Infleqtion, Inc.

Good afternoon and welcome to Inflection's second quarter 2026 earnings conference call. Thank you for joining us today. My name is Marcus Kupferschmidt, Head of Investor Relations and Strategic Finance. Before we begin, I would like to remind you that this conference call will include forward-looking statements, including statements regarding our future financial condition, business strategy, and plans and objectives of management for future operations, and all other statements that are not statements of historical fact. These statements are subject to risks, Uncertainties and assumptions that could cause actual results to differ materially. These factors are detailed in the earnings press release we issued today and other filings with the SEC, including our annual report on Form 10-K for the year ended December 31st, 2025, 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 financial measures. We use these measures because we believe they provide additional insight into the underlying operating 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, Pranav Gokhale, our Chief Technology Officer and General Manager of Quantum Computing, and Ilan Hart, our Chief Financial Officer. Following our prepared remarks, we will open the call for questions. A replay of this call will be posted on our investor relations website along with our earnings press release and presentation materials. With that, I'll turn the call over to Matt.

Thank you, Marcus, and good afternoon, everyone. Whether you've been with us since we became public or you're dialing in for the first time, welcome, and thank you for your interest in inflection. Last quarter, I summarized Q1 in one word, momentum. This quarter, the word is acceleration. And by that, I mean the market is moving faster and the opportunities in front of us are becoming more concrete. So today, I'll start with a quick reminder of who we are. Then I'll summarize the quarter and explain what has changed in the market and why I believe inflection is well positioned. Pranav will cover our progress across computing and sensing. I'll return to discuss how we are growing the company and our outlook for the balance of the year. And Ilan will then review the financial results in more detail. And then we'll move on to Q&A. So just a quick refresher on Inflection. We are a neutral atom quantum company building quantum computers, sensing systems, and software all on one platform. Nature gives us our qubits in the form of atoms. and our job is to turn those atoms into working systems by controlling them with light and integrating the hardware and the software around them. Because our products share the same core capabilities, progress in one area strengthens all of the others. We're the only company in the quantum industry combining this breadth of products on a single platform, giving us multiple paths to commercial value. All neutral atoms, all the time. All right, so now that we aren't strangers anymore, let's move on to the quarter. Our second quarter results and the progress announced since quarter end show how much we have accomplished. We delivered record revenue of $12.6 million, up 116% year-on-year, and are raising our full year 2026 revenue outlook to approximately $43 million. Our visibility is also improving as customers commit to larger systems Thank you. Thank you. They began putting dates and dollars behind quantum. And as you will see, inflection was at the center of all of this. In May, the Department of Commerce signed a letter of intent providing for up to $100 million in proposed funding for inflection. In June, President Trump signed a quantum executive order that assigned federal agencies specific actions and deadlines across computing, sensing, and the domestic quantum supply chain. Quickly following the executive order in July, the Department of Energy selected inflection for three Genesis mission projects across both computing and sensing. Those projects bring our computing and sensing capabilities together with government and commercial partners. That same shift is underway internationally. The United Kingdom is back in quantum with up to two billion pounds in government investment. We have operated there since 2014, and recently delivered the country's first and only operational 100 physical qubit quantum computer to the National Quantum Computing Center, building on our decade of quantum work in the UK. Australia has also named quantum technology one of six defense innovation priorities for the next decade, with an emphasis on rapid field testing and deployment. We believe our growing team in Australia gives us a strong position as those opportunities develop. Governments are recognizing that quantum can deliver a level of precision and insight that classical technologies cannot, and they are moving with urgency to put that advantage to work. The commerce selection and the executive order are worth a closer look. Let me start with commerce. The headline is up to $100 million in proposed funding. That is obviously significant, but just as important is how we got there. Commerce, with deep involvement from NIST, which is the National Institute of Standards and Technology, basically really smart scientists who work for the government, took a hard look at our technology and roadmap. Following that review, Inflection was selected as one of seven quantum computing companies for up to $100 million in proposed funding to advanced commercialization. The selection is a strong external validation of our computing technology, our team, and the direction that we are taking the company. And there's something else I think is important about commerce. Historically, much of the government's work in quantum has understandably focused on advancing the science. Commerce