IonQ (IONQ) Q4 2025 Earnings Call Transcript

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Date

Feb. 25, 2026 at 4:30 p.m. ET

Call participants

• Chairman and Chief Executive Officer — Niccolo de Masi
• Chief Financial Officer and Chief Operating Officer — Inder Singh
• Investor Relations Director — Hanley D'Onofrio

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Takeaways

• Revenue -- $61,900,000 in the quarter, increasing 429% year over year and marking company record performance.
• Full year revenue -- $130,000,000 for the year, reflecting 202% year-on-year growth and exceeding prior guidance midpoints by 20% for the year and 55% for the quarter.
• Commercial revenue mix -- Over 60% of 2025 revenue was from commercial customers, with international sales comprising more than 30% of revenue for the first time.
• Backlog (RPO) -- Remaining performance obligations ended the year at $370,000,000, up from $77,000,000 the previous year, showing a near fivefold increase.
• Adjusted EBITDA -- Negative $67,400,000 in the quarter and negative $186,800,000 for the year, both outpacing previously guided losses.
• Research & development investment -- $96,100,000 for the quarter and $305,700,000 for the year, representing a 123% annual increase.
• Net income -- $753,700,000 positive GAAP net income for the quarter due to a $950,000,000 noncash mark-to-market warrant adjustment; full-year net income was negative $510,000,000 including warrant valuation impacts.
• Cash position -- $3,300,000,000 in cash, cash equivalents, and investments at year-end, supporting continued R&D and expansion.
• Skywater acquisition -- Intent to acquire Skywater Technologies, described by management as "the largest acquisition agreement in quantum history" and a foundational step toward secure, U.S.-based quantum manufacturing.
• 256‑qubit system roadmap -- Targeted operational demonstration of a sixth-generation 256-qubit machine in Q4 2026, with completed tape-outs of A, B, and C and progress on D tape-out.
• Product adoption -- Pace of customer wins and expansions, including KISTI in South Korea and Quantum Basel's multi-year agreement exceeding $60,000,000 and supporting four generations of IonQ systems.
• Quantum networking contracts -- Secured key deals for citywide, national, and cross-border quantum communication networks in Geneva, Slovakia, and Romania.
• Technical milestone -- Achieved 99.99% two-qubit gate fidelity, claimed as the highest in any system platform.
• 2026 revenue guidance -- Projected revenue between $225,000,000 and $245,000,000; first quarter 2026 guidance of $48,000,000 to $51,000,000.
• 2026 adjusted EBITDA guidance -- Forecast negative $310,000,000 to negative $330,000,000, driven by sustained investment in R&D.
• Merchant supplier model -- Company supplies quantum components for computing, networking, and sensing across the industry, including to competitors and defense programs.
• Application and international expansion -- Established and expanded partnerships in sectors such as therapeutics, automotive, and aerospace across Switzerland, Sweden, Canada, and South Korea.
• Operational footprint -- Manufacturing quantum systems in Seattle and leveraging Skywater's U.S. foundry capacity for chip-based systems.

Summary

IonQ (NYSE:IONQ) highlighted in the call its transformation from a single-product quantum computing company into an integrated quantum platform provider spanning computing, networking, sensing, and security. Management reinforced the strategic significance of the pending Skywater acquisition for vertical integration and secure domestic manufacturing capacity. The company emphasized major technical advancements, including demonstrated 99.99% two-qubit gate fidelity and operational progress toward its sixth-generation 256-qubit machine. Substantial year-over-year growth in revenue, backlog, and commercial account penetration were presented as clear evidence of broadening adoption and market leadership within the global quantum ecosystem.

• Management disclosed that over 800 advanced-degree holders, including approximately 300 PhDs, contribute to the company's intellectual capital.
• Sales to commercial clients exceeded 60% of annual revenue, with continued customer diversification and growth in international markets.
• Adjusted EBITDA losses improved relative to previous guidance despite increased investments in R&D and talent.
• The company cited demand outstripping supply for its fifth-generation systems, with plans for internal capacity growth and leveraging external foundry relationships.
• Quantum network and sensing contracts were won with U.S. and European defense, aerospace, and national infrastructure entities, reflecting applications beyond pure computing.
• Management claims product cost advantage, with expected bill of materials for full fault-tolerant systems under $30,000,000 in 2025, decreasing with scale.
• Operational integration initiatives, including M&A and IT unification, progressed ahead of the Skywater transaction closing.
• Growth guidance does not reflect potential revenue or margin changes from the Skywater acquisition due to deal timing and regulatory process uncertainty.
• Management asserted a continued focus on cross-platform ecosystem interoperability and open architecture, while investing strategically in both hardware and applications.

Industry glossary

• QKD (Quantum Key Distribution): A quantum communication protocol enabling secure transmission of encryption keys leveraging quantum mechanics principles.
• RPO (Remaining Performance Obligations): The contracted revenue expected from undelivered performance under customer agreements.
• Tempo System: IonQ's fifth-generation quantum computer, featuring 100 qubits.
• Forte System: IonQ's fourth-generation quantum computer purchased previously by Quantum Basel.
• DevSecOps: A software engineering approach integrating development, security, and operations for rapid, secure software delivery.
• Bill of materials (BOM) cost: The total direct cost of components and materials required to manufacture a system.

Full Conference Call Transcript

Hanley D'Onofrio: Good afternoon, everyone, and welcome to IonQ, Inc.'s fourth quarter and full year 2025 earnings call. My name is Hanley D'Onofrio, and I am the Investor Relations Director here at IonQ, Inc. I am pleased to be joined on today's call by Niccolo de Masi, IonQ, Inc.'s Chairman and Chief Executive Officer and Inder Singh, IonQ, Inc.'s Chief Financial Officer and Chief Operating Officer. By now, everyone should have access to the company fourth quarter and full year 2025 earnings release issued this afternoon which is available on the SEC's website and on the Investor Relations section of our website at investors.ionq.com. Please note that on today's call, management will refer to non-GAAP financial measures.

While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. You are directed to our earnings release for a reconciliation of adjusted EBITDA and adjusted EPS to the closest comparable GAAP measures. During the call, we will discuss our business outlook and make forward-looking statements including those regarding our guidance for 2026. These comments are based on our predictions and expectations as of today and are not guarantees of future performance. Actual events or results could differ materially due to a number of risks and uncertainties.

Therefore, you should not put undue reliance on those statements. We refer you to our recent SEC filings including our annual report on Form 10-K for the year ended 12/31/2025, for a more detailed discussion of those risks and uncertainties. We undertake no obligation to revise any statements to reflect changes that occur after this call, except as required by law. Now, I will turn it over to Niccolo de Masi, Chairman and CEO of IonQ, Inc.

