SEALSQ Corp Q1 FY2025 earnings call

2025 was defining year for CLSQ. Market valuation surpassed $1 billion and upgraded to NASDAQ Global Select Market. Raised over $530 million in capital since November 2024. Commercial launch of quantum shield QS7001 in Q4 2025. Launched sovereign U.S. post-quantum root of trust. Engaged Trusted Semiconductor Solution as U.S. manufacturing and distribution partner. Completed acquisition of IC-ALP, SIS, SU. Signed letter of intent to acquire MiraX. Launched Quantum Fund with $20 million initial allocation now grown to $200 million. Advanced quantum highway global expansion strategy with joint venture in Spain and plans for hubs in U.S. and Asia.

CLSQ delivered total revenue of $18.3 million in fiscal year 2025, representing growth of 66% compared to $11 million in 2024. Core semiconductor segment grew to $14.7 million from $11 million in the prior year. New ASIC segment contributed $3.6 million following acquisition of IC Alps. Semiconductor segment saw strength in smart card reader SCR200 (51% revenue growth) and secure element product lines. Trust services grew almost 600% but represent 2% of total revenue. North America is largest market at 57% of revenue; Asia Pacific revenue grew 95% year on year. Gross profit improved to $8.6 million in 2025, up from $3.7 million in prior year, with gross margin expanding to 47%. Semi-conductive segment gross margin partially recovered to 37%.

Expect fiscal 2026 to be year of acceleration. ASIC segment to contribute full 12 months of IC-ALPS revenue. Anticipate first production revenues from QS7001 and QVolt TPM in second half of 2026. Estimated combined pipeline for these two products at $60 million as of December 31st, 2025. DX venture expected to increase in 2026. Quantum fund has total allocation of $200 million with over $30 million spent to date. Expect revenue to grow by between 50% and 100% in 2026, Q1 expected to more than double year-on-year.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors which could cause actual results to be materially different. Risks discussed in filings with SEC. Gating factors for conversion to revenue include certification completion and integration cycles in semiconductor industry. Regulatory pressures like CNSA 2.0 and EU Cyber Resilience Act create urgency but also pose risks related to compliance and timelines.

Q: On pipeline for new quantum products, with regulations having impact, do you expect number of customers engaging to increase in 2026?

A: CNSA 2.0 and equivalent regulatory frameworks create urgency. Gradual certifications are required. Urgency created by faster arrival of quantum day.

Q: On personalization centers in U.S., reasonable timeframe for U.S. center?

A: Originally long process, now moving to team with existing infrastructure. Should be able to announce location before end of June.

Q: On impact of AI industry on demand cycles, pricing, margins?

A: Quantum computers may redesign infrastructure. Industries like smart meters and energy tokenization are booming. Our technology solves security and transaction problems in these areas