SEALSQ Corp Q4 FY2025 Earnings Call

Greetings, ladies and gentlemen, and welcome to the SEALSQ Fiscal Year 2025 Financial Results Earnings Conference Call. As a reminder, this conference call contains forward-looking statements. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause actual results, financial condition, performance or achievements of SEALSQ to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. SEALSQ is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise. These risks are also discussed in our filings made with the Securities and Exchange Commission. Please be advised that our fiscal year 2025 earnings release was issued on Tuesday, March 31, 2026. Also, our Form 10-K for the full year ended December 31, 2025, which was filed with the SEC on Tuesday, March 31, 2026, can be found by visiting the Investors section of SEALSQ website at https://investors.sealsq.com. As a reminder, this conference is being recorded. It's now my pleasure to introduce Carlos Moreira, Founder and Chief Executive Officer of SEALSQ. Mr. Moreira, please go ahead.

Thank you very much, Kevin, and good morning in the United States, and good afternoon in Europe to everybody. Welcome to our full year 2025 earnings call. I am joined today by our Chief Financial Officer, John O'Hara. I'll begin with an overview of our key highlights and major developments from the year. John will then walk you through the financial results in more detail. After that, I'll return to share our outlook for 2026 and beyond, and I will conclude by opening the line for your questions. 2025 was a defining year for SEALSQ. It was a year where we stepped decisively into the role we had been building towards since our founding — that of the world-leading platform for post-quantum secure semiconductor and trusted digital infrastructure. Every investment, product launch and partnership this year advances one central thesis: the quantum threat to encryption is real. It is accelerating and hardware-rooted post-quantum security is the only durable answer. Let me walk you through those accomplishments one by one. In October 2025, SEALSQ market valuation surpassed $1 billion, and we achieved an upgrade to the NASDAQ Global Select market, its highest tier. This reflects our growing scale, institutional governance standards and investors' recognition of our positioning at the intersection of semiconductor, cybersecurity and quantum resilience. Since November 2024, we have raised more than $530 million in capital, providing us with substantial financial flexibility to accelerate our growth strategy and deepen our investment in innovation. This financing strengthens our balance sheet and enables us to scale product development, expand our commercial reach and support the industrialization of our next-generation secure semiconductor platform. It also positions us to advance key strategic initiatives, including post-quantum product development, certification programs and potential partnerships or acquisitions that can enhance our technology capabilities and market presence. I will provide more detailed color shortly on our use of capital and how we are allocating these resources to drive long-term value creation. I will start with our QS7001, the world's first post-quantum semiconductor. The most consequential milestone of 2025 was the commercial launch of the Quantum Shield QS7001 in Q4. This is the first commercially available secure semiconductor embedding NIST-standardized post-quantum cryptography algorithms directly in hardware, delivering up to 10x higher performance than PQC software implementation. We unveiled the QS7001 at the IQT Quantum and AI conference in New York in October, and formally launched development kits at the Las Vegas Grand Prix in November. The pipeline on QS7001 and QVault TPM has already grown to over $60 million for 2026 to 2029, up from approximately $11.4 million at the same point last year. I will now discuss the SEALSQ Made-in-U.S. strategy and recent developments. The U.S. government and enterprise market increasingly require Root of Trust, PKI infrastructure and cryptographic provisioning on American soil, driven by national security imperatives and regulatory mandates. In November 2025, we launched a sovereign U.S. post-quantum Root of Trust, the first of its kind, marking a foundational milestone in our Made-in-U.S. strategy. This initiative ensures that the entire trust chain from silicon design to cryptographic provisioning can be executed within the United States under the highest level of certification and control. To operationalize this vision, we engaged Trusted Semiconductor Solutions, TSS, as our U.S. manufacturing and distribution partner and began establishing a U.S.