Good afternoon, and welcome to Infleqtion's Full Year 2025 Financial Results and Business Update Conference Call. Operator instructions: Please note, this event is being recorded. I would now like to turn the conference call over to Marcus Kupferschmidt, Head of Investor Relations and Strategic Finance. Please go ahead.

Good afternoon, and welcome to Infleqtion's Full Year 2025 Fiscal Results and Business Update 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 may include forward-looking statements. These statements are subject to various risks, uncertainties and assumptions that could cause actual results to differ materially. These factors are detailed in our Form 8-K and other filings with the SEC, which are available on our website at ir.infleqtion.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; Ilan Hart, our Chief Financial Officer; and Pranav Gokhale, our Chief Technology Officer and General Manager of our Quantum Computing business. Following our prepared remarks, we will open the call for questions. As a reminder, a replay of this call will be posted on our IR website, along with our Form 8-K and presentation materials. And with that, I'll turn the call over to Matt Kinsella, our Chief Executive Officer.

Thank you, Marcus, and good afternoon, everyone. Thanks very much for joining us for Infleqtion's first business update as a public company. We appreciate your time today and your interest in Infleqtion. We're excited to work with all of you over the coming years and hopefully, decades to continue building a deeper understanding of Infleqtion, our platform and the opportunity ahead. Today, we'll have a slightly different agenda than a typical earnings call. Since we're new to the public markets, I think it will be beneficial to spend a little time describing Infleqtion's strategy, our technology and our business model. So with that in mind, we'll spend maybe the first 15 minutes or so giving an overview of Infleqtion and then we'll move to a walk-through of our 2025 financials. Then we'll provide 2026 guidance and open it up for questions. One quick public service announcement. For those who did not join our March 11 inaugural Analyst Day, I'd highly recommend you watch it and use it as a resource going forward. A recording can be found in the Investors section of our website. So with that said, Infleqtion is a quantum technology company with a very differentiated approach. From day 1, we have been building a broad platform across computing, sensing and timing, all tied together with software. This approach is possible because our underlying quantum modality, neutral atoms, is highly flexible. Everything we do is done at room temperature, allowing us to build a range of products that can be deployed in real-world settings. We have followed a tried and true strategy of commercialization and market adoption by pointing this powerful neutral atom core at markets like timekeeping and sensing, where we have true quantum advantage today, monetizing there and all the while building towards the crown jewel, fault-tolerant gate-based quantum computing with true commercial advantage. In many ways, we're following in the footsteps of NVIDIA. Just like they pointed their core GPU at the gaming, the crypto mining markets, the physics markets while building towards their crown jewel of large language models and AI, we're pointing our powerful neutral atom core at near-term markets like timekeeping and sensing while building toward fault-tolerant quantum computing. And excitingly, neutral atoms are leading the way on most of the metrics that matter to get to commercially useful quantum computers and the timelines are shrinking. Critical to our strategy is that the underlying components, the physics, photonics, engineering and software are all the same across our products. That gives us a highly leveraged and efficient operating model. It truly is a platform. The Infleqtion advantage starts with our technology and our team. We're the first mover in this Nobel Prize winning neutral atom technology with our founder, Dana Anderson, helping to pioneer it at CU Boulder over the last 40 years. We also have a world-class Quantum team across four countries with more than 160 PhD physicists and engineers, over 235 patents issued and pending, hundreds of customers, hundreds of sensors and cores deployed in the field and several quantum computers sold and deployed. There is a lot to like about neutral atoms. They offer a differentiated and compelling combination of advantages. I'd like to say that atoms are nature's perfect qubits. They're inherently identical. They operate at room temperature, and they deliver long coherence times, precise control and native all-to-all connectivity with a clear and credible path to scale. Importantly, atoms are not just exceptional qubits. They're also nature's perfect sensors and nature's perfect clocks. That dual capability is fundamental to our strategy. As highlighted on the bottom row, we believe neutral atoms are the only commercially viable modality that can address both quantum computing and the broad sensing market, full stop. What that means in practice is we can build a single scalable platform that serves both computing and sensing applications. That platform leverage drives a more efficient capital model, faster iteration across products and a broader set of end markets from the same core technology. We believe that combination of platform leverage, capital efficiency and multi-market applicability is what makes neutral atoms not just scientifically compelling, but commercially advantaged. At the center of everything we do is a single neutral