Xanadu Quantum Technologies (XNDU) Q2 2026 earnings summary

Executive summary

• Achieved record-low photonic chip packaging loss of 0.085 dB per facet and advanced fabrication runs for lithium niobate and silicon nitride platforms, supporting fault-tolerant quantum computing.

• Expanded U.S. operations in Albany, NY, with headcount growing more than fivefold since 2023, strengthening access to semiconductor supply chains.

• Advanced quantum software and algorithms, including breakthroughs in quantum read-only memory and large-scale quantum machine learning models.

• Deepened partnerships with Lockheed Martin, Los Alamos National Laboratory, Oak Ridge National Laboratory, and Rolls-Royce.

• PennyLane software adoption continues to grow, with its foundational paper surpassing 2,000 citations.

Financial highlights

• Revenue was $1.5 million (CAD 1.5 million), up from $1.1 million year-over-year but down from $2.8 million sequentially.

• R&D expense rose to $19.7 million, and G&A expense increased to $11.1 million, both reflecting higher headcount and compensation.

• Adjusted EBITDA loss was $21.3 million, compared to a $13.9 million loss in the prior quarter.

• Net loss widened to $42.1 million from $20.6 million in the previous quarter and $15.1 million year-over-year.

• Ended the quarter with $312.8 million (CAD 312.8 million) in cash.

Outlook and guidance

• R&D and CapEx expected to accelerate in the second half of 2026 as hiring and tapeouts increase.

• Detailed loss and hardware milestone roadmap to be released by end of summer, outlining progress toward 2030 goals.

• Positive outlook for achieving DARPA Stage C milestones, with further updates expected at Analyst Day.

• Plans to provide more detailed engineering and spending guidance later in the summer.

• Further U.S. headcount growth expected by year-end.