-based secure personalization hub in 2026, reinforcing supply chain sovereignty and resilience. This strategy is further strengthened through key partnerships. Collaboration with Lattice Semiconductor enables the integration of low-power FPGA technologies, supporting flexible, secure and post-quantum-ready hardware architectures for defense, IoT and high-assurance applications. At the same time, engagement with Paradrone extends secure Root of Trust capability into autonomous and defense-grade UAV systems where highly resilient and trusted communications are mission-critical. Trusted Semiconductor Solutions, TSS, a Category 1A trusted accredited company meeting the highest standards for classified and mission-critical macroelectronics, has announced a strategic partnership to co-develop Made-in-U.S., post-quantum-capable semiconductors and secure semiconductor solutions. These solutions are designed to reach the highest level of hardware certification required by U.S. defense and government agencies. Leveraging TSS's established relationships and trusted position within the U.S. Defense ecosystem, this collaboration has strengthened SEALSQ's footprint and accelerated access to the sensitive national security market. TSS serves as a critical interface to U.S. agencies, ensuring compliance with the Department of Defense and federal requirements while enabling the development of SEALSQ quantum-resistant silicon, custom chip design, advanced certification and secure personalization technologies. EeroQ represents the quantum computer layer of this long-term vision. Its electron-on-helium approach enables quantum processors as small as a thumbnail and compatible with standard semiconductor manufacturing processes. This breakthrough aligns directly with the objective of building an end-to-end sovereign quantum security stack, bringing today's post-quantum cryptography chips together with tomorrow's quantum processors. The follow-on investment in February 2026 reflects a strong conviction in this trajectory and reinforces our strategic position at the intersection of semiconductors, cybersecurity and quantum computing. By combining U.S.-based manufacturing and personalization through TSS programmable secure hardware, Lattice Semiconductor's trusted autonomous systems with Paradrone, and future quantum capabilities enabled by EeroQ, we are establishing a vertically integrated sovereign and quantum-resilient security ecosystem tailored to the most demanding requirements of U.S. defense, critical infrastructure and next-generation AI systems. Our total active pipeline across all products stood at an estimated $200 million in March 2026, which publishes a certification roadmap confirming product variants, which are QS701 V1, QS7001 V2, QVault TPM 183, QVault TPM 185, which are on track for CC EAL5+ and FIPS 140-3 and TCG certification through Q4 2026. While our customers are actively testing development kits and progressing through the design-in process, signaling strong engagement and readiness for adoption, we see that gating factors for conversion to revenue are twofold. First, certification completion — CC EAL5+ and FIPS 140-3 milestones remain on track through Q4 2026, and customers in regulated sectors typically require the certifications before committing to volume purchases. The laboratory has confirmed that the Common Criteria evaluation required to achieve Evaluation Assurance Level EAL5+, namely fault injection and side-channel attack testing, passed in March certification as anticipated. Second, integration cycles in the semiconductor industry from design into full production usually span 6 to 18 months. We are actively accelerating this timeline through co-development partnerships and close collaboration with customers, shortening the time from prototyping to deployment. Critically, regulatory pressures, such as CNSA 2.0 in the United States and the European Union's Cyber Resilience Act, are creating tangible urgency. These deadlines are not theoretical; they are influencing procurement decisions today, and we are seeing this urgency directly reflected in commercial conversations driving faster design cycles and strong early adoption. This combination of a mature pipeline, accelerating integration and regulatory-driven demand positions us well for meaningful near-term revenue growth while laying the foundation for continued