Horizon Quantum Reports Q3 2026 Financial Results

Insider Brief

• Horizon Quantum reported Q3 2026 net income of $33.4 million, including a $43.1 million non-cash gain from the remeasurement of warrant-related derivative liabilities, while its operating loss widened to $10.5 million.
• The company reported an adjusted EBITDA loss of $6.3 million, compared with $3 million in Q3 2025, and ended the quarter with $102.8 million in cash and cash equivalents.
• Business developments included pulse-level integration with OQC’s 32-qubit Toshiko processor, multiplexed characterisation on a processor with more than 100 qubits, and a non-binding agreement to acquire Singapore-based Entropica Labs for an anticipated $27 million in shares.

PRESS RELEASE — Horizon Quantum Holdings Ltd. (Nasdaq: HQ) (“Horizon Quantum,” “Horizon,” or “the Company”), a pioneer of software infrastructure for quantum applications, today reported financial results for the fiscal third quarter ended September 30, 2026 (“Q3 2026”).

Third Quarter 2026 Financial and Business Highlights (all figures approximate and presented in USD):

• Horizon Quantum and Oxford Quantum Circuits (“OQC”) announce successful pulse-level integration.
• Horizon Quantum signed a non-binding letter of intent to acquire Entropica Labs.
• Horizon Quantum announces the development and implementation of protocols for performing efficient characterization of large quantum processors.
• Operating loss for Q3 2026 on an as-reported basis of $10.5 million compared to $4.9 million for the third fiscal quarter ended September 30, 2025 (“Q3 2025”).
• Net Income for Q3 2026 on an as-reported basis of $33.4 million, or $0.61 per ordinary share, compared to a loss of $5.2 million in Q3 2025, or $0.13 per ordinary share in Q3 of 2025. The Q3 2026 quarter result included a $43.1 million non-cash gain from the remeasurement of warrant-related derivative liabilities driven by a decrease in the Company’s share price.
• Adjusted EBITDA was a loss of $6.3 million in Q3 2026 as compared to a loss of $3.0 million in Q3 2025.
• Cash and cash equivalents at the end of Q3 2026 of $102.8 million, a net decrease of $10.5 million from $113.3 million at the end of the fiscal quarter ended June 30, 2026 (“Q2 2026”).

CEO Commentary

“During the third quarter of 2026, as part of our ongoing collaboration with OQC, we successfully completed the pulse-level integration of Triple Alpha with their 32 qubit Toshiko quantum processing unit, a further milestone in our aim of tightly integrating our software infrastructure with a variety of hardware platforms. We also announced that we have implemented our proprietary techniques for multiplexed characterization on a processor with greater than 100 qubits for the first time, enabling more efficient, scalable QPU characterization,” said Horizon Quantum CEO and Founder Dr. Joe Fitzsimons.

He continued, “In addition we recently signed a non-binding letter of intent to acquire Entropica Labs Pte. Ltd, a Singapore-based quantum computing company, who specialise in error correction and fault tolerance. We look forward to exploring this opportunity further.”

Operational Highlights

Expanding Horizon Quantum’s Hardware Ecosystem

By tightly integrating its software infrastructure with a variety of hardware platforms, Horizon Quantum aims to provide developers with the most direct path to broad quantum advantage and help ensure that their quantum applications remain useful—no matter which modality emerges as a frontrunner.

• Horizon Quantum announces the successful pulse-level integration of OQC’s 32- qubit Toshiko quantum processing unit (QPU) with Triple Alpha, Horizon Quantum’s integrated development environment, as part of an ongoing collaboration.
  • The Horizon Quantum team used Triple Alpha’s pulse-level control capabilities to access OQC’s superconducting QPU’s control layer and characterize parameters such as qubit relaxation (T1) and qubit phase coherence (T2), which are metrics describing how long a quantum computer can keep information and execute calculations.
  • As part of the collaboration, Triple Alpha was used to perform gate calibration – executing a high-level quantum program on the OQC QPU.
  • Using Triple Alpha, developers can harness pulse-level control within the same programming languages that are used to develop quantum applications.
  • Characterization is a key step in preparing quantum hardware for practical use, and because quantum systems are highly sensitive, frequent recalibration is necessary.
  • Triple Alpha’s portable approach lets users write programs once and execute them across different control systems. They can create and deploy characterization and calibration routines and integrate them into their workflow via a simple web-based API.

Expanding Horizon Quantum’s Technical Capabilities

By developing software capabilities that enable more accurate, efficient, and scalable hardware characterization and calibration, Horizon Quantum aims to maximize the performance of quantum hardware and accelerate the path to broad quantum advantage.