atom quantum core powered by lasers that underpins both our computing and sensing products. That matters because we're not building separate systems for separate markets. We're building one scalable platform that can address multiple large adjacent opportunities. In quantum computing, the goal is clear: unlock capabilities beyond classical systems, solving problems that CPUs and GPUs simply cannot. Based on estimates from McKinsey, this is a $130 billion market by 2040. And Pranav will go deeper on computing, but the key point is that this is not just a better product, it's an entirely new paradigm. On the sensing side, the model is more straightforward. It's largely a replacement cycle. We're delivering step function improvements in precision and resilience, in many cases, 10 to 1,000x better than existing systems. And that enables us to address real urgent needs today from GPS denied navigation to contested RF environments across defense, commercial and space. McKinsey estimates the sensing market at $30 billion by 2040. But given the performance delta and the replacement dynamic, we believe the opportunity could be meaningfully larger. So stepping back, I want you to remember one core underlying technology platform, multiple large markets. Now let's get down to the product level. Our platform gives us powerful leverage. One neutral atom foundation and one software layer support multiple technologies across computing and sensing with products tailored to use cases from timing and radio frequency to inertial sensing and quantum computing. Together, this allows us to deliver orders of magnitude improvement where classical systems fall short while giving customers a path to start with one capability and expand to others over time. Importantly, there is a high degree of integration across all our products. The core operating functions of our sensing system directly inform and support our computing road map, creating meaningful technical and development synergies across our product suite. We covered this all in detail at our Analyst Day for those interested in going deeper. Logical qubits are the key to the kingdom in quantum computing and the clearest measure of the industry's path to quantum advantage. They are what move the industry towards reliable, scalable systems that can solve commercially meaningful problems. No one on the planet publicly demonstrated logical qubits until 2023. Infleqtion delivered two logical qubits in 2024, 12 logical qubits in 2025. We are on track to deliver 30 in 2026 and 100 in 2028. For those of you new to quantum, the CTO portion of our March Analyst Day provides a very succinct overview of logical qubits. While logical qubits remain our key milestone in computing, our sensing business is already demonstrating the real-world advantages of quantum today. Our quantum sensing technologies are finding product market fit across a range of use cases, especially in environments where classical infrastructure is vulnerable, unavailable or has reached its performance limits. What quantum brings to these applications is a step change in precision. And in many of these environments, better precision translates directly into better performance, better resilience and better outcomes. Across timing, quantum RF and inertial sensing, we are seeing demand in mission-critical environments where precision and resilience matter most. We recently announced a game-changing partnership with Safran, a global leader in timing, navigation and defense technology with the availability of a quantum-enabled precision timing solution that integrates our Tiqker optical atomic clock with Safran's White Rabbit and Secure Sync systems. We believe this is the first partnership of its kind anywhere, combining quantum precision with proven mission-critical timing infrastructure in a deployable offering. That's an important proof point that our sensing platform is technically differentiated and increasingly in demand. Customer and partner validation are among the strongest signals of progress in the business. We have already delivered and sold two quantum computers, including the first system installed and operational at the U.K. National Quantum Computing Center and a 500-qubit system delivered in Japan to the Institute for Molecular Science. We are also expanding through partnerships such as our work with the Illinois Quantum and Microelectronics Park. We continue to expand our footprint in space and government programs with our technology operating on the International Space Station since 2018 and NASA selecting Infleqtion to develop the Quantum Core for the Quantum Gravity Gradiometer or QGG Pathfinder mission. We believe the breadth and scope of these field deployments are a substantial competitive advantage and that our proven ability to deploy systems in real-world environments is becoming an increasingly important differentiator as the market accelerates across a wide range of use cases. Infleqtion is the only quantum company to bring a single quantum platform to operate across sea, sky, land and space. Our Cold Atom sensor technology is already on the International Space Station and the next Cold Atom lab upgrade is on its way there this week. We are also seeing that platform extend in the maritime environment, including our recent Royal Navy Excalibur trial, where Tiqker was deployed on an underwater autonomous vehicle to support GPS-free navigation. So with that broader platform context complete, I'd like to turn this over to our Chief Technology Officer and General Manager of our Quantum Computing business, Pranav Gokhale, to share an update on our quantum computing platform.