expansion through 2028. Now moving to acquisitions. In 2025, we completed the acquisition of IC'ALPS SASU, a leading ASIC design specialist based in Grenoble and Toulouse in France. This added approximately 100 highly skilled engineers, bringing our global workforce to approximately 300 people. IC'ALPS brings expertise in custom chip design for healthcare, automotive and IoT and positions us to develop the QASIC, the quantum ASIC, a purpose-built post-quantum cryptographic ASIC. ASIC revenues also grew from $1.4 million in Q3 to $2.2 million in Q4, confirming the value of this acquisition. Additionally, last month, we signed a letter of intent to acquire 100% of Miraex, a Swiss developer of photonics-based quantum interconnect solutions. Miraex represents a strategic asset in completing our quantum vertical stack. This technology provides a critical interconnect layer linking quantum computing, networking and post-quantum cryptography into a unified architecture. Once completed, the acquisition is expected to accelerate our QS OC initiative and strengthen our ability to deliver resilient end-to-end quantum-secure infrastructure across both terrestrial and space-based environments. Another key milestone is the establishment of our Quantum Fund and strategic investments made through it. Our Quantum Fund launched in 2025 with a $20 million initial allocation and has grown now to $200 million as of today. We deployed approximately $30 million across IC'ALPS, EeroQ, WISeSat, Quantix Edge Security and the WeCan Group, each reinforcing our quantum vertical from silicon to space. Our November 2025 investment in EeroQ, deepened with a follow-on in February 2026, is particularly strategic. EeroQ is building a quantum processor based on single-electron devices on superfluid helium, a design approach that yields processors as small as a thumbnail manufactured on standard semiconductor processes. This underlines our Made-in-U.S. vision and our long-term Root-to-Qubit ecosystem. The U.S. government and enterprise market increasingly require Root of Trust, PKI infrastructure and cryptographic provisioning on American soil. In November 2025, we launched a sovereign U.S.-based post-quantum Root of Trust, the first of its kind. We engaged Trusted Semiconductor Solutions as our U.S. manufacturing and distribution partner and are building a U.S. personalization hub in 2026. EeroQ is the quantum computer layer of this vision. Their electron-on-helium approach allows processors as small as a thumbnail to be manufactured on standard semiconductor processes, directly aligned with our long-term goal of an end-to-end sovereign quantum security stack from post-quantum chips today to quantum processors in the future. The follow-on investment in February 2026 reflects our conviction in this direction. All these advances tie well with our Quantum Highway global expansion strategy. We advanced our Quantum Highway linking industrial capabilities around several locations like Murcia, Toulouse, Grenoble, Geneva and Chicago, connecting Spain, France, the United States and Switzerland. In September 2025, we signed a EUR 40 million joint venture with the Spanish government to establish Quantum Edge Security in a city located in the southern part of Spain, Murcia — Spain's first Quantum Semiconductor Personalization Center. We are establishing two additional hubs in the U.S. and in Asia in 2026. In November 2025, we launched a sovereign U.S.-based post-quantum Root of Trust, enabling U.S. government agencies to manage quantum-secure digital identities in U.S. soil. In November 2025, SEALSQ invested $10 million in WISeSat to develop a quantum-secure satellite infrastructure platform. The contemplated model is based on an anticipated right of use over 12 satellites. WISeSat will retain ownership and operation while SEALSQ will secure dedicated capacity for our Quantum Spatial Orbit cloud initiative, delivering quantum key distribution, quantum random number generation and post-quantum identity services as a subscription offering to enterprises and government. The WISeSat 3.0 launch in June 2025 already included a proof of concept for SEALCOIN machine-to-machine transactions, secure bio-semiconductor stack. While there can be no assurance that the contemplated arrangement will be completed on currently anticipated terms, we believe this represents a significant long-term opportunity as the world's first Quantum Secure Orbital Cloud. I am turning now the call to John, who will discuss financial results for the year 2025. Go ahead, John.

