief Financial Officer, and Pranav Gokhale, our Chief Technology Officer and General Manager of our quantum computing business. Following our prepared remarks, we will open the call for questions. As a reminder, a replay of this call will be posted on our IR website along with our Form 8K and presentation materials. With that, I'll turn the call over to Matt Kinsella, our Chief Executive Officer.

Thank you, Marcus, and good afternoon, everyone. We are glad you could join us for our first quarter 2026 earnings call. We appreciate your time today and your interest in inflection. And as I've said in the past, we're really excited to work with all of you over the coming years and hopefully decades to continue to build a deeper understanding of inflection, our platform, and the opportunity ahead. So similar to our last earnings call, we will open up with a brief reminder of who we are and what we're building at Inflection, and we'll talk through our strategy. This will be shorter than last time. And then we'll walk through our Q1 results, and then we'll take your questions. And if you'd like to deeper dive on our products, our roadmap, our markets, a replay of our March 11th Analyst Day is available in the Investor section of our website. It's a great resource as you're learning more about quantum and Inflection. All right, let's dive in. So for those of you that are joining for the first time, Inflection is a quantum technology company with a highly differentiated platform approach. We're building solutions across computing, sensing, and timing that are all tied together with software. And that breadth is enabled by Neutral Atoms, a highly flexible quantum modality that operates at room temperature and supports products we're already deploying in real world environments. Critical to our strategy is that the underlying components, the physics, photonics, engineering, and software are the same across all our products, all based on one platform. That gives us a highly leveraged and efficient operating model. So if there's one thing I want you to take away from this first section, it's the single neutral atom platform, multiple products, and many end market opportunities. And we're the only company in the quantum industry with this single platform approach. In many ways, we are following a path similar to NVIDIA. And just as they pointed their core GPU at the gaming, the crypto mining, the physics markets, while building toward the crown jewel of large language models, we are pointing our neutral atom core at these near-term markets where we have quantum advantage today, like timekeeping and sensing, while building toward fault-tolerant quantum computing, our crown jewel. And excitingly, neutral atoms are now leading on many of the metrics that matter most, and the path to commercially useful quantum computing is getting shorter. If I had to boil Q1 down to a single word, it would be momentum. We saw momentum across all elements of our business, from technical progress, increased customer activity, new quantum-based government investments, and industry interest in neutral atoms. And an interesting proof point is our neutral atom quantum core business. Since our founding, Inflection has supplied our neutral atom quantum cores to other neutral atom quantum companies and resource organizations. It's a relatively small but important part of our business. And in Q1, we had our best quarter ever in our quantum cores business, which we see as a strong signal that neutral atoms are continuing to grow within the industry. Government investment is also building, with the UK committing up to £2 billion to quantum, which I'll discuss later in the presentation. We strongly believe neutral atoms are the best modality for the quantum era. I was the first investor in inflection back in 2018 in my prior role, and when I first invested, neutral atoms were not as widely understood as other quantum modalities. But what stood out to me then and is even more relevant today is that neutral atoms offer a highly scalable architecture, attractive system economics, and are flexible to build products across sensing and computing such that we are already shipping deployable systems and have been for many years. Nature gives us the qubits in the form of atoms. Our job is to industrialize the system around them using lasers, photonics, software, and system engineering. This is our product portfolio. All of our products are built on the same neutral atom technology platform, and at the center of each system is a quantum core where neutral atoms are controlled with lasers. Because this is one platform, progress in one area strengthens the entire portfolio. Advances in atom control, photonics software, and systems engineering benefit all of our products, from atomic clocks to quantum computers. As we get better at building and shipping clocks, that directly accelerates our path to useful quantum computing. We are also seeing the platform strategy show up commercially. Customers often start with one capability, such as timekeeping or software, and then expand into additional products as their needs grow. And that is the inflection model, one scalable quantum platform supporting multiple products and markets. Because of the flexibility of this technology and the fact that we have been field deploying it for years, we are the first quantum company to operate quantum technology under the sea, in space, and to fly it in the air. Under the sea, we demonstrated TICKR, our optical atomic clock, on the Royal Navy's Excalibur autonomous submarine. In space, we launched NASA's Cold Atom Lab on the International Space Station back in 2018, and we recently delivered an upgrade to the ISS about a month ago. And excitingly, we are returning to space with NASA JPL's Quantum Gravity Radiometer Pathfinder Mission, or QGG for short. And in the air, our quantum navigation technology has been tested in flight with kinetic on a jet. On the ground, we recently showcased quantum timing across the live fiber between Indiana and Illinois, showing a 40X, yes, that is 40 times improvement over GPS timing. And precision timing is increasingly important for AI infrastructure and distributed computing environments where synchronization is critical. Simply put, if you can synchronize distributed workloads more precisely in data centers, you can get more performance out of your underlying data center infrastructure. This slide highlights a few of the key milestones we achieved across the business, and I won't go through every metric, but let me just call out a few. In computing, we've demonstrating a 1,600-atom qubit array, achieving 99.73% user-facing two-qubit gate fidelity, and remain on track to deliver 30 logical qubits this year. We also delivered the UK's first 100-physical qubit quantum system and remain the first and only company to achieve the UK government's target for a 100-qubit system by the end of 2025. In sensing, we received the first and largest quantum in-space contract from NASA, and altogether, these milestones show we are executing very well across our comprehensive platform. And with that, I will turn it over to Pradav to discuss computing in more detail.

