IonQ, Inc.

Participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there'll be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Hanley D'Onofrio, Head of Investor Relations. Please go ahead.

Good afternoon, everyone, and welcome to INQ's third quarter 2025 earnings call. My name is Hanley D'Onofrio, and I'm head of investor relations here at INQ. I'm pleased to be joined on today's call by Niccolo DeMasi, INQ's chairman and chief executive officer, Inder Singh, our chief financial officer and chief operating officer, Jordan Shapiro, our president of quantum networking, sensing, and security, Chris Balance, our president of quantum computing, and Dean Kassman, our Executive Vice President of Global Engineering and Technology. By now, everyone should have access to the company's third quarter 2025 earnings press release issued this afternoon, which is available on the SEC's website and on the investor relations section of our website at investors.inq.com. Please note that on today's call, management will refer to non-GAAP financial measures. While the company believes these non-GAAP financial measures provide useful information for investors, The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. You are directed to our press release for a reconciliation of adjusted EBITDA and adjusted EPS to the closest comparable GAAP measures. During the call, we will discuss our business outlook and make forward-looking statements, including those regarding our guidance for 2025. These comments are based on our predictions and expectations as of today and are not guarantees of future performance. Actual events or results could differ materially due to a number of risks and uncertainties. Therefore, you should not put undue reliance on those statements. We refer you to our recent SEC filings, including our annual report on Form 10-K for the year ended December 31, 2024, and our quarterly reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025, and September 30, 2025, for a more detailed discussion of those risks and uncertainties. We undertake no obligation to revise any statements to reflect changes that occur after this call, except as required by law. Now, I will turn it over to Niccolo DiMasi, Chairman and CEO of INQ.