Thank you, Carlos, and hello to everybody on the call. SEALSQ delivered total revenue of $18.3 million in fiscal year '25, representing growth of 66% compared to 2024, and reflecting the addition of our new ASIC segment, which contributed $3.6 million following our acquisition of IC'ALPS in August 2025, representing five months of consolidated revenue. Within the semiconductor segment, we saw particular strength in our smart card reader SCR 200 product line, which delivered 51% revenue growth year-on-year, driven by expanded deployments at key customers. Our Secure Element product lines, notably the VIC 405 and VIC 408, also saw significant growth in smart metering and secure communications applications. Trust Services, which include our PKI and provisioning solutions, grew by almost 600% year-on-year, both from a small base and they currently represent just 2% of total revenue. Geographically, North America remains our largest market at 57% of revenue. We are pleased to report strong momentum, in particular, in Asia Pacific, where revenue grew 95% year-on-year, driven by adoption of the MATA protocol in smart home and HVAC applications. We also recognized some small revenues relating to sampling of the QS7001 quantum-resistant chip as clients commenced their first testing of this product, and we expect first production revenues from the QS7001 in the second half of 2026. Gross profit improved substantially to $8.6 million in 2025, up from $3.7 million in the prior year, with gross margin expanding 13 percentage points to 47%. This was primarily driven by the addition of the ASIC segment which carries significantly higher margins at 88%, reflecting the design-services nature of that business with low directly attributable costs. Semiconductor segment gross margin partially recovered to 37%, up from 34% in 2024, as shipments of new products for our existing customer base resumed following a period where customers were drawing down their own inventory. Total operating expenses were $48.4 million in 2025 compared to $20.9 million in 2024, an increase of 132%. However, I want to be clear about what is driving this increase as context matters significantly here. The single largest factor is a non-cash stock-based compensation charge of $11.2 million. Following the significant change in SEALSQ's market capitalization since our original listing, management made the deliberate decision alongside the Compensation Committee to issue equity awards to staff and senior staff as recognition of their commitment and to align their interests with our shareholders. This is a one-time accounting charge with no cash involved. Beyond that, the increase in operating expenses reflects three structural changes in our business: the consolidation of five months of IC'ALPS operating expenses following the August acquisition; the build-out of our own management team with C-suite and central functions that were previously provided by our parent, WISeKey, now directly employed by SEALSQ from January 2025; and continued investment in research and development and sales and marketing to support our post-quantum product roadmap. Net of stock-based compensation, R&D expenditure was $10.1 million, representing 25% of our total operating expenses and reflecting the investment required to bring our Quasar post-quantum product program to commercial launch. The net loss for the year was $34.2 million compared to $21.2 million in 2024. A meaningful offset to our operating loss came from nonoperating income of $8.9 million, the majority of which — $6.1 million — was interest income earned on our substantial cash balance throughout the year. Turning to the balance sheet and liquidity, we ended the year with cash and cash equivalents of $417.7 million, with short-term investments of $10 million on top of that, which was up from $84.6 million at the end of 2024. Working capital was positive at $421 million. This cash position is a result of highly successful equity capital markets activity throughout 2025, and in aggregate, since November 2024 until the current date, SEALSQ has raised over $575 million in cash through a series of equity direct offerings, warrant exercises and our at-the-market facility. This puts us in a genuinely strong position to execute on our strategy in the years ahead, and Carlos will come back to that later in the call. Operating cash outflow for the year was $31.3 million reflecting our continued investment phase. Investing activities consumed $35.3 million, primarily comprising acquisitions and strategic investments, including the acquisition of IC'ALPS and our investments in EeroQ, WISeSat, the WeCan Group and Quantix Edge Security in Spain. Total debt at the year-end was a modest $1.7 million, all of which relates to French government-supported loans acquired with IC'ALPS. The balance sheet is therefore essentially debt-free at the parent company level. Based on our cash projections through to March 2027, we have confirmed sufficient liquidity to fund operations and the business is not dependent on further capital raises for its immediate operational continuity. Total assets grew to over $500 million at the end of 2025, principally reflecting the increase in cash. Noncurrent assets grew from $4.5 million to $54.5 million driven by the IC'ALPS acquisition, which added $5.7 million of goodwill and $21 million of intangible assets net of amortization, as well as our strategic investment portfolio. On the other hand, total liabilities were $42.7 million at the year-end and the cumulative deficit was $76 million, up from $41.9 million in the prior year, reflecting the net loss for the period. Looking to 2026, there are a number of important milestones we are targeting. On revenue, we expect fiscal '26 to represent a year of acceleration. The ASIC segment will contribute a full 12 months of IC'ALPS revenue for the first time. We anticipate the first production revenues from the QS7001 and the QVault TPM in the second half of 2026. The estimated combined pipeline for these two products is at $60 million as of December 31, 2025, and as of today, and that's across approximately 115 potential customers. Just for clarity, this is a management estimate and is subject to conversion risk, customer validation, timelines and the certification process. R&D expenditure is expected to continue to increase in 2026, with a particular focus on our post-quantum cryptography roadmap and the build-out of our test and personalization infrastructure in Spain and prospectively in the United States and Asia. Finally, we expect to continue executing on our strategic investment program. The Quantum Fund has a total allocation of $200 million, of which we have spent just over $30 million to date. We will continue to evaluate opportunities in quantum computing, quantum-as-a-service, secure semiconductor technologies aligned with our roadmap. We have $530 million in cash generating meaningful interest income, and we are investing from a position of strength. Part profitability, we believe, runs through revenue scaling with a $200 million pipeline for 2026 to 2029. Revenue is expected to grow by between 50% and 100% in 2026, Q1 expected to more than double year-on-year, and gross margins are certainly trending upward; we are confident in that trajectory. Now I'll turn the call back to Carlos who will provide additional details on our growth strategy. Carlos, please go ahead.