brings a different lens. It is looking at which technologies have a credible path to commercialization and can strengthen the US technology leadership. In many ways, it was the US government determining which quantum companies they believe will scale commercially and want to deepen their relationship with. And that's exactly the criteria that we want inflection to be judged on. The executive orders reinforce the same shift. Federal support for quantum is not new. What is new is the push to put it to work. The administration's priority is very clear. Accelerate the use and commercialization of quantum. It sets real timelines for computing and sensing and brings industry directly into the work. That lines up exactly with where we've been investing and building for years. I was truly honored to be invited to the Oval Office when President Trump signed the quantum executive orders. It was a powerful moment. The message was unmistakable. The United States intends to lead in quantum. And I told President Trump that we would do everything we could to help the United States win the quantum race. We've spent years preparing for this shift. Now our job is to lead it. Inflection's advantage comes down to three things. Our neutral atom technology, the complete systems and software that we build around it, and our experience deploying quantum systems. And let me take those in order. So first, neutral atoms. Neutral atoms begin with an inherent advantage. The qubits are made by nature, and therefore they are fundamentally identical. Inflection builds on that advantage with an optical system that traps, moves, and controls atoms using light. That allows us to create large atom arrays, change their geometry for different calculations, and connect qubits without locking the machine into one permanent layout. A common optical system can control many atoms. Our systems already operate on power comparable to a few household hair dryers, and that's pretty different from building a machine that needs its own power plant. ultimately we expect a commercially useful system to fit within a few server racks and the technologies around those atoms just keep getting better advances in photonics and packaging will make the overall system more capable and economical as we scale and that gives us a more efficient path to commercial scale with a best-in-class operating profile across footprint power and cost which is a big reason neutral atoms are gaining momentum across the industry and we are increasingly seeing evidence that they will be the winning modality in quantum computing. Second, technology alone is not a product. Inflection has built the complete system required to turn neutral atoms into computing and sensing products from the hardware and the controls all the way through the software and we sell those products today. Our software connects quantum hardware with the computing environments customers already use and our teams have delivered quantum computers in the United Kingdom and Japan. and third, we know how to build and operate neutral atom systems in demanding environments. Our technology has operated on the International Space Station since 2018. We demonstrated an optical atomic clock on the Royal Navy's Excalibur submarine. We flew quantum navigation technology with BAE Systems and Kinetic, two major defense and aerospace technology companies, and we demonstrated precision timing across live fiber between Indiana and Illinois in partnership with Cephron. a global aerospace and defense technology company, and our first commercial partner for Ticker. That experience gives us engineering and operating knowledge that you only get by putting systems in the field. And that's a real advantage when customers are deciding who to work with. They want partners that can actually deliver. We have the technology, and the system's knowledge and experience are ingrained across inflection. And that is why inflection will lead in neutral atoms. Pranav will now walk you through the progress that we made across computing and sensing during the quarter.

Thanks, Matt. Our progress is racing ahead faster than ever before with the extraordinary leverage unlocked by AI tooling. In that spirit, last month, we held a company-wide hackathon supported by OpenAI who equipped us with office hours and plenty of swag. With the help of GPT 5.6 Sol and Codex, our team's executed project In quantum computing, we're translating these advances into rapid progress toward utility-scale systems that outperform classical systems for commercially relevant applications. We remain on track to demonstrate 30 logical qubits on our scale quantum computer this year, and we're happy to update today that our logical qubit demonstrations will serve three end customers, one in finance, One in energy and one in precision medicine. This past quarter, we established explicit logical qubit circuits for these customer workloads. We found new AI-discovered techniques for converting our logical circuits into physical circuits. And we experimentally demonstrated the key underlying hardware operations that power our target circuits. To make the final leap to 30 logical qubits, we are tracking two key characteristics. First, Can our system retain high fidelity even when qubits are being dynamically reconfigured? And second, can software co-design enable us to run advanced circuits with fewer than 10 physical qubits per logical qubit, rather than the hundreds or thousands that were demanded in previous proposals? We are tracking progress closely across both of these characteristics. This quarter, we also announced a new experimental record for two-qubit gate fidelity with dual species demonstrated on our scale quantum computer in Madison. Shortly thereafter, our chief scientist of quantum