Xanadu Announces Third Quarter 2026 Results
Research spending increased 67% as Xanadu secured a Canadian funding agreement and provisional additional DARPA support.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Xanadu Quantum Technologies (XNDU) reported third-quarter 2026 revenue of $1.3 million, up 32% year over year, alongside a wider net loss. Net loss reached $32.2 million, versus $20.3 million a year earlier. Research and development expense rose 67% to $25.6 million, while general and administrative expense increased 129% to $9.2 million. Cash and equivalents totaled $286.5 million at September 30.
A definitive Canadian funding agreement provides approximately $140 million as a non-dilutive loan for the Inception photonics facility. DARPA provisionally approved up to $10 million in project funding. Xanadu added manufacturing partnerships and launched Backline with AMD. The company targets up to 200 logical qubits by 2029, up to 500 by 2030 and more than 1,000 by 2031; logical qubits are error-protected quantum computing units. All financial figures are in U.S. dollars.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointApproximately $140 million in Canadian funding agreed as a non-dilutive loan supporting the Inception facility. 16% of market cap
- Moderate pointCash and equivalents reached $286.473 million at September 30, versus $16.164 million at December 31, 2025.
- Moderate pointDARPA funding of up to $10 million provisionally approved through a one-year contract extension. 1.2% of market cap
- Minor pointThird-quarter revenue rose 32% year over year to $1.3 million, primarily driven by DARPA and partnership engagements.
- Minor point. Forward-looking: it has not happened yet and may not happen.Up to $232.8 million remained available under the equity facility at September 30; Xanadu plans opportunistic use.
5 minor points
- Minor pointNine-month revenue reached $5.648 million, versus $2.742 million in the comparable 2025 period.
- Minor pointThird-quarter loss per share narrowed to $0.11, versus $0.36; nine-month loss narrowed to $0.42 from $0.85.
- Minor pointThird-quarter net interest income reached $2.272 million, versus $334,000 a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.Manufacturing expansion includes a multi-year GlobalFoundries partnership to scale photonic components and single-photon detectors.
- Minor point. Forward-looking: it has not happened yet and may not happen.Logical-qubit targets: up to 200 by 2029, up to 500 by 2030, more than 1,000 by 2031.
Negative
- Major point. Forward-looking: it has not happened yet and may not happen.Canadian funding adds a loan obligation; expected disbursements reimburse qualifying research and development investments over time.
- Moderate pointThird-quarter net loss widened to $32.2 million, compared with $20.3 million a year earlier.
- Moderate pointDARPA project funding remains provisionally approved, rather than finalized.
- Minor pointThird-quarter R&D expense increased 67% to $25.6 million, reflecting higher engineering staffing and material consumption.
- Minor pointThird-quarter administrative expense increased 129% to $9.2 million, reflecting compensation, headcount and restricted stock unit grants.
10 minor points
- Minor pointThird-quarter adjusted EBITDA loss widened to $26.3 million, versus $15.4 million; this is a non-GAAP measure.
- Minor pointThird-quarter operating loss widened to $34.627 million, versus $20.696 million a year earlier.
- Minor pointThird-quarter sales and marketing expense reached $900,000, versus $263,000 a year earlier.
- Minor pointThird-quarter cost of revenue reached $94,000, versus $52,000, excluding depreciation and amortization.
- Minor pointThird-quarter depreciation and amortization reached $1.740 million, versus $1.707 million a year earlier.
- Minor pointNine-month net loss widened to $94.851 million, versus $47.643 million in the comparable 2025 period.
- Minor pointNine-month operating loss widened to $87.885 million, versus $48.984 million in the comparable 2025 period.
- Minor pointNine-month earn-out liability fair-value loss was $7.764 million, versus none in the comparable 2025 period.
- Minor pointNine-month derivative instrument loss was $1.907 million, versus none in the comparable 2025 period.
- Minor pointThird-quarter capital expenditures were $8.4 million, mainly for research and development test equipment.
