Xanadu Quantum Technologies (XNDU) Q3 2026 earnings summary

Executive summary

• Photonics loss reduction remained the central focus, supporting the path to utility-scale quantum computing; the roadmap targets up to 200 logical qubits in 2029, 500 in 2030 and 1,000+ from 2031.

• Q3 milestones included a 7 mdB optical switch, manufacturing collaborations with GlobalFoundries, ASML and Bluefors, and the launch of Backline with AMD.

• Commercial software revenue began in Q3; near-term revenue is not expected to materially drive operations.

Financial highlights

• Revenue was $1.3M, up 32% YoY from $1.0M and down from $1.5M in Q2; contract and partnership timing affected quarterly results.

• R&D expense was $25.6M, up $5.9M QoQ and 67% YoY; G&A was $9.2M, down from $11.1M in Q2 but up 129% YoY, mainly reflecting higher compensation and headcount.

• Net loss was $32.2M versus $42.1M in Q2 and $20.3M in Q3 2025; Adjusted EBITDA loss was $26.3M versus $21.3M and $15.4M, respectively.

• Nine-month revenue was $5.6M versus $2.7M; net loss was $94.9M versus $47.6M and Adjusted EBITDA loss was $61.5M versus $39.5M.

• Q3 capital expenditures were $8.4M, mainly for R&D equipment; nine-month property and equipment purchases, including deposits, were $14.8M versus $5.5M in 2025.

Outlook and guidance

• Year-end 2026 system loss target is 10.2; logical-qubit targets are up to 200 at error rates as low as 10^-8 in 2029, up to 500 at 10^-16 in 2030, and 1,000+ from 2031.

• R&D spending is expected to rise over time; Q4 costs and capex are expected to increase with GlobalFoundries work, hiring and equipment purchases. No forward-looking OpEx guidance was provided.

• Aggregate optical loss will be reported annually due to iterative reduction; a roadmap update is expected in Q1.

• Canadian funding is expected over time as qualifying R&D investments are made; DARPA provisionally approved up to $10M for a one-year project extension.