Thanks, Matt. We made strong computing progress in 2025 in the first few months of 2026, and we remain on track toward our key milestone of 100 logical qubits in 2028. We are very proud of the milestones we published, record commercial neutral atom gate fidelity, the first-ever materials science application powered by logical qubits, and the world's first execution of Shor's algorithm for decryption using logical qubits, which helps inform enterprise on the urgency of transition to quantum-safe encryption. Our work reflects the deep technical progress required to turn fault-tolerant quantum computing from aspiration into demonstrated capability. The recent attention generated across our field only reinforces why we are investing so deeply in this work. In March, we took our prior 12 logical qubit work to the next level of sophistication by executing a biomarker discovery application on our Sqale quantum computer for our Wellcome Leap Q4Bio customer. Importantly, this work highlights the hybrid interplay between GPU and QPU, where the GPU can serve as a training engine for new AI models and the QPU can serve as the inference engine, much as we are seeing specialized training and inference chips emerge in classical AI. We were also pleased to be featured at NVIDIA's GTC conference last month, where NVIDIA's booth showcased Infleqtion Sqale quantum computing hardware and our approach to hybrid quantum-flexible computing using NVQLink. Within our software team, we are gaining experience in bolstering market credibility through customer engagements across both quantum and classical domains with important use cases, including AI for sensor data fusion and RF spectrum awareness. Our IP portfolio continues to grow, including new proprietary methods that translate into differentiated system performance. Our March 2026 paper on dual species gates demonstrates one example of that work. More broadly, these advances are helping us improve system performance and move towards faster time to solution for end customers. We do not think about quantum in isolation. We see a broad horizon of computing use cases, and we prioritize hybrid workflows where CPUs, GPUs and QPUs work together to overcome bottlenecks in run time and energy for important applications. CPUs and GPUs have already transformed what is possible in computing, and we believe QPUs can extend that curve by unlocking classes of problems that classical systems cannot solve efficiently alone. This is especially important in areas like chemistry, materials and security, where hybrid architectures can open up important new classes of applications. As you may have seen in the news recently, the potential of quantum computing in areas like security and decryption continues to advance as qubit requirements keep coming down. More broadly, we believe the entire field is pulling in the timeline for important applications, and that is another example of how hybrid quantum-possible architectures can expand what is computationally powerful and possible over time. One such application area is artificial intelligence. While AI is a revolutionary technology, it is also exposing the limits of current compute. We see bottlenecks in memory, in the quality of training data and in the ability of today's models to fully capture physical dynamics. We believe quantum can help address these gaps at multiple levels through quantum-inspired techniques that can improve workflows today, quantum sensors that can generate higher quality training data and ultimately, QPUs that can enable new classes of physically accurate applications. Let me now turn to our quantum computing roadmap, which we first introduced in early 2024. We delivered two logical qubits in 2024 and 12 logical qubits in 2025 ahead of schedule. We remain on track to deliver 30 logical qubits in 2026 and 100 logical qubits in 2028. We believe 100 logical qubits is the point at which quantum begins to unlock transformative applications in areas like materials science and AI. We do not believe the quantum advantage path is hardware alone. We believe it requires hardware, software codesign, and this is where Superstaq comes in. Superstaq helps customers unlock value across CPUs, GPUs and QPUs while enabling us to deliver value today as we build toward long-term quantum advantage. Our computing platform is already reaching customers through deployed systems and cloud access. That includes operational deployments in the U.K. and Japan, a planned 50-plus logical qubit system with the Illinois Quantum and Microelectronics Park and broader access to Sqale through Superstaq and CUDA-Q. Infleqtion is delivering value today while building towards fault-tolerant quantum applications. We expect the first of those applications to emerge in materials science around the end of the decade and then broaden into other high-value computational domains. Let me share a strong example of how our hybrid and quantum-inspired work is already being applied to real customer problems. For the U.S. Army, we are working on a program called SAPIENT or Secure AI for position, navigation and timing focused on resilient edge AI navigation and timing in adversarial environments. We are seeing a real increase in GPS denial across both civilian and military environments, making resilient PNT much more important. The key point is that insights from our quantum computing work can already be applied on edge GPU platforms today, delivering strong performance in GPS denied environments. With that, I will now turn this back to Matt.