Details
Market Reaction – XNDU
On Nov 11, the day this news came out, the latest delayed price for XNDU is 3.21% above the previous close. Argus tracked a trough of -9.1% from its starting point during tracking. Our momentum scanner has recorded 15 alerts for this stock so far that day. The latest delayed price is $2.89.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Cash and cash equivalents
- $286.5 million
- As of September 30, 2026
- Revenue
- $1.3 million; +32% year over year
- Third quarter 2026
- R&D expense
- $25.6 million; +67% year over year
- Third quarter 2026
- G&A expense
- $9.2 million; +129% year over year
- Third quarter 2026
- Net loss
- $32.2 million vs. $20.3 million
- Third quarter 2026 vs. third quarter 2025
- Adjusted EBITDA loss
- $26.3 million vs. $15.4 million
- Third quarter 2026 vs. third quarter 2025
- DARPA project funding
- Up to $10 million
- Provisional approval under the Quantum Benchmarking Initiative
- Synthetic at-the-market equity facility remaining
- $232.8 million
- Available as of September 30, 2026
Previous Earnings Reports
-
Q2 revenue rose year over year, while net and adjusted EBITDA losses widened.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
adjusted ebitda financial
non-gaap financial measure financial
at-the-market equity facility financial
fpga technical
superconducting nanowire single-photon detectors technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
The Company is on a Mission to Build Quantum Computers That Are Useful and Available to People Everywhere
TORONTO, Nov. 11, 2026 (GLOBE NEWSWIRE) -- Xanadu Quantum Technologies Limited ("Xanadu" or the "Company") (NASDAQ: XNDU) (TSX: XNDU), a leading photonic quantum computing company, today announced financial results for the third quarter ended September 30, 2026. The accompanying Third Quarter 2026 Investor Presentation is available in the Investor Relations section of our website at investor.xanadu.ai.
"Loss is the engineering challenge between Xanadu and a utility-scale quantum computer, and we continue to go after it from every direction: more tapeouts, better components, and manufacturing partners who can help us push further," said Dr. Christian Weedbrook, Founder and Chief Executive Officer of Xanadu. "The partnerships, tooling, and facilities we are adding are designed to shorten the time between a design change and a measured improvement, and we plan to keep building toward a quantum data center."
Dr. Weedbrook added, "Our launch of Backline with AMD represents an important step in building the classical computing infrastructure required for utility-scale quantum computing. By integrating CPUs, GPUs, and FPGAs with quantum hardware for real-time processing and control, we believe Backline addresses a critical challenge in scaling fault-tolerant quantum computers."
"We believe we are investing ahead of the curve, and we added new government support to keep doing it. Canada’s agreement for funding through Project OPTIMISM to support the development of our new Inception facility and DARPA’s extension both provide support for the work we are already doing," said Michael Trzupek, Chief Financial Officer of Xanadu.
Third Quarter and Recent Business Milestones and Announcements
Loss reduction: Increased tapeouts, wafer runs, and investment in research and development ("R&D") headcount accelerated the Company’s cycles of learning and produced measurable progress across key components.
- Optical switch: A new 7-millidecibel optical switch sets a record the Company believes is state of the art for the component.
- Loss targets: Continued advances in component performance have meaningfully reduced overall system loss, supporting progress toward the Company's year-end 2026 system loss target of 10.2, outlined at our August Investor Day, and our longer-term objective of building a quantum data center.
- Qubit roadmap: Reducing loss supports the roadmap Xanadu presented in August at its inaugural Technology Roadmap Presentation, which targets up to 200 logical qubits by 2029, up to 500 by 2030, and more than 1,000 by 2031. See "Forward-Looking Statements".
Manufacturing partnerships: Added partners and capabilities that we believe will strengthen our manufacturing foundation and our ability to scale towards a utility-scale quantum computer.
- ASML: Collaboration with a leading supplier of semiconductor lithography equipment to help address waveguide loss, which the Company expects to be the largest source of optical loss in its integrated photonic circuits.
- Bluefors: Partnership to develop compact, modular cryogenics that bring detector cooling into a data-center footprint. Xanadu’s architecture already requires minimal cryogenics, and the work is expected to further reduce the size and cost of the cryogenic system.
- GlobalFoundries: Multi-year strategic partnership, announced in October, to scale Xanadu’s ultra-low-loss silicon nitride platform and its superconducting nanowire single-photon detectors ("SNSPDs"). The faster detectors are expected to raise the clock rate of Xanadu’s machines and reduce the footprint and resource requirements of the qubit factory.
Software: Launched Backline in collaboration with AMD, advancing Xanadu's software and classical computing infrastructure for fault-tolerant quantum computing.
- Ultra-low latency: Demonstrated median round-trip communication latency of 2.3 microseconds between an FPGA and CPU, and 4.5 microseconds between an FPGA and GPU, enabling high-speed classical processing and feedback.
- Heterogeneous computing: Supports integration of CPUs, GPUs, and FPGAs through a unified software framework, allowing workloads such as quantum error correction and real-time control to be executed on the most appropriate classical hardware.