information, Professor Mark Saffman, co-authored a paper with University of Wisconsin colleagues proposing a novel technique for two qubit gates that paves the path to exceeding 99.9% fidelities. In parallel to our technical progress, we are preparing to offer broader customer access to our QPUs in response to the growing customer demand to run live circuits. We will communicate updates as soon as possible. In Colorado, we have advanced plans to integrate our scale QPU with AI and classical HPC coprocessing alongside the partnership we announced in November with Oak Ridge National Labs Quantum Science Center. This is a step forward to enabling a hybrid classical quantum platform which is the way we expect most customers to ultimately use our systems. The Illinois Quantum and Microelectronics IQMP Park is another exciting step. We announced last month that we are deploying a neutral atom quantum computer integrated with NVIDIA NVQ Link at the IQMP. Delivery is planned for 2027 with a new architecture designed to scale through modular upgrades to more than 50 logical qubits on the path to the system's We intend to make the system available over the cloud to a wide range of end customers. That brings me to what customers are doing with our technology. Useful quantum applications will not suddenly appear when the hardware arrives. They will be co-developed alongside it. Starting that work now allows customers to help shape the applications and the systems they will ultimately run on. To that end, on Monday, we announced a customer relationship with Eaton, a global power management leader that NVIDIA recently named among the industry leaders reshaping next-generation power infrastructure for AI. Through private cloud access to our scale QPU, our SuperStack compiler, and our quantum software capabilities, Eaton is exploring how quantum computing can be applied to difficult energy problems alongside its work in classical AI. In addition to our announcement this week with Eaton, Inflection announced last month that we have been selected by the Department of Energy for three Genesis mission projects spanning AI, nuclear applications, and quantum sensing. We are also developing energy applications through our Chicago Quantum Innovation Center. We will have more to share this fall. At IEEE Quantum Week and Quantum World Congress in September, we will share more technical progress and partnership announcements, including an update on our 30 logical qubit development. We also plan to host a webinar this fall prior to the mid-November supercomputing conference with a deeper dive into our technology and roadmap. Customers are not waiting. They're starting to build with us now. Let me turn to the sensing market. Quantum sensing addresses large markets from space and navigation to spectrum and resource discovery. and Inflection has built the broadest quantum sensing portfolio in the industry to address these markets. This quarter, we made great progress with NASA's Jet Propulsion Laboratory, or JPL, on our quantum gravity gradiometer Pathfinder program, which is moving toward deployment of the first ever quantum gravity sensor in orbit. Our teams recently visited the Einstein Elevator in Germany as we prepare for prototype testing there. The facility recreates microgravity conditions, allowing us to test the system as we continue on the path toward flight. At the same time, we're seeing growing interest in using this technology here on Earth and have started engaging with potential customers. Quantum gravity sensing can reveal features below the surface that conventional imaging cannot, including critical mineral deposits. In July, Representative Jeff Hurd introduced the bipartisan Quantum-Enhanced Critical Minerals Mapping Act, and Matt testified before the House Natural Resources Committee about how mobile quantum gravity systems could help identify and characterize those deposits at greater depth and resolution. Better information before drilling can reduce uncertainty and help the United States develop strategically important resources more efficiently. This quarter, we also extended our first mover advantage in quantum space. We announced America's Quantum Space Initiative to accelerate the development and deployment of quantum-enabled capabilities for future space systems. Many commercial companies and research institutions have reached out to join, and we will host our first meeting later this year at CU Boulder. This quarter, we introduced quantum spectrum as the first fundamental shift in RF sensing architecture in decades. Quantum spectrum demand is growing in defense applications, and we are also starting to see commercial interest. It can detect signals across a very wide range of frequencies in a compact system, giving customers new capabilities for understanding what is happening across the spectrum. Our software helps customers make sense of that information. Our quantum-inspired rapid context contract with the US Navy uses our contextual machine learning AI technology with current GPU hardware to identify what matters in large dynamic RF data sets. We are also advancing that same AI technology with additional customers, including for the US Army in GPS denied environments and for the European Space Agency across multiple data stream types. Finally, precision timing is moving into a new phase of commercialization. Ticker is selling today. Saffron is reaching global customers through its sales channel and we have secured a design win for satellite applications. We also plan to launch our next generation ticker before the end of the year, expanding the performance and applications we can address. Quantum sensing is already becoming a commercial market and inflection is built to lead it. And with that, let me turn the call back to Matt.