Niccolo de Masi: Thank you all for joining us on today's historic call. 2025 was a highly successful and transformational year for IonQ, Inc., both strategically and financially. Strategically, we expanded our business from leadership in quantum computing to become the world's leading quantum platform solution and merchant supplier. We are the first company in history capable of delivering integrated quantum solutions across computing, networking, sensing, and security in all major allied geographies. IonQ, Inc. is the world's only full stack quantum platform company operating in all domains. This strategic expansion is powered by an unmatched intellectual engine as we continue to attract the world's best and brightest quantum leaders as well as the leading quantum IP portfolio.

IonQ, Inc. benefits from approximately 300 PhDs and 800 talented colleagues with advanced degrees, many of whom are household names in their fields. Financially, we delivered a record year not only for IonQ, Inc. but a historic one for the entire quantum industry. In the 2025, we delivered nearly as much revenue as we did in all of 2024. In the 2025, we surpassed this by growing more than 50% quarter over quarter. After becoming the first public quantum company to achieve eight figures of revenue in 2024, we grew to deliver substantially more revenue in the 2025 than in the entire calendar year of 2024.

Strong organic growth powered our full year 2025 revenue to be over three times that of 2024. Commensurately strong investor interest allowed us to fortify our balance sheet with the two largest capital raises from a single investor in quantum history. Quantum is indeed now and IonQ, Inc. is confidently leading this revolution by every measure. As most listeners know, late last month, we announced the largest acquisition agreement in quantum history and the first public-to-public planned quantum transaction ever. Skywater is the leading quantum foundry in the world, commercially supporting not only IonQ, Inc., but also more than a dozen other quantum and DOW programs.

By leveraging Skywater's unique expertise and pioneering quantum semiconductor scaling within secure, trusted environments, we will be positioned to accelerate manufacturability of IonQ, Inc.'s entire quantum platform roadmap. However, our mission extends beyond IonQ, Inc. to power the broader U.S. quantum industry and all our global allies. We aim to ensure our nation's entire quantum ecosystem moves forward with speed and security. In our joint IonQ, Inc.-Skywater webinar last month, we laid out the fact that IonQ, Inc. is already a leading merchant supplier to the broader quantum industry. Our precision atomic clocks power a number of quantum computing businesses and government contractors, and we already sell our quantum networking solutions and sensors broadly.

Our modality-agnostic networking components are in fact designed to integrate diverse quantum devices, ensuring seamless connectivity across the quantum industry. Once Skywater is part of the IonQ, Inc. family, we will become the largest quantum merchant supplier in the world. Thomas Saunderman continuing to lead Skywater. Our focus is accelerating our nation's quantum industry. And we will continue investing to ensure the United States prevails in this geopolitical race. Skywater has already created the compartmentalization, the protocols, and the IP protections that will allow customers to continue to operate within our foundry model. We are kindred spirits with everyone supporting our nation and our allies in this quantum space race of our era.

Our combined company will have the capacity and capital to grow not only U.S. quantum R&D initiatives, across quantum computing, quantum networking, quantum sensing, and quantum security but also to ensure the U.S. quantum manufacturing scaling. DryWater helps us build an IonQ, Inc. that customers, especially government and other mission-driven buyers, can trust and plan around irrespective of geopolitics. Together, we intend to ensure the entire U.S. quantum industry will deliver scale and do so onshore with trusted processes for the good of the nation. Returning to 2025, it has been a year of tremendous accomplishments across our product families, both technically and commercially.

In quantum computing, IonQ, Inc. demonstrated the highest performance quantum gates in any system platform and by a wide margin. 99.99% two-qubit gate fidelity means we can concentrate on system architecture and scaling in order to make smaller and cheaper systems even as they become more powerful. While other quantum computing companies are still working on perfecting their underlying qubits and gate operations, ours are based on physics that was settled 25 years ago. Our fidelity advantage translates into a powerful and enduring error correction advantage. I want to highlight today that our quantum computers deliver the best time to solution on the market for commercially relevant applications.

Time to solution is how fast a customer running an algorithm gets to accurate answers that actually solve their problem. For example, when we look at a common quantum algorithm used for signal processing, search, and factoring, IonQ, Inc. is up to a 1,000 times faster than the leading superconducting system on reaching the solution. We also see a massive speed advantage in signal processing and optimization tasks, up to a 10,000 times faster solution on IonQ, Inc. systems compared to superconducting. We are not just doing theoretical work; we are solving real world problems at a speed that creates commercial utility. This is how IonQ, Inc. is delivering in today's competitive landscape. And we are just getting started.

Our near-term roadmap builds to 1,600 fault tolerant logical qubits a year before our competitors even get to 200. We believe we will continue to outpace competitors on commercial utility to an accelerating extent, as we unlock our application roadmap announced last fall. Best of all, we deliver these advantages at a far more accessible cost for both commercial and government customers. At our Analyst Day in September, we shared third-party validated estimates of IonQ, Inc.'s full scale system cost, which is two orders of magnitude below superconducting competitors. As students of history, we all know that the best economics occasionally beat the best technology. But best economics and best technology is what makes markets and builds an irresistible ecosystem.

This is what IonQ, Inc. is poised and focused on delivering. In Q4 2026, we are targeting to demonstrate an operational 256-qubit system. Will be our sixth generation machine in the market. With our world-leading two-qubit gate fidelity, we expect to unlock substantial value for our customers and explore world-changing applications this year. Last year, we worked closely with dozens of customers around the world who use our quantum computers to run complex applications. A prime example is our continuing work with ANSYS and Synopsys, as we pursue a mutual goal of commercializing quantum in the engineering space.

To paraphrase the CEO synopsis, on my quantum panel at the World Economic Forum in Davos last month, the key driver of innovation is complexity. Customers do not adopt new technology because they are curious, but because they need to solve a problem in a more affordable way. We help customers around the world do just that, running applications from pharmaceuticals and automotive to chemistry and AI with the fastest, most energy efficient, and cost effective approach. In quantum networking, among numerous deployments we partnered with the U.S. Air Force Research Lab to achieve the first qubit-to-photon frequency conversion in a field-deployable system. This ensures real world quantum networks on existing standard fiber optic commercial infrastructure.

We also won the contracts to deliver multiple international quantum networks including the world's first citywide dedicated quantum network in Geneva, Switzerland, Slovakia's first national quantum communication network, and one of Europe's largest operational QKD networks to date in Romania. In quantum sensing, our atomic clocks and inertial sensors are the highest performing fielded devices for their form factors. Our quantum sensors already operate in domains from under the to up in the air. This technology leadership is translating directly into high value defense partnerships, including U.S. Navy contracts for miniature ultra-stable atomic clocks and U.S. Army contracts to provide resilient timing systems for GPS-denied environments.