Thanks, Pranav. A recent example that brings together the breadth of our platform is Golden Dome, where Infleqtion was selected as one of only a few quantum technology companies eligible to compete for work under the Missile Defense Agency's SHIELD program. SHIELD is an IDIQ for an indefinite delivery indefinite quantity contract vehicle with targeted spend up to $151 billion. Our proposed solution reflects multiple parts of our platform applied to a mission-critical defense problem, including Tiqker for enhanced radar capabilities, distributed timing in GPS-denied environments and extreme precision in synchronization across the entire system. QRF for hypersonic threat detection and contextual machine learning and quantum computing for predictive threat tracking and decision-making. In a Golden Dome-style missile defense architecture, picosecond level synchronization is critical because distributed sensing and fire control nodes must calculate the speed and trajectory of hypersonic threats with extreme precision to support coordinated detection, tracking and intercept decision, and that is not something legacy timing solutions can reliably provide. We believe this highlights the growing applicability of quantum technologies to mission-critical national security threats. Space remains a particularly important market for us and a major area of growth. Infleqtion has partnered with NASA for over a decade and first put our quantum technology in space on the ISS back in 2018. That deep foundation and history helped lead to our selection by NASA's Jet Propulsion Lab to develop the Quantum core for the Quantum Gravity Gradiometer Pathfinder mission. This mission will place the world's first quantum gravity sensor in space to measure changes in Earth's gravitational field with high precision, allowing for the detection of important activity on or below the Earth's surface. More broadly, we see space as a particularly strong application area for quantum sensing and mission-critical infrastructure. The U.K. is emerging as one of the most important quantum markets globally with a commitment of up to GBP 2 billion. We discussed our history in the U.K. at length at our Analyst Day. But to recap, we have been in the U.K. for more than a decade, winning and delivering contracts across sensing and computing. We believe that track record positions Infleqtion well in the U.K. as we continue to grow our presence in Oxford and support the country's long-term quantum ambitions. On the computing side, the U.K.'s ProQure initiative is intended to support large-scale quantum computer deployment in the early 2030s. On the sensing side, the U.K. has committed more than GBP 400 million to sensing, navigation and enabling capabilities. Taken together, we believe this positions Infleqtion well across two of the U.K.'s highest priority quantum domains, quantum computing and quantum sensing. Now putting my former investor hat on, I tend to evaluate technology companies through three lenses: technology, execution and capital. We believe today's presentation has shown both the strength of our technology and our ability to execute. And on the financing side, two months ago, we listed on the New York Stock Exchange and raised $515 million in net proceeds with virtually no redemptions. We believe that result reflected strong confidence from the investment community. We also recognize that confidence comes with great responsibility. We intend to be disciplined in how we deploy capital to maintain a high degree of financial control and bring rigor to commercialization through clear metrics, operating cadence and an ROI-driven mindset. Across the business, our core platform is already gaining traction in multiple markets. We are one of the few companies in the industry with quantum computing, sensing and software capabilities, all built on a deeply integrated and capital-efficient neutral atom platform. Now before I turn it over to Ilan to flesh out 2025 financials in detail, I'm going to touch on 2025 at a high level. 2025 was a pivotal year for Infleqtion, and we strengthened the business materially. We won important new programs, expanded key customer and partner relationships, reduced operating loss, improved operating cash performance and strengthened the balance sheet. We exited 2025 in a strong position operationally and financially even before our transition to a public company in early 2026. Revenue in 2025 was $32.5 million, driven by new program awards and growing customer demand. Importantly, all of our revenue was organic and generated by our Quantum business. We secured several important new contracts, including NASA's QGG Pathfinder program and ARPA-E's first contract for power grid optimization through quantum computing, while beginning to fulfill the Department of Defense procurement contract for precise timing. We continue to expand relationships with strategic partners such as NVIDIA, SAIC and Safran. With that, I'll turn it over to Ilan to take you through the 2025 financials in more detail.

