SEALSQ Corp. Q2 FY2026 earnings call

• Strategic Transformation: CLSQ is transitioning from a secure semiconductor company to a global leader in post-quantum and quantum security, building a "sovereign vertical stack" termed the "Quantum Highway."
• Product Milestones & Certifications:
  • QS7001 Secure Element achieved NIST SP800B Entropy Secure Source Validation (Certificate E333) and completed Common Criteria fault injection/side-channel resistant testing.
  • Volta-IC 408 secure element achieved FIPS 140-3 validation (NIST Certificate 5463), critical for government and defense markets.
  • ISO/IEC 27001 recertification obtained.
  • QVolt TPM-185 engineering samples are available; customer sampling is progressing.
• Acquisitions & Integration:
  • IC Alps: Fully integrated, adding custom ASIC design and secure semiconductor architecture capabilities.
  • MIRO-X: Acquired for quantum photonics interconnect technology, essential for connecting quantum processors and data centers.
  • WE-CAN Group: Ownership increased to 55.5%, strengthening compliance, secure data exchange, and digital identity capabilities.
  • Quantix Edge Security: Joint venture with Spanish government generating initial revenue; evaluating expansion into "deep tech centers" combining quantum computing as a service.
• Ecosystem & Partnerships:
  • Investments in Kubli ($150M Series A lead) and EROC for silicon-based quantum computer architectures.
  • Collaboration with LATI Semiconductors for FPGA-based post-quantum security.
  • Partnership with GlobalFoundries to support migration of PQC designs to advanced manufacturing.
  • Collaboration with BMW Alpine Formula One Team on quantum multi-physics simulation for aerodynamics and materials.
• Commercial Pipeline: Active pipeline exceeded $225 million through 2029, including over $100 million associated with post-quantum projects. More than 150 customers/prospects are engaging with PQC technologies, with 30+ actively evaluating/integrating products.
• Liquidity: Ended H1 2026 with $486 million in cash, equivalents, and restricted cash, providing flexibility for R&D, certifications, acquisitions, and infrastructure.

• Total Revenue: $11.2 million, a 131% increase from $4.8 million in H1 2025.
• Gross Profit: $5.4 million, up 233% from $1.6 million, with gross margin expanding to approximately 48%.
• Revenue by Segment/Driver:
  • Secure Elements & PKI: Renewed demand for Volt IC secure elements and expansion in PKI subscriptions/digital identity services drove significant growth.
  • ASIC Design & Engineering (IC Alps): Contributed approximately $2.5 million in revenue during the first six months of consolidation; this segment offers higher margins than traditional semiconductor sales.
  • Quantix Edge Security: Generated initial revenue from operations in Murcia, Spain.
• Revenue by Geography:
  • North America: $5.6 million (50% of total).
  • Europe, Middle East, and Africa (EMEA): $3.7 million (33% of total).
  • Asia Pacific: $1.9 million (17% of total).

• FY 2026 Revenue Guidance: Reaffirmed at $27–36 million, representing expected growth of approximately 50–100% over FY 2025 audited revenue of $18.3 million.
• Key Drivers for Growth: Full-year consolidation of IC Alps, continued demand for Volt IC products, growth in recurring PKI/certificate management revenue, initial commercialization of QS7001 and QVolt TPM, contributions from Quantix Edge Security, and potential custom post-quantum ASIC design programs.
• Timeline Expectations: Initial revenue from QS7001 and QVolt TPM expected late in H2 2026, with more meaningful contributions beginning in 2027 following customer integration, qualification, and procurement cycles.

• Certification and Validation Delays: Timing of QS7001 and QVolt TPM revenue is subject to certification completion, customer validation, and procurement cycles.
• Market Adoption Risk: The quantum industry is currently in an R&D phase; commercial revenue from quantum computing components may be delayed until qubit counts justify widespread adoption.
• Execution and Integration Risk: Integrating acquired businesses (IC Alps, MIRO-X, WE-CAN) and converting the $225 million pipeline into production contracts involves execution risk and commercial negotiation uncertainties.
• Regulatory and Geopolitical Factors: Dependence on government mandates (e.g., U.S. Executive Order requiring PQC deployment by 2029) and sovereign infrastructure policies affects demand timing.
• Financial Performance: Operating loss widened to $32.2 million (from $21.2 million) due to higher R&D, G&A (including amortization and transaction costs), and selling expenses, though offset by strong liquidity.

Q: Matthew Galenko asked about the commercialization timeline and customer engagement for the broader quantum stack beyond post-quantum security, specifically regarding quantum photonics interconnect (MIRO-X) and quantum computers (Kubli/EROC). He wanted to know if these segments have active pipelines or are still in R&D.

A: Carlos Moreira explained that while the broader quantum ecosystem (computing, photonics) is currently largely science/R&D work with limited direct revenue, it is essential for future applications. He noted that companies like Kubli and EROC are advancing exponentially using CMOS technology. Revenue will diversify as these technologies mature; however, CLSQ’s established post-quantum security and ASIC revenues provide immediate cash flow. The strategy is to integrate these components into the "Quantum Highway," where quantum security generates revenue for quantum hardware companies, creating a symbiotic commercial model.