Thanks, Matt. I'll take a deeper dive on our computing division with updates across our quantum computing hardware and software, as well as recent customer wins with our quantum-inspired software running on GPU. Let me start with our core strategy, scaling toward commercially useful logical qubits through hardware and software innovation. Our leadership here is enabled by two underlying records. First is our demonstration of 1,600 atom arrays, the commercial record for physical qubit capacity. Second is our demonstration of 99.73% user-facing two-qubit fidelity, the commercial record for neutral atoms. Putting these two together, quantity and quality, unlocks logical qubits. As we've emphasized before, these logical qubits are the key milestone on the path to quantum computing advantage. They're the clearest measure of progress toward reliable, scalable systems capable of solving commercially meaningful problems. The growth in quantity and quality of qubits on our scale QPU has allowed us to advance from two logical qubits in 2024 to 12 logical qubits in 2025 ahead of our roadmap. And we remain on track for 30 logical qubits in 2026 and 100 in 2028, when we expect the first commercially relevant applications to be run. Importantly, we are not just demonstrating logical qubits in isolation. We are already using them to run real applications in material science, chemistry, and health tech, which builds and validates the key building blocks of commercially relevant quantum computing. Our record-setting results across quantity, quality, and logical qubits have grown customer interest in on-premise system sales. To that end, we have now delivered two scale QPUs, one to our customer at the UK and QCC, where we operate the UK's first and only 100-qubit quantum computer, and one to our customer in Japan. We also announced plans for a scale QPU delivery with at least 50 logical qubits to the IQMP hub in Illinois. We also have QQs that we use internally as testbeds that support private cloud access for select end users. Excitement about the convergence of quantum and AI is also driving new interest, and we were delighted to have been invited by NVIDIA to exhibit our scale QQ at the NVIDIA booth during GTC in March, where we had valuable face time with the world's biggest consumers of compute capacity. I'd now like to take a deeper dive into our software stack and application workflows that enhance the productivity and capacity of our scale QPU. Going from bottom to top, at the hardware layer, we continue to prioritize integration with NVIDIA, where our scale QPU can co-process with GPU to solve customer problems that neither GPU nor QPU can solve alone. This is exemplified by our pioneering integration with NVIDIA's NBQ link stack to force multiply our hardware's error correction performance. Now let's move up the stack to our SuperStack middleware platform, which supercharges system performance by compiling customer applications to the underlying hardware to improve efficiency. Importantly, SuperStack supports customers across multiple qubit modalities, including superconducting and trapped ion. This positioning was critical to a recent DARPA contract win, which I'll cover on the next slide. Finally, at the applications layer, we are working with customers across two primary objectives. Some customers are developing applications on scale today to test and optimize the foundational building blocks required for scalable quantum computing. Others are designing commercially relevant applications intended for future large-scale logical qubit systems. Their engagement today reflects the strategic value of being prepared to deploy quantum solutions as soon as large scale fault tolerant hardware becomes available. Now I'd like to give you an update on recent customer specific examples of progress in our middleware and hardware layers. Importantly, everything I'll cover on this slide was announced in just the past three months. Starting with the hardware layer, In April, we were pleased to be the only neutral atom company highlighted by NVIDIA as an adopter of both of their icing AI models, which reflects inflections and brace of AI-led workflows for accelerating our quantum technologies. Next, we released a paper in April demonstrating an advance in photonics and magnetic control that is enabling us to build more robust conveyor belts for our atoms. For neutral atom QPUs, this hardware milestone is an important foundation toward running logical qubit programs continuously with high uptime and high performance. Moving to the middleware layers, in April we released another paper unveiling Resource Superstack, our open source software platform that models future iterations of scale QPUs with hundreds of logical qubits. This provides users with feedback to develop and optimize quantum applications so they can hit the ground running on our scale QPUs with 100 logical qubits expected in 2028. The second middleware milestone was our selection by DARPA for the HARC program on heterogeneous architectures for quantum. I'll emphasize that Inflection is the only company developing quantum computing hardware that was selected for the software track of HARC, underscoring our positioning to supercharge quantum hardware across multiple modalities. Altogether, these recent advances highlight our momentum in scaling logical qubits through software, middleware, and hardware innovation. Next, let's discuss our progress building quantum-native logical qubit applications targeted to run on our scale quantum computer. We are working with several customers and partners to demonstrate the software, hardware integration, and logical circuit operations required to scale toward large fault-tolerant quantum computing systems. Let's start with inflection's progress with logical qubits. Our first major milestone, which we jointly