Horizon Quantum reported net income of $33.4 million for the third quarter of 2026, a substantial increase from the $5.2 million loss reported in the same period last year. This financial shift resulted in part from a $43.1 million gain linked to warrant-related derivative liabilities, driven by changes in the company’s share price. Joe Fitzsimons highlighted progress in linking its software to diverse hardware platforms.
Q3 2026 Net Income Driven by Warrant Remeasurement Gain
Horizon Quantum reported a net income of $33.4 million. The company simultaneously expanded its technical capabilities through advancements in quantum processor characterization and integration with existing hardware, demonstrating progress toward scalable quantum computing infrastructure, Horizon Quantum says.
The company’s efforts to integrate its software with diverse hardware platforms reached a milestone with the successful pulse-level integration of Triple Alpha, Horizon Quantum’s integrated development environment, with Oxford Quantum Circuits’ 32-qubit Toshiko quantum processing unit. This collaboration, an ongoing effort, aims to provide developers with a versatile path toward quantum advantage by ensuring application compatibility across various quantum modalities.
Horizon Quantum used Triple Alpha’s pulse-level control capabilities to access and characterize key parameters of the OQC QPU, including qubit relaxation (T1) and qubit phase coherence (T2), metrics vital for assessing quantum computer performance and calculation duration. Beyond hardware integration, Horizon Quantum has developed a new protocol for multiplexed processor characterization, enabling more efficient and scalable quantum processing unit (QPU) assessment, according to the company.
Traditional pairwise characterization methods scale quadratically with the number of qubits, demanding a large number of measurements; however, Horizon Quantum’s approach combines multiple measurements into fewer parallel experiments, reducing the characterization overhead. On a 100-qubit processor, this multiplexing technique reduced the number of experiments needed to characterize ZZ crosstalk, unwanted interactions between qubits that reduce computational fidelity, from approximately 5,000 to just 7, representing a more than 700-fold reduction in measurement requirements.
Joe Fitzsimons stated, “We also announced that we have implemented our proprietary techniques for multiplexed characterization on a processor with greater than 100 qubits for the first time, enabling more efficient, scalable QPU characterization.” Operating expenses increased to $10.5 million in Q3 2026, up from $4.9 million in Q3 2025, driven primarily by increases in research and development and general administrative costs.
Research and development expenses rose 122% to $4.5 million, largely attributable to increased headcount and salary adjustments, while general and administrative expenses increased 127% to $5.2 million, reflecting costs associated with the company’s transition to a public entity. Despite these increased expenses, the company reported cash and cash equivalents of $102.8 million at the end of Q3 2026, a decrease of $10.5 million from the $113.3 million held at the end of Q2 2026.
Adjusted EBITDA, a non-GAAP measure excluding derivative liability changes and share-based compensation, showed a loss of $6.3 million in Q3 2026, compared to a loss of $3.0 million in Q3 2025. Horizon Quantum also announced a non-binding letter of intent to acquire Entropica Labs Pte. Ltd., a Singapore-based quantum computing company specializing in error correction and fault tolerance, for an anticipated $27 million in Horizon Quantum Class An ordinary shares.
The acquisition, subject to due diligence and definitive agreements, aims to bolster Horizon Quantum’s technical capabilities in a critical area for building reliable quantum computers. Dr. Fitzsimons added, “We look forward to exploring this opportunity further.” The company’s focus remains on developing software infrastructure that supports a diverse range of quantum hardware and accelerates the path to broad quantum advantage, even as accounting factors influence quarterly financial reporting.
During the third quarter of 2026, as part of our ongoing collaboration with OQC, we successfully completed the pulse-level integration of Triple Alpha with their 32 qubit Toshiko quantum processing unit, a further milestone in our aim of tightly integrating our software infrastructure with a variety of hardware platforms.
Dr. Joe Fitzsimons, CEO and Founder at Horizon Quantum
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