Thank you all for joining us. Q3 2025 will be remembered as a transformative quarter for INQ. Not only because we so significantly exceeded the high end of our revenue guidance, but because of our tremendous symphony of technical progress, talent attraction, and successful expansion of our vision to lead globally in the business of quantum. I will leave my colleague Inder to provide details. However, as most listeners will have seen in our earnings press release a few minutes ago, IANQ delivered its largest quarterly revenue beat ever, delivering results 37% above the high end of our guidance. Putting this in perspective, we grew revenue year on year, by 222%, a truly impressive number that demonstrates our commercial traction. Our company's growth trajectory is clear, and we have only just scratched the surface of the enormous opportunities we are pursuing. During the quarter, we announced that our AQ64 Tempo system was up and running three months ahead of schedule, fulfilling our technical goal for the year. We closed our acquisition of Oxford Ionix and raised $1 billion at a 25% premium to the previous day's closing price. We created INQ Federal and appointed a leadership team consisting of senior security cleared personnel, including Executive Chairman Robert Cordillo, former director of the National Geospatial Intelligence Agency for President Trump. We are truly honored that General Jay Raymond joined our board of directors. General Raymond is the only four-star general since 1947 to have served as a four-star in two services and was the founder of the Space Force at President Trump's direction in his first term. These leaders are emblematic of the incredible talent we are attracting across the organization, and their decision to join us is a testament to our commanding market position and bright future. I'm proud of our clear quantum advantage use cases so far this year. We demonstrated faster computational engineering work with ANSYS in March, and hybrid quantum AI applications in April. In June, in partnership with NVIDIA, Amazon, and AstraZeneca, we demonstrated the world's first 20x quantum speedup in computational drug development. Our 4D system has routinely demonstrated quantum advantage, and in this case, performed nearly a month of classical computational work in just 36 hours. Our newest system, which we unveiled at our analyst day on September 12th, is called Tempo. Public benchmarks show Tempo has a compute space 36 quadrillion times larger than the leading commercial superconducting system in the market. We are proud that Tempo is scheduled to ship in 2026 and has a computational space approximately 260 million times larger than our current fully commercialized Forte system. Following our expansion to networking in the second half of 2024, on the first half of 2025, we acquired the world-leading quantum sensing company, Vector Atomic. Vector Atomic has been a fantastic addition to our capabilities for golden dome-like projects and vital commercial solutions, such as next-generation GPS. Our new colleagues, led by CEO Dr. Jamil Aboshayer, are a wonderful cultural fit and already have multiple program of record contracts with important US government agencies. Quantum sensing is relevant to our networking, cybersecurity, and computing product families, and we are confident it will accelerate growth for INQ around the world. I'm pleased to report that we're proving out synergies as expected across many of our product families globally. INQ has a truly unique ability to land and expand in quantum computing, quantum networking, quantum sensing, and quantum cybersecurity. Our strategy is to expand our technical lead in each quantum product family and connect our products together to provide unique solutions to allied sovereigns and major multinationals alike. We are investing in our ecosystem's breadth and depth via partnerships that we believe will underpin long-term annuity-like customer relationships. As we have demonstrated, and as I said in our analyst day, we are in it to win it, and we keep our commitments. We are continually on the lookout for talent and IP that will allow us to accelerate the progress we make on our technical roadmaps. Time matters, and we view ourselves as an increasingly indispensable partner in defense and economic security for the US and NATO in the coming years. With over 1,100 patents pending and granted, we are proud of how our IP moat has expanded 30x since our first IPO. Our team has put in tremendous effort this quarter and year as we have deepened our commitment to both fundamental research and commercial leadership. After the quarter ended, we delivered three exciting milestones, strengthening our balance sheet by selling $2 billion of common stock at $93 per share, demonstrating the world record two-qubit gate fidelity of 99.99%, or four nines, and closing our acquisition of Vector Atomic. Our four nines of fidelity for two-qubit gates is a particularly momentous and historic achievement. We are the first company in history that can proudly say that all of our key technical milestones have been achieved and we are now focused on only engineering scaling to achieve full fault tolerance. With our well-established semiconductor fabrication approach, the course is clear for us to deliver each generation of our systems. You'll hear more on this from my colleague Chris Balance in a couple minutes. It is clear that INQ has begun to enjoy compounding benefits from our scale and momentum advantages, entrenching our position as the dominant force in quantum and the only complete quantum platform solution. Before I close, allow me to clarify for stakeholders, new and old, what true quantum computing actually is. While numerous companies, public and private, have added the word quantum to their corporate name for decades, we can confidently state that in almost every case beyond INQ, this is just a branding attempt. Terms like quantum-inspired, quantum annealing, or analog quantum simulators all represent toy machines compared to the real deal, which is universal, fully entangled, gate-based quantum computing. Our co-founder, Chris Monroe, kicked off the field of gate-based quantum computing with the demonstration of the world's first quantum gate in 1995. And our team has been at the forefront of quantum computing ever since. Only a universal quantum computer, like those we have shipped and continue to accelerate building at INQ, offers actual commercial quantum advantage. Plenty of analog quantum simulators exist in one form or another. They are quite easy to build compared with a true entangled general purpose gate model quantum computer. However, to fully simulate the complexity and range of possibilities enabled by 100 truly entangled qubits in our Tempo system would require billions of high-end GPUs and consume more power than all of the world's power stations combined. Indeed, as we showed at our analyst day in September, Tempo has 36 quadrillion times more computational space than our closest competitors' best machines. The volume of simulation-equivalent GPUs can be expected to become even more astronomical as we release our 256 qubit and 10,000 qubit systems in subsequent generations. Looking beyond that, as we laid out in June 9th, INQ is targeting 1,600 logical qubits in 2028 and 80,000 in 2030. As a point of comparison, a leading competitor's roadmap released one day after ours targets only 2,000 logical qubits by 2033. This is five years behind us, and with an architecture that will cost one to two orders of magnitude more for equivalent compute power five years later. We showcased our industry-leading bill of materials for our 80,000 logical qubit machines on September 12th. Global supply chain experts, A.T. Carney, have validated our bill of materials for our 2 million qubit machines to be sub $30 million in 2025 dollars. No other company will be able to come close to these unit economics. Anyone can say they're doing something quantum when they absolutely are not. For the avoidance of doubt, software running on simulators or any classical machines can always be branded with the word quantum. However, doing so, of course, does not mean true entanglement and quantum advantage is in operation. No one can come close to approaching what INQ software running on our universal gate-based true entanglement generating tempo quantum computers can offer. The hardware needs to be quantum and the software needs to be quantum in order for the results to be quantum. We believe we're the clear leader in quantum computing, further differentiated by our capabilities in quantum networking, quantum sensing, and quantum cybersecurity. This leadership enables INQ to offer quantum computing far sooner and at a far lower cost than others. Our focus now is on translating our clear technical advantages and differentiated capabilities into value for shareholders. Quantum is now. As you have seen, Q3 was another strong, pioneering, and record-breaking quarter at INQ. We look forward to Q4 and 2026 with confidence. I am delighted with how our leadership team is evolving. Inder Singh hit the ground running as COO and CFO, benefiting from his knowledge of the company gained in his prior role as our lead independent director and audit committee chair. Dr. Chris Ballance, founder of Oxford Ionics, has become INQ's first president of quantum computing. Dr. Marco Pistoia, who until last quarter was global head of quantum computing at J.P. Morgan, has assumed the role of CEO of INQ Italia as we continue to deepen our investments in EMEA. And Dean Acosta was appointed as chief corporate affairs and government relations officer, bringing more than three decades of experience in technology defense and public service. I am delighted to introduce everyone now to Dr. Chris Balance, President of Quantum Computing, to provide more detail on our quantum computing milestones this quarter.