Infleqtion, Inc. Q4 FY2025 earnings call

Infleqtion is a quantum technology company with a neutral atom platform covering computing, sensing, and timing. In 2025, the company strengthened the business by winning important programs, expanding partnerships, reducing operating loss, and improving operating cash performance. Technically, they made progress in logical qubits, having 2 in 2024, 12 in 2025, and on track for 30 in 2026 and 100 in 2028. The sensing business offers step-function improvements in precision, addressing markets like defense, commercial, and space. They have partnerships with companies such as Safran and NASA and have deployed quantum systems in real-world settings like the International Space Station and the U.K. National Quantum Computing Center.

In 2025, revenue was $32.5 million, all from the Quantum business. Approximately 70% of 2025 revenue came from the U.S., 30% from the U.K., 11% from APAC, and 4% from the rest of the world. For 2026, guidance is for revenue of approximately $40 million. Historically, about 2/3 of revenue has come from sensing and 1/3 from computing, with computing potentially becoming the majority in the future as commercial advantage is achieved.

For 2026, the guidance is for revenue of approximately $40 million. Also, the company is on track to deliver 30 logical qubits in 2026, which is an important technical milestone.

Q: First and foremost, I was wondering what is the first thing that a quantum computing IT person asks you when you're having issues with your quantum computer?

A: Not sure.

Q: Within the sales guidance for 2026, how should we think about the balance between products and service revenues and the gross margin either from that perspective or an overall for 2026?

A: Don't focus too much on product vs services split, think about revenue going forward.

Q: Just following up on this $40 million guide here. I know you just mentioned not splitting between services and products. But maybe could we ask how much is expected from the sensing business versus computing or potentially how much comes from software versus hardware?

A: Historically, ~2/3 from sensing, ~1/3 from computing, with computing potentially shifting to majority.

Q: Just on your presentation earlier, much lower cash burn than peers. Is there an opportunity to maybe step up R&D spend or sales and marketing, particularly now that you're a public company? Maybe tell us a bit more about your disciplined approach to OpEx? Or maybe put differently, are you able to do more with less?

A: Intend to increase investment modestly this year, focused on areas advancing technology and giving competitive advantage, disciplined with KPIs.

Q: Just have a question on the customer pipeline. If you can talk about the mix of that pipeline between compute and sensing. And also if there is some sort of a point that you can give on the annual conversion of that $300 million-plus customer pipeline you talked about at your Investor Day, given the mix of several government and university multiyear contracts?

A: Majority of revenue and booking to come from sensing this year, with compute potentially skewing pipeline due to large deals, but roughly 2/3, 1/3 ratio.

Q: Congrats on all the momentum and success here recently. Pranav, for you, can you talk about the fidelity level of the 12 qubits and the 30 that you'll be introducing this year?

A: Logical performance improved over physical, aim for same with 30 qubits, logical qubit systems have efficient circuit running.

Q: Just on KPIs, what are some of the metrics that you guys want us to focus on that things are on track? I think from a technical side, whether it be logical qubits, gate performance and so forth or customer counts. Maybe just help us think about what are some of the key KPIs we should be focused on?

A: Focus on revenue guidance and logical qubits.

Q: I dropped off there, but I did have a follow-up. I want to get in for Matt. Is the Golden Dome comments, I guess, to my knowledge, I didn't think the administration had really flushed out their plans for Golden Dome. So can you just dive into what you were mentioning on Golden Dome a little bit?

A: They funded an IDIQ contract vehicle, moving rapidly to deploy, aiming to intercept incoming threats.

Q: Guys to jump back in the queue here. I just had 2 follow-ups. It's clear that the industry is moving on from focusing on physical qubit count and shifting towards more of a logical qubits and application level performance analysis. How do you think about the trade-off of investing R&D and scaling the qubit count with your platform versus improving error rates?

A: Can trade quality with quantity, focus on quantity now as we have good enough qubit fidelity, allows for expanding market domains.

Q: Just on KPIs, what are some of the metrics that you guys want us to focus on that things are on track? I think from a technical side, whether it be logical qubits, gate performance and so forth or customer counts. Maybe just help us think about what are some of the key KPIs we should be focused on?

A: Focus on revenue guidance and logical qubits.