Thanks, Matt, and good afternoon, everyone. I will now walk you through highlights of our GAAP and non-GAAP results for 2025 compared with 2024. As Matt noted, we delivered revenue of $32.5 million in 2025, 100% organic and entirely from Quantum. Our business continues to be anchored by national security use cases. 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. Year-over-year performance was driven by strong execution across key U.S. programs. Looking ahead, you should expect some variability in our geographic revenue mix from year-to-year as the number, size and timing of program wins continue to evolve across geographies. Our GAAP loss from operations narrowed to $35.3 million in 2025 compared with $53 million in 2024. On a non-GAAP basis, operating loss improved to $28.1 million in 2025 compared with $35.7 million in 2024. Our 2025 non-GAAP results exclude stock-based compensation of $3.1 million and a one-time noncash accrual of $4.1 million related to contingent payout from a 2024 acquisition. Our 2024 non-GAAP results exclude stock-based compensation of $3.7 million and a one-time impairment of assets and goodwill of $13.5 million. The improvement in non-GAAP operating loss reflects higher revenue and improved operating leverage. Cash burn was approximately $36 million in 2025. Net cash used in operating activity was $24.1 million in 2025 compared with $32.5 million in 2024, representing an improvement of $8.4 million year-over-year. Capital expenditure in 2025 remained relatively modest at a few million dollars. We continue to expense R&D as incurred with no capitalization of R&D or development costs. We exited 2025 with $63 million of cash and cash equivalents and no debt. Including net proceeds from the February 2026 financing, we have a pro forma cash balance in excess of $550 million. Looking to 2026, we expect a modest increase in cash burn from 2025 levels as market signals give us more confidence to invest ahead of accelerating market momentum. We're deploying capital selectively and strategically across R&D and go-to-market with clear return thresholds and specific objectives, partially offset by higher net interest income. Even with this step-up in spending, our cash burn remained low relative to peers. I will now turn the call back to Matt.

Thanks, Ilan. And with that, let's turn to guidance. For 2026, we are guiding to revenue of approximately $40 million. That outlook reflects continued momentum across the business, building on the programs and partnerships we established in 2025. And as Pranav noted earlier, we remain on track to deliver 30 logical qubits in 2026. We view that milestone as an important indicator of our technical progress. Infleqtion is entering 2026 as a stronger company with a differentiated platform across computing and sensing, growing customer traction and a much deeper capital base to support execution. And with that, we will open up the line for questions.

Operator instructions: Our first question comes from the line of Tyler Anderson with Craig-Hallum.

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?

Oh boy, I don't know, Tyler, what is it?

Have you tried turning it off and on at the same time. Back to the real questions. So 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?

The way I would take that, Tyler, is I wouldn't focus too much on the product versus services split. That's really more of an accounting standard. I don't really look at the business that way. And so I think — and there's all sorts of intricacies on how you classify one thing versus the other. So I would just think of it as revenue going forward. I'm not trying to punt the question. It is actually how I think about the business. And I wouldn't say there's much gross margin differential between the way those two things are classified. So I would think about looking at our historical gross margins and probably think about them in the ballpark for going forward. Ilan, do you add anything to that?

Yes. All I can say, thanks, Matt, is that if you think about our long-term business model, we believe that it's really best-in-class semiconductor gross margin. That's what you need to think about long term. But as mentioned in the short term, it's going to be based on historical gross margins.

Okay. And then is there any cadence to this revenue or seasonality?

I would say that it's more about how we win contracts with both government and commercial. And you might see some variability quarter-over-quarter, but we don't have the seasonality like a traditional semiconductor business at this point.