Our clocks are the highest performing in the marketplace and they are shrinking in size. Most recently, in partnership with DARPA, we successfully reduced our clock size by 6x while maintaining similar performance, a breakthrough that paves the way for integration into satellite payloads. Together, IonQ, Inc.'s market-leading quantum sensing technologies complement our quantum computing and quantum networking infrastructure to position IonQ, Inc. as the partner of choice for the mission-critical needs of defense, aerospace, and sovereign nation customers. We bolstered our IonQ, Inc.

Federal team with the appointment of Katie Arrington as our CIO, until recently the acting CIO of the Department of War, and adding General John Raymond to our Board, the first Chief of Space Operations for the United States Space Force. Rick Mueller joined last year also having until then been the Director of IARPA, Dean Acosta joined to run Communications and Government Relations, having previously held the same role at Lockheed Martin. The collective expertise of these leaders uniquely positions IonQ, Inc. to navigate the complexities of the federal landscape and win large-scale mission-critical federal contracts.

Geographically, we deepen momentum in South Korea through our QKD National Security Accreditation and Kisti System Sale win, where IonQ, Inc. is now anchoring the country's largest quantum classical compute platform. We also expanded our agreement with Quantum Basel in Switzerland to over $60,000,000 spanning four years and four generations of IonQ, Inc. systems. In the EU, we struck a partnership with leading autonomous vehicle company Einwright of Sweden and incorporated IonQ, Inc. Italy under the leadership of Doctor. Marco Pistoia, former Head of Quantum at JPMorgan.

In Canada and Sweden, we struck a partnership with CCRM to accelerate the development of advanced therapeutics, reinforcing the transformative impact of quantum in the pharmaceutical sector and building on the proven results of our work AstraZeneca last year. Scott Malari joined us to lead our global commercial effort having previously led the AI team at Dell. Chad Sakak joined us to run field engineering and pre-sales following his distinguished career doing the same at EMC and Dell. Under their leadership, our expanded commercial team is positioned to accelerate our global go-to-market strategy, delivering our full stack quantum solutions to meet the evolving needs of our global enterprise customers. Moving now on to 2026.

As our team knows, we have three key objectives. First, to drive superior financial performance by leveraging our scale and our complete platform to further accelerate our commercial execution. Our strategic evolution into the world's only full stack quantum platform company positions us with continued momentum to achieve $235,000,000 in revenue in 2026 at our current guidance midpoint. Second, to answer the key strategic questions that unlock exponential value in our product families and across our global quantum platform. DARPA QPI Phase C and the next generation GPS that is orders of magnitude more accurate are examples of our ambitions here. Third, to hone our internal operating system for efficiency, speed, and talent density as we scale.

We continue to make smart disciplined organic investments to move technical progress earlier in all our product families. We will also continue to consider value enhancing acquisitions to further deepen our product and service offerings and accelerate our long-term path to profitability. You will hear us talk more about both time to solution and cost to solution, areas where IonQ, Inc. has and will always excel. And we will unlock utility for Fortune 500 companies and allied governments alike. Our North Star is to positively impact all aspects of applied science by pioneering and globally commercializing the world's quantum solutions.

2026, I believe, begins the era of truly showing IonQ, Inc.'s quantum platform in action in all its forms and domains: quantum applications, quantum computers, quantum networks, quantum security, and quantum sensors. IonQ, Inc. is one platform, one team, primed and poised to win. As we advance our strategy and deliver on our objectives, we are confident we will drive significant value creation for shareholders. As I conclude, allow me to thank my colleagues for their tremendous efforts in 2025 and the entire U.S. quantum industry for their trust. We are here to speed up all of our nation's quantum initiatives and players using our merchant supplier capabilities.

IonQ, Inc. is here to support all initiatives at the White House, DOW, DOC, DOE, and Capitol Hill advance to ensure our country and its allies benefit from U.S. quantum leadership in the 21st century. We look forward to 2026 and beyond with confidence as IonQ, Inc.'s technical roadmap is delivered across all product families and our operating momentum continues to build. I am delighted now to hand you over to Inder Singh, IonQ, Inc.'s CFO and COO.

Inder Singh: Thank you very much, Nikhilov. It really has been an amazing year for IonQ, Inc. I am extremely pleased that 2025 has been such a transformative and record-setting year for us from virtually every lens that I can see, from record-setting financial results to exceptionally strong commercial sales globally to unmatched technology breakthroughs, like the 4.9 Fidelity you mentioned. It was the year in which we transformed the company from a single product quantum computing company in 2024 to a full stack quantum platform company, able to deliver not just quantum computing, but as you said, quantum networking, quantum security, quantum sensing, interconnects, laser-based communications, the world's most precise P and T, and on and on.

In short, from one amazing product, to the world's most comprehensive quantum product portfolio. In the process, we also became the quantum industry's merchant supplier. Yes, as Niccolo noted, we provide components to our pre-approved companies in the quantum space. And as you heard from Niccolo, not stopping there. We have announced our intent to acquire Skywater Technologies, already recognized as the most secure fab in the United States. With Skywater, once it receives regulatory approval, we would have both surety of supply and security in our solution. With more than $3,000,000,000 of cash among our financial firepower, we intend to bring that surety and security in the most advanced and secure products to our customers around the world.

Let me highlight our financial results, which helped really punctuate what you and I just talked about. IonQ, Inc. ended 2025 with an exceptional fourth quarter following a record-setting third quarter. Fourth quarter revenues were $61,900,000, even exceeding our own expectations and growing 429% year over year. This brought our full year 2025 revenues to $130,000,000 comprising 202% year-on-year growth. These historically high results mean that IonQ, Inc. has outperformed our revenue guidance once again, exceeding the midpoint by 55% for the fourth quarter and 20% for the full year. Our full year revenues now exceed the Street expectations for 2025 revenues of the other pure play quantum players combined.

Let me take a moment to talk about some key drivers of what performance we saw this quarter and this year. First, we saw tremendous demand from customers for our latest fifth generation 100-qubit Tempo system. In fourth quarter, we welcomed Kiste of South Korea as a new customer of our fifth generation system. This sale highlights IonQ, Inc.'s distinct value and the ability for us to win even against competitors that may be larger than us or more entrenched with bigger marketing dollars. The value and the strength of our products clearly shine through.

Customers are choosing to partner with IonQ, Inc. because of our industry-leading tech roadmap today, and the tech roadmap we have announced for the next five years as well. We also welcomed another new customer, CCRM, one of the world's leading advanced therapeutics accelerators, which plans to use IonQ, Inc.'s Tempo cloud-based solution to do bioprocess optimization, disease modeling, and the design and manufacturing of advanced therapies for many health conditions. Yet another commercial success story is with Quantum Basel, which demonstrates our land and expand strategy, but also that we treat our customers as partners in a journey, combining theirs with ours.

