Craig Ellis

de Masi said the chip was the hard part; the rest (enclosure, kit) is a solved problem, with commissioning on track for H1 2027.

Singh said demand is broad-based across government and data-heavy enterprises, especially financial services, as Q-Day urgency rises.

de Masi declined revenue specifics, citing three levers: pushing single-chip qubit counts, merchant-supplier reach, and networked quantum computers.

Singh said A, B, and C tape-outs are done and the feature-rich D tape-out is in progress, following a semiconductor development path.

Singh cited globalization, compute organic growth possibly exceeding 100%, plus networking, security, and sensing demand.

de Masi cited power grid optimization, Golden Dome, defense logistics, and quantum cybersecurity/QKD spanning government and Fortune 500.

Singh said large solution deals take a few years to execute and deferred specifics until 2026 guidance, cautioning against modeling them now.

Baratz said a handful of customers want the 8- or 17-qubit gate systems now via cloud or purchase, with preliminary sales possible in 2026, more likely 2027.

Baratz said R&D and go-to-market investments are playing out as planned, with a robust and growing system-sales and QCaaS pipeline.

Markovich reaffirmed ~15% sequential OpEx growth weighted to R&D; Baratz cited gate-model and Advantage3 acceleration and enterprise-license interest.

Baratz declined to disclose the M&A strategy but said it is now a priority focused on accelerating R&D and product development, potentially including gate model and quantum AI.

Baratz said D-Wave would pursue blockchain only via a partner; he sees blockchain and AI driving the system-sale model more than QCaaS.

Mayur stood in for Craig Ellis. Baratz confirmed three other institutions in discussion but gave no system-sale revenue guidance; Markovich said system margins exceed the 72.8% consolidated non-GAAP gross margin.

Management said cloud engagement is high but too early to quantify a month after the 108-qubit launch.

Management said already-booked orders should drive a significant year-over-year sales increase in 2026, with more Novera orders in the pipeline.

The CFO said the AFRL contract recognizes ratably over three years, with a small amount already in Q3.

Management said it stays actively engaged with DOE and DoD and its roadmap has not been materially impacted by the funding delay.

Management said executing the disclosed chiplet/fidelity roadmap should be enough to reach DARPA Phase B.

Management gave a direct read on the $2.5 billion DOE bill and DARPA funding timing, expecting appropriations in 2025.

Rich described the MPLAB AI coding assistant providing 40%+ productivity improvement. Also developing AI product recommenders and TSS board-level design support tools.

Steve said the capacity assessment is far along but deferred disclosure to the March 3 investor day.

Eric confirmed $1.2B September 2025 maturity is next, then $1B in March 2028. Credit line renewal is standard process.

Philip Carter confirmed normal seasonality expected. FY25 free cash flow benefited from inventory drawdown that will not repeat in FY26. Expects some inventory build near year-end. Low channel inventory provides good visibility.

Phil expressed full confidence in current leadership team. No additional changes anticipated across product, manufacturing, operations, or other functions.