Yes, I wouldn't think about too much seasonality. I think relatively even across quarters, Tyler.

Our next question comes from the line of Jesse Sobelson with BTIG.

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?

I can give you a couple of nuggets to maybe help you think about that one. Historically, call it, two-thirds of our revenue has come from sensing, one-third from computing roughly. And I'd anticipate it to look probably reasonably similar to that going forward with some pretty wide error bars, especially around computing because those can be lumpy when you land a computing sale. And so I think for the near term, though, you should think about it being roughly in that range with computing sometimes flexing up to more depending on if we sold a quantum computer or multiple quantum computers. As we get closer and closer to commercial advantage with computing, I believe you'll see the mix shift to compute being the majority and possibly the super majority.

Okay. Great. A quick follow-up here, maybe not so quick. But what do you make of the recent research work suggesting lower resource requirements for breaking ECC and potentially a faster path for arriving at cryptographic milestones? Does this have you seen this change how customers are thinking about the urgency of adopting quantum computing and migrating to a post-quantum encryption protocol?

Pranav, why don't you take a crack and I've got a couple of thoughts, too.

Sure. We are excited about these developments. We think they reinforce the promise of neutral atoms. I'd say this from personal background, having done a lot of my PhD work in superconducting qubits and now having shifted into neutral atom qubits. We celebrate the progress in many ways, and we feel very strong and committed about the pathway for neutral atoms. With Shor's algorithm for decryption in particular, we put out a paper in September 2025, which is under review for publication right now. It shows the first ever demonstration of Shor's algorithm with logical qubits. So we have been raising the alarm bell that there is urgency of migration and that this technology is coming very fast. We've been working with enterprise to make sure that they're prepared for this migration to post-quantum cryptography. So with the Shor's algorithm piece, I think there's an evolving view on how fast it's approaching, and it is directly connected with the progress of neutral atom quantum computing in our view.

And the only thing I'd add is just — I've said this before, but looking back on when I first invested in Infleqtion and comparing that to today, and that was back in 2018, it's just been astounding the progress that neutral atoms have made on the quantum computing front. I think people starting to work in neutral atoms and the recent papers being on neutral atoms as well are two proof points to that. And then I'll just reiterate what Pranav said that we showcased Shor's algorithm on logical qubits last year, and the number of logical qubits needed to run Shor's algorithm are getting smaller and smaller. A couple of years ago, it was thought to require millions of logical qubits, so it's come down by orders of magnitude. So cryptographic capability is getting closer.

Our next question comes from the line of Antoine Legault with Wedbush Securities.

Ilan, clearly 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?

So as we mentioned earlier, both in the Analyst Day and in our remarks, we intend to increase our investment modestly this year and really look at the momentum in the market. So yes, we are going to continue to invest in R&D and CapEx in those areas where it's going to advance our technology and give us competitive advantage. So that's been our philosophy. We continue to be disciplined with some clear KPIs, but we do intend to increase our cash burn this year.

And Antoine, what I'd add to that is just the biggest takeaway is we're not going to make any decisions without really running the numbers to make sure we see a great return on those investments. And it is highly possible we'll see that be the case. We've left the investment somewhat nonspecific for a reason because we might see those opportunities to invest more aggressively. But at the highest level, R&D is going to drive both our creation of high-quality logical qubits on the computing side and then also the shrinking and costing down of our sensing products to get them out into the field in greater numbers, and we'll be very focused on doing both of those things. We do have inherent advantages. The neutral atom modality is just capital efficient to begin with because we're working with atoms. They're given to us effectively for free by nature. But we understand that investment is going to drive our forward progress. So we will be disciplined as we make those decisions.

Understood. And last one for me. I know Matt, you've talked about sort of an upcoming radar upgrade cycle. Have the recent geopolitical events accelerated any of those discussions that you might have been having with customers? Or are you seeing kind of an increase in interest for your products?

So the way I would answer that question is the events from the geopolitical perspective have definitely increased the awareness of a need for quantum capabilities as it relates to equipment like radar. A great example is traditional radar emits a signal and therefore can be detected. If you were utilizing quantum RF, it could receive signals without emitting and therefore not be detected. And so there's already been a lot of conversations going on about this, Antoine. I do think it's raised things and accelerated them a bit. But honestly, we've been having these conversations for a long time about this type of stuff.