Quantum Basel, who already owns our prior fourth generation Forte quantum computer, agreed in the fourth quarter to purchase our fifth generation Tempo computer, and also obtained access to our future sixth generation computer which is still in development, and this is a 256-qubit semiconductor base computing device we expect to deliver in 2027. This multiyear relationship now expects is now expected to span seven years from the years we have been with them in the past and the four years that Niccolo mentioned. With this new arrangement we have with them, it also demonstrates how one compute device can lead to the adoption of an entire roadmap.

Quantum Basel is a testament to how customer relationships turn into enduring partnerships. Beyond computing, we are seeing similar demand and adoption for our networking and post-quantum cybersecurity solution. As you also heard from Niccolo, we saw quantum networking adoption in Geneva, in Slovakia, and in Romania, IonQ, Inc. is deploying one of the largest and most complex operationally post-quantum cybersecurity networks in Europe. These national partnerships represent significantly larger networks than in the past and are indicative of the growing adoption of our quantum networking and our quantum security solutions. Turning now to the mix of revenues we saw.

For the full year 2025, over 60% of revenue came from commercial customers, marking strong sales in the commercial sector and reflecting the customers, some of whom I have named before. And anecdotally, our international sales comprised more than 30% of revenue for the first time, reflecting how our quantum platform solutions are now resonating worldwide. Because of the breadth of quantum products we are now delivering, our customers list includes Singtel, SK Broadband, Solace, CERN, IIT, was a very long list. Importantly, this broadening customer base presents us with a golden opportunity to cross sell more things to more customers.

As we move ahead, we continue focusing on new customer opportunities around the world, including in places like Australia, Italy, Greece, India, Japan, Vietnam, Argentina, and many others. Our new CRO and the sales team are taking a very methodical approach to identifying the most compelling opportunities and taking a disciplined pursuit and capture approach. Importantly, our 2025 results included nearly 80% year-on-year organic growth, and I expect this to be even healthier in 2026. We are very pleased to see solid organic growth, of course, even as we have broadened our product portfolio with our quantum platform.

With my second successive quarter now in this role, we are continuing our focus on building strong backlog, plus developing a very targeted view of our pipeline, in order to make sure that we continuously strengthen our visibility for our financial planning, and also that we match demand and supply. As a demonstration of this focus, in our 2025 10-Ks, being filed today, we disclosed that our remaining performance obligations, or RPO, which provides one metric to gauge visibility over several quarters, stood at $370,000,000 the 2025, compared to just $77,000,000 at the 2024, which is almost a fivefold increase. Turning now to EBITDA.

We reported an adjusted EBITDA of negative $67,400,000 for the quarter, and negative $186,800,000 for the year. I wanted to note that even this adjusted EBITDA better than the full year adjusted EBITDA guidance that we had provided at the time of our third quarter earnings call. The adjusted EBITDA reflects the fact that we are making investments. We are investing in our business and our key investment area, as you would expect, continues to be R&D. R&D comprised $96,100,000 in Q4, and for the year, it was $305,700,000. That is 123% annual increase.

We will continue to invest in R&D as this helps maintain the technological advantage that we deliver for our customers, and also creates new IP to extend the value for our customers in the future. We are doubling down on investments in our computing platform, which is already leading the market by multiple years, by both investing in our fifth generation Tempo deployment which are in progress this year, which are already beginning really the build out of our sixth generation 256-qubit computing platform as Niccolo mentioned, and then we have our sites on our seventh generation system beyond that.

Unlike other market players, we are also investing in building our own quantum application, in many cases, in partnership with our customers, and also on our own. We are focusing on applications with the highest potential impact with the intent to build once until many times. Just a few examples of high impact applications we might build include quantum high frequency trading, energy grid optimization, life sciences acceleration, and even the design of semiconductor chips in a more effective way. There are many others. To sum it up, our investments in R&D are not just lab experiments. We are bringing quantum to life and delivering to our customers today. Turning to net income.

For the fourth quarter, we reported a positive $753,700,000.0 of GAAP net income, which was mainly due to an approximately $950,000,000 mark-to-market valuation of warrants as required by accounting conventions. Needless to say, the mark-to-market impact warrants are noncash items, and valuations are more related to our stock price at any given point and do not represent the operating fundamentals of our business. For the full year 2025, we reported a negative $510,000,000 GAAP net income, which included warrants valuation impact of $66,700,000. Cash, cash equivalents, and investments as of 12/31/2025, were $3,300,000,000.

The strength of our balance sheet provides us with what we consider unprecedented financial firepower to continue to invest in R&D, to build out even more new products, to invest in go-to-market resources, and yes, to also acquire critical new capabilities or to accelerate our roadmaps. IonQ, Inc. is uniquely positioned with the resources, talent, and differentiation so we can focus on cementing our market leadership and delivering the world's most advanced quantum technology in every sector. As for operational excellence, which is so critical for establishing the foundation of future success, this will be one of the top priorities for Niklo and the leadership team in 2026.

And as he said, and as we reported last quarter, we have already turned our focus to this very important area to prepare for the future. Deploying organizational clarity and accountability is one essential ingredient. Manufacturing under a clear leadership; customer deployment under a single leader; sales, under a single leader; supply chain under a single leader; and applications development ownership. All of these things comprise the building blocks of what you need to be able to ensure that there is accountability and planning.

Last quarter, we mentioned we have established a dedicated M&A integrations team, and I am very pleased to report that since then, we have successfully integrated key functions like HR and finance and are making strong progress on IT consolidation under our new CIO. In short, we have moved to rapidly integrate our acquisitions, increase our execution velocity, and deliver on key priorities.

I am pleased to report that our IT Cyber cybersecurity teams are now unified under the leadership of our new CIO that Nicola mentioned, Katie Arrington, who recently joined the team from the Department of War, and our CISO, who also brings years of experience with many agencies and also other companies, including three-letter agencies, and reports to Katie. Our goal is to create our product in as highly secure posture as possible. Last quarter, we also spoke about IonQ, Inc.'s unique ability to now leverage the established semiconductor manufacturing process for our next generation compute.

In January 2026, as Niccolo noted, we announced our intent to acquire Skywater, in order to strengthen our supply chain all the way through to manufacturing. On the close of that transaction, which of course must go through a regulatory process, we would acquire Skywater's trusted fab U.S.-based, Tier one foundry, enabling us to ensure we would have the availability, security, and quality to scale our chip-based roadmap, bringing us both CMOS as well as advanced packaging capability. This acquisition also builds on our already existing merchant supplier business model in which we currently serve other quantum players today.

