10-Q · May 15, 2026
Infleqtion delivered 14% year-over-year revenue growth to $9.461 million, led by NASA QGG service activity, but profitability weakened sharply: gross margin fell to 21.04% and operating loss expanded to $33.575 million.…
Earnings analysis · 10-Q
INFQ earnings analysis
Filed August 18, 2026 · Our reading of the company's report
The latest report
Infleqtion delivered strong top-line growth in Q2 2026, with revenue up 157% year over year to $13.538 million, led by NASA-related service activity, and with gross profit rising to $2.167 million. However,…
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Infleqtion delivered strong top-line growth in Q2 2026, with revenue up 157% year over year to $13.538 million, led by NASA-related service activity, and with gross profit rising to $2.167 million. However, profitability remained weak: EPS was negative $0.11, the operating loss was $29.858 million and operating margin was -220.6%. The post-business-combination liquidity position is substantial, with $581.738 million of cash, cash equivalents and available-for-sale securities, but high government/customer concentration, continued cash burn and material internal-control weaknesses temper the outlook.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.11
- Segment
- Single operating and reportable segment: $13.538 million total revenue; product revenue $3.173 million, down 11% year over year, and service revenue $10.365 million, up 504% year over year.
What stood out
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Revenue growth accelerated
Second-quarter revenue increased to $13.538 million from $5.277 million year over year, a 157% increase, and rose from $9.907 million in the prior quarter. Service revenue drove the growth, increasing to $10.365 million from $1.716 million year over year, primarily due to NASA’s QGG contract.
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Gross profit grew despite margin pressure
Gross profit increased 220% year over year to $2.167 million from $0.678 million, although gross margin declined sequentially to 16.0% from 25.6% in Q1 2026. Gross margin improved from 12.8% in Q2 2025.
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Sequential loss improvement
The operating loss was $29.858 million versus $10.412 million a year earlier and $33.031 million in Q1 2026. The sequential improvement reflected higher revenue, but operating margin remained deeply negative at -220.6%.
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Substantial liquidity cushion
Liquidity strengthened materially after the business combination: cash and cash equivalents were $59.285 million and available-for-sale securities were $522.453 million at June 30, 2026. Management stated these resources, excluding amounts held for tax remittance, should cover anticipated working capital and capital expenditures for at least 12 months.
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Operating cash use moderated
Net cash used in operating activities improved to $5.974 million for the six months ended June 30, 2026 from $9.727 million in the prior-year period. Capital expenditures were $1.702 million, equal to approximately 7.3% of six-month revenue, while free cash flow was not disclosed.
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Technology and backlog progress
The company reported 12 logical qubits as of June 30, 2026 and disclosed $8.9 million of remaining performance obligations expected to be recognized in the second half of 2026, supporting near-term contracted revenue visibility.
What to watch
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High customer concentration
Customer and government concentration remains high: Customer A represented 82% of second-quarter revenue, while government customers represented 92% of second-quarter revenue and 89% for the first six months. The filing states there were no material changes to the risk factors from the December 31, 2025 Form 10-K.
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Persistent operating losses
The company continues to incur substantial losses, including a second-quarter net loss of $24.695 million and an accumulated deficit of $287.910 million at June 30, 2026. Management expects operating losses and higher operating expenses for the foreseeable future.
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Material control weaknesses
Disclosure controls were not effective as of June 30, 2026 because of material weaknesses, including insufficient accounting personnel, ineffective IT general controls and weaknesses in equity-accounting controls. Management stated remediation and testing may extend into 2027.
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Cash-flow timing and restricted liquidity
Reported operating cash flow benefited from a $38.0 million increase in accrued liabilities, largely related to employee tax-withholding obligations. Approximately $27.4 million of cash received for tax withholding was not available to fund operations, creating a risk that reported cash could overstate usable liquidity.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance. It discloses $8.9 million of revenue expected from remaining unsatisfied performance obligations in the six months ending December 31, 2026, plus $12.5 million in 2027, $0.2 million in 2028 and $0.9 million thereafter. The approximately $43 million 2026 revenue outlook was disclosed in the August 12, 2026 earnings release rather than this 10-Q.
Earlier filings 4
10-K · March 31, 2026
This filing is not an operating 10-K for the quantum business: it presents the historical results of Churchill Capital Corp X, a SPAC that generated no revenue through December 31, 2025. The central event is the…
10-Q · November 12, 2025
Churchill Capital Corp X remains a pre-revenue SPAC, so revenue and operating-margin analysis are not applicable. Q3 net loss was $33.4 million and EPS was negative $0.64, versus a $69 loss in the prior-year quarter,…
10-Q · August 13, 2025
Churchill Capital Corp X is a pre-combination SPAC with no operating revenue or operating business; Q2 net income of $1,973,286 and $0.06 diluted EPS were generated by $2,158,518 of interest income on newly invested IPO…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.