- Open and hardware-agnostic: Provides a Python-based programming interface with compilation and execution across multiple hardware platforms, reducing vendor lock-in and enabling developers to scale from research prototypes to production systems.
Customers and strategic partnerships: Advanced work with industrial, academic, and national research partners.
- Mitsubishi Chemical: Supported by Canadian and Japanese national innovation programs, the companies demonstrated that quantum algorithms can accurately model key properties of EUV photoresist materials used in advanced semiconductor manufacturing. They are now developing an FTQC-ready software pipeline for semiconductor materials development.
- Royal Bank of Canada ("RBC") and Booz Allen: Engaged in workforce development programs leveraging Xanadu's software stack to build quantum computing expertise, alongside Xanadu's workforce training work with Lockheed Martin.
- University of Alberta: Strategic research partnership to develop quantum algorithms for cancer treatment.
Funding and government support: Converted discussions into signed or provisionally approved support from federal sources in both Canada and the United States.
- Government of Canada: Definitive agreement under the Strategic Response Fund for approximately
$140 million (1) in federal funding, structured as a non-dilutive loan, to support Inception, Xanadu’s new 158,000-square-foot advanced photonics research, development, and manufacturing facility in Toronto. Xanadu expects to receive the funds over time to reimburse the Company for qualifying R&D investments. - DARPA: Provisional approval for project funding of up to
$10 million under the Quantum Benchmarking Initiative (QBI). The one-year contract extension builds on Xanadu’s Stage B work, and Xanadu expects to allocate the majority of the funding to accelerate critical components of its R&D roadmap.
Third Quarter Financial Highlights (1)
- Cash and cash equivalents were
$286.5 million as of September 30, 2026. - Revenue of
$1.3 million , a32% year-over-year increase primarily driven by DARPA QBI revenue and revenue from partnership engagements, which was largely offset by completion of prior-year contracts. - Research and development ("R&D") expense of
$25.6 million , a67% year-over-year increase, primarily due to higher compensation related costs due to increased engineering headcount and higher material consumption costs. - General and administrative ("G&A") expense of
$9.2 million , a129% year-over-year increase primarily due to higher compensation related costs, including higher headcount and grants of restricted stock unit. - Net loss was
$32.2 million , compared to a loss of$20.3 million in the third quarter of 2025. - Adjusted EBITDA(2) loss of
$26.3 million , compared to a loss of$15.4 million in the third quarter of 2025 primarily due to increased R&D and G&A year-over-year. - Capital expenditures of
$8.4 million in the third quarter mainly driven by the purchase of R&D test equipment.
(1) All financial figures in this release are presented in United States Dollars unless otherwise noted.
(2) Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures,” below.
Note: Components may not sum to totals due to rounding. FPGA refers to a field-programmable gate array; CPU refers to a central processing unit; GPU refers to a graphics processing unit; and FTQC refers to fault-tolerant quantum computing. EUV (extreme ultraviolet) lithography is the chip-making process that uses very short-wavelength light to print the smallest features on the most advanced semiconductors.
Synthetic At-The-Market Equity Facility
Xanadu did not draw on its synthetic at-the-market equity facility with Yorkville Advisors during the third quarter of 2026. The Company raised
Third Quarter 2026 Conference Call & Investor Presentation
Xanadu will hold its third quarter earnings conference call today, November 11, 2026, at 5:30 PM EST. Dr. Christian Weedbrook, Founder and Chief Executive Officer, Rafal Janik, Chief Operating Officer, and Michael Trzupek, Chief Financial Officer, will review the results, Third Quarter 2026 Investor Presentation, and discuss the business outlook. The call and Third Quarter 2026 Investor Presentation will be webcast live and archived on the Investor Relations section of the Company's website at investors.xanadu.ai.
About Xanadu
Founded in 2016, Xanadu is a Canadian photonic quantum computing company with the mission to build quantum computers that are useful and available to people everywhere. Xanadu is building fault-tolerant quantum computers using light, with systems designed to compute at room temperature. Xanadu develops both hardware and software, including PennyLane, its open-source quantum computing platform. Xanadu is the first pure-play photonic quantum computing company to list on public markets (Nasdaq/TSX: XNDU) and is recognized globally for its breakthroughs in scalable quantum technologies. Visit xanadu.ai or follow on X @XanaduAI.
Non-GAAP Financial Measures
To supplement our historical consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use Adjusted EBITDA, a non-GAAP financial measure, to understand and evaluate our financial and operating performance.