Our next question comes from the line of Atif Malik with Citi.

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.

Ilan, do you want to take a crack?

Yes. So I would say, as Matt mentioned before, we expect the majority of our revenue and bookings to come from sensing, at least this year. Matt mentioned two-thirds sensing, one-third compute, and that continues to be the trend. That's until we reach the point that Pranav mentioned in 2028 when we reach 100 logical qubits; that's the point that you'll start to see a significant shift toward compute revenue versus sensing. So that's how you think about our business between the next two to three years between sensing and compute.

And then if I just try to isolate that into the pipeline, I'd say the pipeline is probably even a little more skewed to compute only because those are very large numbers. A compute sale could be tens and tens of millions of dollars. So to the extent that some of those are in the pipeline, that does skew to compute. But I still think it's roughly in the two-thirds, one-third bucket. So the pipeline roughly tracks our bookings and revenue as well. And then in terms of conversion, there's all sorts of lengths of contracts in that pipeline. So it's hard to infer a single conversion rate or how that will matriculate from bookings to revenue.

Our next question comes from the line of Troy Jensen with Cantor Fitzgerald.

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?

Yes, sure. In our previous demonstration of 12 logical qubits, which we put out in a paper in September of 2025, we showed that the logical performance, the logical fidelity for state preparation was significantly improved by a multiple over the underlying physical fidelity. So we're already at a point on this iceberg code — it's called the XZZX-type or related constructions — where we're getting better logical than physical performance. It is our desire to get the same out of 30 logical qubits this year. We recently published a blog post about two weeks ago that again showed 12 logical qubits, but referenced during this call in a more sophisticated fashion. One of the really neat things there is that our logical qubits and coding strategies are capable of running circuits much, much more efficiently than our physical qubits can. So whenever we're talking about logical qubits, we are referring to significant suppression of the logical error rate with respect to the physical rate. And as I'm sure you'll appreciate, that is critical to actually getting useful customer performance for logical qubit systems.

Yes. And then how about your physical to logical ratio now and where you think it could be a couple of years out?

Great. This is one of the beautiful benefits of neutral atom quantum computing. We see a path where even with known architectures, there's 24:1 ratios of physical qubits to logical qubits in certain error-correcting constructions, and that would belong in something called a quantum memory hierarchy. There's recent work, which we and others have been pioneering using a software package that we released recently called QLDPC, which shows a pathway to even as few as three to five physical qubits per logical qubit in some codes. This is all possible because our neutral atom systems feature all-to-all connectivity and the ability to bias our errors in a direction that is more easily correctable. Getting a little technical here, but one of the approaches is using biased-noise codes and quantum LDPC constructions, and it's one of the approaches that can further reduce the ratio between physical qubits to logical qubits. Just going back to one of the previous questions on Shor's algorithm, this is why the resource requirements for a lot of quantum applications have come down dramatically in the last couple of years, and we expect the same to happen for other applications like materials science, chemistry and AI.

Our next question comes from the line of Peter Peng with JPMorgan.

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.

Sure, Peter. I would focus you on really just two things. I think you should focus on our ability to execute against our guidance from a revenue perspective, and that should show you that we can run a tight ship and that the opportunity is real to monetize on the sensing side of things. And then to us, the metric that matters the most that really encompasses all the other metrics that are out there for quantum computing is logical qubits. So I would keep you focused on that one. There's a number of other things that are going on below the surface, whether it's physical qubits or the quality of those qubits to Troy's question, but I think the logical qubits is really the number that encompasses. It brings it all into one metric. So those are the two I'd keep you focused on.

Got it. Okay. And then just on thinking about longer-term revenue trajectory. I think 2028 sounds like it's going to be a pretty big Infleqtion point for you guys with the 100 logical qubits and then you're really scaling 2030. Maybe talk about some of the TAM that you can unlock with these new systems? And how should we think about either market share or revenue trajectory as you unlock these new markets?