Thank you, John. So let me start with two milestones that we believe will define our 2026 product calendar. First is the full-scale commercial deployment of the QVault TPM, our RISC-V-based semiconductor controller, which marks SEALSQ's formal entry into the trusted platform module market and is expected to drive significant new revenue in H2 2026, as indicated by John. Second, we anticipate a custom post-quantum ASIC engagement with contractualization in H2 2026, reflecting IC'ALPS' contribution to the QASIC initiative. Furthermore, our $200 million pipeline, which spans from 2026 to 2029 and the near-term portion — particularly the QS7001 and QVault TPM program — is at the most advanced stage with customers actively running development kits and moving through design-in processes. This is a traditional practice in this industry where test kits are used and completed before further acquisition of the product. The key conversion factors are: first, certification completion — CC EAL5+ and FIPS 140-3 milestones are on track through Q4 2026, and regulated-sector customers require this before committing to volume. Second, integration cycles in semiconductor design to production typically run 6 to 18 months. We are actively compressing this through co-development and partnerships. CNSA 2.0 and EU CRA deadlines are creating genuine urgency; we see this directly in our commercial conversations. This was completed with the announcement yesterday by Google of the acceleration of the quantum timeline and quantum threats to cryptography, which will also create an urgency aspect in the market and the consumer application of this technology. Let me now discuss regulatory tailwinds and hard deadlines set for 2026. The regulatory environment is no longer a distant tailwind. It is creating binding new demand that is actively shaping customer purchasing decisions. By September 2026, the Cyber Resilience Act mandates security lifecycle documentation for all products with digital elements sold in the European Union. Noncompliance risks incurring fines up to $50 million or 2.5% of global turnover. This has driven urgency among manufacturers and OEMs to reassess security architecture and ensure long-term compliance. In parallel, in the U.S., the NSA's CNSA 2.0 requires traditional networking equipment to prefer post-quantum algorithms by 2026. This effectively accelerates the replacement cycle for a wide range of embedded infrastructure systems. Importantly, these are not long-dated policy discussions; they are active enforceable deadlines. As a result, we are seeing a clear shift from evaluation to execution in customer engagements. Against this backdrop, SEALSQ's unique position — one of the very few companies in the world with a certified hardware-native solution ready today — gives us a meaningful first-mover advantage as customers move quickly to secure compliance and future-proof solutions. Now moving on to global infrastructure expansion. In 2026, we plan to commence the establishment of two additional custom design, test and personalization hubs: one in the United States and one in Asia, complementing the Murcia, Spain center and significantly expanding our global footprint. These hubs will not only enhance our operational resilience and proximity to key markets, but also create a distributed sovereign grid infrastructure aligned with evolving geopolitical and cybersecurity requirements. At the same time, we will accelerate the development of the SEAL Quantum Spatial Orbit cloud, a strategic initiative that reflects a fundamental shift in how digital infrastructure must evolve in the quantum era. As a complement, just yesterday we launched a new satellite, a WISeSat 3U already with a post-quantum chip embedded, which is the beginning of this infrastructure. The convergence of quantum technology and space-based infrastructure is no longer optional. It's becoming essential. First, security at the quantum level requires a new infrastructure layer: terrestrial networks are increasingly vulnerable in a post-quantum world. A space-based system enabled with Quantum Key Distribution (QKD) and ultra-secure communications is beyond the reach of conventional cyberattack, ensuring that data sovereignty is guaranteed and resilient for government and enterprises. Second, latency, coverage and independence are critical. Space-based quantum cloud allows computation, secure data exchange and AI processing to occur close to the edge, anywhere on earth, without reliance on fragmented terrestrial infrastructure. This is particularly important for critical sectors such as defense, finance, energy and smart infrastructure. Third, data sovereignty and geopolitical fragmentation are reshaping the cloud landscape. Nations and regions increasingly require trusted independent infrastructure. Orbital quantum cloud platforms