• Horizon Quantum announces the development of a new protocol for performing multiplex processor characterization across multiple qubits, with results validated against conventional individual pairwise characterization techniques, enabling more efficient, scalable QPU characterization.
  • Horizon Quantum has implemented its proprietary techniques for multiplexed characterization on a processor with greater than 100 qubits for the first time, measuring ZZ crosstalk, where unwanted interactions between qubits can reduce computational fidelity, and extended the techniques to measure control crosstalk, where control signals applied to one qubit have unintended effects on others.
  • Understanding unintended interactions between qubits is essential for improving QPU performance, but traditional individual pairwise characterization scales quadratically with the number of qubits, requiring large numbers of measurements.
  • Multiplexing combines multiple measurements into a smaller number of experiments performed in parallel, significantly reducing characterization overhead.
  • On a 100-qubit processor, when compared with conventional pairwise characterization, Horizon Quantum’s multiplexing approach can reduce the number of experiments required to characterize ZZ crosstalk from approximately 5,000 to 7, representing a more than 700-fold reduction, demonstrating how software-driven multiplexing can make QPU characterization more efficient and scalable.

Corporate Update

Horizon Quantum has signed a non-binding letter of intent to acquire Entropica Labs Pte. Ltd. (“Entropica Labs”), a Singapore-based quantum software company specializing in error correction and fault tolerance, for an anticipated consideration of $27 million USD of Horizon Quantum Class A ordinary shares subject to the completion of appropriate due diligence, related audits, the signing of definitive agreements, and satisfaction of other customary conditions.

Third Quarter 2026 Financial Results

All results are presented as approximate and in USD.

• Total operating expenses for Q3 2026 were $10.5 million compared to $4.9 million for Q3 2025.
• Research and development (R&D) expenses for Q3 2026 were $4.5 million compared to $2.0 million for Q3 2025, representing an increase of 122%. When excluding share-based compensation from each period of $1.7 million and $0.3 million, respectively, the period-over-period increase in R&D expenses was 65% and was primarily attributable to increases in headcount and salary adjustments and to a lesser extent costs from related information technology expenses.
• Sales and marketing expenses for Q3 2026 were $0.4 million, essentially flat period-over-period compared to $0.4 million for Q3 2025.
• General and administrative (G&A) expenses for Q3 2026 were $5.2 million compared to $2.3 million for Q3 2025, representing an increase of 127%. Excluding share-based compensation expenses of $2.0 million and $0.5 million from Q3 2026 and Q3 2025, respectively, G&A expenses increased 82% period over period. The period-over-period increase in G&A expenses was primarily due to increases in headcount, and other operating expenses associated with the transition to a public company.
• The operating loss for Q3 2026 was $10.5 million compared to $4.9 million for Q3 2025, representing an increase of $5.6 million. The widening of the loss was primarily due to increases in expenses associated with transitioning to a public company, increases in research and development headcount, and related operational support costs as compared to the prior-year period.
• Net Income for Q3 2026 was $33.4 million, or $0.61 per ordinary share, compared to a net loss of $5.2 million, or $0.13 per ordinary share, in Q3 2025.
  • The Q3 2026 result included a $43.1 million non-cash gain from the remeasurement of warrant-related derivative liabilities. The decrease in the trading price of Horizon Quantum’s Class A ordinary shares during Q3 2026 decreased the fair value of these liabilities, resulting in the accounting gain. This gain did not affect the Company’s cash balance.
  • All warrants of Horizon Quantum that remain outstanding will continue to be remeasured at fair value each fiscal quarter. Accordingly, future movements in the trading price of Horizon Quantum’s Class A ordinary shares could result in additional non-cash gains or losses.
• Since derivative fair-value adjustments can create substantial volatility in reported earnings without affecting underlying operating performance or cash flow, management also evaluates results on an Adjusted EBITDA basis, a non-GAAP measure. Adjusted EBITDA excludes changes in the fair value of derivative liabilities as well as share-based compensation, and non-recurring expenses associated with the business combination. On this basis, the company recorded an Adjusted EBITDA loss of $6.3 million for Q3 2026 compared with an Adjusted EBITDA loss of $3.0 million in Q3 2025.

Conference Call Information

As previously announced, the company will hold a conference call to discuss its third quarter on November 10 at 8:00 a.m. ET. The conference call will be broadcast live over the internet and can be accessed at https://investors.horizonquantum.com/news-events. For those unable to listen to the live broadcast, an archived version will be available at the same location for one year.