published with NVIDIA last year, was a demonstration of the industry's first logical qubit-powered material science application. This demonstration with two logical qubits serves as a gateway to discovery of better batteries, solar cells, and catalysts. In fall 2025, we leaped from two logical qubits to 12 logical qubits on scale. Our demonstrations included an important building block for chemistry applications, as well as the world's first demonstration of Shor's algorithm for decryption with logical qubits, which we released to advise enterprise on the urgency of migration to encryption systems that are secure against the so-called Q-day implication of quantum computing. Most recently, in Q1 2026, and as recently spotlighted by NVIDIA alongside GTC, we demonstrated another application of 12 logical qubits, targeting biomarker discovery for our welcome leap Q4Bio customer. Now, let me update you on our progress toward commercial applications of quantum software targeted on upcoming versions of our scale QPU with hundreds or thousands of logical qubits. As this slide indicates, we are excited about the breadth of commercially relevant applications across multiple industries, and we have seen increased engagement in the past two months from end users in all these sectors. Let's take a deeper dive on our recent wins in the energy end markets. Energy is one of the best examples of why and where quantum computing is poised to provide a new paradigm for overcoming limitations present in traditional computing. The electric grid is becoming one of the largest and most complex computational modeling problems in the world, complicated by growing and increasing dynamic demand alongside variable energy generation sources. This challenge has spurred utility companies to investigate quantum computing. And similarly, we are also seeing power management companies lean into quantum, as exemplified by Inflection's joint presentation with Eaton Corporation at the recent Q2B conference. This February, we announced ARPA-E's first ever quantum computing contract. Our contract win, which includes collaboration with ComEd, a utility company, focuses on enhanced energy grid efficiency using our scale QPU. The goal is to help utilities meet power demand with greater efficiency, reliability, and security. Shortly after our contract booking, we were excited to be selected again by ARPA-E in April, this time as the only neutral atom performer on their QC3 program for quantum computing applications. Our planned QC3 project will leverage our scale QPU to discover new materials with less transmission loss, opening new opportunities in the electric grid. Most recently in April, the Illinois IQMP Hub and the National Quantum Algorithm Center, or NQAC, awarded a contract to UChicago to support a collaboration with Inflection, Constellation Energy, and EPRI to apply quantum computing to improve efficiency and safety of nuclear reactor designs. We also note that the NQAC Center is expected to play an important role as a thought leader and ambassador for enterprise adoption of quantum computing, and we are pleased to be a trusted partner to them early in their growth. As you've heard, customer engagement with our scale platform in quantum applications is accelerating. we remain highly focused on scaling logical qubits to commercially transformative quantum computing applications. And we have increasing customer validation that this will be a significant market opportunity in the coming years. In parallel, we are increasingly excited by the near-term commercial potential of our quantum-inspired software running today on classical GPU infrastructure. This quantum-inspired software for AIML which we call contextual machine learning or CML, is gaining momentum across multiple customers to analyze sensor data beyond the limits of competing AI approaches. Modern AI systems like large language models face challenges in maintaining context across long data sequences, which limits the use of these models for processing data from typical sensors that produce millions of tokens of information every second. The challenge is maintaining context as conditions evolve, identifying how sensory inputs are changing and determining which sensors and signals can be trusted in real time. CML applies insights from quantum computing and sensing to GPUs to efficiently circumvent these challenges. Our customers are looking to CML for real-world applications involving large-scale sensor datasets like RF sensing, data fusion, and GPS-denied navigation where data streams are noisy and highly dynamic, and operational decisions depend on separating trusted signals from noise in real time. Our recently announced U.S. Navy contract for quantum-inspired rapid context applies CML to classification of radio frequency data in crowded electromagnetic environments. This application of AI is not just a convenience. It's becoming mission critical to determine with speed and confidence which signals are trusted, which are interference, and which may represent adversarial intent. Delays or misclassification can directly impact operational effectiveness and decision making, which is why our CML technology prioritizes low latency processing. This Navy contract complements other customer wins, including with the U.S. Army for secure AI for position, navigation, and timing for GPS-denied environments. as well as another recent contract from the European Space Agency on sensor data anomaly detection. In all these cases, CML can run on edge-deployed GPU to provide quantum-inspired advantages today. Moreover, each of these contracts stands in front of large downstream opportunities, including programs of record that can lead to multi-year procurement contracts and wide-scale deployments. I'll now turn it back to Matt to expand on the equally exciting progress in quantum sensing.