As the pacesetter of the quantum industry, we do see it as a key responsibility to also help ensure in the overall development of our ecosystem. Let me turn now to fiscal year 2026 guidance. On the shoulders of the amazing 2025 numbers that we saw, we feel we have built a strong foundation for yet another year of strength in 2026. With that in mind, we are pleased to offer the following financial guidance for full year 2026 as well as for the first quarter. For 2026, we are projecting revenues of between $225,000,000 to $245,000,000 for full year, and $48,000,000 to $51,000,000 for the first quarter.

Our projected revenue growth is anchored by a continued expansion of our customer base, both in terms of number of customers, numbers, offerings that we bring to the market. As I mentioned earlier, our guidance today is based on visibility stemming from a healthy backlog and an attractive pipeline that we will work methodically to convert. We are projecting adjusted EBITDA to be between negative $310,000,000 and negative $330,000,000 for the full year 2026. And as I discussed today, this range represents our continued investment in critical R&D, to help drive the next generation of quantum solutions across our portfolio. It goes without saying that since we announced Skywater transaction has not closed, our guidance metrics do not reflect Skywater.

We continue to operate as separate publicly traded companies until such time as approvals are in hand. As Niccolo mentioned at the beginning of his comments, IonQ, Inc. has rapidly established itself with the world's most unique set of products and capabilities and we are for sure not stopping there. Compared to any other quantum pure play one might look at, our product suite is unmatched. Our talent density is exceptional. Our business is global. We are actively selling into commercial deployment, not just lab, and critically for the future of Fonten, we possess a merchant supplier business model that enables the entire quantum ecosystem to develop and succeed over time as we progress.

And yes, while we do now and then take a moment to celebrate our progress like today, and I must say it does feel good, tomorrow, the entire IonQ, Inc. team will get up and continue to dash towards delivering the world's most advanced, innovative, and complete quantum solutions for our customers. With that, operator, you please open the call for Q&A?

Operator: We will now begin the question and answer session. The first question comes from John McPeak with Rosenblatt Securities. Please go ahead.

John McPeak: Hey, guys. Can you hear me?

Niccolo de Masi: We can. Yeah.

John McPeak: Okay. Great. I think last time I was on mute. And I do not want to repeat that. So congratulations on the numbers and guide. I just have a question about the Shield release that came out a couple days ago. Now that you guys have a pretty broad portfolio of quantum assets, you know, you talk in the release about the $151,000,000,000 opportunity. How should we think about what you might be able to address relative to that number?

Inder Singh: We would love to get all of it. No. I am kidding, John. Of course. Look, we are very pleased to be included among the players that might participate in that. We intend to ensure that we deliver based on what we have built, John. And you know that one of the things that we are trying to make sure we are very clear on, maybe do a better job of, is explain how we are actually a solution company or a platform company. And I think in some cases, we are solely compared against a single product company.

And when you look at opportunities like Shield or, frankly, any other opportunity, that we may be looking at, and we are looking at others too, you need a solution. Need to integrate things together. It is not enough to have a quantum computer that may work one day. It is not enough to have a quantum computer even works today. You need to be able to link things together. You need networking. Need to be able to bring the quantum security of to, industrial scale. You need to ensure that you are able to provide secure communications. You need to be able to make sure that you are able to deliver today. Not promise something in 2029.

So we are happy to be included in that, John. I mean, I thank you for your question. Yes. Love to have our own fair share of it. But I think that we will deliver on the things that we promised and we think we can do things in a more effective and more complete way than many of the other players that I think we are looked at again. That said, we do these things with humility. We ensure that we have the engineering. We ensure that we have the software. We ensure that we have all the interconnections that are required. It is a solution sale, right, when you look at something like that, John.

John McPeak: Okay. That makes sense. Thank you. Nicola, do you want to add anything to that?

Niccolo de Masi: No, absolutely. Look, I mean credit to the team for an outstanding year. We did a lot obviously in 2025. And as I said, we are just getting started. So we expect to continue momentum here and it is not just momentum in each product family, but it is of course, as Inder really points out, between the product families where we really are inventing the future in multiple dimensions. Right? I think that is what is appreciated to a grand extent by our nation's shield initiative, amongst many other appreciators at the moment.

John McPeak: Great. Thanks. The next question comes from Kevin Garrigan with Jefferies. Please go ahead.

Kevin Garrigan: Yes. Hey, team. Congrats on the great results and reaching over on million dollars in revenue. Hey, on Skywater, can you just update us on the status of the regulatory approval process? And the last 30 days since you made the announcement, have there been any developments, either positive or negative, that could impact the timing?

Inder Singh: We are still looking at it in the same way that we talked about it last time, and, know, I appreciate your question, and thanks for your comments. It is a regulatory process. It is well defined. It is not that we try to predict how it may go or not go. You know, we think that the model that brings together a merchant player in quantum platform, which us, and a merchant provider of manufacturing services to Skywater, is in the interest of the nation, the industry, and all the players in it. And as I said, and I have nickelode that, we were already a merchant supplier.

We supplied products components, to others that you may call our competitors. We do not see them that way. We think that all players need to succeed and that is what creates an ecosystem and an industry. This industry needs the same. So we are the pacesetter. Yes. We will remain the pacesetter. Yes. There is a responsibility that comes with that. We will live up to that.

Kevin Garrigan: Yep. Got it. Got it. Okay. That makes sense. And just a quick follow-up. Continuing on the acquisition front, you guys had acquired Seed Integrations at the end January. Can you just talk about how this company fits strategically within your portfolio and what gaps it fills?

Niccolo de Masi: Sure. So, Seed is a software classified mission control business that really is quite unique. Because almost all their work is classified, I am not really going to huge details for you. But you can assume that it is stitching together not just component solutions that we have at IonQ, Inc., but it is also helping three-letter agencies and portions of our DOW, you know, do the same even before IonQ, Inc. came along. So it is a unique opportunity for quantum not just in the hardware sense, but also in the application sense. To be part of what we are doing in programs like Shield, for the prior question.

As well as the rest of the broader quantum platform, of sensing, security, networking, which we have put together in every theater of operation from under the ocean to on top of the ocean to on land in the air and up in the heavens. There is a lot going on for the battlefield of the future, and IonQ, Inc. very much is well positioned to have hopefully our fair share and maybe even a bit more.

Inder Singh: And just to add, I mean, the DevSecOps capability in software development that Seed brings to us is actually relevant for all of IonQ, Inc. And so we intend to take part in ensuring that Steve is succeeding in everything they are signing up for directly externally, but also frankly leveraging their unique capability to help us accelerate in DevSecOps across the company as well.

Kevin Garrigan: Got it. Okay. That makes sense. Okay. Great. Thanks, guys, and congrats again on the results.

Inder Singh: Thanks. Thanks for the question.

Operator: The next question comes from Craig Ellis with B. Riley Securities. Please go ahead.