provide a neutral, sovereign and tamper-resistant layer enabling countries and organizations to operate securely across borders without compromising control over the data. Fourth, scalability of quantum services depends on cloud delivery. Just as classical cloud computing democratized access to computing power, quantum cloud will be the gateway to quantum capabilities. Integrating these services with satellite infrastructure ensures global accessibility, including in regions where terrestrial connectivity is limited or insecure. Finally, space enables true resilience. Orbital infrastructure is inherently more robust against physical disruption, geopolitical conflicts and centralized points of failure. For quantum companies, this resilience is not just a technical advantage, it is a strategic necessity. Let me now discuss the steps we have taken in building the quantum cloud economy. Through the WISeSat Quantum Spatial Orbit cloud, we are positioning ourselves at the intersection of quantum computing, cybersecurity, satellite infrastructure and AI. This platform will support secure quantum communications, QKD and post-quantum cryptography, distributed quantum compute access via cloud services and infrastructure, trusted AI processing in a space-based environment and global IoT edge services authentication secured by quantum-resistant technology. In parallel, we will continue disciplined investment through the Quantum Fund, supporting innovation and accelerating the commercialization of quantum and post-quantum solutions across our ecosystem. With that context, I will now turn to our recent capital raises, including the March 2026 financing, and outline how we are deploying this capital, particularly in support of the U.S. semiconductor personalization center. During March 2026, SEALSQ raised an additional $125 million bringing our total cash position to approximately $530 million. This capital raise was undertaken with a clear and specific strategic rationale to fund the development of SEALSQ's semiconductor personalization center in the United States, which is highly capital intensive. This center provides a localized high-security environment certified to Common Criteria EAL5+ and specifically designed to customize, program and inject cryptographic identities into semiconductor devices, transforming them into trusted post-quantum resilient devices compliant with the NSA CNSA 2.0 framework. These are significant capital investments. Each U.S. center requires approximately $100 million in company investment, reflecting the specialized infrastructure, security accreditation and operational capabilities required to deliver this level of certification and EAL5+ cryptographic personalization at scale. SEALSQ is already developing a comparable center in Murcia, Spain designed to serve the European market and aligned with European Union legislative requirements. In addition, we are establishing a center in India in partnership with Cain Semiconductor that just yesterday inaugurated their OSAT, extending our personalization capability into one of the world's fastest-growing semiconductor markets. Once operational, these centers will serve a dual strategic purpose. First, they will generate higher revenue from semiconductor personalization and cryptographic provisioning services, representing a meaningful and recurring contribution to SEALSQ's top line from countries that today we are not able to reach. Second, and equally important, they will provide essential physical infrastructure to support the quantum vertical stack the company is developing. Our ultimate vision goes beyond security as a cost — we aim to transform security into a strategic value driver by enabling new services and business models such as secure in-vehicle transactions, electricity exchange between vehicles and the grid, authenticated drone delivery, autonomous robotic assets control, et cetera. SEALSQ is strongly convinced of the convergence between post-quantum cryptography and quantum technologies. We will continue to build a broader quantum strategy, particularly around our collaboration with EeroQ and their partnership in quantum-based line semiconductor technologies, which are also under active discussion. This includes ASIC design, in particular the development of a unique cryo-CMOS capability as well as the integration of advanced security to support fully secure quantum computer systems. Through this approach, SEALSQ positions itself at the intersection of secure semiconductor, post-quantum cryptography and quantum technology with the ambition to become a key player in building the next generation of trusted digital infrastructure in the United States. This position is unique in the market today. I will now turn back to the operator for a Q&A session, and I thank you very much for your attention for the moment.

