Arqit Quantum (ARQQ) H1 2026 earnings summary

Executive summary

• Demand for post-quantum cryptography is accelerating as industry leaders and governments recognize the urgency to upgrade security in response to quantum computing threats.

• Revenue for H1 FY2026 reached $623,000, up from $67,000 in H1 FY2025 and $463,000 in H2 FY2025, reflecting strong growth and increased contract execution (11 contracts vs. 6 or 7 prior year).

• The company’s Encryption Intelligence and NetworkSecure products are gaining traction, with new contracts and partnerships in telecom, financial services, and defense.

• Commercial launch of Encryption Intelligence and multiple strategic collaborations with Intel, 6WIND, RAD, and Tomorrow Street expanded product reach and market presence.

• Selected as a Scaleup Partner by Tomorrow Street, with significant contract renewals and new partnerships in aerospace, defense, and cybersecurity.

Financial highlights

• Revenue for H1 FY2026 was $623,000, up from $67,000 in H1 FY2025, reflecting growth and increased contract execution (11 contracts vs. 6 prior year).

• Operating loss increased to GBP 33.7 million from GBP 20 million year-over-year, mainly due to higher administrative expenses and share-based compensation.

• Cash and cash equivalents stood at $28.9 million (GBP 28.9 million) as of March 31, rising to $35.9 million (GBP 35.9 million) by May 20.

• Operating costs averaged $2.6 million per month, excluding legal expenses related to a resolved shareholder lawsuit.

Outlook and guidance

• Additional contract wins are expected in the second half of the fiscal year, with a strong pipeline in telecom and defense.

• The company anticipates continued revenue growth and further progress in government and defense markets, with a focus on PQC migration and confidential computing.

• Management is confident in the cash position, with more than 14 months of runway and additional liquidity expected from in-the-money warrants.

• Plans to convert defense sector engagements and expand in confidential computing and data sovereignty markets.