We define Adjusted EBITDA as net loss before interest expense (income), income tax expense (benefit), depreciation and amortization expense, stock-based compensation, change in fair value of financial instruments, and other (income) expense, net (primarily foreign exchange gain (loss)), and other non-recurring income and expenses. We use Adjusted EBITDA to measure the operating performance of our business, excluding specifically identified items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations. By excluding certain items that are non-recurring or not reflective of the performance of our normal course of business, we believe that
Adjusted EBITDA provides meaningful supplemental information regarding our performance. Accordingly, we believe that Adjusted EBITDA is useful to investors and others because it allows investors to supplement their understanding of our financial trends and evaluate our ongoing and future performance in the same manner as management.
However, there are several limitations related to the use of Adjusted EBITDA as it reflects the exercise of judgment by our management about which expenses are excluded or included. Adjusted EBITDA should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Adjusted EBITDA is not a standardized measure and our presentation of Adjusted EBITDA may differ from how such a metric is used by other companies. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, is provided below.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. We have based these forward-looking statements on current expectations and projections about future events.
These statements include: Xanadu's mission and technology roadmap, including its path toward fault-tolerant, utility-scale quantum computing; expectations regarding R&D and capital spending, including the timing and pace of wafer runs, tapeouts, and engineering hires and targets for logical qubits; expectations regarding strategic collaborations and partnerships, including with Lockheed Martin, ASML, Bluefors, GlobalFoundries, AMD, Mitsubishi Chemical, and other financial institutions; expectations regarding government funding and support, including the timing and receipt of funding and the expected use and allocation of such funding; the Company's approach to the synthetic at-the-market equity facility with Yorkville Advisors, including its intention to opportunistically draw on the remaining
These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, many of which are beyond the control of Xanadu. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause Xanadu's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such statements.
Such risks and uncertainties include: Xanadu's limited operating history and history of net losses; the fact that Xanadu is pursuing an emerging technology and faces significant technical and engineering challenges inherent in scaling quantum hardware, overcoming photonic and waveguide loss, integrating heterogeneous classical control infrastructure, and realizing fault-tolerant quantum error correction, and may not achieve commercialization or market
acceptance; risks related to the commercial readiness, performance and adoption of Backline, PennyLane and proprietary photonic quantum architectures; Xanadu's reliance on strategic partners and other third parties and the risk that such strategic collaborations with partners may fail to achieve anticipated technical or commercial outcomes; dependencies on third-party semiconductor foundries, fabrication facilities and equipment suppliers; Xanadu's concentration of revenue in, and reliance upon, government and state-funded programs, including the risk that provisional approvals or funding agreements (such as the Strategic Response Fund or DARPA QBI) may be delayed, altered, conditioned, or terminated before planned amounts are fully disbursed; Xanadu's dependence on members of its senior management and its ability to attract, hire and retain specialized quantum, optical, and classical hardware and software talent; Xanadu's ability to maintain, protect, and defend its intellectual property rights; dilution, market volatility and availability of equity financing associated with drawing on the synthetic at-the-market equity facility with Yorkville Advisors; competition from alternative quantum computing modalities and established classical high-performance computing technologies and broader macroeconomic, regulatory and capital markets fluctuations; Xanadu's expectations regarding future financial performance and capital requirements; the potential need for additional future financing; and other factors described in the Company's filings with the U.S. Securities and Exchange Commission (the “SEC”) and the Canadian Securities Administrators (the “CSA”), which are incorporated by reference herein, including under the heading “Risk Factors.”
These forward-looking statements are based on certain assumptions, including that none of the risks identified above materialize; that there are no unforeseen changes to economic and market conditions; and that no significant events occur outside the ordinary course of business. Additional information concerning these and other factors that may impact such forward-looking statements can be found in the Company's filings with the SEC and the CSA, including under the heading “Risk Factors.” If any of these risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements.
These forward-looking statements reflect the expectations, plans, and forecasts of Xanadu's management as of the date of this press release; subsequent events and developments may cause their assessments to change. While Xanadu may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, unless required by applicable securities laws. Accordingly, undue reliance should not be placed upon these statements.
Summary financial tables follow.