Craig Ellis: Thanks for taking the question and congratulations on the really strong results and the big RPO number $370,000,000 is quite substantial. I wanted to follow-up on the guidance for calendar six revenue at the midpoint $235,000,000. Can you help give us some color on some of the things that are driving revenues to that level, whether it be the international versus domestic mix of business or whether it be particular programs within your compute, networking, or sensing capability. And then just a sense, Inder, given the first quarter's guide, on the linearity through the year, it would seem to be that there is implied growth. But any color would be helpful there.

Inder Singh: Sure. Yeah. Thanks for the question. Look. I think not to provide a lot of color underneath the guidance itself, but you can expect that we will continue to globalize the company. So that is also in there. I mentioned a number of countries. That was not by accident. Mean, we are looking at some amazing opportunities. Frankly, demand is exceeding supply. If I am allowed to say. And we are trying to ramp up our resources to make sure that we can deliver the fifth generation machine to as many customers as want it. We are already starting to see demand for our next generation machine, the 256. And beyond that.

So what gives us confidence, first of all, just in general on the compute platform, is the roadmap that we put out there is resonating. The fact that we are taking our customers on the journey with us is working. The fact that we are forward deploying engineers and application developers with those customers embed this with them. So we feel very comfortable that organic growth of our compute platform be very strong in 2026, as I mentioned earlier. I would not be surprised if it exceeds 100% growth year on year. But that is the direction of travel. The other parts of our portfolio are also performing.

The need for and the sense of urgency, frankly, to deploy post-quantum security is taking on a different level of importance. That did not exist a year ago. In fact, we are agnostic as to the type of the application that our customers want. Whether it is PPC, QKD, bunch of acronyms, alphabet soup, I will not go through all of that. You know that. We do not have religion around it. We deliver everything. We know that two to three years from now, you will need all of it. Classical cybersecurity probably at some point does not work.

So I think those that recognize that in some, you know, largest bank, largest government, the countries I named, the cities we named, I think this is just the beginning. So underlying our assumption of guidance for the year also is that we will see healthy demand, which is what we are saying, for security solutions, networking solutions, and then sensing I think is at the very beginning of something very exciting. Niccolo talked about GPS interference and know, how you get around things like that. That is on the minds of virtually every country at this point, as you have probably heard. Right?

And so to have the world's most precise D and C solution, most precise atomic clock, the ability to deploy that in different modalities, under the water and in the sky, etcetera, that is the opportunity that we have ahead of us, which of course, we have to execute on that. But the demand is there. And we intend to make sure that we deliver on elements of that sure in '26, but that is a multiyear journey. So that is like years of potential opportunity for us. And then lastly, I think I mentioned to you that commercial is becoming bigger.

You know, like, three years ago and four years ago, when Nicola and I joined the board of this company, it was mainly right? Of course, it would be labs. Research institutions, etcetera. That is where they would foresee just want some work. Now that quantum works, you are starting to see, at least from our machines, people say, we want this one, we want the next one, the one after that. And so I think as long as we are also investing in applications, which is really key, think about the iPhone with no apps. It would not be as exciting. But the iPhone with the apps is what we are trying to do in the quantum state.

That is the thing that I think resonates well. And I think that once you have that ecosystem going, and you build some of the applications yourself and you build, you know, others will of course, build apps perhaps on top. But we will focus on the most important thing, and again, we do have this sort of industry neutral merchant philosophy. Our machines, our systems can plug into NVIDIA's system. Microsoft cloud. Azure the Google cloud, etcetera. We want to make sure that we become ubiquitous and then we also drive the highest value things ourselves. So there is a bunch of things around confidence from customers now telling us, okay. I am ready. You know?

I think the one that you have not built yet, I think I might want that one too. We are not putting that in our guidance, obviously. You know that. But to have backlog of the one to have line of sight, that is kinda where we are looking at.

Craig Ellis: Yeah. Sorry to jump in on you, Kindur, but there was mention in the transcript of a 256-qubit system by year end. What should we keep in mind with the notable engineering milestones from here to bring that to market.

Inder Singh: Yeah. Look. I think that, you know, you realize that, of course, and you know this. The 256 system and beyond, that entire roadmap for the next five years that we have talked about, is a semiconductor-based roadmap. It is the ability to use mature node manufacturing that exists today to build out and scale from 256 to 10 and beyond. So if we are in the process already, and we said this when we announced the Skywire transaction, we already looking at them to be a supplier to us even prior to the acquisition announcement. And other foundries also.

These existing foundries enable us to with some confidence, drive the development of the 256 into the 10 ks and beyond. As for the 256 itself, I am happy to report that we have done the tape outs of A, B, and C. And as you know from semiconductors, those are the most important ones in the beginning. And then the feature rich feature driver fourth D tape app, as it is called, is in progress. So Daniel, not to give you an exact timeline that you will then say, you know, you told me that gonna be March 31 or April 1 or whatever. We are very comfortable with the way the development of the two statistics is going.

It is following the roadmap that other semiconductor development follows. And then beyond that, it is into tiling. It is into scaling. And we also have the engineering team already beginning to think about the 10 k. Not just the 256. Does that help?

Craig Ellis: That is very helpful. Thanks, Hinder. The next question comes from V. K. Rakesh with Mizuho. Please go ahead.

V. K. Rakesh: Yeah. Hi. Thanks, Nikola and Indira. Pretty impressive guide and growth for the year. Just a couple of questions. Just wondering as you look at the fiscal 2026 numbers here, any way to think about, and the forward quarter, I guess. Any way to think about the hardware, software split?

Inder Singh: Mean, we will provide, obviously, when we report the usual breakout that we do, which is kinda along the lines of what you described. I think less as hardware, software. I think know, remember what I said, like, hardware without the software does not do much. And vice versa. So solution thinking is really what is important. We are trying to think of our business as the only company, frankly, that can deliver entire solutions.

The compute, the ability to connect one compute device to another, the ability to connect one city to another, the ability to connect ground to space and back to ground again, the ability to provide security across those links, the ability to use Skyloom's OCT terminals to provide secure high speed transport for data and secure transport. And on and on and on. I remember Cisco, and you will remember Cisco as well. And I think of other companies that have done this in the past that have not asked for permission. So when Nicola became CEO, one year ago, by the way, I think his anniversary is tomorrow, in one short year.

We have gone from being a one company to a platform company. We now have to execute and with responsibility deliver for our customers what they are now wanting from us. They are saying, we will buy your roadmap, we will buy your solution. You are bringing the secure solutions together. So it is a unique opportunity for us to actually just go and execute. And that is why this is the year of execution. And, yes, also continuing to innovate. So you, you know, watch the space. More investment, more things, we are not stopping.

