Arqit Quantum (ARQQ) H2 2025 earnings summary

Executive summary

• Fiscal 2025 marked a return to growth, with revenue reaching $530,000, strong customer engagement, and expanded product and service offerings, including the acquisition of Amplify/Ampliphae's Encryption Intelligence product and team.

• Collaborations with Intel and Sparkle expanded offerings into Confidential Computing and quantum-secure communications, targeting emerging market opportunities and data sovereignty concerns.

• Revenue was generated from seven contracts, including two multi-year agreements and key wins in telecom, government, and enterprise sectors.

• The company experienced a shift in the market from awareness to action regarding quantum threats, driven by regulatory mandates and increased urgency among enterprises and governments.

Financial highlights

• Fiscal 2025 revenue was $530,000, with a significant acceleration in the second half ($463,000 vs. $67,000 in H1).

• Ended the year with $1.2 million in contracted revenue potentially recognizable in fiscal 2026.

• Operating loss increased to $38.5 million from $26.9 million in 2024, mainly due to higher administrative expenses and an exceptional item related to a class action lawsuit.

• Cash and cash equivalents stood at $36.9 million as of September 30, 2025.

• Operating costs averaged $2.5 million per month during the year.

Outlook and guidance

• Fiscal 2025 is considered a trough year for revenue, with expectations to build on the $1.2 million contracted backlog and further revenue growth in 2026.

• Management anticipates significant growth in 2026, supported by new OEM engagements and robust customer activity.

• Cost control will remain a focus, targeting a maximum cash spend of $2.5 million per month in fiscal 2026.

• Strategic focus includes expanding telecom, government, and confidential computing markets, and leveraging Encryption Intelligence offerings.

• Anticipates continued momentum in customer engagements, especially in telecom, defense, and regulated industries.