Our first question today is coming from Matthew Galinko from Maxim.

Congratulations on the year. Maybe just firstly on the pipeline for the new quantum products. I think you might have mentioned you have 10 customers better in kind of very active stages. I guess with regulations starting to have an impact and teeth maybe in late '26, do you expect the number of customers you're engaging with to increase over the course of the year? So exiting '26, would we expect to have a significantly greater number of customer engagements on the quantum products?

Matt, nice to talk to you again. Yes, I mean, I think there are several factors that are going to accelerate our sales of QS7001 post-quantum, not only at the silicon level but also at the software level. One of them, as I mentioned during the presentation, is CNSA 2.0 and equivalent regulatory frameworks that are basically saying that companies, especially those dealing with technology that serves the purpose of critical infrastructure, need to be previously compliant. This is an important driver because it means governments around the world are putting that level of urgency into procurement. The second is that we are gradually getting the certifications that they require. This is a long process. Sometimes people don't understand how long it takes for laboratories to certify those products. Many companies have expressed, as you can see in the $200 million pipeline, strong objectives to deploy, but they obviously want to deploy a certified product — especially companies and organizations working with government, defense and critical infrastructure, which is the second driver. And I would say the third driver is the urgency created by the fact that there is now common consensus that the quantum threat is arriving faster than many thought. Remember, last year in January we were still thinking quantum computers would be able to break RSA in 30 years' time. This was reduced to 10 and now Google announced yesterday that they are actually shortening that timeline further. The urgency is actually very large. Sectors like cryptocurrencies are also vulnerable; if wallets become compromisable because of a quantum attack, imagine the consequences. Quantum companies are also expanding faster their qubit generation. The companies we have invested in and those we are in the process of investing in are already able to generate between 10 and 100 qubits. Some are predicting to reach 500 qubits, which Google says could be enough to threaten certain cryptographic schemes. So these factors are obviously accelerating demand in the market. We also have a first-mover advantage here, which is hard to replicate. Even very large companies that don't have a PQC chip are now approaching us and asking to work together. For example, Lattice Semiconductor is teaming with us to offer PQC-capable solutions to their customers. Lattice has thousands of customers and they will accelerate the distribution of these microchips. So while it may sometimes look slow externally, this is a totally different computational architecture. This is not just improving or patching cybersecurity issues — this is redesigning infrastructure, which requires time and assurance that the product solves the problem.

We do have a follow-up from Matthew Galinko from Maxim.