V. K. Rakesh: Very impressive. And just one other question. And, obviously, you are growing it pretty nicely here. Thoughts on how when this national quantum initiative, the NQI funding to open up? I know you have some pretty solid engagements with the Golden Dome shield, etcetera. But when any thoughts on when that national NQI funding starts to open up for the space? Thanks.

Inder Singh: Yeah. I mean, thanks for the question. Look, I think that three years ago, probably that would have been top of mind for us. Like, when do, when does the funding unblock? But with more than $3,000,000,000 of cash available with us today and the ability to raise more if we need in the future, the ability to invest ourselves organically to be candid, I think other companies might be looking for funding to unlock. We are looking for the ability to drive customer value today without the need for additional funding. I will let Niccolo add to my comments here.

But it is an opportunity, obviously, for the whole industry to benefit if more and more countries focus on quantum in general. I am starting to see, and Niccolo, you know, as the tip of the spear on this for us, but, like, virtually every government in any country in the world, it is now including quantum very close to whenever they say AI. Maybe not as many times as they say AI, but almost. So quantum is rising in relevance. Because it is becoming more real. We are making it more real. And we are making sure that we are, we have the capital we need.

We have the financial firepower that we need to keep investing for the foreseeable future and beyond. And we are fortunate to have investors that are saying to us, you know, they are our partners in that journey. Our job is to execute on that opportunity. And so yes, I mean, I think that funding things were important. I think for now, it is more about taking the engineering, building one, selling many times, so we are now getting into the very sort of commercial deployment of everything quantum. Less worried about what funding comes when,

Niccolo de Masi: Yes. Mean, we will, we, of course, value our government customers. We value them from all our allies and we are growing our IonQ, Inc. Federal team to capture that. But I think Inder said well in his prepared remarks as well as our press release today, 60% of our customers are commercial. That is the primary reason why we are not waiting with bated breath on government unlocks, if you will.

V. K. Rakesh: That having been said,

Niccolo de Masi: I do want to point out that, we have a very bullish administration in the U.S. vis a vis growth and the budget of the Department of War. And within that there is a considerable allocation to building the future of all things quantum sensing, networking, computing in every war-fighting domain. And so, IonQ, Inc. uniquely operates in all of the war-fighting domains. And we are uniquely able to sell those complete solutions that we believe the nation and all friendly nations absolutely must need. So watch this space, but we are growing headcount aggressively because we are growing the business aggressively along all of these vectors.

Inder Singh: Thank you.

Operator: The next question comes from Quinn Bolton with Needham. Please go ahead.

Shadi Moawali: Hey, guys. This is Shadi Moawali on for Quinn. Thanks for letting us ask a question, and congrats on the strong results. In the prepared remarks, you guys talked about making smaller and cheaper quantum systems. Believe the acquisition of Skywater is going to help accelerate that. But just curious to hear the puts and takes of how much it costs to make a system day and how you expect that cost trajectory to evolve over the next few years. Thank you.

Niccolo de Masi: All right. So I mean, what we said on our Analyst Day on September 12, is that our full fault tolerant machine, machines with hundreds of thousands to millions of physical qubits and thousands to tens of thousands of logical qubits and someday hundreds of thousands of logical qubits, will have a 2025 BOM cost, bill of materials cost, under $30,000,000.

Obviously, there is inflation each year, and the reality is what we said under $30,000,000, it was materially under $30,000,000 to enable us to ensure that gross margin will be compelling as the years roll by and of course our ability to drive ecosystem expansion will be the most powerful we believe in the quantum world, that is in the U.S. or our allies. Look, are cheering for everyone with the Skywater acquisition right? So it is really important to note that we already supply our clocks and sensors and QKD switches to a wide breadth of customers. With Skywater, we are not only going to be supporting their existing customers, we are going to be investing in Skywater.

Which means that with our improved capital base on a combined basis, those customers will see tremendous benefits. And we expect additional customers in the fullness of time to want to be on that acceleration platform. The ability for us to maintain costs as we grow our computer power is almost unparalleled. The reason for that is electronic Cuba controls that we have of our ion trips ion traps on a semiconductor basis and platform. So, as we add more qubits, not really changing the cost of goods sold much. A little bit, the ships get a little bit bigger. Machines get marginally larger, but it is single digit percent kind of thing.

Even double digit percent I think in most instances. And that means with manufacturing volumes, as I said in my prepared remarks, we actually expect the size and the cost from a build materials perspective to actually go down over time even as the machine goes from 256 qubits, 100,000 and 1,000,000 and 2,000,000 cubits by 2,030. That is obviously, you know, a cost curve that everyone is familiar with in the semiconductor industry. And we believe it is vital because it is what enables our ecosystem to prevail in the commercial market at the same time as it is prevailing of course with our nation and allied nations federal customers.

In the history of technology, I said, sometimes you get cases where just economics alone prevail, but in our case, have the most powerful machines soonest. And we have them at the lowest most accessible unit economics. And so when you are doing something in a number of cases that were, they are five years ahead technically, and you might be 10 or even a 100 times cheaper. You can see why we were bullish on our ability to be the mass market platform of choice in the fullness of time.

Shadi Moawali: Great. Thank you coming in. That is all for me. Congrats on the results again.

Inder Singh: Thank you. Thank you so much.

Operator: The next question comes from David Williams with Benchmark. Please go ahead.

David Williams: Hey, good afternoon. And let me also add my congratulations on the really solid results here. So I guess maybe firstly, thinking about your capacity, and Inder, you talked earlier about the demand outstripping your ability to supply. If you kind of think about what your capacity is today, maybe on the Tempo solution, what would that look like if, if you could ship everything that you could build in maybe '26? From a unit perspective?

Inder Singh: Yeah. I mean, look, we are raising our ability to meet the demand, make sure that we satisfy what the customers are looking for, of course, and we will do that. And it is not always about manufacturing, of course, David, you know, it is also about having the deployment engineers. The people that go prepare the location, deploy the machine, turn it on, show the customer, etcetera, and then stay with the customer directly. So we are just investing in all of those. And over the last six months, we have invested in, I would say, all of that.

As far as, like, when you go from Tempo in 2026 to the February, in 2027, the chip roadmap allows us to then begin leveraging that semiconductor base, which is frankly, available, fully depreciated, low cost, not so capital intensive. So to the cost question earlier also, you can benefit over time from bringing cost down by leveraging. So we do not have to necessarily build our own factory. For the Tempo in prior generations, we manufacture them in our factory in Seattle. So think we have enough capacity right now to be able to meet demand. I did say the demand is exceeding supplies. Yeah. It is true.

