Xanadu Quantum Technologies (XNDU) Q2 2026 earnings summary

Executive summary

• Achieved record-low photonic chip packaging loss of 0.085 dB per facet and set new performance records in fabrication, advancing quantum computing and fault-tolerant systems.

• Expanded U.S. operations, especially in Albany, NY, with headcount growing more than five-fold since 2023 and further growth planned.

• Advanced quantum software and algorithms, including breakthroughs in QROM, large-scale quantum machine learning, and increased PennyLane adoption with over 2,000 citations.

• Strengthened partnerships with Lockheed Martin, Los Alamos, Oak Ridge, Rolls-Royce, and Fidelity, focusing on quantum machine learning and industry applications.

Financial highlights

• Q2 revenue was $1.5 million (CAD 1.5 million), down from $2.8 million sequentially but up from $1.1 million year-over-year.

• 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 loss of $13.9 million 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.

• Cash and cash equivalents stood at $312.8 million at quarter end.

Outlook and guidance

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

• CapEx to rise further, supporting chip manufacturing and infrastructure expansion.

• More detailed engineering and spending guidance to be provided later in the summer; substantial growth anticipated.

• Final discussions ongoing for Project OPTIMISM funding, with updates expected in the next 1-2 months.