Contacts
Press Contact: press@xanadu.ai
Investor Relations: investors@xanadu.ai
| XANADU QUANTUM TECHNOLOGIES LIMITED Consolidated Balance Sheets (In US $ thousands, except for share amounts) | |||||
| September 30, | December 31, | ||||
| 2026 | 2025(1) | ||||
| (unaudited) | |||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 286,473 | $ | 16,164 | |
| Accounts receivable, net | 5,328 | 9,477 | |||
| Materials and supplies | 3,929 | 8,344 | |||
| Prepaid expenses and other current assets | 15,457 | 6,229 | |||
| Total current assets | 311,187 | 40,214 | |||
| Property and equipment, net | 24,022 | 18,313 | |||
| Operating right-of-use assets, net | 25,743 | 6,949 | |||
| Intangible assets, net | 4,961 | 5,128 | |||
| Long-term deposits | 9,876 | — | |||
| Total assets | $ | 375,789 | $ | 70,604 | |
| Liabilities and Shareholders’ Equity | |||||
| Current liabilities: | |||||
| Accounts payable | 10,455 | 2,802 | |||
| Accrued expenses and other current liabilities | 12,764 | 2,191 | |||
| Deferred revenue | 343 | 544 | |||
| Deferred grant income | 1,497 | 492 | |||
| Short-term operating lease liabilities | 1,482 | 1,074 | |||
| Current portion of long-term debt | 264 | — | |||
| Warrant liabilities | — | 1,874 | |||
| Total current liabilities | 26,805 | 8,977 | |||
| Long-term operating lease liabilities | 26,035 | 7,185 | |||
| Long-term debt | 33,008 | 29,998 | |||
| Total liabilities | $ | 85,848 | $ | 46,160 | |
| Shareholders’ equity: | ||||||
| Old Xanadu convertible preferred shares, no par value, 204,286,254 shares authorized, 199,930,069 issued and outstanding at December 31, 2025 (1) | — | 213,002 | ||||
| Old Xanadu common shares, no par value, 336,123,821 shares authorized, 55,964,876 shares issued and outstanding at December 31, 2025 (1) | — | 7,585 | ||||
| Common shares, unlimited Xanadu Class A Multiple Voting Shares authorized, no par value, 115,458,298 issued and outstanding; unlimited Xanadu Class B | ||||||
| Subordinate Voting Shares authorized, no par value, 195,786,645 shares issued and outstanding at September 30, 2026 | 575,526 | — | ||||
| Additional paid-in capital | 16,494 | 10,151 | ||||
| Accumulated deficit | (302,561 | ) | (206,303 | ) | ||
| Accumulated other comprehensive income | 482 | 9 | ||||
| Total shareholders’ equity | 289,941 | 24,444 | ||||
| Total liabilities and shareholders’ equity | $ | 375,789 | $ | 70,604 | ||
(1) Old Xanadu convertible preferred shares and common shares have been retroactively recast after giving effect to the Reverse Recapitalization. Refer to the Company's 6-K Q3 2026 Quarterly Report filed on November 12, 2026 for additional information.
| XANADU QUANTUM TECHNOLOGIES LIMITED Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (In US $ thousands, except for share and per share amounts) | |||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Revenue | $ | 1,305 | $ | 987 | $ | 5,648 | $ | 2,742 | |||||
| Operating expenses: | |||||||||||||
| Cost of revenue (exclusive of depreciation and amortization below) | 94 | 52 | 334 | 162 | |||||||||
| Research and development | 25,560 | 15,301 | 63,165 | 38,321 | |||||||||
| General and administrative | 9,150 | 4,002 | 29,426 | 8,098 | |||||||||
| Sales and marketing | 900 | 263 | 2,848 | 863 | |||||||||
| Depreciation and amortization | 1,740 | 1,707 | 4,996 | 4,242 | |||||||||
| Other operating (income) expense, net | (1,512 | ) | 358 | (7,236 | ) | 40 | |||||||
| Total operating expenses | 35,932 | 21,683 | 93,533 | 51,726 | |||||||||
| Loss from operations | (34,627 | ) | (20,696 | ) | (87,885 | ) | (48,984 | ) | |||||
| Other income (expense), net: | |||||||||||||
| Interest income (expense), net | 2,272 | 334 | 4,401 | 1,228 | |||||||||
| Loss on fair value of earn-out share liabilities, net | — | — | (7,764 | ) | — | ||||||||
| Loss on derivative instruments, net | — | — | (1,907 | ) | — | ||||||||
| Other income (expense), net | 159 | 64 | (1,696 | ) | 113 | ||||||||
| Total other income (expense), net | 2,431 | 398 | (6,966 | ) | 1,341 | ||||||||
| Net loss | $ | (32,196 | ) | $ | (20,298 | ) | $ | (94,851 | ) | $ | (47,643 | ) | |
| Net loss per share, basic and diluted (1) | $ | (0.11 | ) | $ | (0.36 | ) | $ | (0.42 | ) | $ | (0.85 | ) |
| Weighted average shares outstanding (1) | 304,940,693 | 55,822,815 | 226,468,688 | 55,753,996 | ||||||||
| Comprehensive loss: | ||||||||||||
| Net loss | $ | (32,196 | ) | $ | (20,298 | ) | $ | (94,851 | ) | $ | (47,643 | ) |
| Cumulative translation adjustment | 236 | (278 | ) | 473 | 701 | |||||||
| Net comprehensive loss | $ | (31,960 | ) | $ | (20,576 | ) | $ | (94,378 | ) | $ | (46,942 | ) |
(1) Net loss per share and weighted average shares outstanding have been retroactively recast after giving effect to the Reverse Recapitalization. Refer to the Company's 6-K Q3 2026 Quarterly Report filed on November 12, 2026 for additional information.