We might have to be somewhat selective, that is a good problem to have. And so if that continues, we absolutely will surge our ability to deploy, build, and ensure that we service the Tempo. But importantly, the question to be asking is, once you have the chip-based system out there, now we have with, well, DryWater closing, of course, or even the commercial relationship we already have, with Skywater, the ability to leverage their highly secure in U.S. trusted fax. The ability to make computing solutions that we can sell to national security customers, can sell to the most discriminating bank in the world. We can sell to any customer that says, yes. I know the power of quantum.

It is both amazingly powerful in a good way and it could do some really dangerous things too. Much as AI can. So we are making sure that we deploy in a way where it has the level of surety of supply to us so that no geopolitics enters into the ability for us to get components. And then have a product that our customers can trust. So I think that it is less about capacity in terms of manufacturing this time next year. But for this year, absolutely. We began investing in the third quarter. We talked about them third quarter call. And we have hired deployment engineers, and we feel pretty good actually right now.

Niccolo de Masi: Yeah. And I will just add, obviously, that all of those secure trusted fab capabilities and manufacturing scale are providing to the entire U.S. industry and all of our allies. So, we look forward to working with everyone because I think it is time to put the pedal to the metal for the industry.

David Williams: Great, great color. Just one last quick one for me. Just as you kind of think about that fab and the capabilities there today, and then looking out beyond '27 maybe, are there major step function potential investments that need to be made in order to hit that roadmap? Or are things, do you feel like they have the appropriate maybe, abilities today that the investment is not as big a heavy lift as it might otherwise be?

Inder Singh: Well, look. I think that I will not speak for Skywater. They are independent company, obviously. Right? So from our lens, when we look at the capacity that they have in Texas, in Florida, and in Minnesota, it is more than what we need actually right now. So I do not see that it, other than sort of, like, maybe some tooling and things like that, I do not see where we need to necessarily build the fab capacity. As much as ensure that it has the type of, I will call it sort of quantum ready ability to be, you know, in a clean room environment. Right? So they have clean rooms everywhere.

But quantum is, like, one level higher than their clean room. That is the investment. So it is not like moola on many, many dollars. It is more like ensuring that we provide them what they need, of course, but they have the engineering talent. They have the people, their experience, they have the abilities to do advanced packaging. Which is really important. It is not just fab, it is packaging. So we are, you know, we are looking forward to the deal closing, and we are looking forward to leveraging them of course.

And in the meanwhile, we have a commercial relationship, and we hope that, we are able to continue providing for the needs of the of '26 and beyond.

Niccolo de Masi: Yes. So I think just to add on to that, you know, there is plenty of capacity at Skywater today for the whole U.S. quantum industry. As the U.S. and allied quantum see grows, we are confident we will meet that demand at Skywater. The tooling absolutely is bespoke per program and per customer. It is typically actually part of the commercial relationship, speaking from experience that is usually part of the total conversation you will have on a multiyear basis. And so that will not come off of IonQ, Inc.'s balance sheet so much as be part of each customer's commercial agreement.

I think the last thing I will add is probably the biggest investment we are making in next few years in Skywater is we are obviously assuming some debt, which going to be paying off, on transaction close. And I think that will be the largest chunk of it believe or not. The rest of it I think will be growing with the operations in a fairly modest way.

Inder Singh: And CapEx to revenue, as you probably saw, is like low single digits. They are not very capital intensive. Neither are we. So I do not think that model changes much candidly. Might be a surge here or there, but I do not think it is a big shift.

David Williams: Great. Thanks so much for the help, and we certainly appreciate it.

Inder Singh: Thanks, David.

Operator: Due to time constraints, the last questioner will be Troy Jensen with Cantor. Please go ahead.

Troy Jensen: Congrats on the great results. Maybe just a quick one for Nikolo. You know, get the partnership for applications and software, but what is your thoughts on IonQ, Inc. controlling the controller specifically? And can you touch on your investment in Horizon?

Niccolo de Masi: So, look, we like to think about our ecosystem the following way. We are the an open interoperable stack. We are students of history and we want to make sure that we capture value from the hardware to the compiler to the application layer. It is been well known since our IPO that we have been public on the Google, Amazon, Microsoft clouds. And we want to interoperate with everyone because I think in the nation's interest and of course, IonQ, Inc. shareholder interest to have everyone learn on the IonQ, Inc. systems and sensing and networking hardware. And of course, flourish and build on top of that. Right? So, like to work with software partners.

We like to work with the so-called hyperscaler partners. We work of course with everyone from NVIDIA through to ANSYS that does computational engineering. Is a leader of that in classical and the same in the pharmaceutical space. And so, we see this all really as an end. Right? We want as much more easy as possible to be interoperable with everyone. And to that extent, we will partner consistently both across our stack and up and down our stack. But we are not handing the keys over to someone else nor are we trying to be a vertical play where you have to use all of our stuff or none of it works with your stuff.

Which we think is a limiting approach to life. There are companies that attempt that. I think history shows that you want to be open with the right posture and be clear on what you need to maintain control of to make sure that just your ecosystem works well, but also that it works well and that you continue to be able to accrete long-term value at a pace that grows faster than your cost of course. Does that answer your question? Troy?

Troy Jensen: Yes, Tyler. That is perfect, Nikolaj. Thank you. Good luck, and, yeah. Keep up with the work.

Niccolo de Masi: Thank you, sir. Have a great evening.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Niccolo de Masi, Chairman and CEO, for closing remarks.

Niccolo de Masi: Thank you. In closing 2025, I am confident the year will be remembered as the year IonQ, Inc. moved beyond the laboratory and into the bedrock of global infrastructure. We did not just meet our goals, we redefined the ceiling for the entire industry, becoming the first public quantum company to cross the $100,000,000 revenue threshold while tripling our revenue scale year on year. And we did this while demonstrating unprecedented technical excellence, demonstrating 99.99% two Cuba Gate Fidelity, becoming the first company in history can proudly say that all of our key technical milestones have been achieved on the path to full fault tolerant quantum computers.

We are no longer just building quantum computers, however, we are supplying the high precision atomic clocks, secure quantum networks, and advanced quantum cyber security hardware and software that will serve as a nervous system for the next era of computing, modeling, and sovereign security. And by acquiring Skywater, we will effectively onshore the future of quantum manufacturing, transforming IonQ, Inc. into the quantum industry's merchant supplier for the U.S. and our allies and its important geopolitical race. We enter 2026 with a fortified balance sheet and an unmatched intellectual engine of approximately 1,500 professionals, having continued growing strongly even beyond our reported end of year total.

Our focus remains clear: to lead the geopolitical space race of quantum for our generation by delivering a unified all-domain quantum platform and to help customers solve the world's most complex problems. The era of quantum utility is not on the horizon. It is here. IonQ, Inc. is the one team, one platform primed and poised to win. You for your continued trust in our journey. And we will see you next time.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

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