Arqit Quantum (ARQQ) investor relations material

Key technology and industry insights

• ARKit's patented symmetric key agreement cryptography offers quantum-resistant encryption, addressing vulnerabilities in current public key cryptography as quantum computing advances.

• Quantum computers are expected to threaten existing encryption by 2029, with major tech firms accelerating development; governments are mandating migration to quantum-safe solutions.

• ARKit's solution eliminates mathematical vulnerabilities and key distribution risks, enabling secure, scalable, and globally distributable encryption.

• Collaborations with Intel and global telecom operators enable ARKit to deliver quantum-safe network services and confidential computing for data centers and cloud environments.

• The company targets defense, government, telecom, critical infrastructure, and financial institutions, focusing on B2B2B partnerships for market penetration.

Business model, partnerships, and market strategy

• ARKit shifted from direct sales to a partner-driven model, working with major tech and network companies to integrate its encryption into existing products.

• The licensing model scales with customer adoption, aligning incentives with partners and driving recurring revenue as end-user demand grows.

• Recent contracts include a global tier one telecom operator and expansion into the US, Canada, Middle East, and UK, with active engagements in telecom, IT, and defense sectors.

• Ongoing collaborations with Intel focus on monetizing confidential computing solutions, with plans to announce go-to-market strategies within the year.

• The pipeline includes 10+ major telecom operators at various engagement stages and multiple system integrators targeting defense and financial markets.

Financial outlook and operational updates

• Revenue remains light but is expected to ramp as delayed multiyear contracts in EMEA and with a global tier one operator commence revenue generation.

• The company reported $24M in cash at the end of H1, with a monthly burn rate of $2.4–2.5M, expressing comfort with its current cash position and no immediate need for capital.

• Plans to begin quarterly reporting in fiscal 2026, with a focus on maximizing announced contracts and applying best practices to accelerate new opportunities.

• Broader adoption is challenged by long decision cycles, but urgency and awareness are increasing among target markets.

• ARKit remains committed to transparency, revenue growth, and increasing shareholder value, with management available for follow-up discussions.