So at the highest level, the way I think about the opportunity from a TAM perspective is we have really an upgrade cycle that we can run on the sensing side of the business. We can create clocks, RF sensors and inertial sensors that can do things that classical versions of those products simply can't do — truly 10 to 1,000x improvement in performance. There is good data out there about the market sizes for those traditional technologies. But then you also are creating brand-new markets by having the ability to have better-than-GPS precision timing locally. I think take that for what it's worth as you build the market opportunity for sensing. On computing, it's a little harder to predict because in many ways we're blazing new trails and creating new compute paradigms. But the markets that will start to open once we get to commercial advantage in computing are first the materials science world, helping people design new materials more quickly, then drug discovery, and then ultimately new capabilities will be unlocked. Those are absolutely massive markets. The quantum industry does itself a disservice by using terms like materials science because it sounds niche; in reality it's a massive part of the economy. So absolutely massive markets to unlock. Between now and then on compute, there is a great opportunity to continue to sell compute systems into the market even though they're not yet commercially useful, so you're right: after we get to commercial usefulness in 2028, I think we'll see that compute opportunity grow exponentially.

Our next question comes from the line of Troy Jensen with Cantor Fitzgerald.

I dropped off there, but I did have a follow-up for Matt. Is the Golden Dome comments — 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?

Sure. So what they've done is they've funded an IDIQ, an indefinite delivery, indefinite quantity contract vehicle, which is a very flexible way for the government to deploy capital. It's a much more quick and efficient way to get the system up and running. They've already started to host events to get the word out as to what it is they're looking for, and then they're starting to let approved vendors into this IDIQ, which is called SHIELD. They're moving at quite a rapid pace to start to attempt to deploy this, and it will be multiple years in the making, and they won't be deploying the $151 billion all at once. I've actually been pretty surprised at how rapidly they've started to put the infrastructure in place, meaning the contract vehicles and the funding to start to deploy this type of technology. At the highest level, it will be a system that will cover the nation with a number of sensors that have to be integrated together from a timing perspective so they can communicate with each other, and the goal is to intercept incoming threats and defeat them as fast as possible. So they've been moving more rapidly than I would have thought, honestly, Troy.

Our next question comes from the line of Jesse Sobelson with BTIG. Jesse, you seem to be still muted on your end.

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

Pranav?

One of the great things about error correction technology is that it allows us to trade quality with quantity. For instance, if we have a lot of qubits, we can use those to virtualize a small number of very high-quality logical qubits or an intermediate amount, etc. In general, across modalities the bottleneck so far has been quantity. It's generally accepted that one needs a few thousand, as many as 100,000 physical qubits in some constructions, to get to sufficient logical qubits if physical fidelities are limited. If we have 99.99% physical fidelities, the number of physical qubits needed is less. But it's quite easy on neutral atoms to scale into the thousands of physical qubits. We already hold the commercial neutral atom record for a number of qubits — 1,600 — and we have a lot of conviction that we'll keep getting into the multiple thousands of physical qubits. That gives us a natural path to suppress error rates to very low levels so we can run applications without needing to perfect every bit of physics to get to higher fidelities. Because we can tolerate certain errors and correct them in software, that creates a path to eventually field-deploying quantum computers in some settings. That's not our first order priority today, but it's a plausible future where field-deployed quantum systems are practical. Prioritizing quantity over incremental quality improvements for our next development path enables us to expand market domains.

Said another way, we're at quality levels where you can actually start to address quality from a logical-qubit perspective with quantity.

That concludes the Q&A session. I would like to pass the call back over to Matt for any closing remarks.

Thank you, everybody, for joining the call, and thanks so much for all the great questions and for everyone's continued interest in Infleqtion. As I said at the beginning, I'm really excited to work with all of you over the coming years, and I really do appreciate your partnership. 2025 was an important year for the company. We strengthened the business, we advanced the platform, and we enter 2026 with great momentum and a strong capital base. As we said before, we remain committed to disciplined investment, customer and program expansion and continued technical leadership across computing, sensing and software.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you, everyone, for your participation.