| XANADU QUANTUM TECHNOLOGIES LIMITED Non-GAAP Financial Measure and Selected Cash Flow Data (In US $ thousands) | ||||||||||||||
| Reconciliation of Non-GAAP Financial Measure Adjusted EBITDA: | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net loss | $ | (32,196) | $ | (20,298 | ) | $ | (94,851) | $ | (47,643 | ) | ||||
| Excluding: | ||||||||||||||
| Depreciation and amortization | 1,740 | 1,707 | 4,996 | 4,242 | ||||||||||
| Stock-based compensation expense | 5,530 | 950 | 11,616 | 2,609 | ||||||||||
| Change in fair value of financial instruments (1) | — | 811 | 10,566 | 785 | ||||||||||
| Interest (income) expense, net (2) | (2,272 | ) | (334 | ) | (4,401 | ) | (1,228 | ) | ||||||
| Other (income) expense, net (3) | (159 | ) | (64 | ) | 1,696 | (113 | ) | |||||||
| Non-recurring expenses (4) | 1,087 | 1,782 | 8,893 | 1,853 | ||||||||||
| Adjusted EBITDA | $ | (26,270 | ) | $ | (15,446 | ) | $ | (61,485 | ) | $ | (39,495 | ) | ||
___________________
(1) Includes the gain (loss) on the fair value of the warrant, earn-out share liabilities, and derivative instruments.
(2) Interest (income) expense, net reflects the impact of interest earned on cash balances and non-cash interest expense relating to the Strategic Innovation Fund Agreement, by and between Old Xanadu and His Majesty the King in Right of Canada as represented by the Minister of Industry, as amended.
(3) Other (income) expense, net primarily consists of foreign exchange gain (loss).
(4) Non-recurring expenses primarily include professional fees such as legal, consulting, accounting and advisory fees incurred in connection with indirect costs related to the Reverse Recapitalization and PIPE Transaction, public offering, and the SATM Facility.
Selected Consolidated Cash Flow Data
| Nine Months Ended September 30, | |||||||
| 2026 | 2025 | ||||||
| Purchase of property and equipment, including equipment deposits ("capital expenditures") | $ | (14,752 | ) | $ | (5,539 | ) | |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Xanadu's third-quarter 2026 revenue and net loss?
Xanadu reported $1.3 million in revenue, up 32% year over year, and a $32.2 million net loss, compared with a $20.3 million loss a year earlier. Revenue growth primarily reflected DARPA Quantum Benchmarking Initiative revenue and partnership engagements, largely offset by completion of prior-year contracts.
How much Canadian funding did Xanadu secure for its Inception facility?
Xanadu signed a definitive agreement for approximately $140 million in federal funding, structured as a non-dilutive loan. The funding supports Inception, its new 158,000-square-foot photonics research, development and manufacturing facility in Toronto. Xanadu expects disbursements over time to reimburse qualifying research and development investments.
Did Xanadu use its Yorkville equity facility in the third quarter of 2026?
Xanadu did not draw on its synthetic at-the-market equity facility with Yorkville Advisors during the third quarter. It raised $67.2 million in net proceeds during the second quarter, leaving up to $232.8 million of the $300 million facility available at September 30, 2026. The company plans to continue using the facility opportunistically.
What is Xanadu's year-end 2026 system loss target?
Xanadu targets system loss of 10.2 by year-end 2026. The company reports that advances in component performance have reduced overall system loss, supporting progress toward that target and its longer-term objective of building a quantum data center.