And then I guess my follow-up would be on the personalization center. It sounds like you're moving forward in the U.S. It sounds like in 2026, but is it reasonable to expect that you'd be making those investments in '26 and maybe generating revenue? Sort of opening the centers in '27? Or what's a reasonable timeframe to think about for the U.S. center and then the second one that you discussed?

Yes. So you remember, originally, we had the idea to build a personalization center from scratch. That is obviously a 4-to-5-year investment of time and resources. It is a real estate and construction challenge: you have to get authorization, land, the building contractors; it is a tedious process, especially now with the huge demand on data center infrastructure. So the original thinking to build everything from scratch takes a long time. We moved to a more pragmatic and faster approach: team with someone who already has legacy infrastructure operational in the same sector and upgrade their existing infrastructure to become a PQC personalization semiconductor center. This reduces the time-to-market by nearly three years. Implementation then takes around 6 months to 1 year to become operational, although it still requires buying specialized machines and investment. This is the reason we raised money — this was not in our prior budget to develop a full personalization center using existing infrastructure. Several states and localities have approached us with incentives to do this in their states. We are now combining this intention with a semiconductor partner that is already operational, and they would like to team with us. We should be able to announce the location very soon — I expect before the end of June we should be able to announce where it will be located. This will have huge potential for our deployment: chips will be personalized in the United States and will be fully CNSA 2.0 compliant because the chips will be verifiable in a localized facility. People can inspect them, test them, be assured that cryptographic keys have been generated and stored at the center itself. Many of our clients say that coming to the U.S. is necessary if we want to scale and grow revenue. That requirement will be satisfied. We believe that by the end of this year we shall have something very concrete in this area.

We do have a follow-up from Matthew Galinko from Maxim.

Carlos, you mentioned some of the intense demand for land and power resources coming from the AI industry. I'm curious with some of the influence that's had on the semiconductor industry, I'm curious if that's having any impact on demand cycles from your customers or pricing or anything around margins that we might expect to hit you in 2026?

You mean from the energy sector in particular? We don't have detailed visibility into all segments of the semiconductor supply chain. There are different types of semiconductors, and the market is segmented. There is an interesting debate now that quantum computing will redesign aspects of current infrastructure because you would need less traditional data center capacity for some workloads and different types of chips. What we believe is going to happen is that the chips we are selling will be sold primarily to customers in industries such as smart metering, where companies want to secure smart meters because they connect meters to grids and are now learning how to tokenize energy produced by distributed resources like solar panels. That's where we launched SEALCOIN, which is a crypto tuck-in that allows that market to transact peer-to-peer. One of our partners is Landis & Gyr, which has deployed software for millions of meters and future meters will increasingly require PQC compliance. This is a market that is expanding because energy transition is forcing companies to diversify energy sources and because security around energy transactions is becoming critical. Our technology addresses that problem: it secures transactions, authenticates meters, tokenizes energy collected by a meter from a solar panel and enables peer-to-peer transactional processes. So this is an area where we see significant expansion for our capabilities.

We reached the end of our question and answer. I'd like to turn the floor back over for any further closing comments.

So thank you very much, everyone. SEALSQ sits at an extraordinary inflection point. As I mentioned during our presentation, quantum computing is no longer a distant theoretical risk. Major technology companies, governments and institutions are converging on timelines that make the quantum threat to encryption a near-term reality. Regulators have responded. NIST has standardized post-quantum algorithms. The NSA has issued CNSA 2.0 mandates and the European Union's Cyber Resilience Act is creating binding legal obligations. SEALSQ has the product, the certifications in process, the pipeline, the partnerships, the capital and the strategic vision to lead this transformation. To our employees, I would like to thank you for your extraordinary commitment this year. To our partners, customers and investors, thank you for your trust and continued support. We look forward to updating you throughout the year, and we wish you all a secure and prosperous year ahead. This concludes today's call. Thank you very much for your attention.

That does conclude today's teleconference webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.