Horizon Quantum Computing Pte. (NASDAQ:HQ) reported a wider second-quarter loss as it increased hiring and incurred a large non-cash accounting charge tied to warrant liabilities, while management highlighted progress in its quantum software platform, hardware testbeds and application-development strategy.
The company reported a net loss of $115.2 million, or $2.20 per ordinary share, for the quarter ended June 30, compared with a loss of $2.9 million, or $0.07 per share, a year earlier. The result included a roughly $108 million non-cash loss from the remeasurement of warrant-related derivative liabilities, which rose in value as Horizon Quantum’s share price increased during the quarter.
Cash balance rises following warrant exercises
Horizon Quantum ended the June quarter with $113.3 million in cash and cash equivalents, up $16.7 million from $96.6 million at the end of March. Gould said public warrant exercises during the quarter generated $2.7 million in gross proceeds. As of Aug. 3, holders had exercised approximately 2.5 million public warrants, representing about 79% of public warrants outstanding, generating approximately $28.7 million in gross proceeds to date.
Chief Executive Officer Joe Fitzsimons said warrant exercises had strengthened the company’s financial runway and would support increased research and development investment. Management characterized the company as capital-light because of its software-focused model, though it said it plans to manage spending carefully during its pre-revenue period.
Gould said Horizon Quantum does not plan to pursue proof-of-concept services work that could produce limited near-term revenue, arguing that such work could distract its scientific and engineering teams from their technical roadmap. The company expects to seek revenue generation when the broader quantum-computing sector reaches “quantum advantage,” at which point it plans to transition early-access users to a cost-per-use model through cloud or on-premise offerings.
Operating expenses increase with headcount
Total operating expenses rose to approximately $7.2 million from $2.8 million in the second quarter of 2025. Research and development expense increased 117% year over year to $2.6 million, driven primarily by headcount growth and, to a lesser extent, hardware testbed setup costs.
General and administrative expense increased to approximately $3.8 million from $1.1 million a year earlier, reflecting additional headcount and costs associated with operating as a public company. Sales and marketing expense rose 51% to about $380,000, largely due to greater trade-show activity and industry engagement.
The company’s loss from operations was approximately $7.2 million, compared with a $2.7 million operating loss a year earlier. Adjusted EBITDA loss, which excludes derivative-liability fair-value changes, share-based compensation and certain nonrecurring items, was $5.5 million, compared with $2.1 million in the prior-year period.
Horizon Quantum employed 57 full-time workers at quarter-end, up from 34 a year earlier and 10% higher sequentially. Gould said scientists, engineers and other technical staff remained between 60% and 80% of total headcount. Operating cash use was $5.1 million in the quarter, compared with $2 million a year earlier.
Beryllium enters early access; Ember-1 opens to users
Fitzsimons said Horizon Quantum made its Beryllium object-oriented quantum programming language available to a small group of early-access users, primarily hardware partners. Beryllium is designed to bring software-development concepts such as classes, structs and scoped functions into quantum programming, while enabling reusable libraries and more complex programs.
Management said external adoption remains at an early stage because the rollout occurred near the end of the quarter. Fitzsimons said Horizon has seen interest in the platform and that an internal internship program had produced sophisticated programs using Beryllium’s object-oriented capabilities. For now, most library development remains internal, although the company intends to make it easier for outside developers to contribute and share code over time.
The company also opened its Ember-1 superconducting testbed in Singapore to its first users. The system uses a chip from Rigetti and is integrated with Horizon’s Triple Alpha software and control systems. Fitzsimons said the integration is enabling real-time execution of Hydrogen programs, including loops, recursive calls and concurrent classical-function evaluation, rather than relying on post-selection or fixed quantum circuits.
Hardware collaborations and applications strategy
Horizon Quantum announced a collaboration with Quantum Machines to develop embedded calibration routines for Ember-1 and potentially other systems. The objective is to maintain calibration continuously while the system operates, rather than taking hardware offline for large periodic calibration runs.
The company’s planned 256-qubit IonQ testbed system is expected to be installed in Dublin in 2027. Fitzsimons said Horizon is selecting a new Dublin office location and will need to build out laboratory facilities for the system.
Horizon also established a quantum applications team focused on three high-value problems across three industries. Fitzsimons said the effort is a long-term initiative aimed at achieving internal quantum advantage on directly monetizable problems and encouraging industry adoption, rather than creating applications for short-term sale. The company is not disclosing the targeted industries or problems.
Management said it has incorporated its existing AI team into the applications effort. Fitzsimons said Horizon’s agentic systems have produced hundreds of research notes on open quantum-computing problems in the weeks following the release of newer frontier AI models, which the company believes could help accelerate research and development.
About Horizon Quantum Computing Pte. (NASDAQ:HQ)
Horizon Quantum Holdings Ltd. is a quantum software infrastructure company focused on tools and systems that help developers build and deploy quantum applications. The company emphasizes software, algorithms, and workflow infrastructure intended to support practical quantum and hybrid quantum-classical use cases.
Horizon Quantum became a public company through its business combination with dMY Squared Technology Group, Inc (DMYY), which was formed to take a private company public through a business combination.
